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  • Category: Insurance Sector Jobs

    What is the difference between General Insurance and Life Insurance?


    confused between the terms: general insurance and life insurance? On this page you can get resolution to all your queries.

    We might come across the terms: Motor Insurance, Health Insurance, Life Insurance, Crop Insurance, Kisan Bima Yojana, etc.

    This are the part of the insurance. General Insurance and Life Insurance.

    I want to know the difference between these two terms?
  • #140956
    TThis response is marked as DELETED by the admin.

    life insurance and general insurance. Life insurance relates to the life of the policyholder. General insurance deals with everything else.
    Life insurance policies pay a lump sum amount to the beneficiaries of the policyholder upon his death. This payout is the death benefit. Often, the policyholder survives the policy period. The policyholder then receives a maturity benefit. The insurer agrees to this in exchange for the premium that the policyholder pays.
    All other forms of insurance belong to general insurance. Health and property insurance come under general insurance. This type of insurance typically covers losses caused by theft or damage. In the case of health insurance, the cover is for medical expenses. Rahul visited the Bajaj Finserv website as part of his preliminary research on insurance plans. He found various sub-categories of general insurance. On speaking with a Bajaj Finserv representative, he realised that each functions in its own way.

  • #140970
    Insurance is a prudent provision for compensating financially the loss happening to our valuable assets, or assets whose value or replacement value can be computed.
    However the most valuable asset is our own life. Though life cannot be valued or replaced, prudent provision can make part compensation of the financial loss happening to the dependants due the loss of life of the income earners. Hence insurance for lossof lfe is dealt separately and called Life Insurance.
    Though there can be finer segregation, all insurances other than life are called as General Insurance. Thus Motor Insurance, Marine insurance, transit insurance etc all come under General Insurance . However to understand and easy reference we call them by their sub category names like Health Insurance, Crop Insurance, Cattle insurance, travel insurance etc.
    Under General Insurance it is always the one who owns the assets or who has stake in the assets who gets the insurance. But in Life Insurance (except for survival benefits) it is the nominee who receives the insurance benefits.
    Till a few years earlier the two categories were exclusive and provided exclusively by separate companies dealing either exclusively in life insurance only or in general insurance only. The min and major provider of Life Insurance in India was Life Insurance Corporation of India(LIC of India).

  • #140994
    Insurance companies do cover the financial loss to some extent of the insured. General Insurance covers all kinds of insurance except life of the human beings whereas the Life Insurance covers only the life of the human beings but not anything else. Though the life of a human being cannot be fixed with a quantum of value, it can be insured as per the premium paying capacity. In case of general insurance, the value of the item or life of an animal is fixed with some value and the life of that item can be insured to maximum of its value only. Further, general insurance benefits would be available only on its damage or disappearance whereas in life insurance one can get the maturity amount on expiry of the insurance period. If any damage occurs to life, there would be more beneficial to the nominee in that insurance.

  • #140998
    General insurance are of different types e.g. Unit linked plan insurance popularly called ULIP also provides the health insurance, Employee benefit plan which gives also health insurance to employees, Accident insurance etc. 1. In General insurance you are covered with accident expenses, health problems expenses etc. Some of general insurance do provide compensation in case of death of insurer to his direct relative.
    2. Life insurance is purely saving and compensation upon death to direct relative. It does not involve any kind of investments. Nowadays there any many life insurance plans which gives you pension benefit, Partial withdrawn upon certain period facilities.
    3. Life insurance premium amount is usually more than health since it's sum assured is more.
    There are many ways we are already insured , we just have to know it. E.g. If you have debit card then you had life insurance by that national bank, bike or car insurance also do cover life insurance.

    Avi
    Life Is Beautiful

  • #141003
    General Insurance includes insurance for Automobiles, and other types of insurances for the Homeowners policies. If there is a problem in the house owner of a particular objects then the Insurance company will pay for those in the financial events. General insurance is called as property insurance in US and Canada that does not include causality. These general insurance is also called as Non-life insurance in continental Europe.

    Types of General Insurance such as insurance for the motor for both two wheeler and three wheeler like auto, and also four wheeler like car, bus, and heavy vehicles like trucks.

    Travel insurances such as the insurances for the individuals travelling abroad, that includes travel policy, family travel policy, international student insurance and also for the
    senior citizens for their health insurance.

    Home insurances that protects the home and their appliances in the bad time, like storms, disasters occurs naturally.

    Marine Insurances for cargo goods, freight, and other interests loss due goods that are sent through by train, air and sea,roads.

    Commercial Insurance provides solutions for all sectors of different industries apart from the business operations.

    'Life Insurance', its like a contract between a individual and a company, entirely different that pays money to particular person either on the death of the insured person or if the insurance
    period is over the insurance company has to pay that particular person. These are income tax free.

    There are many types of the Life Insurance

    Term Life Insurance - provide financial protection for atleast for ten or twenty years. Its pays even after the twenty years of the person living.

    Universal Life Insurance - permanent life insurance provides coverage for the lifetime. This allows either you can raise the payment or lower the premium payment, coverage amount through
    the lifetime. This has higher payments than term.

    Whole Life Insurance -- Its also a type of the permanent life insurance. This has the higher premium pay than the term life. Premium payments are typically fixed, whole life has a cash value that acts a saving component and also tax-deferred over time.

    In simple terms the Life insurance is for a person who lives and pays the premium until the person will be able to pay for it and get in returns if the person is not there or the premium is been delivered after the specified number of years. Mostly high profiled persons chooses the insurance as they usually work with people around them.
    Actors, Actress, singers, sports man, politicians,business man,etc... usually choose the Life Insurances for them.

  • #141004
    Certainly there are much difference between General Insurance and Life Insurance. In fact the author can have the answer in question itself. By General Insurance we mean coverage of risk pertaining to trade, property, products, things and above all the inclusive of all. Where as the Life Insurance pertains to covering of only life risk and nothing more than that. For traders and businessman, protecting the properties from fire, theft ,damages and other natural disasters, it is imperative for them to have the General Insurance. But for every Individual who care there family very much it is imperative to have the coverage of all the members of the family with Insurance so that during emergencies like death at least insured amount would be the stop gap arrangement through which one can start from the zero of his life.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #141025
    Mohan ji
    You clarify the differences in such a way ,that there is nothing to say.
    You mention the differences very clearly.

  • #141053
    Each insurance type is addressing different scenarios for the insurance.

    For example,

    1. Term insurance is related with the accidental or natural death of the person. And the insurance money is given to the nominee in such case.

    2. Health insurance, this insurance pays for the bills of the hospital in case any health issue that may occur.

    3. Motor insurance, this insurance pays when there are accidental damage to the vehicle.

    4. General insurance, his insurance just covers based on the premium paid. It has it's own set of requirement to be fulfilled in order for the insurer to get paid.

    5. Life insurance in general is different from term insurance. In life insurance you can have multiple clause for the insurance.

    Then there are some of the other insurance like phone insurance, computer and laptop etc. And then property insurance which protects against fire and electricity damages. So depending on the need of the protection,the insurance may vary for that.

  • #141595
    Insurance means provision of monetary compensation in case of loss. Firstly a person enters into an agreement with an insurance company insuring something (may be life or property or other) for a specified period. After entering into an agreement, the person starts paying the premium (monthly/quarterly/ half-yearly/annually). If the item or life which is insured is lost during the specified period, then the insurance company provides monetary compensation to the insurer or to the nominee of the insurer.

    When human life is insured, then the product is called life insurance. All insurances other than life insurance are called general insurance. So, motor Insurance, marine insurance, transit insurance, fire insurance, etc. come under general insurance.

    Caution: Explosive. Handle with care.

  • #142596
    TThis response is marked as DELETED by the admin.

    Life Insurance:

    1.Principle of suicide does not apply to life insurance.
    2. Life insurance is a type of investment. It is not a contract of insurance
    3. Life insurance contract is for the whole life of the insured or for the assured attaining a specified age-whichever is earlier.
    4. There is certainty as to the happening of event i.e. death
    5. In life insurance the insurable interest must be present at the time of contract.
    6. There is a surrender value of policy, in life insurance.

    General Insurance
    1. The event insured against may or may not happen
    2. The contracts of fire and marine insurances are contracts of indemnity. The insured can claim only the actual amount of loss-subject to a maximum of sum assured.
    3. A contract of fire insurance is for one year
    4 A contract of marine insurance is for a particular period not more than one year

    5. . In fire insurance, insurable interest must be present at both- time of contract and time of loss
    6 In marine insurance insurable interest must be present, at the time of loss.
    7. This principle applies to fire and marine insurances.
    8. The provision of surrender value do year


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