What is General Insurance?

“To insure is to protect and indemnify. It does not mean Prevention of loss”.

General Insurance is a type of insurance policy that covers the financial loss suffered due to the loss or destruction of the insured asset. Insurance is our savior from any unexpected situation that might disrupt our normal life and well-being. There are two types of Insurance, viz. Life Insurance and General Insurance. While people have slowly realized the importance of Life Insurance and have become aware of it, they are still unaware of the varied list of General Insurance products that cover a diverse range of risks. Thus, it is imperative to dive into the topic of General Insurance and understand the different types of General Insurance Policies available in the market. Essentially, a general insurance policy covers only non-life risks. It has the following features:

1. It is a policy or agreement between the policyholder and the insurer, which is considered only after the realization of the premium.
2. The policyholder with a financial interest in the covered asset pays the premium.
3. The insurer will protect the insured from financial liability in case of loss.