Here are 10 FAQs on general insurance in India:
1. What is general insurance?
General insurance protects you from financial losses caused by various non-life events like accidents, illnesses, property damage, travel mishaps, etc.
2. What are the common types of general insurance in India?
Health Insurance: Covers medical expenses, hospitalization, surgeries, etc.
Motor Insurance: Mandatory for vehicles, covers damage to your vehicle, liabilities to third parties, and more.
Homeowners Insurance: Protects your house and belongings against events like fire, theft, or natural disasters.
Travel Insurance: Covers medical emergencies, lost baggage, trip cancellations, etc., while traveling.
3. How does general insurance differ from life insurance?
General insurance covers a wide range of non-life risks, usually for shorter periods. Life insurance is primarily focused on financial protection for your dependents after your death.
4. Is it mandatory to purchase general insurance?
Motor insurance (at least third-party liability) is legally required for all vehicles in India. Other types, like health and home insurance, though highly advisable, are not compulsory.
5. What factors influence my general insurance premiums?
Type of coverage: More comprehensive coverage means higher premiums.
Age: Younger people might pay less in health insurance, while age can be a risk factor for car insurance.
Location: Areas prone to natural disasters might have higher home insurance premiums.
Add-ons: Optional riders and add-ons increase your premium.
6. What is a deductible in general insurance?
It’s the amount you pay out-of-pocket before your insurance coverage kicks in. Choosing a higher deductible can lower your premiums.
7. What is the meaning of cashless claims in health insurance?
With a cashless claim, the insurer directly settles the bill with the network hospital, so you don’t have to pay upfront and later seek reimbursement.
8. Does general insurance cover pre-existing illnesses?
Generally, pre-existing illnesses have a waiting period (typically 2-4 years) in health insurance before coverage starts. Check the policy terms carefully.
9. What is the process of renewing my general insurance policy?
You’ll receive a reminder from your insurer before the expiry date. You can renew by paying the premium, and some insurers offer the option to modify coverage as needed.
10. Can I switch my general insurance provider?
Yes, you can switch to a different insurer. Consider factors like coverage, price, claim settlement ratio, and customer service before switching.
