GENERAL INSURANCE BLOG

The term insurance is often used very loosely. Most people think that General Insurance Plans only include car, health etc. There are even misconceptions regarding the policy coverage of these plans. Read on to see what exactly general insurance stands for and the different kinds of plans which come under it.

What are the types of general insurance and their benefits?

General insurance is a contract between the insured and the insurance company for financial protection against loss, damage, theft or other liabilities that may arise. Broadly speaking, it includes all kinds of insurance except life insurance. This financial protection may be in the form of cashless services or reimbursement. Given below are some of the most popular general insurance plans available to you today.

1. Health insurance:

A health insurance policy essentially covers the costs of treatment of a medical condition or accidents. Generally, it includes medical tests, treatment for critical diseases, pre and post hospitalisation expenses etc. as mentioned in your policy wordings. You can also opt for add-on features such as maternity covers and personal accident covers to customise your plan for you and your family.

The benefits of a health insurance plan also include tax benefits under section 80D of the income tax act.

2. Motor insurance:

Whether you have a two-wheeler, a car or a truck, a motor insurance plan will offer you financial protection against loss resulting from damage, accident, theft etc. Broadly, a motor insurance policy includes-

a. Third-party insurance: This is the compensation provided by the insurer for damages caused by the insured to another person or another vehicle. Any individual getting motor insurance must have a third-party liability cover as it is mandatory by law. It can easily be purchased with the purchase of your vehicle itself.

b. Comprehensive insurance: This policy will cover damages occurring to your vehicle due to accidents, theft, natural calamities, fire etc. This will be in addition to third-party liability and will also reimburse you for theft, repairs etc.

3. Travel insurance:

Travel insurance pays for financial losses that arise during one’s travel within India or abroad. The policy might be a single trip plan which covers one trip taken within180 days of purchasing the insurance or a multi-trip plan covering multiple trips during a year. Generally, the scope of a travel plan includes reimbursement for baggage loss/delay, missed flight, medical expenditure, loss of passport etc. You can further pick a plan for individuals/families or even pick between domestic and international travel insurance based on your needs.

4. Home insurance:

Since getting your own home is a big-ticket investment, it is important to insure it. Home insurance plans financially compensate you for any damage to your home and valuables within the property due to natural and man-made disasters, fire, burglaries etc. You also have the option to get additional coverage with add-ons.

Irrespective of the kind of general insurance, the following factors need to be kept in mind before buying a policy:

Assess your needs: It is essential to evaluate your specific requirements instead of going only by someone else's recommendation or even a popular plan. For example, a health plan could either be an individual or a family floater policy. 

An increasing number of vehicles on the road, along with the insufficient infrastructure to support them, is leading to a rise in the number of accidents and fatalities. There were over 4.61 lakh road accidents just in 2018 and these are only the ones that were reported. Car insurance becomes very important at times like these.  It saves you from paying massive amounts to repair the damages to your car.

Still not convinced? Here are some of the benefits of buying a car insurance policy.

Protects your finances in case of an accident

If an accident happens, your Car Insurance can protect your finances by covering the repair expenses. If there's a third party involved and you are liable to pay them for any property damage or medical help, you can rest assured as your insurance can take care of that as well. In fact, it doesn't even have to be a road accident, as it also covers claims resulting from man-made and natural calamities like storms, floods, theft, vandalism, or riots.

Offers coverage for theft

You spend so much time, effort and money on buying a new car. The last thing you'd want is for someone to steal it. As sad as that is, it's not impossible. Which is why a good motor insurance policy also covers you against it. If your car is stolen, your policy will reimburse you the cost of your car. It can also cover the cost of repairs resulting from the break-in attempt.

Avail cashless services

When you buy motor insurance, you are entitled to getting cashless services at your insurance provider's network garages. This essentially means that you can get covered services without having to pay a single rupee. Say you damage your vehicle, all you need to do is go to your nearest network garage, show proof of your insurance and get the repairs done.

Covers personal accident liabilities

Motor insurance policies also cover disability or death leading from a car accident. So your motor insurance covers both you and your vehicle. For a person other than the owner/driver, you can separately buy a personal accident cover. The cost of your cover will depend on the extent of coverage you choose

Provides customization with riders

Riders or add-ons offer additional coverage on your basic motor insurance plan after payment of a nominal fee. The standard rider options are:

• Zero depreciation add-on where your insurer bears the cost of repairs without considering the depreciated value of your car. This feature helps you maintain the value of your car despite wear and tear.
• Road-side assistance add-on helps you out on the spot whenever you encounter any issues such as a flat tire, dead battery etc. You may even get additional road-side assistance with Magma HDI.
• Engine protection add-on covers damages to the engine due to malfunction, water damage or leakage of lubricants.
• Loss of personal belongings add-on is protection against accidents or burglaries where you end up losing valuables such as your phone or laptop. Your insurance provider helps you out with this cover by reimbursing you for your loss.

So, having the right car insurance is like always having someone watching your back when you’re driving your vehicle. It ensures the safety of your car, passengers, and pedestrians.

Health insurance is a necessity in today's age, but the easy accessibility and wide range we enjoy today weren't always there in the past. It's safe to say that health insurance policies in India have forged their path over the years. But do you know how? Here's where we can help you with facts about the insurance you can't do without these days.

How did it begin?

Since the independence of India in 1947, our healthcare system revolved around government schemes and plans. The life insurance system that dates back to 1818 was the first of its kind for Indians. The popularity of life insurance in India was attributed to the low life expectancy and closely-knit family systems.

However, with liberalization in the early 1990s, healthcare delivery improved with an increase in disposable income. As a result, life expectancy increased to 65 years by the year 2011. The nineties also saw an influx of other things such as lifestyle diseases and consistently rising medical costs which made health insurance the invaluable commodity that it is today.

Crucial developments and current scenario

The IRDAI or Insurance Regulatory and Development Authority of India's legislation of the year 2001 is a vital milestone for Health Insurance In India. It opened new avenues for investment by private players in the industry. Over the years, the advancement of treatments and cashless claims enhanced the popularity of health insurance policies among buyers.

Despite all these developments, the sector is largely dominated by government-owned enterprises and its subsidiaries that account for nearly 60% of the total market share. Private health insurers are increasing their base and outreach mainly in the tier-1 and tier-2 cities with features like cashless payments and in-patient reimbursements. A major goal of health insurance is reaching all parts of the country.

Challenges for health insurance

Over the past two decades, the health insurance providers in India are consistently struggling to provide accessible and affordable care to the masses. It has many challenges that need critical analysis and solutions. The main challenges in this sector are:

• Lack of awareness about the importance of health insurance. For instance, people don't realise how much difference a comprehensive health insurance can make at the time of an emergency.
• Gap between affordability and accessibility because the rural population relies on government-based facilities as the private sector does not cater to their basic needs. 
• Differences in service quality due to multiple levels of care delivery system. This increases the overall costs and causes quality concerns.
• Ignorance on the part of consumers which makes them avoid getting insurance until the last minute.
• No strong regulatory framework to standardize the healthcare delivery system.   

These are only some of the glaring issues we face in our country. Both consumers and insurance providers need to do their part so as to bridge the gap which will allow everyone to get healthcare in an easy and fair manner.

Future trends in health insurance

With the internet and other media platforms, more and more customers are beginning to understand the importance of health insurance. As a result, the number of policies sold has doubled in the last ten years.

The millennials have become a key focus for the major players due to their increasing awareness and their numbers in the workforce. Incentives such as tax benefits also encourage the working class to invest in health insurance plans.

In a nutshell, a focused approach of evolving cost, quality, and access show a promising future for healthcare insurance in India. 

Standardization of adequate health care provisions is still an aspiration which must be realized over the years.

To get the best of Health Insurance Policies In India, Check out Magma HDI.

In spite of the advancement in road, air and rail transportation, the sea route remains the most preferred mode of freight for international trade purposes. The sheer magnitude of cargo at stake is enough to make anyone think twice about what measures you can take to secure your shipments.

This is where marine insurance comes in. It gives you the peace of mind you need with its extensive coverage.

What is marine insurance?

Marine insurance protects you in case of damage/ loss of cargo, ships and vessels; when a property is acquired, transferred or held in possession between the starting point up until the destination.

Why buying marine insurance is a good idea?

Consider an example. Suppose you are a seller and you put your goods on a ship. Due to bad weather or a storm at sea, there is damage to valuable goods to an extent whereby the customer at the destination refuses to accept the final goods. For no fault of yours and due to unavoidable circumstances, you would suffer a monetary loss that could even go in crores!

Thus, it is essential to buy marine insurance to get coverage for the following:

• 1. Export or import shipments.
• 2. Goods being transported using sea, rail, road, post or air.
• 3. Goods being carried via coastal vessels plying between ports located within the country.
• 4. Goods that are transported via the vessels plying along rivers.

Other Advantages

Here are some other advantages that you are entitled to with your marine insurance-

• 1. The insured obtains additional advantage of global claim survey and settlement.
• 2. The cover accommodates diverse situations including property damaged either/or onshore or offshore, casualty at sea, marine liability, hull damages and other needs of the insured.
• 3. There is an option to extend the plan to include protection against extraordinary circumstances like perils at sea, strikes, pirate hijack etc.with the help of add-on covers.
• 4. Marine insurers would be willing to provide tailor-made policies as per specific requirements and budget of the insured such as Magma HDI's Marine Insurance Policy.

Exclusions

Marine insurance covers many situations, but the following are the exclusions:

• 1. Normal wear and tear or leakage.
• 2. Goods getting damaged during transportation owing to improper packaging.
• 3. Any damages due to delays.
• 4. Any damages caused intentionally to incur a loss and make a subsequent claim.
• 5. Any damages due to a civil disturbance, war, strikes, riot etc.
• 6. Any damages due to a financial difficulty such as bankruptcy or financial default of the owner of the transport vessel.

It is always a great idea to assess your unique needs before going out to purchase any insurance. However, getting a plan that is comprehensive in nature can never lead you wrong.