The 4 Things to Know About General Insurance
General insurance is a term categorized from the basket of insurance. The Insurance policies in India are further categorized in two buckets, life insurance & general insurance.
General insurance helps secure your valuable assets. It is a plan which covers costs related to the insured and her possessions.
There are few risk-free instruments available in India. Getting general insurance gives an assured insurance as well as is risk-free. General insurance is one of the practical modes for a person to invest in risk-free options.
You must have heard of a gamut of financial covers which provide insurance. However, very few are risk-free. General insurance is one of them. Risk refers to the potentiality of a certain event being uncertain or unpleasant. Hence, it is important that one secures all the things he/she owns.
There are insurance companies present in India which sell products in combinations. They’re known as package policies. The specialty is that these policies are pre underwritten as well as underwritten. They are provided to consumers after considering the consumer needs in different segments.
Tip- You must ensure that your general insurance policy covers each of your needs and considers all associated risk factors. The risk factors refer to those associated with a person’s product or belongings.
Further you can browse your way through 4 important things to know regarding general insurance.
- 1. Checking the special conditions-
A buyer before purchase must check about the list of special conditions. These special conditions associated with the policy are loadings and voluntary or compulsory excesses.
For any bargaining consumer, the company will grant the person with a policy at lower rates. However, it may result in compromising some crucial aspects like above. This can cause trouble during a claim.
- 2. Third Party section-
Third party section of a general insurance plan is a vital part. It ensures that obligations of insured with regards to insurance’s core matter and those associated with it are covered.
For instance, fire results in the wreckage of a customer’s car in your garage. Therefore, you’re liable to compensate to your customer. However, if you have a third-party component then the insurer will take care of the compensation.
- 3. Policy Endorsements
In case you find errors in your policy. Ensure that your policy has a clause which says that the insurer will endorse your errors and provide a viable solution. Also ensure that you get an endorsement certificate which must be signed from the branch of your insurer.
- 4. Policy termination
Policy holders enjoy the right to annul the general insurance policy within 2 weeks of policy document receipt. This may happen if the insured is not happy with the current policy terms and other such reason. The insured will get a refund of the amount of premium. This will be subjected to the deduction of proportionate amount of risk premium for a certain period on the policy cover. Also try and maintain a single insurer for all your insurance needs to avail discounts.