Categorized | Health Insurance

potential of general insurance in india

About General Insurance

General insurance comprises of policies that wrap up all aspects of a person's life and belongings. Medical insurance, car insurance, home insurance, health insurance, personal accidents and Travel Insurance – all these insurances fall under General insurance.

Advantages of General Insurance:

There are always dual objectives of any insurance policy: to compensate you financially for any loss, and to give you peace of mind in case of a loss. For example the cost of any medical treatment can reach up to any heights. If you are covered by a medical insurance policy, then the insurance company provides you with a lot of financial support which can be almost up to 80 % of the entire expenditure, which is a huge saving. In some cases, insurance is mandatory. For example, it is mandatory to have a car insurance Policy if you want to drive it.

Potential of general insurance in India 

Once privatization was adopted in India, the insurance industry showed tremendous progress. The privatization helped to augment competence of insurance business. Many new private companies came up with innovative products related to general insurance.

All components of general insurance like car insurance, health insurance, and home insurance started to gain popularity. Interestingly, Health Insurance seems to be one of the highly paced growing areas of general insurance, responsible for one-fourth of the total gross Premium income, according to the finance ministry note.

General insurance of India or non-life insurance companies offer health insurance, car insurance, personal accident, home, travel insurance products etc. With increasing income levels, high demand for vehicles, growing health awareness, dual income, high stress factor, high standard of living and certain other factors can together give a major push to this sector.

Some of the chief private insurance companies in the Indian market are ICICI Prudential, Bajaj Allianz Life Insurance, Kotak Life insurance, Tata AIG life, HDFC Standard Life, Reliance Life, ICICI Lombard etc.

General Insurance Products in India:

Health Plan

In India health plan is often referred as mediclaim. This plan safeguards a person from unforeseen medical emergencies. There are two categories of health insurance: Individual Health Plan and Family Floater Health Plan.

Car Insurance

As the name suggests, car insurance is taken to protect the car and driver from loss/damage of property, injury to driver or death arising out of any unfortunate event of Accident on roads. In India third party motor insurance is mandatory by law which protects the third person in case of any car accident, apart from this, comprehensive car insurance is also available that offers host of Coverage options to the car owner. However comprehensive car insurance in not mandatory but it protects the property and occupants of the car from unforeseen event of accidents or mishaps.
•Travel Insurance

Travel Insurance protects the traveler against loss, delay or damage while he is travelling. Following are some of the events that are covered under travel insurance:

?Emergency medical expenses

?Emergency medical evacuation

?Accidental Death and permanent total disability

?Flight delay

?Loss of baggage and personal documents