One moment, everything is normal and the next moment, a sudden accident, illness, robbery, or natural disaster can wipe out your savings. That’s why there is general insurance on the market to remain financially protected, in case things go wrong.

Most people, however, find general insurance confusing. There are too many terms, too many options, too many conditions

Let’s break it down in this simple way today like a friend would do.

At the conclusion of this guide, you will have known:

• What general insurance is
• Types of General insurance in india
• Why it’s important for you
• How claims work
• The decision about the appropriate policy.

And how CreditMitra can help you to be more smart in your choice

Let’s dive in.

What Is General Insurance?

You can purchase general insurance to safeguard yourself, your family or your possession from unexpected losses. Unlike life insurance, general insurance covers everything else – your health, your car, your home, your travel, your business and so on.

Financial compensation is given by your insurer whenever there is a loss or damage.

It is a kind of helmet for security of your funds.

General Insurance: Why Do You Need It?

Here’s the truth:

Emergencies don’t knock your door and expect to be greeted with hospitality.

A sudden bill of 1.5 lakh rupees in the hospital

A car accident repair of 45,000

A mobile theft worth 30,000…

House repair after floods 2 lakh

Without insurance, all these expenses are out-of-pocket.

With insurance, the company is paying for you.

This means:

• Your savings remain safe
• Your financial objectives as well as your financial goals are on track 
• You are stress-free even in difficult situations

General insurance is not an expense.

It’s a financial shield.

Types of General Insurance in India

Let’s simplify each one.

1. Health Insurance

This includes your medical expenses when you fall sick, get injured or need hospitalization.

What it covers:

• Hospital room rent
• Doctor’s fees
• Treatment costs
• Surgeries
• Pre-hospitalization and post-hospitalization
• Day-care procedures
• Cashless treatment in network hospitals

Who needs it?

Absolutely everyone, medical costs are going up every year.

2. Motor Insurance (Car & Bike)

Motor insurance is compulsory in India.

There are two types:

a) Third party insurance (Compulsory)

Insurance covers the damage that you cause to another person’s vehicle/property.

Do not insure your own personal vehicle.

b) Comprehensive Insurance

Covers:

• Your vehicle damage
• Theft
• Accidents
• Natural disasters PLUS third party damage

It’s the safest and it’s the recommended one.

3. Home Insurance

Guarantees your property and home against:

• Fire
• Theft
• Flood
• Storm
• Earthquake
• Vandalism

If there is damage to the structure of the house or contents, insurance will pay for the repairs or replacement. Nice to have for the homeowner and tenants.

4. Travel Insurance

Useful for travel in the home and especially for international travel.

Covers:

• Lost baggage
• Flight delays
• Passport loss
• Medical emergencies abroad
• Trip cancellation
• Accidents

A must have when travelling abroad, foreign medical bills are very high.

5. Insurance against Personal Accidents

Covers death, disability or injury resulting from accidents.

Why is it important?

Since accidents may result in loss of income, this policy supports your family financially.

6. Commercial/ Business insurance

For entrepreneurs, startups and business owners.

Covers:

• Business property
• Stock
• Fire
• Theft
• Machinery breakdown
• Liability issues

If you are a business owner, then this insures against unexpected disruptions of operations.

Let’s understand how General Insurance works in 3 steps? 

1. You Pay Premium

A little bit of money every year/month for protection.

Example:- 3,000 premium for a 3 lakh health plan

2. Something You Never Expected to Happen

You get sick and have to be hospitalized.

Insurance Pays for You

Either cashlessly at a network hospital OR

You get reimbursed later.

You save 80,000-1 lakh easily.

That’s the whole idea – little regular payments so that you don’t suffer huge financial losses.

Common Terms You Should Know

We shall simplify the puzzling words:

Premium

The amount you pay each year/month in order to keep your policy in place.

Sum Insured

The maximum amount that the insurance will pay you.

Deductible

A little that you are charged before the insurance begins to cover the rest.

Exclusions

Conditions/events which the policy does NOT cover.

Claim

The demand you make when you want the company to make you money for loss.

Once you know these basics, it is much easier to choose insurance.

How To Select The Right policy In General Insurance

The best things to examine here are:

1. Coverage > Price

What may be the cheapest plans, usually offer the weakest protection.

Always check:

• What is covered?
• What is excluded?
• What benefits do you get?

2. Pick the Right Sum Insured

For health insurance:

Single adult – Minimum 5 lakh

Family of 3-4, 10-15 lakh 

3. For car insurance

Always favourable to comprehensive rather than third-party only.

4. Cheque Claim Settlement Ratio

Higher ratio = company pays claims quickly & fairly

5. Look for Cashless Network

More hospitals or garages = Faster repairs + hospitalisation without having to pay up front.

6. Read Exclusions Carefully

This is the most common reason for rejection of a claim.

7. Go for Add-Ons When Absolutely Necessary

Examples:

• Zero-depreciation (for cars)
• Room rent waiver (health)
• Travel medical add-on
• Protection against theft of gadgets

Add-ons are added to the premium and provide greater protection.

How to Make a Claim? (Step-by-Step)

1. Provide immediate notification to the insurer

Most insurers have a toll-free number, app or web site.

2. Submit documents

Bills. FIR (for theft / accidents) Photos. ID etc.

Company verifies the claim

3. Claim gets approved

Payment is made

One is either cashless, or reimbursement.

Simple and hassle free if your documents are correct

Common Mistakes People Make (That You Wouldn’t want to Make)

• Buying the cheapest plan
• Not reading exclusions
• Not renewing on time
• Hiding information that relates to health or vehicles
• Not keeping documents handy
• Thinking “it won’t happen to me”

Insurance is not for today, It’s for that one bad day which you never expect.

Simple and real-life examples 

Example 1: Health Emergency

Rohan gets dengue.

Hospital bill = 62,000.

 His health insurance fully covers it with cashless treatment.

Savings remain untouched.

Example 2: Car Accident

Priya’s car is hit while in parking.

Repair cost = 18,000.

It is payable by comprehensive insurance.

She only has to pay a small deductible.

Example 3: Lost Baggage Abroad

Amit loses his suitcase in Dubai.

Insurance reimburses 30,000 worth of necessaries.

Insurance makes life easier in case things go wrong.

How CreditMitra Can Help You to Select the Best Insurance

CreditMitra is made to make your financial journey easier, including insurance decisions.

Using the app, you can:

• compare various insurance plans.
• Know about coverage and exclusions in layman-terms.
• Obtaining customized suggestions.
• Buy policies instantly
• Get renewal reminders

Track all your financial products at one place

No confusion.

No agents.

No hidden information.

Just a clear and transparent direction.

Final Thoughts: Insurance Is Not An Option, It’s A Must

General insurance is one of the smartest financial decisions that you can make.

It protects:

• Your health
• Your vehicle
• Your home
• Your travel
• Your business
• Your family

You can’t stop emergencies. But, you can prevent them from burning a hole through your savings.

With platforms such as CreditMitra the right insurance is easy, fast and stress free.