Facts about General Insurance that you must know

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24 Jul 2023

Key Factors about general insurance policy

There are different kinds of insurance; you should know which ones are needed. Like life insurance, general insurance is also essential. With many insurance companies in the market today, you can quickly look for and buy general insurance online.

Tips to keep in mind when buying general insurance

If you purchase general insurance for the first time, some basic things must be kept in mind. These policies are essential, and it is important to know the facts. Let us discuss a few:

1) Tip #1: Customise your insurance policy to suit your needs:

Insurance is not one size fits all. Each individual is different, and so is his requirement. You should take a policy and always customise it as per your need. The add-on covers, coverage, etc., can all be tailored to your needs.

Tip: Weigh all the pros and cons of the add-ons vis-a-vis the cost involved and the chances of you needing to claim the same, and then opt for the appropriate package to get optimum coverage.

2) Tip #2: Choose the appropriate type of insurance policy:

There are different types of general insurance policies available today. You should buy a policy with adequate coverage depending on which assets you need to insure. It ranges from commercial to motor to travel to health. The perils covered in these are standard, and with add-on covers, you can change the inclusions and exclusions.

Tip: Some policies have multiple variants, which could be quite confusing initially. However, if you analyse your risk, weigh the pros and cons of the policies and then opt for the one which best suits your needs, then it would be easier to make the right choice.

For example, health insurance plans have indemnity and fixed benefit plans. So, if you are looking for hospitalisation plans, you must choose an indemnity plan. However, if you wish to get coverage for a specific event, irrespective of the amount of money spent on hospitalisation, you can opt for a fixed-benefit health insurance plan.

3) Tip #3: Choose the suitable tenure of coverage:

Most insurance policies are issued for one year and must be renewed annually. At the time of renewal, the insured always has the option to change the insurance company if they wish to.

However, some policies, like motor insurance, are also available for a more extended period. The premium here is discounted and, thus, is an option worth considering as it saves you the trouble of renewing your plan every year and reduces the chances of lapse.

4) Tip #4: Choose the right amount of coverage:

For any policy, the sum insured, i.e. the total coverage amount, is the most important. This is the maximum amount you will be paid in case of a claim. The sum insured must be chosen carefully.

Tip: You should not be underinsured, as this means you will need to pay from your pocket. If you are over insured, you will need to pay a higher premium for no reason, and there could be a concern at the time of claim. Thus, be careful and choose the sum insured wisely.

5) Tip #5: Opt for the right combination of premium vis-a-vis the coverage:

When buying general insurance, the next most important thing is coverage. You should always have adequate coverage for your assets. The coverage comes at a price that is the premium.

Tip: You must be careful and get the best coverage at the right premium. Paying an extra premium for less coverage is a big no. Thus, always be sure of the premium and the coverage you are paying for.

Conclusion

It is essential to have the right general insurance policy. Covering your assets is securing your future and avoiding any financial strain in case of a mishap. Buying general insurance online or offline is a part of your financial planning and, thus, must be done with utmost care.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.