General Insurance
This category of insurance covers all forms of insurance except life. General insurance Covers insurance of property against fire, burglary, theft, personal insurance covering health, travel and accidents and liability insurance coving legal liabilities. Other covers may include insurance against errors and omission for professionals, credit insurance etc. Common forms of general insurance are motor, fire, home, marine, health, travel, accident and other miscellaneous forms of non-life insurance.
Unlike life insurance policies, the tenure of general insurance policies is normally not that of a lifetime. The usual term lasts for the duration of a particular economic activity or for a given period of time. Most general insurance products are annual contracts. There are, however, a few products which have a long term.
When you take out an insurance policy, you pay a monthly or annual premium. That money joins the premiums of many thousands of other policyholders and goes into a big pool of funds. When an unexpected event occurs or takes place, that pool of funds can be used to help you up to the limit you have selected in your policy.
If things go wrong, your insurer may either repair or replace the items that have been lost or damaged, depending on the terms of your policy. You may also have the choice of receiving a cash settlement for the amount of money agreed in your policy.
