Life is full of risks. You never know what will happen to you the next moment. It can be a sudden illness that would require hospitalization followed by some surgery that may well drain your pockets. Healthcare is very expensive today. Your years of savings may be all gone in a matter of seconds! It can be a sudden fire outbreak damaging your house and other assets. It can be your car meeting with an accident and getting badly damaged. There are many other incidents that can occur anytime anywhere. This is where general insurance comes into play. General insurance covers all risks other than life right from health, motor, assets, personal accident to corporate, and more. With general insurance you will not get returns after a particular period but you do get cover in case any unforeseen incidents occur. In short you can say that general insurance provides protection against contingencies. Though not all products under this segment are compulsory to be bought yet there are two general insurance products as mentioned under certain Acts of Parliament, i.e. motor insurance and public liability insurance that are mandatory. So, if you have a car, you should have a car insurance policy. In case you are caught by the traffic police and you fail to produce your car insurance papers, you will be fined.
Car insurance is also termed motor insurance. Damage or loss to your vehicle can be caused due to several causes; it can be natural or man-made. Man made causes include burglary, theft, malicious act, accident by external means, riot, strike, and damage in transit. Natural causes may range from fire, explosion, storm, tempest, inundation, cyclone, hailstorm to frost, self-ignition, lightning, earthquake, flood, typhoon, hurricane, landslide, rockslide. With your motor insurance, your vehicle gets cover for any of the aforesaid causes. On payment of additional premium for your motor insurance, you can get additional coverage. The coverage may include loss or damage to the vehicle accessories, personal accident covers for driver and passengers, and extension of geographical area of coverage beyond India.
Your motor insurance may also cover legal liability to a third party which may arise due to an accident which has led to property damage and permanent injury or death of a person. Under the plan, you can also get personal accident cover for yourself and unnamed passengers besides coverage in case of accidental death and permanent total disability.
General Insurance And Motor Insurance
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