Introduction to general insurance

General insurance is an insurance other than life insurance which includes automobile and homeowner policies. It provides payment to the insured based on the loss due to a particular financial event. It is also called as property and casualty insurance or Non-Life insurance. Basically, general insurance protects us and the things we value from financial impact of risks.

The few main products of general insurance includes:

i) Motor insurance

Motor insurance generally cover your vehicle such as motorcycle or car or even a lorry from any cases such as accidents or thefts. There are three main types of motor insurance which we can choose from which are third party cover, fire and theft cover and comprehensive cover. All three coverage cover in different area and thus it depends how much you can claim if your vehicles sustain different level or type of damage.

ii) Home insurance

Home insurance is one of the most important insurance that you should definitely buy in your life. Home being the largest asset is the most important financial investment to be protected and secured in your life. In order to protect your house, there are three types of home insurance available to be bought: basic fire policy, house owners policy and house holder policy. House owners policy provides more coverage than basic fire policy which only cover against lost or damage caused by fire, lightning or explosion. Meanwhile house holder policy contains coverage on your household content and also fatal to you as the insured.

iii) Personal accident insurance

Personal accident insurance is an policy which is normally annually that provides compensation on those events of injuries, disability or death caused solely by  violent, accident and external and visible events. Personal accident insurance is a 24-hour worldwide policy which means that you are secured 24 hours no matter where you are. Therefore this is a suitable for a whole family to secure their future. The types of coverage which are normally provided under personal accident insurance are accidental death, permanent disablement, temporary total or partial disablement, medical expenses, corrective surgery, hospitalisation benefits and funeral benefits.

iv) Medical & health insurance

Medical & health insurance are policy made specifically to cover the cost of private medical treatment such as hospitalisation and surgery which may be highly cost. This policy is important where you don't have to worry about the medical expenses when there is emergency. Moreover, when you are undergoing treatment, you also may receive an income stream.

v) Travel insurance

Travel insurance is the insurance bought when an insured are travelling. There are different type of policies for long term or short term traveler. There are lots of accident or travel related losses which may happen during travelling such as personal accident, losing your passports, hijacking, delayed baggage, losing your baggage, belongings or money and travel delays. All of the above may be covered under a travel insurance.

Difference between Life insurance and General insurance

Life insurance generally transfer the financial risk associated to your death to the insurer. You pay premiums to the insurer so that the insurer will pay you a death benefit promise in return. Meanwhile, general insurance transfer the financial risk away from you and your family to the insurer for personal matters other than life insurance. General insurance do like life insurance require the payment of premiums. However, general insurance is normally indemnity policies. With general insurance, such as property and casualty or health insurance, the amount of money is limited to the risks specifically named in the policy and to the damage actually incurred. Health insurers, for example only pay for the medical costs you incurred, instead of a lump sum of money unrelated to your medical bills. 

Advantages of general insurance

-The expenses of medical treatment which may not be delayed could be secured by     compensating from the policies of health and medical insurance.

-Sometimes those cost dealing with pets maybe handy. Pet lovers could get pet insurance policies to secure their pets' benefits.

-Accident insurance policies enable us to arrange those huge amount in least possible time in order to solve the urgency.

-Secure your new vehicles from accidents or thefts by purchasing motor vehicle insurance.

-There are also unemployment insurance which may insure your new gotten job.

-Having a travel insurance plan also secure you a safe and happy vacations.

Most important, we need to get an insurance which best suites our life style. At every step of life we need to have a insurance plan to safeguard us from calamities taking place. This uncertainties may cause a lot of trouble to our life. Therefore, general insurance is there to secured not just ourselves and also our properties.