5 Known Facts of General Insurance

The general insurance sector in India is blooming. More and more people are becoming aware about the need and importance of insurance. Previously, people only believed in buying life insurance, but now we find more and more people opting for the general insurance plans such as health insurance plans, comprehensive car insurance plans and travel insurance plans. Take a look at some interesting and known facts about the industry below –

Facts about general insurance in India

A few noteworthy facts about each type of general insurance –

  1. Health insurance

Health insurance, without any doubt, is the most common type of general insurance in India. It is one of the most sold type of insurance. Here are some interesting health insurance facts:

  • Types: Individual health insurance is available in two types – individual or family floater.
  • TPA: TPA or third party assistance is an integral part of health insurance. You need to deal with the TPA when seeking a cashless or reimbursement claim (in most cases).
  • No claim bonus: A No Claim Bonus adds to your sum insured or reduces your next year’s premium due to no claims made in a particular year. It is a discount that you get for not making a claim in a particular policy year. The discount accumulates and adds up over time. You can make huge savings on your health insurance plan if you use your NCB well.
  1. Motor insurance

After health insurance, motor insurance is the next most popular kind of general insurance in India. Here are facts about motor insurance:

  • Mandatory: It is a mandate by law for you to have a motor insurance plan if you own a vehicle as per the Motor Vehicles Act, 1988.
  • Types: There are mainly two types of motor insurance plans – the basic third party cover and the comprehensive cover. The third party cover is compulsory, whereas the comprehensive cover is optional but has an extensive coverage.

Personal accident cover: You get a personal accident cover with most motor insurance plans. This provides a death benefit to your family in case you meet with a fatal accident

  1. Travel insurance

Next, we have the travel insurance plans –

  • Inexpensive: Travel insurance is one of the cheapest forms of general insurance. You get a high cover at a low rate.
  • Flexible: Travel insurance is very flexible. You can opt for a single-trip plan, a multi-trip plan, or a student travel plan depending on your preference.
  • Health cover: You get a health cover with every travel insurance plan. So, if you fall ill while travelling, your insurance plan will cover your medical expenses.
  1. Home Insurance

Home insurance, of late, has become very popular in India. Some very interesting facts about the Indian home insurance sector include:

  • Type: Here too, we have two types of insurance cover available – the building cover and the content cover. The former covers the structure of the building while the latter covers all the items inside the house.
  • Scope of cover: You can get a cover against natural calamities such as earthquakes, tornadoes, etc. Also included are fire as well as man-made disasters such as riots.
  • Exclusions: The common exclusions include damage to the house due to age, war and wilful destruction of the property.
  1. Commercial insurance

Finally, we have commercial insurance –

  • Customisable: The commercial insurance covers differ from industry to industry, keeping the risks of the related industries in mind.
  • Legal cover: A commercial insurance policy covers the policyholder for legal costs. So, in case the policyholder is sued by a customer or any other if any legal formalities need to be carried out, a claim can be made.
  • Property cover: You get cover for your commercial property against natural calamities, riots, thefts, fires, etc.

Features that matter

These specific features give the various types of general insurance their character and essence. They make the plans more viable and useful for the customers. The general insurance industry is constantly evolving and every day you find new plans on offer. There are many wonderful general insurance products to choose from and you will surely be able to find a suitable plan catering to your exact requirements.