What is general insurance?
General insurance is the insurance of assets, financial assets included. If due to a contingency which is covered under the plan, there is an economic loss, the loss is compensated by general insurance policies.
Top advantages of general insurance plans
General insurance plans are beneficial because of the following reasons –
- The plans cover financial losses and compensate you for the losses that you suffer. As such, general insurance plans provide you financial security even in the case of contingencies
- In some cases, general insurance plans are mandatory by law. For instance, motor insurance plans are mandatory as per the Motor Vehicles Act, 1988. Similarly, if you are travelling to Schengen countries, you mandatorily need a valid overseas health insurance plan. When you buy such mandated plans, you fulfil the legal obligation and save yourself from violation offence
- General insurance plans help in protecting your savings in emergency situations. You can, therefore, use your savings to fulfil your financial goals
- Health insurance plans, which are a type of general insurance plan, allow you tax benefits. The premiums paid for such plans are allowed as a deduction under Section 80D. This deduction helps in lowering your taxable income which, in turn, lowers your tax liability and helps you save tax.
Types of General Insurances in India
Almost everything is insurable. However, General Insurance in India is bifurcated as Fire, Engineering, Marine and Miscellaneous Insurance. Let us look at them as per the use and general acceptability. Following are the different types of General Insurances in India:
- Health Insurance
- Travel Insurance
- Motor Insurance
- Home Insurance
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