The insurance industry in India is divided into two broad categories — life insurance and general insurance. A policy which deals with all things life is classified under the life insurance category, whereas all other insurance plans are grouped under general insurance. A report by the credit rating agency, ICRA, has stated that the gross domestic premium income (GDPI) of the general insurance sector is expected to grow at 10-12% during the fiscal year 2023 . This growth is led by higher growth in the health and commercial business segments with an increasing awareness of medical insurance and an uptick in economic activity.
When it comes to general insurance plans, there are a range of insurance products that are available to choose from. While health, motor and home insurance saw reforms amid the COVID-19 pandemic, travel insurance plans did take a backseat. Let’s look at how the demand is rising for general insurance in the country.
Health Insurance Policy
Health insurance plans are designed to cover medical expenses that can be financially draining. It can be bought not just for the policyholder, but also for other family members. Depending on the coverage requirement, specific health insurance plans are available for senior citizens, women, families, maternity expenses, critical ailments, personal accidents and more.
As the COVID-19 wave hit the country, the regulator, the Insurance Regulatory and Development Authority of India (IRDAI) asked all general insurance companies to cover COVID treatments in their existing insurance plans. Further, it also launched standardised products that were aimed to cover COVID-19 with no deductibles.
For some, it may be unaffordable to opt for a policy with ₹ 10 lakh or ₹ 1 crore insurance coverage. A basic health insurance policy may be sufficient to cover the treatments. Arogya Sanjeevani Policy is a standardised product that is available for such times. You can visit the official website of IRDAI for further details. *
Motor Insurance Policy
Another popular product under the general insurance category is the motor insurance policy. If you own a two-wheeler or a four-wheeler, it is mandatory for you to have at least third-party insurance coverage. But comprehensive plans are an alternative third-party plan. Further, personal accident coverage is also mandatory which provides coverage up to ₹ 15 lakhs.
During the pandemic of 2020, the IRDAI introduced pay-as-you-drive policies which were suitable for people who had multiple vehicles and did not drive as much. The premiums for these plans are priced based on the number of kilometres driven and can go a long way in saving on insurance costs. You can visit the official website of IRDAI for further details. *
Travel Insurance Policy
A travel policy is among the different types of general insurance plans which covers the risk that may occur at the time of travelling. This policy is available for domestic travel, as well as international travel. Emergency medical assistance, loss of baggage, delays in flight, trip cancellations, loss of passport and other important documents are some of the different scenarios covered in a travel insurance cover. *
Home Insurance Policy
A home insurance policy helps in avoiding a financial loss to the single largest investment for many, their house. Damages to the structure and the contents within are covered by a home insurance plan depending on the policy.
With these different general insurance policies, you can safeguard your vehicle, your travels, and even your home. To be insured at all times, ensure a timely insurance renewal of the plan before its expiry. Renewing the policy in advance aids in the comparison of the available options and selecting suitable plans based on changing requirements. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.