What Is General Insurance? – Complete Guide
General insurance is a type of insurance that provides financial protection against non-life risks such as health emergencies, vehicle damage, property loss, travel risks, and business liabilities. Unlike life insurance, general insurance policies are usually short-term, mostly valid for one year and need renewal.
The main purpose of general insurance is to protect individuals and businesses from unexpected financial losses.
Types of General Insurance in India
General insurance covers a wide range of risks, including:
1. Health Insurance
Covers hospitalization, medical expenses, surgeries, and critical illnesses.
2. Motor Insurance
Mandatory in India for vehicles; covers damage to vehicles and third-party liability.
3. Home & Property Insurance
Protects homes, shops, factories, and offices against fire, theft, and natural calamities.
4. Travel Insurance
Covers medical emergencies, trip cancellations, baggage loss, and delays during travel.
5. Commercial & Business Insurance
Includes fire insurance, marine insurance, liability insurance, and professional indemnity.
Number of General Insurance Companies in India
As regulated by IRDAI, India currently has over 30 general insurance providers, including:
Public Sector Insurers (4)
- New India Assurance
- United India Insurance
- Oriental Insurance
- National Insurance
Private General Insurance Companies (25+)
- ICICI Lombard
- HDFC ERGO
- Bajaj Allianz General
- Tata AIG
- Reliance General
- SBI General
Standalone Health Insurers (5+)
- Star Health
- Niva Bupa
- Care Health Insurance
These companies offer individual, family, and corporate insurance solutions across India.
Tax Benefits of General Insurance in India
General insurance policies offer several income tax benefits under the Income Tax Act, 1961.
1. Tax Deduction Under Section 80D
- Health insurance premiums qualify for deduction
- Up to ₹25,000 for self & family
- Additional ₹25,000 for parents
- ₹50,000 limit for senior citizens
2. Preventive Health Check-up
- Up to ₹5,000 included within the 80D limit
3. Business Insurance Tax Benefits
- Premiums paid for business insurance policies are allowed as business expenses under Income Tax
Why General Insurance Is Important
- Protects against sudden medical and financial emergencies
- Reduces out-of-pocket expenses
- Mandatory compliance (motor insurance)
- Safeguards personal and business assets
- Provides peace of mind and financial stability
How to Choose the Right General Insurance Policy
- Assess your risk exposure
- Compare coverage, premium, and exclusions
- Check insurer’s claim settlement ratio
- Review network hospitals or garages
- Understand policy terms and renewal conditions
Conclusion
General insurance plays a vital role in modern financial planning by protecting health, assets, and liabilities. With multiple insurance companies operating in India and tax benefits available under various sections, choosing the right general insurance policy ensures both financial security and tax efficiency.
At Saving Mantra, we help individuals and businesses select the most suitable general insurance plans with expert guidance.
Disclaimer
This blog is intended for informational purposes only and should not be considered financial, legal, or tax advice. Insurance coverage and tax benefits are subject to policy terms and applicable laws. Readers are advised to consult insurance experts or tax professionals before making decisions.