{"id":890,"date":"2017-02-21T05:45:15","date_gmt":"2017-02-21T05:45:15","guid":{"rendered":"https:\/\/pamstaging.securenow.in\/insuropedia\/?p=890"},"modified":"2026-02-08T05:13:39","modified_gmt":"2026-02-08T05:13:39","slug":"what-is-general-insurance","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/what-is-general-insurance\/","title":{"rendered":"What is General Insurance?"},"content":{"rendered":"
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Any insurance other than life insurance is called general insurance.<\/p>\n

There are certain principles that guide any insurance contract, the principle of indemnity<\/em><\/strong> being one of them. This principle dictates that the insured should not profit from the insurance claim, meaning the insurance contract is expected to compensate for the loss incurred by the insured, either less or equal to it.<\/p>\n

This is why general insurance and life insurance companies are usually different.<\/em><\/strong><\/p>\n

All insurance policies<\/strong><\/a>, be it health, marine, fire, etc. follow this principle in covering and disbursing the claims. However, life insurance is entirely different. Life insurance contracts do not follow this principle as it is not possible to accurately determine a person\u2019s economic value (value lost by his nominee or the insured) at the time of his\/her death.<\/p>\n

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Hence, all types of insurance, including property, motor, car, accident, health, marine, errors and omissions insurance, except for life insurance, fall under the category of general insurance.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

A Case of General Insurance<\/strong><\/h2>\n

Mr. Ram Nath started a new business of manufacturing paper. For that purpose, he invested a good amount of capital in setting up the business. He bought a new factory, machinery, trucks for transportation purpose, and hired around 45 workers. Mr. Ram was a financially proactive person and decided to buy insurance to cover as many risks as possible.<\/p>\n

His insurance advisor has advised him to consider the following plans:<\/p>\n