How does General Insurance work?

It's claimed if you don't take risks in life, means you've not lived it wholly. Indeed, life is full of risks, and that is what makes it fascinating and interesting. However, at times some unexpected events do take you aback.

Hence, general insurance enables us to guard ourselves and our assets from the financial impact of risks like fire, flood, storm and earthquake, theft, car accidents, travel mishaps. It also guards us against bearing the costs of legal action against us. While opting for general insurance, we can select from various types of risks that we desire to cover with the right kind of policy features we require.

To obtain insurance, the insured needs to enter into a contract with the insurer, by signing the Insurance Policy, which will provide details of terms and conditions, assets insured, events in which pay-out shall be made etc. If any loss occurs to the insured assets due to the covered events, the person shall contact the company to get an appointment with the surveyor, who shall assess the extent of damage to the asset. If it is found that the claim is genuine, then it is approved and the individual receives the amount of the policy or the amount of loss, whichever is lower.

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