Having a Comprehensive Insurance Cover always comes in handy. There are primarily two types of Insurance Policies to opt for: Life Insurance, and the other is General Insurance. The former offers financial coverage in case of loss of life due to adverse circumstances like ailments, accidents, etc.
Meanwhile, General Insurance offers financial coverage for non–life assets like vehicles, houses, hospitalisation, etc. General Insurance handles the financial losses incurred due to the loss of these assets due to any contingency as stated on the Insurance agreement.
General Insurance is further classified into four categories based on its purpose: Health Insurance, Motor Insurance, Travel Insurance, and Home Insurance.
Why buy General Insurance?
Unfortunate events like accidents, fire, floods, and other human-made and natural calamities are inevitable. You can neither predict nor minimise the damage or loss of assets in the turnaround of events like this. Here is how General Insurance helps in times like these:
Offers financial security
Financial security becomes unstable under challenging situations. You do not want to worry about finances regarding life and death. General Insurance takes the load of bearing loss of non–life assets off your plate during the spot.
Protects savings
In events like accidents and fire outbreaks or any natural disaster, there is tremendous damage and loss to life and valuables. You must cover the loss cost incurred and invest in recovering them again. You might have savings to protect the loss, but it is advisable to save them for other financial goals than a liability, and General Policies help with that.
Meets legal obligations
Opting for plans like Motor Insurance is mandatory for vehicle owners. Since road safety and accidents are a massive issue that many motor-driven countries face, buying Vehicle Insurance is compulsory to ply on the roads. You cannot drive without having a proper plan in place.
What is a Motor Insurance?
Since each vehicle owner must buy, here is a quick overview of the key details of the policy that lets you pick the right one for yourself:
They are of two kinds: Comprehensive and Third-party Insurance. The Comprehensive Plan provides coverage for damage or loss caused to your vehicle. However, Third-party coverage is limited only to loss incurred if your car harms another individual or property. It does not cover the cost incurred if your vehicle gets damaged during the mishap.
This plan is also mandatory under the Motors Vehicle Act, 1961. Opting for Comprehensive Motor Insurance is a voluntary choice.
