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General insurance basically comprises of any insurance that is not determined to be life insurance. Check out this presentation to know more about general insurance.
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A general insurance can be simply be defined as a method of sharing financial losses of few from a common fund who are equally exposed to the same loss. • It is the equitable transfer of the risk of losses form one entity to another, in exchange for a premium, and can be taken as a guaranteed small loss which can be used to prevent a large devastating loss.
Characteristics of Insurance • Pooling of Losses – Spreading of losses which are incurred by a few over the entire group. • Risk Transfer – A pure risk is transferred from the insured to the insurer, who is in a typically stronger financial position • Indemnification – The insured is restored to his approximate financial position prior to the occurrence of the losses
Types of General Insurance • Motor Insurance - Motor insurances includes insurance policies like car insurance and two wheeler insurance, covers all damages and liability to the vehicle. • Health Insurance - Ill health can result in a major halt in your life and work. Moreover, the escalating price of health care costs means that you would be shelling out a massive amount of money to bear the brunt of these costs. • Travel Insurance - Despite all your planning, a trip abroad can go wrong due to medical eventualities, and non-medical contingencies such as loss of baggage, trip delay and other incidental expenses.
Why have General Insurance? • Assures safety & security - In a situation of filing an insurance claim, the insured looks forward to a reimbursement or payment of a lump-sum amount to recover the financial loss due to any uncertainty. • Offers Peace of mind - The assurance that at the time of uncertainty you have someone to take care of your financial needs I itself leads to peace of mind. • Purges dependency - If you are insured under the right plan, then in the hour of need, you may not have to wander around looking for help from someone; either you would have to break your hard-earned savings to overcome the problem.
