Every
asset has a value and the business of general insurance is related
to the protection of economic value
of assets. Assets would have been created through the efforts of
owner, which can be in the form of building, vehicles, machinery
and other
tangible properties. Since tangible property has a physical shape
and consistency, it is subject to many risks ranging from fire, allied
perils to theft and robbery.
Concepts of insurance have been extended
beyond the coverage of
tangible asset. Now the risk of losses due to sudden changes in currency
exchange rates, political disturbance, negligence and liability for
the damages can also be covered.
But if a person judiciously invests
in insurance for his property prior to any unexpected contingency
then he will be suitably compensated
for his loss as soon as the extent of damage is ascertained.
Few of
the General Insurance policies are:
Property
Insurance: The home is most
valued possession. The policy is designed to cover the various risks
under a single policy. It
provides protection for property and interest of the insured and
family.
Health
Insurance: It provides cover,
which takes care of medical expenses following hospitalization from
sudden illness or accident.
Personal Accident Insurance: This insurance
policy provides compensation
for loss of life or injury (partial or permanent) caused by an accident.
This includes reimbursement of cost of treatment and the use of hospital
facilities for the treatment.
Travel
Insurance: The policy covers the insured against various
eventualities while traveling abroad. It covers the insured against
personal accident, medical expenses and repatriation, loss of checked
baggage, passport etc.
Liability
Insurance: This policy indemnifies the Directors or Officers
or other professionals against loss arising from claims made against
them by reason of any wrongful Act in their Official capacity.
Motor Insurance: Motor Vehicles Act states that every motor vehicle
plying on the road has to be insured, with at least Liability only
policy. There are two types of policy one covering the act of liability,
while other covers insurers all liability and damage caused to one's
vehicles.
Since a single policy cannot meet
all the insurance objectives, one should have a portfolio of policies
covering all the needs .
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