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Health Insurance

In India, the prevailing health care scenario has not been of a high order compared to the developed nations. The kind of medical facilities that are provided by the governments falls grossly inadequate to meet the ever increasing needs felt by citizens. Hence, most often, people are dependant upon private medical facilities, which over the years, have become increasingly costly with the advancement in the field of medicine. This has thrown up the need for going for voluntary health insurance commonly named as Mediclaim Policy.

HOW DOES IT WORK?

Health insurance give the person a control over the choice of provider, facility and timing of treatment. It provides a general peace of mind that their medical expenses are covered. The policy provides for reimbursement of Hospitalization / Domiciliary hospitalization expenses for illness / disease suffered or accidental injury sustained during the policy period. The policy pays for expenses incurred under the following heads:

  •   Room, Boarding Expenses in the hospital / nursing home
  •   Nursing expenses
  •   Surgeon, anesthetist, medical practitioner, Consultants, Specialist fees
  •   An anesthesia, blood, oxygen, OT charges, Surgical appliances, Medicines and drugs, Diagnostic Materials and X-ray, Dialysis, Chemotherapy, Radiotherapy, Cost of Pacemaker, Artificial Limbs and Cost of organs and similar expenses.
Relevant medical expenses incurred during period upto 30 days prior to and period of upto 90 days after hospitalization are treated as part of the claim.

Household Insurance Policy

The most popular domestic insurance cover available in the Indian market is the Householders' Insurance policy.

To an average Indian, home is a cherished and precious possession, not just in terms of money, but also in terms of the sentiments attached to it. Any loss or damage to the house or household goods would cause not only financial strain but also sentimental setback. Household insurance helps to mitigate, at least the financial losses, arising out of risks like fire, theft, natural disasters, breakdown of household appliances, personal liabilities.

**The particular risks covered under each section are:

  •   Household contents & building (cover for fire and allied perils)
  •   Household contents (cover for burglary, housebreaking and theft)
  •   Jewelry and valuables
  •   Plate glass
  •   Breakdown of domestic appliances
  •   TV, VCR
  •   Pedal Cycle
  •   Baggage
  •   Personal accident
  • Third party legal liability & workmen's compensation.

**Certain general exclusions are applicable to all the sections.

Types of General Insurance:
Motor Insurance

Motor insurance covers all damages and liability to a vehicle against various on-road and off-road emergencies. A comprehensive policy even secures against damage caused by natural and man-made calamities, including acts of terrorism.

Motor insurance offers protection to the vehicle owner against:

  • Damage to the vehicle
  • It also pays for any third party liability determined by law against the owner of the vehicle

Motor insurance is mandatory in India as per the Motor Vehicles Act, 1988 and needs to be renewed every year. Driving a motor vehicle without insurance in a public place is a punishable offence.

In fact, third party insurance is a statutory requirement in our country i.e. the owner of the vehicle is legally liable for any injury or damage caused to a third party life or property, by or arising out of the use of the vehicle in a public place.

A comprehensive motor insurance policy would include personal accident and liability only policy (third party insurance) in addition to own damage cover (damage to owner’s vehicle) in one policy.

Common motor insurance categories include:

  • Car Insurance
  • Two Wheeler Insurance
  • Commercial Vehicle Insurance

Some attractive benefits of motor insurance include roadside assistance, cashless servicing at nation-wide network of workshops and garages, personal accident cover, towing assistance.

Health Insurance

Health care costs are increasing every year. Sedentary lifestyle and stress at work negatively affect the health and can result in a critical illness or medical emergency. Such a scenario is sure to adversely affect one financially, due to the massive outlay of money on medical expenditure. A health insurance policy is the only way to mitigate the financial risks, apart from leading a healthy lifestyle. Health insurance guarantees peace of mind in times of crisis, and helps secure own health and that of one’s family.

Health insurance covers the medical and surgical expenses of the insured individual due to hospitalisation from an illness. Additional riders enhance the benefits and scope of the cover.

Health insurance often includes cashless facility at empanelled hospitals, pre and post hospitalisation expenses, ambulance charges, daily cash allowance etc.

Common types of health insurance policies include:

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

Travel Insurance

International travel, whether on vacation or business, can turn into a nightmare if one experiences contingencies like loss of baggage, loss of passport, delay in flight, medical emergency etc. Such eventualities will surely take the fun away from travelling.

Travel insurance, also referred to as visitor insurance, covers one against unseen medical and non-medical emergencies during overseas travel, ensuring a worry-free travel experience. It protects the insured against misfortunes while travelling. Backed up by travel insurance, the whole experience is like no other.

Different types of travel insurance policies include:

  • Individual Travel Policy
  • Family Travel Policy
  • Student Travel Insurance
  • Senior Citizens Travel Policy

In addition to the above, some insurance companies offer special plans like a corporate travel policy or comprehensive policy for travel to special destinations like Asia and/or Europe.

Home Insurance

Home is often the most treasured possession of an individual and also the largest financial investments one makes in life. Safeguarding the physical structure and contents of home seems like a logical thing to do.

Home insurance protects the house and/or the contents in it, depending on the scope of insurance policy opted for. It secures the home against natural calamities and man-made disasters and threats. Home insurance provides protection against risks and damages from fire, burglary, theft, flood, earthquakes etc. covering the physical asset (building structure) and valuables (contents) in it.

Home insurance ensures that one’s hard-earned savings are utilised to meet important needs instead of using them for rebuilding the house if some harm was to come to it.

Marine (Cargo) Insurance

Business involves the import and export of goods, within national borders and across international borders. Movement of goods is fraught with risk of mishaps which can result in damage and/or destruction of shipments. This leads to substantial financial losses for both the importers as well as the exporters.

Marine cargo insurance covers goods, freight, cargo and other interests against loss or damage during transit by rail, road, sea and/or air. Shipments are protected from the time the goods leave the seller’s warehouse till they reach the buyer’s warehouse. Marine cargo insurance offers complete financial protection during transit of goods and compensates in the event of any loss suffered.

The party responsible for insuring the goods is determined by the sales contract. Marine cargo insurance policy can be taken by buyers, sellers, import/export merchants, buying agents, contractors, banks etc. The policy usually covers the cargo, but can also be extended to cover the interest of a third party post transfer of ownership as determined by terms of sale.

Common types of policies:

  • Open Cover
  • Open Policy
  • Specific Voyage Policy
  • Annual Policy

The hull of a ship or boat can be insured under marine hull insurance.

Rural Insurance

Insurance solutions to meet the needs of agriculture and rural businesses form part of rural insurance. IRDA has stipulated annual targets for insurers to provide insurance to the rural and social sector.

As per these regulations, insurers are required to meet year-wise targets:

  • In percentage terms of policies underwritten and percentage of total gross premium income by general insurers under rural obligation
  • In terms of the number of lives under social obligation

Commercial Insurance

Commercial insurance encompasses solutions for all sectors of the industry arising out of business operations. Insurance solutions for automotive, aviation, construction, chemicals, foods and beverages, manufacturing, oil and gas, pharmaceuticals, power, technology, telecom, textiles, transport and logistics sectors. It covers small and medium scale enterprises, large corporations as well as multinational companies.

Common types of commercial insurance:

  • Property Insurance
  • Marine Insurance
  • Liability Insurance
  • Financial Lines Insurance
  • Engineering Insurance
  • Energy Insurance
  • Employee Benefits Insurance
  • International Insurance Solutions

Other Types of General Insurance:

  • Property Insurance
  • Personal Accident
  • Householder
  • Shopkeeper
  • Corporate Insurance
  • Commercial Insurance
  • Fire Insurance
  • Crop Insurance