General insurance covers your home, travel, vehicle, and health (non-life items) against fire, flood, accidents, man-made disasters, and theft. The different types of general insurance include Motor insurance, Health insurance, Travel insurance, and Home insurance. The insurance policy pays for the damage suffered by the insured during the insurance period.
Different types of insurance Because of the many advantages they offer
it is important today to be familiar with the different types of insurance.
Since the home is a valuable asset, it is important to ensure your home with proper home insurance. Home insurance protects your home and the items it contains. Household contents insurance essentially covers natural and man-made circumstances that can lead to damage or loss.
Car insurance protects your vehicle against damage, accidents, vandalism, theft, etc. There are two forms, for third parties and fully comprehensive, if your vehicle is responsible for an accident, liability insurance covers the damage caused to a third party. , you should be aware that it does not cover damage to your vehicle, and it should also be noted that motor vehicle liability insurance is mandatory under the Motor Vehicle Act of 1988 for fire, earthquake, theft, impact damage, etc. In addition, it provides Cover against any liability towards third parties in the event of property damage, personal injury or death of third parties.
If you travel internationally and suffer losses due to loss of luggage, travel cancellation or flight delay, travel insurance will protect you. You may also be offered cashless hospitalization if you are hospitalized while traveling.
Health insurance is an important tool for reducing risk and helping you with medical emergencies. Health insurance covers the hospital costs up to the insured amount. When it comes to health insurance, you can opt for standalone health insurance or a flexible family plan. It provides insurance coverage for all family members.
Difference Between General Insurance and Life Insurance Life insurance offers protection for your life
If the insured person dies prematurely within the term of the contract, the nominee receives the sum insured from the insurance company. Important financial instruments Life insurance differs from general insurance in several parameters:
- The general insurance policy is a short-term contract while the life insurance is a long-term contract.
- [With life insurance, the benefits and the sum insured are paid out when the policy expires or in the event of the policyholder’s death. With general insurance, the claim or the actual amount of damage is reimbursed when a certain event occurs.]
- [Since the life insurance contract is long-term, the premium is paid for the entire contract period or up to the minimum premium payment period and is paid in the next year if the contract is extended.]