{"id":615,"date":"2019-09-09T13:51:49","date_gmt":"2019-09-09T13:51:49","guid":{"rendered":"https:\/\/www.finsafe.in\/financial-wellness\/?page_id=615"},"modified":"2021-11-03T09:22:28","modified_gmt":"2021-11-03T03:52:28","slug":"general-insurance-about","status":"publish","type":"page","link":"https:\/\/www.finsafe.in\/financial-wellness\/general-insurance-2\/general-insurance-about\/","title":{"rendered":"General Insurance"},"content":{"rendered":"\t\t
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About<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What is General Insurance?<\/strong><\/p>

Insuring anything other than human life is called general insurance. Examples are insuring property like house and belongings against fire and theft or vehicles against accidental damage or theft. Injury due to accident or hospitalization for illness and surgery can also be insured. Your liabilities to others arising out of the law can also be insured and is compulsory in some cases like motor third party insurance.<\/p>

Types of General Insurance<\/strong><\/p>

\u00a0The various types of general insurance are<\/p>

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Health Insurance<\/strong><\/p>

Helps in meeting the expenses of hospitalization of self or any other member of the family.<\/p>

Types Of Health Insurance<\/strong><\/p>

\u2022 Individual Plans: Health cover purchased for self or family.<\/p>

\u2022 Family Floater Health Plans: Plan covers entire family in one health insurance plan. Covers hospital expense which can be pre and post.<\/p>

\u2022 Pre existing disease covers: Plans offers cover against pre-existing disease e.g. diabetes, kidney failure and many more. After Waiting period of 2 to 4 years it gives all covers to insured.<\/p>

\u2022 Maternity health insurance: Ensures coverage for maternity and other additional expenses. It takes care of both pre and post natal care, baby delivery ( either normal or caesarean). \u2022 Senior Citizen Health Insurance: Provides covers and for people between 65 years and 80 years.<\/p>

\u2022 Personal Accident covers: Covers death\/disability due to accident \u2022 Critical Illness covers: Insurer Provides compensation to policy holder if he\/she is diagnosed with any of a specific illness out of a predetermined list of illnesses like cancer, stroke, organ transplant, blindness, deafness etc.<\/p>

\u2022 Group Insurance Plans: Covers a defined group of people like employees of an organization.<\/p>

Individual Health Plans<\/strong><\/p>

\u2022 Individual health plan has to bought in the name of each individual.<\/p>

\u2022 Premium will be as per each individual\u2019s age and sum insured.<\/p>

\u2022 Insurers generally give a 10% discount on the total premium if more than one individual of the same family is insured simultaneously.<\/p>

\u2022 In Individual cover, If a claim is made by one member, the sum\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0insured of other members remains intact.<\/p>

Family Floater Health Plans<\/b><\/p>

\u2022<\/b> In a family floater health plan, a single premium is to be paid to cover\u00a0 many family members.<\/p>

\u2022 The premium is basis the eldest member in the policy.<\/p>

\u2022 Entire sum insured can be availed by any or all the members .<\/p>

\u2022 A family floater plan would be cheaper than buying individual policies\u00a0 for each member of the family.<\/p>

\u2022 In case of a family history or if one member has an adverse health\u00a0 condition, then it is suggested to buy an individual health cover for that\u00a0 member.<\/p>

\u2022 Children beyond a specified age (varies between 18 to 25 depending on\u00a0 the policy) will be treated as adults and have to be moved to a separate\u00a0 plan but will be provided continuity on cover.<\/p>

Exclusions in Health Insurance<\/strong><\/p>

\u00a0\u2022 Degenerative disc of vertebral diseases, varicose veins and ulcers, sinusitis, nasal polyps and fistula, etc.<\/div>
\u2022 Expenses for investigation\/treatment irrelevant to the disease.<\/div>
\u2022 Resident doctor\u2019s charges.<\/div>
\u2022 Multiple visits by specialist doctors in a day.<\/div>
\u2022 Illness as a result of substance abuse.<\/div>
\u2022 Treatment at home \u2013 Certain insurers cover Domiciliary hospitalization,\u00a0 which means medical treatment for a period of over three consecutive\u00a0 days for a condition which would otherwise require hospitalization, but\u00a0 is taken at home. In such cases, payable expenses are capped at 10% of\u00a0 sum assured. It is however completely disallowed in case of some diseases like asthma or bronchitis.<\/div>

\u2022 Non medical charges or hospital services\/articles.<\/p>

No Claim Benefit<\/strong><\/p><\/div>

\u00a0Insured can\u00a0 claim No Claim Bonus as benefit for not availing the claim amount during the policy period. This bonus can be availed while renewing your health insurance policy.\u00a0 Some insurance companies offer an increase in sum assured, in the form of a cumulative bonus, to replace this No Claim Bonus.<\/div>
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Tax Benefits of Health Insurance under Sec 80D<\/strong><\/div>
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\u00a0Home Insurance<\/b><\/div>
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\u00a0Covers damage in case of fire,\u00a0 lightning, explosion, theft and\u00a0 other natural calamities.<\/div>
\u2022 Max cover: Rs 5 cr<\/div>
\u2022 Home insurance covers the structure and contents of your home<\/div>
\u2022 Building Insurance:<\/div>
– Based on built up area<\/div>
– Superstructure, doors, windows, electrical and plumbing works<\/div>
– does not include fixtures and fittings<\/div>
\u2022 Tenure: 1-20 years<\/div>
\u2022 Home insurance covers only the building cost and\u00a0 not land costs.\u00a0 Hence better to buy insurance on reinstatement basis. This is the value\u00a0 of reconstructing the house and depreciation would not be deducted.<\/div>
\u2022 Fire insurance covers the building and the contents against 12 perils,\u00a0 including fire, lightning, riots, storm, flood, earthquakes<\/div>
\u2022 Terrorism cover available at additional cost<\/div>
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Home Insurance<\/b><\/div>
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Motor Insurance consists of:<\/div>
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Car Insurance<\/div>
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Covers Offered<\/div>
– Stand alone third party covers<\/div>
– long term motor insurance package<\/div>
– Combination of 3 year TP and 1 year OD<\/div>
Mandatory to buy third party insurance<\/div>
– It covers third person who has been injured in an accident involving\u00a0 \u00a0 you and your car.<\/div>
From 1st Sep 2019, new car owners need to compulsorily purchase 3 year third party insurance cover for new cars\u00a0 \u00a0<\/div>
– Upfront only on 3rd party cover and not OD cover<\/div>
– No impact on NCB as NCB is provided only on OD policy<\/div>
BUY comprehensive insurance, which covers self + third party + add on covers.<\/div>
– Covers \u2013 Loss or damage by accident, fire, lightning, riots, earthquake,\u00a0 \u00a0 hurricane, terrorist attack, explosion, theft,\u00a0 \u00a0third party claim or\u00a0 \u00a0 damages.<\/div>
– Add on covers:<\/div>
\u2022 Zero depreciation<\/div>
\u2022 Engine Secure<\/div>
\u2022 NCB protection<\/div>
\u2022 Depreciation waiver cover<\/div>
\u2022 Key protect<\/div>
\u2022 Return to invoice cover<\/div>
\u2022 Personal belongs cover<\/div>
\u2022 The own damage cover of a car insurance policy will pay for any damage\u00a0 to upholstery or built-in electronics of the car like the stereo system, but\u00a0 if there are add-ons like the policyholder has installed a high-end stereo\u00a0 instead of a built-in stereo, it will have to be declared and insured by\u00a0 paying extra premium<\/div>
\u2022 The value of the car depreciates each year and IDV is the sum insured\u00a0 that\u2019s calculated based on the invoice of your car minus depreciation<\/div>
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\u00a0Two Wheeler Insurance<\/div>
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\u2022 Mandatory to buy insurance.\u00a0<\/div>
\u2022 Governed by the Indian Motor Tariff.<\/div>
\u2022 From 1st Sep 2019, new two wheeler owners need to compulsorily\u00a0 purchase 5 year third party insurance for new two wheelers<\/div>
\u2022 Covers -protection against natural and man made calamities like: fire,\u00a0 rockslide, landslide, storm, hurricane, flood, earthquake, burglary, theft,\u00a0 riots or any damage caused to the vehicle in transit by road, air, inland\u00a0 waterway or rail.<\/div>
\u2022 Provides mandatory personal accident cover of Rs. 1 lakh to the insurer.\u00a0<\/div>
\u00a0 Accident cover can also be opted for passengers.<\/div>
\u2022 Protects against legal liabilities arising due to third party\u2019s injury\/death\u00a0 or damage caused to its property.<\/div>
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\u00a0Personal Accident Cover<\/b><\/div>
\u2022 Personal accident cover is a compulsory component of a motor\u00a0 insurance policy<\/div>
\u2022 Available for both comprehensive cover and third party cover<\/div>
\u2022 Personal accident cover covers not only death but also any disability<\/div>
\u2022 Scale of compensation is as per nature of injury:<\/div>
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\u00a0\u2022 From Oct 25, 2019, the compulsory personal accident cover for owner\u00a0 driven vehicles has been increased from Rs 2 lakhs to Rs 15 lakhs<\/div>
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\u00a0Zero Depreciation acCover<\/b><\/div>
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\u2022 100% coverage\u00a0 for all parts without deduction<\/div>
\u2022 Does not cover engine damage due to water or oil leakage<\/div>
\u2022 Mechanical\u00a0 breakdown<\/div>
\u2022 Oil change & consumable<\/div>
– Limit on the number of claims in a year<\/div>
– Costs between 15-20% extra<\/div>
– Typically available for first 5 years<\/div>
– Depreciation on Parts in standard policies<\/div>
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\u00a0No Claim Bonus<\/b><\/div>
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It is the insurer\u2019s reward to the policyholder for not making a claim in the preceding years.<\/div>
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