Get To Know General Insurance

Insurance??? What does it mean?

Insurance is a mechanism by which the person exposed to the potential risk, arising out of the events beyond his control, transfers the financial loss; in part or in full to a third party. The party which transfers the potential loss is termed as the ‘Insured’ and the party which indemnifies or undertakes to compensate the other party of such potential loss is termed as ‘Insurer’. The Insurer provides the coverage for the potential financial loss for a fee or a consideration which is called the ‘Premium’. Thus, Insurance is a special type of contract between the Insurer (the Insurance Company) and the Insured (the client) wherein:

• The client agrees to pay a premium to the Insurance Company. Such premium may be a fixed amount payable as a single payment or it may be paid as periodical payments. This will depend upon the type of Insurance and the terms thereof.
• In lieu of the payment of such premium the Insurance Company agrees to make some payment to the client or bear the costs of the client due to financial loss incurred on the occurrence of certain events.

*What is General Insurance?

Leaving with family for a weekend getaway? Just think of all the assets you possess like your home, car, jewelry and other valuables.

What if you lose all of it due to some fire, theft or a natural calamity? It would be all gone even before you might think about saving it.

Safety is the prime concern and avoiding any mess falls as the next. At times, you might end up facing some unexpected losses for which you were completely unaware. What then?

Do you definitely look for some security system? Or just leave things on destiny?

Well! Nothing would work except a security system that backs us. In other words, we need insurance cover.

“To insure is to protect and indemnify. It does not mean Prevention of loss”.

Insurance Policies that do not come under the ambit of Life Insurance, Medical Insurance or Auto Insurance are called General Insurance or Non-Life Insurance Contracts.

General Insurance provides indemnity against loss arising from damage to property or assets, expenditure or loss of earning arising from injury to a person, legal liabilities etc.

*Types of General Insurances:

Almost everything is insurable.

Let us look at them as per the use and general acceptability. Following are the different types of General Insurances:

1-Property All Risk: This policy covers all risks of physical loss, destruction or

damage to the insured property which occurred during the policy’s period and is subject to certain terms, conditions and exclusions. This policy provides a wider coverage range than the Fire and Allied Perils insurance policy. Noting that the PAR policy can be tailor made depending on the profession clients and their requirements.

2-Travel Insurance: Travel insurance is a type of insurance that covers the costs

and losses associated with traveling. It is useful protection for those traveling domestically or abroad. This policy includes a wide range of benefits such as Trip Cancellation or Interruption, Baggage and Personal Effects, Accidental Death and Flight Accident, Medical Emergencies.

3-Fire, Allied Perils & Burglary: This covers insurers against the risk of losses or

damages due to fire and lightning, also covers a number of additional perils which may differ from one policy to another but most usually include the following perils:

• Explosions
• Storms, tempests and floods
• Earthquakes, volcanic eruptions & much more

4-Marine Insurance: Marine Insurance is a type of insurance policy that provides

coverage against any damage/loss caused to cargo vessels, ships, terminals, etc. in which the goods are transported from one point of origin to another.

5-Workmen’s Compensations: Workers' compensation provides medical

expenses, lost wages, and rehabilitation costs to employees who are injured or become ill “in the course and scope” of their job. It also pays death benefits to families of employees who are killed on the job.

6-General Third-Party Liability: A Third-Party Liability Insurance policy (General

Liability Insurance) will cover you for pecuniary losses made against you in the event of injury or damage to third parties or third-party property arising out of your business activities.

7-Money Insurance: This policy covers:

1- Money in transit, carried by the Insured or the Insured’s authorized employee(s), occasioned by burglary or holdup, robbery, theft or any other fortuitous cause not excluded hereunder;

2- Money kept / locked in safe or strong room occasioned by burglary, housebreaking, robbery or hold-up whilst money is retained at the Insured’s premises in safe(s) or a strong room.

Miscellaneous Insurance refers to contracts of

insurance other than those stated above. It covers a variety of risks, such as:

1- Contractors All Risk

2- Cyber Security Insurance

3- Pet Insurance

4- Personal Accidents

5- Professional Indemnity

6- Drone Third Party

7- Political Violence

& Much More

We gave you a general look on General Insurances, now it’s your time to find out more and give us a call to answer all your questions.

Remember, almost everything is insurable. Pick up the phone and get yourself an insurance & chose JH Insurance, we will be more than honored to have you join our family!