Insurance policies are taken to cover risk. However all insurance policies cannot be taken to cover all kinds of risk. Health insurance compensates you for medical expenses due to diseases. A personal accident policy for an accident you might suffer.
Car insurance for the damages you may cause to someone in a car accident or to make up the loss you suffer in an accident. Home insurance compensates you for the structural damage to your home.
General insurance protects you against losses that may or may not occur. Any insurance policy that is not life insurance may be classified as general insurance. Following are the major risks that are covered by general insurance policies.
One can obtain cover against the risk of loss to residence and property therein from fire, theft, earthquake, flood, or other contingencies.
These policies secure property owned and stored by lessees in rental locations. Sometimes the landlord may provide such cover. If not, purchasing insurance cover may be helpful.
Such policies offer financial security in case of serious illness or hospitalization.
Such policies are well known as they take care of the expenses in case of accidents. For instance, the cost of repairs, cost of reimbursing the aggrieved party, and medical bills can be covered by auto insurance policies.
This is a very popular category in the West. Pet insurance policies cover expenses incurred in connection with pets like medical bills or loss of pets.
This covers any kind of contingencies during travel.
Business insurance policies monetarily secure an organization’s physical and intellectual property.
Professionals might find these policies beneficial. It provides cover against client’s claim for loss suffered in certain situations.
These policies are for entities conducting public events such as event management organizations. They provide cover against the costs incurred due to any unanticipated event in the entity’s premise during an event.
These types of policies provide financial security in case of unemployment or major illness or such other reason. The idea being that the policyholder should be able to maintain his/her lifestyle as was before the happening of any contingency.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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