Broadly, there are two types of insurance in India – Life insurance and General Insurance. Life insurance is a policy that pays a certain amount of money to the beneficiary in the event of the death of insured. General insurance is a policy that covers unfortunate losses and damages to the property. General Insurance is equally important as life insurance as it covers the assets and the assets are quite exposed to damages.
Types of General Insurance
While understanding the types of insurance (life and non-life) is a bigger game in itself, here we will talk about the different kinds of general insurance.
You must have heard of at least one of the below mentioned types of insurance:
- Motor Insurance
- Home Insurance
- Health Insurance
- Jewelry Insurance
- Travel Insurance
- Commercial Insurance
- Marine Insurance
- Rural insurance and many more.
There are broadly three types of motor insurance:
- Car insurance: Having a car insurance is mandatory in India as per legal requirements. It is also important to have car insurance because it will keep you safe financially in case of theft or accidental damage to your car. There are basically two types of car insurance policies. One is third party cover and the other is comprehensive car insurance. Third party cover is the car insurance policy that gives coverage against third party damage, injury and even death. This is a minimum have policy in India by law under the Motor Vehicles Act, 1988. However, this policy only covers the personal injury to the people who were found injured by your car accident, but does not cover any damage done to your car or someone else’s car. For this benefit, we have comprehensive car insurance policy which provides financial cover for your four wheeler against damage due to accident, natural calamity, theft, fire etc. This type of policy is more popular and is preferred by the people because it offers more coverage. Comprehensive car insurance policy will cost you more than the third party cover but since it offers a complete coverage, it will ensure a lesser burden on you at the time of claim.
- Bike insurance: Bike insurance is also mandatory in India as per law. Having bike insurance also makes sense as it gives you coverage for your two wheeler against all accidental damage, theft, mishaps etc and keeps your two wheeler secure. In the case of bike insurance policy also, there are two types of cover- third party cover and the comprehensive bike insurance. As per law, third party liability cover is the minimum cover you need to have. However, if you want to give full coverage to your bike, you must buy a comprehensive bike insurance policy as it will cover your two wheeler against accidents, damage, loss, theft, fire etc. along with the third party cover. The comprehensive insurance also protects your two wheeler against theft. We all know that the chances of theft are much higher in bikes as compared to the car. This is because it is easier to lift or steal a bike and dismantle its parts to resale it. Since, theft is very common in bikes, you should go for the comprehensive bike insurance policy and not only have the third party covered insurance policy.
- Commercial vehicle insurance: Commercial vehicle insurance policies are the cover that provides financial protection to you in case of loss that happens due to accident, damage, third party liability for personal injury and death, and property damage. This type of insurance is a package policy for the commercial vehicles of various types like goods carrying private or public vehicles, passenger carrying vehicles or carriers, miscellaneous types of vehicles, and special types of vehicles etc.
Apart from non-life insurance, types of insurance in the life category are also quite vast. Usually, general insurance companies do not offer pure life insurance products and vice-versa.