General Insurance
General Insurance protects against the likely loss due to unwanted incidents in monetary terms
General Insurance covers the risk attached with non-life objects like properties, vehicles, travels, and other valuables, etc. The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous regulatory authority having headquarter in Hyderabad. The IRDAI has the responsibility of regulating, promoting and ensuring orderly growth of the insurance business in India.
General Insurance Policy Types
Vehicle Insurance
It covers Car, Motor Bike, Commercial Vehicle, etc against the loss occurred due to fire, burglary, or accidents.
Home Insurance
It covers the home and its contents against the Fire and burglary of its contents.
Marine Insurance
It covers the risk associated with a sea voyage. This popular in the case of exports of goods through the sea.
Travel Insurance
It provides cover against the risk associated with travels (inland or abroad) like accidents, loss of baggage, illness, etc.
Fire Insurance
It covers the loss that occurred due to the fire in case of Vehicle, Stock, house property, etc.
Health Insurance
It covers an individual against the illness or disease. It also covers critical illnesses like Cancer, heart problems etc.
General Insurance Benefits
Financial Security
General insurance protects the financial losses and damage to the policy holder’s valuables and assets, that may have caused due to theft, burglary, terrorism, natural disasters like flood, earthquake, etc.
Tax Benefits
Your general insurance policies and life insurance policies have tax benefits. Health insurance tax benefits in India allows citizens to avail are benefits under section 80D. Senior Citizens, aged above 60 years of age are allowed a tax deduction of Rs. 30,000.
Mental Peace
Insurance policy provides coverage against third-party liability, personal accidents, protection against theft, burglary, terrorism, natural disasters and risks related to any business. Certain policies also takes care of your family and loved ones when you’re not around thus ensures mental peace and makes you worry-free.
Principles of Insurance
It is expected from the insured that the information furnished by him is true and correct about the subject matter of insurance. The Insurance company is liable to pay only when the correct information has been furnished to them.
The Insured should have some interest in the object of insurance. Owner of the Car has an insurable interest in Car or owner of the house in the house property.
Insurance indemnifies against the losses suffered due to untoward incident. It will restore the same position as it was before the accident. Insurance is not for making the profit.
The insurance company is liable to pay their part of contribution only. In case, a person obtained two health insurance policies from two companies for Rs 4 lakhs. Then in case of a claim of Rs 4 lakh, each company will pay Rs 2 lakh each, not Rs 4 lakh each.
After payment of a claim, the ownership of the insured property transferred to the insurance company. In case of the total damage of a car, the insurance company gets the ownership of Car after payment of a claim.
It is the responsibility of the insured to minimize the loss in case of any mishappening. In case of fire, insured is expected to take all steps to douse off the fire. He can not simply sit just because he has taken the insurance.
In case of multiple causes of mishappening the nearest cause will be taken into account to decide the liability of the insurance company. In case a car catches fire after meeting an accident. The fire could be taken as a cause of loss.
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