Types of General Insurance
A contract between two parties, whereby one party agrees to indemnify or cover the loss suffered by the other party for a consideration of some money(premium) is known as Insurance. Insurance policies protect against the numerous forms of uncertainty that might occur in a person’s life. Insurance provides certainty, protection, shares risk and assist in capital formation.
General insurance refers to insurance contracts that do not fall under the coverage of life insurance. Fire, marine, motor, accident, and other non-life insurance are all types of general insurance. General insurance protects us and the things we value, such as our houses, automobiles, and belongings from fire, flood, storm, earthquake, theft, car accidents, and travel disasters, etc.
Types of General Insurance
General Insurance can be of following types:
1. Health Insurance
Health Insurance is a contract between an insurer and an individual or a group in which the insurer agrees to provide health insurance at an agreed upon price, which is premium. Premium can be paid in instalments or in lump-sum depending upon the policy taken.
Health insurance claims can be made either immediately in cash or through payment after treatment. In India, health insurance is accessible in the form of Mediclaim coverage, which is offered to an individual or to any group, association or corporate bodies.
2. Motor Vehicle Insurance
Motor Vehicle insurance protects vehicles from unexpected and unfortunate events. Motor vehicle insurance can be purchased both online and offline from businesses authorized by the Insurance Regulatory and Development Authority of India (IRDAI). The Motor Vehicles Act requires both individual and commercial vehicle owners to insure their vehicles. Failure to obey this guideline may result in monetary penalties and legal concerns. The government has made motor insurance necessary for protection and the safety of the owner and others. And the yearly premium is less in comparison to the benefits it provides in the event of a disaster. The rate of premium under motor insurance is standardised.
3. Burglary Insurance
Burglary insurance falls under the classification of insurance of the property. A burglary occurs when someone uses force to unlawfully enter someone else’s property, even if they do not steal anything. The loss of damages of household goods and properties and personal effects due to theft, larceny, burglary, house-breaking and acts of such nature are covered under Burglary Insurance. The actual loss is compensated.
The following conditions must be fulfilled:
- Insurable interest must exist at the time of loss, but not necessarily at the time when the policy was taken.
- The principle of Causa Proxima will apply to it.
4. Crop Insurance
Crop insurance is a contract which protects agriculturists against financial losses caused by crop failures due to drought or flood. It compensates for crop losses or damage caused by a variety of factors such as hail, drought, frost, flood, and disease. Damages and losses relating to the production of rice, wheat, millets, oil seeds and pulses etc., are covered under crop insurance. Insurance can also act as a catalyst since lenders are more inclined to give loans to farmers who are insured, allowing them to make productivity-boosting investments.
5. Cattle Insurance
When a sum of money is secured to the assured in the event of death of animals like bulls, buffaloes, cows, etc., it is known as Cattle Insurance. Cattle insurance policies cover cattle deaths caused by fire, traffic accidents, electricity, drowning, snake bite, strangling, poisoning, and accidental external causes. This insurance protects indigenous crossbred and exotic cattle held by private owners and financial entities, such as bank-financed, military dairy farms, cooperative dairies, and corporate dairies.
This insurance provides protection for two categories of risks :
- Cattle death: It encompasses loss of life due to accident or injury, as well as sickness caused by surgical infection.
- Permanent Impairment Health coverage: It protects against the risk of permanent and complete disability of cattle.
6. Sports Insurance
Sport and recreation organisations must protect their assets with appropriate insurance. Sports insurance is contract which is meant to protect amateur and professional athletes covering their sporting equipment, personal effects, legal liability and personal accident risks. The policy protects the players during scheduled competition or club-approved training. Most athletic clubs require players to have insurance policies, and the cost of the premium is paid at the time of registration. Sports insurance covers one or more sports, such as angling, badminton, golf, etc.
7. Amartya Sen Siksha Yojana
Amartya Kumar Sen, born 3 November 1933, is an Indian economist and philosopher who has taught and worked in the UK and the US since 1972. In Kolkata, he created a scheme that provides insurance coverage of up to Rs. 1 million to students whose parents have died in an accident.
The General Insurance Company’s insurance provides for the education of dependent children. If the insured parent/legal guardian sustains any physical harm as a consequence of an accident caused by external violent and visible methods, and if such damage is the sole and direct cause of his/her death or permanent complete disablement within twelve calendar months of its occurrence. The insurer shall indemnify the insured student for all covered expenses incurred from the date of the occurrence of such accident until the expiry date of the policy or completion of the duration of the covered course, whichever occurs first, and such indemnification shall not exceed the sum insured as stated in the policy schedule.
8. Rajeshwari Mahila Kalyan Bima Yojana
Rajeshwari Mahila Kalyan Bima Yojana aims at providing relief to the family members of insured women in case of their death or disablement. This policy gives economic security to women. This policy is for all women between the ages of 10 and 75, regardless of their income, profession, or occupation. This insurance has been designed to provide relief to the family members of insured women in the event of their death or disablement as a result of all types of accidents and/or death and/or disablement as a consequence of issues particular to women only.