Importance of General Insurance

Importance of General Insurance

General insurance helps us safeguard ourselves and the things we value, such as our homes, our cars and our valuables, from the financial impact of risks, big and small – from fire, flood, storm and earthquake, to theft, car accidents, travel mishaps – and even from the costs of legal action against an individual or a corporate entity. And we can choose the kinds of risks we wish to cover by opting the right kind of policy with the features needed.

In general, insurance works by spreading the cost of unexpected risks among a large number of people in the same region who share similar risks.

When you subscribe to an Insurance Policy, you pay a monthly or annual premium. That money joins the premiums of many thousands of other policyholders and goes into a big pool of funds.

With luck, you will never need to draw on that pool. But if you happen to be one of the unlucky ones affected by an unexpected calamity, perhaps through severe weather or accident, that pool of funds can be used to help you up to the limit you have selected in your policy.

If things go wrong, your insurer may either repair or replace the items that have been lost or damaged, depending on the terms of your policy. You may also have the choice of receiving a cash settlement for the amount of money agreed in your policy.

Kinds of General Insurance

  1. Health Insurance

An essential risk mitigating tool, health insurance prevents out-of-pocket expenses while dealing with a medical emergency. A general health insurance plan is an indemnity plan that pays for hospitalisation expenses up to the sum insured. While you can benefit from a standalone health policy, family floater plans provide coverage to all the members of your family.

On the other hand, critical illness plans are fixed-benefit plans which provide a lump sum upon diagnosis of a critical ailment, taking care of pre and post-hospitalisation costs. These plans help take care of astronomical costs associated with the treatment of critical ailments.

  1. Motor Insurance

Motor insurance covers your vehicles against accidents, damage, theft, vandalism, and so on. This form of insurance comes in two forms – comprehensive and third-party. A comprehensive motor insurance policy provides a 360-degree cushion to your vehicle against damages caused due to flood, fire, riot, etc. Along with this, it also offers the passenger, a personal accident coverage along with third-party liability.

On the other hand, a third-party motor insurance takes care of the damages suffered by a third-party in case of an accident caused by your vehicle. It won’t cover any damages to your vehicle. In some countries, it is mandatory for every vehicle on the road to have a third-party insurance.

  1. Home Insurance

As the name suggests, a home insurance policy protects your home and its properties from the damages suffered due to man-made or natural disasters. Some home insurance policies also provide coverage for temporary living expenses in case you are living on rent, due to your home undergoing renovation.

  1. Travel Insurance

In case you are travelling abroad, a travel insurance policy protects you against losses suffered due to loss of baggage, delays in flight and trip cancellation. In some cases, if you are hospitalised while travelling, a travel insurance may also offer cashless hospitalisation.

 Importance of General Insurance in Life

We all have different aspirations to fulfil, and every such aspiration has a different type of risk associated with it. While you are unable to change this existing fact, wouldn’t it be great if there were safeguards in place to keep you covered? Well, there certainly are, and they come under the scope of general insurance.

Whether you want to setup a business, own a home or buy an automobile, having the right General Insurance Policy at hand saves a lot of hassle in times of exigencies where finances may get affected.

General insurance policies are basically contracting on those assets which are vulnerable to damages and whose economic value needs to be taken care of. On the individual front, these include vehicle, house, health, and travel insurance, while for entities, it entails the likes of trade of micro and rural insurance, to name a few.

 Labuan General Insurance License

A Labuan General Insurance business is defined as an insurance business which is not life insurance but includes accident, medical, surgical and hospital expenses insurance. General insurance is also known as non-life insurance.

QX TRUST license application service level for Labuan General Insurance license include:

  • Consultation on client’s eligibility and application procedures
  • Feasibility study write-up based on client’s profile
  • Due Diligence, Profiling and Guidance on documents preparation
  • Advising on the Business Plan to meet client’s business objectives
  • Full guidance on the Financial Forecast, KYC, Operation and AML/CFT Manuals, Client Agreements etc
  • Submission and supervision of application process until approval
  • Act as liaison and key contact person for both client and Labuan FSA on all correspondences, meetings and /or interviews (if any)

To enjoy a complimentary session on the requirements for a Labuan General Insurance License from any of our QX Trust consultants, reach out to us at +60 3 9212 6940 or consultant@qx-trust.com for an appointment now.