General Insurance protects against the likely loss due to unwanted incidents in monetary terms.
General Insurance covers the risk attached with non-life objects like properties, vehicles, travels, and other valuables, etc. The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous regulatory authority having headquarter in Hyderabad. The IRDAI has the responsibility of regulating, promoting and ensuring orderly growth of the insurance business in India.
Motor Vehicle Insurance
It covers Car, Motor Bike, Commercial Vehicle, etc against the loss occurred due to fire, burglary, or accidents.
It covers the home and its contents against the Fire and burglary of its contents.
It covers an individual against the illness or disease. It also covers critical illnesses like Cancer, Cardic problems, etc
It provides the covers against the risk associated with travels like accidents, loss of baggage, illness, etc. This type of insurance is popular for traveling abroad.
It covers the loss that occurred due to the fire in case of Vehicle, Stock, house property, etc.
It covers the risk associated with a sea voyage. This popular in the case of exports of goods through the sea.
General Insurance Benefits
Principles of Insurance
The principal of Uberrimae Fidei (Utmost Good Faith)
It is expected from the insured that the information furnished by him is true and correct about the subject matter of insurance. The Insurance company is liable to pay only when the correct information has been furnished to them.
Principal of Insurable Interest
The Insured should have some interest in the object of insurance. Owner of the Car has an insurable interest in Car or owner of the house in the house property.
Principal of Indemnity
Insurance indemnifies against the losses suffered due to untoward incident. It will restore the same position as it was before the accident. Insurance is not for making the profit.
Principal of contribution
The insurance company is liable to pay their part of contribution only. In case, a person obtained two health insurance policies from two companies for Rs 4 lakhs. Then in case of a claim of Rs 4 lakh, each company will pay Rs 2 lakh each, not Rs 4 lakh each.
The principle of subrogation
After payment of a claim, the ownership of the insured property transferred to the insurance company. In case of the total damage of a car, the insurance company gets the ownership of Car after payment of a claim.
The principal of Loss Minimisation
It is the responsibility of the insured to minimize the loss in case of any mishappening. In case of fire, insured is expected to take all steps to douse off the fire. He can not simply sit just because he has taken the insurance.
Principle of Causa Proxima (Nearest Cause)
In case of multiple causes of mishappening the nearest cause will be taken into account to decide the liability of the insurance company. In case a car catches fire after meeting an accident. The fire could be taken as a cause of loss.
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