General Insurance: All You Need to Know

Life is unpredictable. Life is a crazy ride and you can’t always predict your next move and neither the consequences of your next move are in your hands. In one hand, life is beautiful and full of excitement while on the other hand, it may turn out to be adverse and out of control. Yes, it’s true that there’s no way to escape from an incident that’s meant to happen. However, there are always some precautions that you can opt for to mitigate the risks.

This job is meticulously performed by General Insurance Policies. It can be alternatively regarded as Non-life Insurance. It helps you to defend yourself, your family and other important things which you value a lot in your life. These may comprise of your car, home or even your health and other valuables like professional casualties excluding death, money lending etc.

The above-mentioned valuables undoubtedly hold a lot of financial jeopardy. As a result, General Insurance Policies offer financial security against the impact of storm, fire, earthquake, flood, theft, car accidents, and other travel accidents. General Insurance plans also cover us against the expenses used up on the legal actions. To sum up, you have the alternative to decide the right type of cover and the right type of general insurance policy on the basis of your unique requirements.

One thing that you must keep in mind that the tenure for a general insurance policy is not same as the tenure we have in life insurance plans. General insurance policies are typically yearly contracts. Therefore, do not get confused between General Insurance Policy and Life Insurance Policy. They both provide security for different aspects in life. Life Insurance policies safeguard against the risks of death as well as its consequences, while, General Insurance policies help in securing against the risks resulting from the other aspects of life and its various assets.

Different Types of General Insurance Policies in India

A number of different and effective general insurance policies are available in India. As per your requirements you can choose from the below-mentioned general insurance products.

Health Insurance

The Health Insurance industry in India is presently witnessing a revolutionary transformation owing to different private insurance companies providing customized plans to the consumers. These health insurance plans are specially designed keeping in mind the widespread requirement of customers. For instance, there are different mediclaim policies specifically formulated only for cancer patients, diabetic patients, etc.

Health Insurance is basically divided into 4 different categories which include:

  • Comprehensive Health Insurance
  • Family Floater Health Insurance
  • Surgery Cover
  • Individual Cover

Health Insurance policy is basically a kind of insurance that offers coverage to the insured for medical and surgical expenses. On the basis of the health policy terms and conditions, the insurance company either pays the insured in the form of reimbursement or provides a cashless treatment facility at any of the listed network hospital of the Health Insurance Company.

A number of special benefits that comes with Health Insurance Plans are:

  • Pre and Post Hospitalization Costs are covered
  • Cashless Treatment Facility
  • Day Care Treatment, etc.

You can also go for a number of add-on covers along with a Comprehensive Mediclaim Policy to increase your health insurance coverage. These add-on covers may include,

  • Critical Illness cover
  • Room Rent Waiver
  • Hospital Cash.
  • Maternity Cover
  • Personal Accident Cover, etc.

Motor Insurance

All types of vehicles plying on the India road must be insured, as per the Motor Vehicles Act, 1988. The motor insurance companies in India allow you to select from the kind of coverage you really want to opt for your vehicle. There are basically two types of motor insurance policies:

  • Third Party Liability Only Cover
  • Comprehensive Motor Insurance Policy

Car Insurance Plans

The smartest way to financially safeguard your car is to buy a car insurance policy. Car insurance policy would protect your finances in case your car meets with an unfortunate accident, or suffers damage due to any natural disaster like earthquake, floods, theft, storm etc.

There are basically two types of car insurance plans to choose from:

  • Third Party Liability Only Car Insurance Plan:The third party car insurance plan is nothing but the coverage that is offered to the third party only. The third party coverage includes damage to another person’s car or bodily injuries, death, permanent disability, damage to the third party property etc. in the event of an accident which involved your vehicle. As per the law, it is mandatory for all vehicles to have this cover. Keep this in mind that the third party car insurance is a basic cover. We would not recommend you to buy this car insurance plan if you really love your car since this policy doesn’t cover own damage. This type of car insurance plan is best for people who consider motor insurance as mandatory and buy a car insurance plan just for the sake of meeting the legal requirements.
  • Comprehensive Car Insurance Plan: This is an optional car insurance plan and therefore, is not mandatory. The comprehensive car insurance policy offers coverage for third-party claims and also for own damage to your car. This car insurance is the best for those who want to cover the damages or losses because of the accidents and also to recuperate losses due to car theft and damages from natural disasters. So basically the comprehensive car insurance covers both third party legal liability as well as own damage. This policy is not for those who only buy motor insurance as a mandatory requirement by law.

Two Wheeler Insurance Plans

Nothing can be more exciting than riding your two wheeler vehicle wherever you wish to. The bike shows your personality. This reason certainly calls for the requirement for insuring your two wheeler vehicle. Buying a bike a insurance policy can help you save your money against the financial losses in case your bike was damaged in an accident, theft etc.

There are basically two types of two wheeler insurance plans to choose from:

  • Third Party Two Wheeler Insurance Plan: This cover is nothing but the protection guaranteed to the third party only. This coverage is offered against the loss or damage to another person's vehicle or property, permanent disability, bodily injuries or death in the event of an unfortunate accident involving your two-wheeler vehicle. This bike insurance plan is mandatory by law. We would not advise you to buy this basic third-party two wheeler insurance policy if you really love your bike beyond conditions. This type of bike insurance policy is suitable for those who consider two-wheeler insurance as mandatory field and only buy or renew bike insurance for the sake of meeting the legal requirements.
  • Comprehensive Two Wheeler Insurance Plan: This is an optional bike insurance cover and therefore, it is not obligatory. This type of insurance covers third-party legal liability claims, and also covers you as well as your vehicle against own damage. It is best choice for all those two-wheeler owners who want to cover the losses or damages resulting from the accidents and also wants to recover losses in case of theft and damage from natural disasters. This policy is not for those who take bike insurance policy as a mere mandatory clause.

    Also note that there are certain advantages of buying motor insurance which includes cashless repairing services at network garages, personal accident cover, towing facility, roadside assistance etc.

Travel Insurance

Travel insurance policies have been designed to help you deal with all the travel and medical contingencies in the course of an abroad trip. It should be your highest priority to include travel insurance policy to your checklist as you plan your overseas vacation, be it for business purpose of only for leisure.

The most important reasons to buy a Travel Insurance is to steer clear of different unforeseen conditions like

  • Loss of baggage
  • Hijack distress allowance
  • Loss of passport.
  • Flight delay
  • Medical emergencies
  • Accidental death
  • Emergency dental expenses
  • Hospital cash allowance
  • Financial emergency assistance, etc.

Apart from the benefits mentioned above, travel insurance policy also provides coverage for expenses to bring back the insured's mortals to the home country and much more.

There are different types of travel insurance plans that you can opt for as per your requirements and trip destination:

  • International Travel Insurance
  • Asia Travel Insurance
  • Schengen Travel Insurance
  • Senior Citizen Travel Insurance
  • Student Travel Insurance
  • Domestic Travel Insurance
  • Corporate Travel Insurance
  • Group Travel Insurance

Home Insurance

Home is the place where the heart is. It offers the peace of mind, warmth and serenity that you may be seeking following a strenuous day at work. This is the reason why buying a home insurance is highly important. Home insurance policy offers safety and security to the entire structure of your house. The policy makes sure that you get the highest security for all the belongings that you may have amassed over the years. There a few home insurance plans that offer coverage for up to 5 years. The premium that you would have to pay depends on the value of the belongings in have in your home.

Home Insurance Policy Covers the Structure and Content of your home from the below unforeseen circumstances:

Fire and Perils
  • Due to Fire, Explosion
  • Aircraft Damage
  • Lightning
  • Missile Testing Operations
  • Earthquake
Man Made Calamities
  • Strike
  • Riot
  • Theft or Burglary
Natural Calamities
  • Hurricane
  • Flood
  • Landslide and Rockslide
  • Storm
  • Cyclone, etc.

However, home insurance policy, doesn't comprise damage or loss as a result of nuclear perils, damage due to war, any consequential loss, any loss or damage due to pollution, contamination, etc. In addition, valuables like gold, bullion, silver etc. are not covered under home insurance plans. However, you can always opt for a special cover if you wish to.

Rural Insurance

Rural insurance policy helps to fulfill the requirements of rural and agricultural businesses which are considered to be the base of rural insurance. The prime objective of such type of general insurance policy is to make sure that working capital and assistance is provided to the rural families. Rural insurance can act as income generating assets.

Rural Insurance Policy comprises of the followings:

  • Agricultural pump sets
  • Livestock such as sheep, goat, cattle, etc.
  • Sub-Animals including honeybee, silkworm etc.
  • Plantation like rubber trees, grapes trees

Marine Insurance

Marine insurance Policy is also notably known as Cargo Insurance Policy. Marine Insurance or Cargo Insurance policies have been designed to cover any damage or loss due to terminals, ships, cargo and other transport or cargo via which any property is transferred, acquired or is held between two points that can be the origin and the destination point.

Different types of Marine Insurance policy includes,

  • Cargo insurance
  • Freight insurance
  • Hull insurance
  • Liability insurance, etc.

Commercial Insurance

Commercial insurance Policy is basically a type of general insurance product is generally offered to entities that are commercial like businessmen, industries etc. The policy offers coverage to diverse business related requirements.

The Commercial Insurance Policy offers coverage to industries like:

  • Telecom
  • Foods and beverages
  • Construction
  • Logistics sectors
  • Aviation
  • Textiles
  • Oil and gas
  • Pharmaceuticals
  • Automotive, etc.

Different types of commercial insurance include:

  • Liability insurance
  • Energy insurance
  • Employee benefits insurance
  • Marine insurance
  • Financial lines insurance
  • Property insurance
  • Engineering insurance
  • International insurance solutions

Apart from the above-mentioned different types of General Insurance products, there is still a long list of various other General Insurance solutions like

  • Crop Insurance
  • Corporate Insurance
  • Fire Insurance
  • Householder Insurance Policy
  • Shopkeeper Insurance Policy
  • Personal Accident Policy
  • Property Insurance, etc.

Claim Procedure of Various General Insurance Policies

The claim process for different general insurance policies is different. For instance, the claim process of a health insurance policy will be different from the claim procedure of a motor insurance plan. Let’s find out the claim procedures of different general insurance policies below.

Health Insurance Claim Process

There are basically 2 ways to file a claim under a Health Insurance Policy:

  • Cashless Claim
  • Reimbursement Claim

In simple language, to file a cashless health insurance claim, the treatment must be done only through a network hospital of the health insurance company you purchased policy from. To avail cashless treatment, you will be required to first seek out for an authorization as stated by the process laid down and in the prescribed form.

In case of reimbursement health insurance basis, the insurance company must be intimated as per their prescribed process. The policyholder must make sure that the documents such as claim form, prescriptions, discharge summary and bills to be submitted for reimbursement health claim are acquired after hospitalization.

Cashless Health Insurance Claim Process: Seeking Pre-Authorization

  • Duly complete the pre-authorization form available at the hospital's insurance/ Third Party Administrator (TPA) Desk.
  • Send the completed form via fax or email.
  • The claim management team of the insurance company will send the approved letter.
  • Keep in mind that the claim management team of the company could run an investigation to the hospital or you before authorization.
  • Initiate the treatment and file claim for reimbursement in case the authorization is rejected.

Reimbursement Health Insurance Claim Process: Claim Submission

  • Dully complete the necessary form and submit along with required documents like discharge summary, bills, prescriptions etc. as per the policy terms & conditions.
  • The insurance company’s claim management team will send the approved letter.
  • Keep in mind that you will be answerable if the claim management team files any queries prior to the letter issuance.
  • The reasons will be communicated by the team In case of claim rejection.
  • You need to notify the insurance company within 24 hours of the admission in case of any emergencies.
  • The notification has to reach the company 48 hours prior to the hospitalization in case of planned emergencies.
Note: If you are a GIBL customer, you can always reach out to us directly for any claim related issues or queries.

Motor Insurance Policy Claim Process

  • To file motor insurance claim, firstly, call on the insurance company’s toll-free number.
  • Thereafter, take appointment with the surveyor.
  • Take your vehicle to any of the authorized network garages for repair, in case of availing cashless service.
  • Submit all the required documents to the surveyor.
  • The liability will be confirmed by the motor insurance company.
  • If it’s possible, go for cashless facility where the insurance company will settle the repair costs directly with the network garage up to the payable amount.
  • In case you do not go for cashless motor insurance claim, you will have to pay for the repair charges and thereafter submit the bills with a claim form to the insurance company/ surveyor for settlement.
  • Thereafter, the vehicle is delivered.

Travel Insurance Policy Claim Process

To file travel insurance claim, you must register the claim within 24 hours of the incident occurrence. You can do it either by contacting via email or by calling on the toll-free number of the insurance company. The claim intimation must be done by filling the claim form properly with the right information along with the submission of a necessary set of documents.

You must provide the below-mentioned information while registering a travel insurance claim with the Insurance Company:

  • Duly filled travel insurance claim form – Insured’s name, contact details & policy details
  • Date and time of the incident
  • Nature of incident
  • Location of the incident
  • Discharge Reports
  • Visa Copy entry and exit stamp
  • Original Bills
  • Cancelled cheque
Note: The above-mentioned documents are not comprehensive. You may be required to submit other additional documents as per the requirements mandated by the Insurance Company.