Why there’s a need for general insurance

Who does not want to live risk-free? Getting a general insurance from a credible general insurance is one sensible step ahead to live a risk-free life. How? Life is full of risks. When you’re driving your car, there’s a risk of accident. This is even considering if one is driving with utmost safety as another person can bump into your car. For this reason car insurance is a necessity which is a part of general insurance companies’ offerings.

When you’re travelling there’s lot of risks like theft or loss of luggage, emergency treatment if your fall ill which can be really high in a foreign country. Also there can be health risks associated which may occur in future, which can be prevented by health insurance and life insurance policies.

Hence, there are risk factors linked with almost everything. Therefore, it’s important to insure all our valuable property. Getting a general insurance from general insurance companies in India helps you to secure all your valuables thus enabling to live life without any worries.

In this article I will talk about the need to get general insurance and its importance.

General insurance-Explained

Insuring anything other than human life is called general insurance. General insurance comprises insurance of property against fire or burglary, personal insurance such as accident and health insurance, and liability insurance that covers legal liabilities. There are also other covers such as errors and omissions insurance for professionals, credit insurance, and so on.

One of the main reasons why one should go for insurance is to protect one’s belongings and assets against financial loss. When one has earned and accumulated property, protecting it is prudent. The law also requires us to be insured against some liabilities. That is, in case we cause losses to another person, that person is entitled to compensation. To ensure that we can afford to pay that compensation, the law requires us to buy liability insurance, so that the responsibility of paying the compensation is transferred to an insurance company.

What’s the need for general insurance?

People own so many valuable possessions like house, business assets and vehicle. All these are vulnerable to different hazards. Also, emergency medical expenses can put one under serious financial stress. Even an otherwise mundane act like traveling too involves risks, such as accident, loss of baggage and passport, and medical expenses.

So, have you given any thought to securing the family's health, or insuring your vehicle or home against any future uncertainty? If not, then it is time to focus on it now.

Who must get general insurance?

Anyone who owns an asset can buy insurance to protect against losses due to fire or theft, and so on. Each one of us can insure our and our dependents’ health and well-being through hospitalization and personal accident policies. To buy a policy, the person should be the one who will bear financial losses if the said events occur. This is called insurable interest.

The amount you insure for is called the sum assured. Normally, a policy should cover the value of the asset — either the market value while insuring, or the cost of replacing the asset should it be lost or destroyed. The premium will depend on the sum assured. You can avail of a range of products to suit your insurance needs.