In simple terms, the insurance contracts which do not fall under the ambit of life insurance are claimed as general insurance. The various forms of general insurance include fire, marine, motor, accident, and other miscellaneous non-life insurance.
General insurance aims to protect an individual from the risk of loss in the value of valuable assets, like Property, Vehicles, Machinery, etc. It even provides compensation for expenses incurred in taking legal actions, as per the type of policy. This type of insurance works by spreading the unexpected risks' cost among a vast number of people in the same region who are experiencing similar risks. For example, when an individual purchases a policy, it begins to pay monthly or annual premiums. This money joins the various other premiums paid by other policyholders and goes into the huge 'pool of funds'. Eventually, if the individual gets affected by an unexpected calamity, the 'pool of funds' will come to its aid and protect them, but the amount depends on the limit it has selected in the policy.
There are various types of general insurance products, and they are Motor Insurance, Home Insurance, Travel Insurance, Marine Insurance, Rural Insurance, and Commercial Insurance.
