A general insurance policy by definition, covers all the non-life related entities or situations. In simpler terms, a life insurance policy usually looks after the death-related risks and compensations. Whereas a general insurance policy offers coverage for other aspects or entities that have substantial financial value.
General insurance is a wider category and includes several insurance types under its umbrella. Here are some of the most prominent ones.
- Health Insurance
- Motor Insurance
- Home Insurance
- Marine Insurance
- Travel Insurance
- Commercial Insurance
- Rural Insurance
The above policies again can be further broken down into smaller categories. The entities that each of these policies covers pose a lot of financial risks. Thus, having a general insurance ensures that you are not any type of financial stress should there be any damage or loss to the above entities. Some of the most common risks that these entities are open to include fire, floods, earthquake, riots, vandalism, accidents etc.
Even though general insurance has a lot of policies under its belt, two of them secure high points when it comes to popularity. Health insurance policy and motor insurance policy are those two policies. Since these are the two most popular policies, here is the list of all the covers that the policy has on offer.
You can buy a motor insurance either for your car or your bike. And there are two primary policy types to choose from, a third party liability cover and a comprehensive policy.
- The third party liability cover ensures that any damages or injuries to third party individuals or property is well taken care of.
- A comprehensive policy offers a third party liability cover and adds several other features.
- It offers cover for own damage.
- It offers cover for man-made calamities in the form of riots, vandalism, malicious activities, theft, burglary and so on.
- It offers cover for natural calamities such as typhoon, cyclone, flood, hailstorm, landslides, earthquakes etc.
- If there are any damages to the vehicle during transit, either by road, air or water, the policy would cover the same.
- Most of the insurers offer a personal accident cover for the policy holder of a motor insurance.
- If you want to enhance the capabilities of your motor insurance, you can add riders to your policy.
The primary intent of buying a health insurance is to keep at bay all the financial concerns arising out of medical conditions. And ensuring the best possible healthcare for you and your family members. The following are some of the covers that insurers usually offer.
- It covers expenses related to an inpatient or for hospitalisation that extends beyond 24 hours.
- A health plan usually covers pre-hospitalisation medical expenses up to 60 days prior to a medical procedure.
- Insurers also offer coverage for post-hospitalisation medical expenses up to 90 days post a medical procedure.
- A few of the medical procedures do not require for a patient to be admitted for more than 24 hours, a health plan covers such scenarios as well.
- Some plans offer coverage for ambulance expenses.
What Should You Do Before Buying General Insurance?
Now that you are aware of the different types of general insurances available, there are a few steps that you can take before you actually buy them. Here are a few of them which will aid you in buying the right policy for your needs.
While you have very little control over what an insurer offers, you do have the lion’s share of control regarding the sum assured/insured. You must factor in various parameters before actually deciding the sum assured/insured value.
Most general insurance policies offer some form of add-ons or the other. Do a quick check through the list and assess whether or not you need the add-ons.
When you compare policies on Coverfox, you educate yourself regarding the premiums as well as the offerings from insurers. You get to learn more and save more from your policy.
How Do You Calculate Premium on General Insurance
Since there are various individual types of policies available in a general insurance, the parameters that decide the premiums also vary accordingly. For an instance, if you are buying a health insurance age, pre-existing conditions, medical history, gender, marital status, occupation and location of residence play a critical role in deciding the premium. Similarly, depending on the type of policy you wish to buy, the premium amount will change. With a varied range of policies available that cater to a various needs, a general insurance in some form or the other is a must for everyone.