General Insurance

General Insurance

  • March 28, 2022

Any type of insurance that is not life insurance is referred to as general insurance. It covers other areas of a person’s life and assets like health, car, house e.t.c. General insurance has features different from life insurance.

Definition of general insurance

General insurance is a type of insurance that is not judged as life insurance. It is commonly known as property and casualty insurance. It covers any other loss or damage apart from loss of life of the insured. 

Benefits of general insurance

  • A General Insurance policy compensates the insured in case of financial losses caused by specific events specified in the respective general insurance policy.
  • It gives the insured peace of mind during a loss and covers a large portion or the entire loss. This is determined by the type of policy and the sum assured value of the applicable Insurance policy.
  • It protects your savings in times of emergency as the insurer covers some emergency expenses.
  • Health insurance are deducted from your taxable income, thereby lowering your tax.

Types of general insurance

Types of general insurance

Although any other type of insurance falls under  general insurance, the most common ones includes

  • Motor insurance
  • Health insurance
  • Home insurance
  • Travel insurance
  • Commercial insurance

Motor insurance

Motor insurance offers coverage for vehicles in case of any form of accident, loss or damage.  Motor insurance has been made compulsory in some parts of the world if you own a car or a bike. Motor insurance will cover vehicle repairs, medical costs, and any damages or injuries caused by the insured to another motorist.

Benefits

  • If the insured is found guilty, Motor insurance covers all damage to other vehicles or objects, injuries to other motorists or lawsuits if any.
  • It covers your vehicle in case of unplanned events like theft, windshield damage, natural disasters and more.
  • Medical bill is covered if the insured or his passengers are injured in an accident.
  • Some insurance companies also offer coverage for car rental reimbursement, and car loan pay off.

Health insurance

Health insurance offers coverage of medical bills of an insured person. In recent times, health insurance has been tailored to meet the needs of patients suffering from specific illnesses like diabetes, cancer, kidney failure e.t.c.

Benefits

  • If the insured is admitted into a network hospital, the insurance company pays for the bills directly to the hospital without involving the insured person.
  • There is treatment coverage for a wide range of certain diseases.
  • Several insurance companies offer maternity coverage and alternative treatment.
  • Premiums from health insurance are exempted from tax liability. This exemption is available for both individual and family health insurance.

Home insurance

It is important that everyone has home insurance. The home is a priceless asset. Home insurance is a type of general insurance provides coverage for the home of the insured including its content from a variety of natural and man made disasters.

Benefits

  • The primary purpose of home insurance policies is to protect your primary residence, or the part of your home where you actually live in against a total loss as a result of a house fire or extensive (and costly) damage as a result of natural disasters like hurricane or tornado.
  • Another benefit of home insurance is coverage for detached structure like fence, garage, pet house e.t.c.
  • Every asset like furnitures, electronics e.t.c. contained in the inventory at the time of policy purchase is also covered against damages.
  • It also covers for alternative residence(hotel), food, or travel if the insured property is being rebuilt or repaired due to an insured event.
  • You may have medical bill coverage should someone get injured within the insured property.

Travel insurance

Traveling is an unavoidable part of life, and so are the risks that come with it. That is why, whether you travel locally or internationally, having travel insurance is necessary.

Travel insurance is a type of general insurance that protects you in the event of any traveling risks, such as accidental death, baggage loss, flight cancellation/delay, and so on. As a result, there is no way to minimize the importance of travel insurance on your trip.

Benefits

  • It covers medical expenses incurred during travel. In case of accident, the insurer reimburses the insured up to the predetermined amount contained in the contract.
  • It offers coverage against personal liability. If the insured causes damage of property or injury to a third party during travel, the third person is compensated by the insurance company.
  • It offers coverage against loss during travel, this loss may include loss of luggage, loss of travel documents e.t.c. The insurer compensates the insured if any extra expenses is incurred due to the loss.
  • If an insured’s flight is delayed or cancelled, travel insurance covers any additional expenses made as a result of the delay or cancellation.

Commercial insurance

Every business has some level of risks involved. Commercial insurance provides 

 protection against losses. it is designed to insure the business, the owners and employees.

Benefits

  • Minimizes the effect of loss in businesses. For instance if an insured production company’s  machine breaks down thereby disrupting production, the insurance company helps to cover for the losses invited during this period.
  • In an event where an insured business causes damage to a third party, the insurance company covers compensation in such situations.
  • If the business of an insured violates a copyright law, the insurance company covers the legal expenses.
  • Incase of any lawsuit, the insurance company covers the expenses.
  • If for any reason the company has to close down due to financial reasons, the insurance company can help the business to continue running.