6 Types Of General Insurance Policies You Need To Know

When it comes to insurance policies to choose from, there are two categories —general insurance and life insurance. All of the insurance terms—health, motor, home, travel, property, and you name it—all come under general insurance, except for life insurance. To make it easier for you, general insurance is a category that only focuses on the policyholder’s financial security from any unexpected loss other than their life. 

To help you better understand, let’s look at some key differences between General Insurance and Life Insurance:

Now that you have understood the major difference between the two let’s take a look at the different types of general insurance available for holders. Make sure you read all the way to the end to find out if getting general insurance provides complete coverage of the categories that fall under it or if it’s a customised policy! Here’s how the policies work and the benefits they provide to their policyholders: 

​​Types Of General Insurance Policies

1. Health Insurance

Health Insurance is the most common type of general insurance that most of us must have encountered at least once in our lives. Health insurance is essential for financial security, shielding us and our loved ones from the burden of medical expenses during illness or emergencies.

2. Motor Insurance

If you own a vehicle, you will likely understand that a third-party insurance policy is mandatory. When you buy motor insurance, it ensures that your vehicle has overall protection against any damage, whether it’s a natural calamity or a third-party issue related to the policyholder. 

Motor insurance is of two types: comprehensive and third-party, and it covers three categories: cars, bikes, and commercial vehicles.

3. Travel Insurance

Not many people have heard about travel insurance, and many consider it an expense that can be avoided. However, it is a type of general insurance that covers almost all the financial risks that one can encounter while travelling internationally. Most travel insurance companies cover things related to flights, luggage shipping, and medical emergencies, and you can customise your policy to suit your travel needs.

4. Property Insurance

Property insurance is a type of general insurance policy that covers tangible assets in the form of buildings or their contents and damage against natural or man-made causes, such as theft, fire, or deliberately damaged property. However, it doesn’t cover the owner of the property, irrespective of the reason—injury or death. Under this category, you can insure your home, commercial properties, or office, but for the content, you need a separate policy, or you can take a comprehensive policy as well.

5. Embedded Insurance

Another insurance category is embedded insurance, which covers mostly electronic assets like mobile phones, TVs, laptops, and other electronic devices. Insurance companies have taken this creative initiative to create trust and assurance that the services will be provided even after the business is done. 

6. Pet Insurance

Pet insurance is the most-awaited insurance coverage for all pet parents. It is a type of general insurance policy that covers financial risks associated with your pet’s health, such as emergency medical hospitalisation, costs related to the pet's pregnancies, dental care, and even third-party losses due to the pet. 

What Do General Insurance Policies Do?

The main idea behind different types of general insurance policies is to help people protect what they value most in their lives. For example, when you buy a car, you protect it with an insurance policy, and in return, the insurance provider collects a certain amount every year as a premium. In case your car faces any damage or loss due to an accident or natural disaster, the insurance will come forward and cover the decided expenses that may arise. In some cases, if the policy terms agree, you might get a replacement or a cash settlement if it says so.

Benefits Of Different Types Of General Insurance Policies

Well, we cannot predict an accident in our lives, but we can be prepared for it. If you have different types of general insurance policies, such as those offered by Acko,  you can be assured that you are covered for different circumstances. You don’t have to go through a lot of financial disturbances, as your insurance policy will cover more than half of it. 

Let’s take a look at the different benefits of having a general insurance policy in today’s world:

• General insurance safeguards against losses. Therefore, if an unfortunate situation arises, you can get compensation in all areas.
• If you have health insurance, along with healthcare coverage, you can get a tax deduction for yourself, your spouse, children and parents.
• In some cases, general insurance is mandatory. You cannot drive a car unless you have valid insurance that provides coverage against third-party losses. Thus, your vehicle needs to be financially protected.
• For motor insurance, a tax exemption can be applicable if all the expenses incurred by a car are for business purposes with supporting documents. 

What Are The Documents Required To Buy A General Insurance Policy?

This is a list of the documents you will need to buy general insurance in India:

Standard Documents

1. Identity proof—any government ID, driving licence, or passport can be served. 
2. Age proof—you must submit a document that confirms your age, such as a birth certificate or school certificate. 
3. Address proof—you must submit proof of address, such as a bank statement or rental agreement. 
4. Income proof—valid proof of your income, such as salary slips, past months' bank statements attested by a bank, or the latest salary increment letter.

Insurance-Specific Documents

For health insurance, please provide the health insurance proposal form, original medical bills, medical examination report, ambulance receipt, and final hospital discharge summary. For motor insurance, provide a claim form, invoice of the vehicle, registration of the vehicle, and copy of the police report.

We hope that you have a clear understanding of general insurance and its different types. Non-life or general insurance covers costs in case an unforeseen event results in the loss of assets. Now, coming back to the question of whether or not getting general insurance provides complete coverage of the categories that fall under, the answer is no. 

When someone takes out a general insurance policy, they typically need to decide which specific policy they want and the coverages they want to include in it. So, it’s tailor-made, and you can budget by selecting the appropriate coverage for your situation.