Non-Life Insurance Policy

What is a Non-Life Insurance Policy?

Learn more about non-life insurance policies and how they protect your car, home, travel, and other assets from loss or damage.

Written by : Knowledge Centre Team

2026-01-16

4343 Views

10 minutes read

Exit Pop Up

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

There is so much you may want to achieve in your life, yet nothing comes with complete certainty. Some dreams, like ensuring your children study in a reputed college and build a bright future, are too important to compromise on. However, life’s unpredictability can disrupt even the most carefully planned goals. This is where life insurance steps in, offering financial protection, comfort, and peace of mind against uncertainties.

In the same way, when you plan an international holiday, you expect your luggage to reach safely. If it does not, you deserve compensation for the loss. That protection comes through a non-life insurance policy, which safeguards your assets and covers financial losses arising from unexpected events. This blog will help you understand non-life insurance plans and how it protects your assets, such as your car, home, and travel, against unexpected loss or damage.

Key Takeaways


  • Non-life insurance protects assets and health from losses due to accidents, damage, or illness
  • Life insurance is primarily considered an investment with long-term benefits, whereas non-life insurance is an indemnity contract that offers short-term protection for tangible assets and health
  • The policyholder and others covered by the policy can benefit from the claims under the non-life insurance policy
  • Life insurance premiums depend on factors like age and the sum insured, while non-life insurance premiums are based on the value of the insured asset
  • Non-life insurance, also known as general insurance, includes policies like health insurance, motor insurance, home insurance, and travel insurance, which cover a wide range of risks beyond life-related concerns

Difference Between Life Insurance and Non-Life Insurance

Although there is a considerable difference between Life and Non-Life Insurance, both are equally important. While life insurance provides money to loved ones after your death, non-life insurance protects your belongings and health from financial loss due to accidents, illness, or damage. Both are crucial for financial security, but serve different purposes. Let us understand life insurance vs non-life insurance through a comparative table.

Parameter

Life Insurance

Non-Life Insurance

Definition

In life insurance, you are covered for risks associated with your life. The insurance company promises to pay you a Sum Assured if an unfortunate event occurs.

You protect your valuable things through general insurance. The insurance company compensates you for the damage or loss of the thing insured.

Purpose

Life insurance, in general, is considered a financial componentwith options like endowment or ULIPs offering savings and investment.

General insurance is an indemnity contract where the insurer promises to pay you in case of damage or loss of your property.

Period

Long term

Short term

Who benefits?

The policyholder receives the benefits on maturity. In case of the policyholder's demise, the Sum Assured is received by the nominee.

The benefits go to the policyholder and other people insured under the insurance.

Policy cost

The cost of life insurance depends on multiple factors - your current age and the Sum Insured.

The policy costs depend on the value of the insured asset.

Get Life Cover Instantly

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

Enter OTP

An OTP has been sent to your mobile number

Didn’t receive OTP?

Application Status

Name

Date of Birth

Plan Name

Status

Unclaimed Amount of the Policyholder as on

Name of the policy holder

Policy Holder Name

Policy No.

Policy Number

Address of the Policyholder as per records

Address

Unclaimed Amount

Unclaimed Amount
Error

Sorry ! No records Found

.  Please use this ID for all future communications regarding this concern.

Request Registered

Thank You for submitting the response, will get back with you.

When do you Need a Non-Life Insurance Policy?

Non-life insurance, also known as general insurance, protects your assets like a vehicle, home, travel, and accidents, etc. While life insurance safeguards your family’s financial future in case of your untimely demise, non-life insurance focuses on protecting your possessions, health, and liabilities during your lifetime.

You may need a non-life insurance policy in the following situations:

  • When You Own High-Value Assets: If you own a car, bike, home, or other high-value possessions, motor and home insurance protect you from financial loss due to accidents, natural disasters, fire, or theft

  • When You Drive Regularly: Motor insurance is mandatory in India and provides financial coverage against third-party liabilities and damages

  • When You Want Protection From Medical Costs: Health insurance, one of the most essential non-life policies, covers hospitalisation and treatment costs that can otherwise strain your savings

  • When You Travel Frequently: Travel insurance protects against trip cancellations, medical emergencies abroad, baggage loss, and other travel-related uncertainties

  • When You Need Liability Coverage: Certain policies protect you from legal and financial liabilities arising from accidents or damages caused to others

    Also Read: Term Insurance Vs Endowment Plan

     

How to File Claims for Non-Life Insurance Policies?

Filing a claim under a non-life (general) insurance policy involves informing the insurer about the incident, submitting the necessary documents, and completing the verification process. While the exact steps can vary by insurer and policy, here’s the general process you can typically expect to follow.

  • Inform the Insurer Immediately: Notify your insurance company as soon as the loss, damage, or medical emergency occurs. Intimation can usually be done via call, website, or mobile app.

  • Understand the Claim Requirements: The insurer will explain the claim process, documents needed, and whether inspection or hospital pre-authorisation is required.

  • Submit Necessary Documents: Provide the claim form, bills, reports, photos, discharge summary, FIR (if applicable), and any other requested documents. Incomplete submissions may delay settlement.

  • Assessment or Verification: The insurer may appoint a surveyor (for property or motor claims) or verify hospital and treatment details (for health claims).

  • Claim Approval and Settlement: Once verification is complete, the insurer settles the claim either through cashless service or reimbursement as per policy terms.

Claims By Policy Type:

Understanding how claims work for each policy type can help you be better prepared during emergencies.

  1. Motor Insurance (Car/Bike):
    • Cashless Claim: Take the vehicle to a network garage where the insurer settles the repair cost directly after inspection
    • Reimbursement Claim: Get repairs done at a non-network garage, pay the bill, and submit documents for reimbursement.
  2. Health Insurance:
    • Cashless Claim: Get treatment at a network hospital and obtain pre-authorisation. The insurer settles eligible expenses directly with the hospital.
    • Reimbursement Claim: Pay hospital expenses upfront and submit bills, medical records, and discharge summaries to claim reimbursement.
  3. Home Insurance: Inform the insurer about property damage or loss. After inspection and assessment, the insurer compensates you based on the policy coverage and extent of damage.
  4. Travel Insurance: Report incidents such as medical emergencies, trip cancellations, or baggage loss immediately. Submit relevant proofs to receive assistance or reimbursement as per policy terms.

Importance of Non-Life Insurance Policy 

Non-life insurance goes beyond just protecting your car. It safeguards your finances from various unforeseen events, offering peace of mind and security. Here's why having a non-life insurance policy is important:

  • Financial Protection: Covers the cost of repairing or replacing damaged belongings due to accidents, theft, natural disasters, or other unforeseen events.

  • Peace of Mind: Provides peace of mind knowing you won't be burdened by significant financial losses in case of unexpected situations.

  • Healthcare Security: Helps manage medical expenses in case of illness or accidents. This can be especially crucial for major medical emergencies that can drain your savings.

  • Legal Liability: Protects you from financial responsibility if your actions cause injury or property damage to others (depending on the policy).

  • Affordable Coverage: Many non-life insurance plans are relatively affordable, especially when purchased young and healthy.

trivia-img

Did You Know?

Motor insurance, a type of non- life insurance, is legally mandatory in India under the Motor Vehicles Act, 1988


Source: PIB

YTP 1.5 Cr.

Things to Consider While Buying Non-Life Insurance Plans

The first thing you should be clear about is the non-life insurance you want to buy and the reason for it. The other important points to consider are:

Sum Insured

Check for the insured declared value (for motor insurance) or the Sum Insured offered. It is the maximum amount you can claim under the insurance plan. Choose an insurance plan offering maximum Sum Insured with an affordable premium rate.

Premium amount

Look at the premium you have to pay (monthly for health insurance or one-time for motor) and the corresponding Sum Assured you are getting.

Benefits

Check the various benefits the insurer is giving you under the plan. Some of the benefits you must get are zero paperwork, cashless options, no pre-policy health check, etc.

Claim Settlement Ratio (CSR) and time

Check the Incurred Claim Ratio (ICR) of a general insurance company. It will tell you how many claims the company processes for every 100 claims submitted. You should also check the speed at which claims get processed.

Documents

Read the policy document and look at the fine print. If there is any point you don't understand, get it clarified before buying non-life insurance.

Both life and general insurance are needed as they cover all aspects of your life comprehensively. You should evaluate your needs and get the best plan under each category, and bring security to your life.

Steps to Renew Non-life Insurance Online

Renewing your non-life insurance policy online is a convenient and hassle-free way to ensure continuous coverage for your vehicle, health, or property. Here’s a step-by-step guide to help you renew your non-life insurance policy online seamlessly.

  • Visit the Insurer’s Official Website: Start by going to your insurance provider’s official website and navigating to the policy renewal section.

  • Log in to Your Account: Sign in using your registered mobile number, email ID, or policy details. If you don’t have an account, you can easily create one using your policy information.

  • Locate Your Policy: Open the “Renew Policy” option to view the policies linked to your account and select the one you wish to renew

  • Review Policy Details: Check your coverage, personal information, and add or modify benefits if required before proceeding

  • Select Renewal Tenure: Choose how long you want to renew the policy for, based on the options provided by your insurer

  • Check the Premium Amount: The system will generate the renewal premium, including taxes and any applicable discounts, for your confirmation.

  • Make the Payment: Complete the payment using your preferred method, such as UPI, net banking, debit/credit card, or digital wallet.

  • Receive Confirmation: Once the payment is successful, you’ll receive a confirmation message or email along with the updated policy document

  • Download and Store the Policy: Save a copy of the renewed policy and verify the details to ensure everything is correct for future reference

Documents Required for Renewal:

After understanding the online renewal process, it’s important to have the necessary documents ready. While the required documents may vary slightly depending on the insurer and the type of non-life insurance you have, the common documents needed include:

  • Policy Number: Your existing policy number is crucial for identifying your policy during the renewal process.

  • Personal Identification Details: For verification purposes, this could include your Aadhaar card, PAN card, or any other government-issued ID.

  • Vehicle/Property Details (for relevant policies): For motor insurance, details such as your vehicle's registration number, make, model, and year of manufacture are required. Details about the property and any existing damage or claims history may be necessary for home insurance.

  • Previous Claim Details (if any): If you’ve made any claims during the policy period, you may need to provide claim history details for a smoother renewal process.

  • Proof of No-Claim Bonus (for motor insurance): If you’ve not made any claims during the previous policy period, you might be eligible for a no-claim bonus, which should be documented for renewal.

Having all the necessary documents in hand will help expedite the renewal process and ensure that your policy continues without interruptions.

Importance of Timely Renewal:

Timely renewal of your non-life insurance policy is critical for several reasons:

  • Continuous Coverage: Renewing your non-life insurance on time ensures that you remain covered for any risks or damages without a gap in protection. Whether it’s a health emergency, property damage, or an accident, timely renewal ensures that you won’t be left financially vulnerable.

  • Avoiding Penalties: Many insurance companies impose penalties or increased premiums if the policy is not renewed within the stipulated time. Timely renewal can save you from additional costs and the hassle of re-applying with a new policy.

  • Maintaining No-Claim Bonus: The timely renewal of the policy helps maintain your no-claim bonus, which can result in discounts or reduced premiums on your next policy. Missing the renewal deadline could mean losing this valuable benefit.

  • Legal and Financial Protection: It is legally mandatory to have an active policy for certain types of non-life insurance. Failure to renew on time could expose you to legal liabilities and the risk of financial losses in case of an accident or damage.

Before We Part! 

Non-life insurance plays a vital role in your financial safety net. It safeguards your assets and health from unexpected events, offering peace of mind and financial protection. By understanding the different types of non-life insurance available and carefully considering your needs, you can choose the right insurance plan to secure your finances. Remember, both life insurance and non-life insurance work together to provide comprehensive protection for you and your loved ones.

Glossary:

  1. Claim: A formal request from a policyholder to an insurance company for financial compensation covered under their insurance policy
  2. ICR: A financial metric that indicates the percentage of claims an insurance company pays out relative to the premiums it collects
  3. Premium: The periodic payment made by a policyholder to an insurance company to maintain coverage under an insurance policy
  4. Sum Assured: The guaranteed payout amount an insurance company will provide upon the fulfilment of the policy terms 
  5. Indemnity Contract: A contract where the insurer compensates only for the actual financial loss suffered, not more
glossary-img
Uncertain About Insurance

FAQs Related to Non-Life Insurance Plans

The following documents are required:

  • Completed claim form

  • Policy document

  • Proof of loss (receipts, reports) 

  • Photo evidence (if applicable)

  • ID proof

First non-life insurance is a type of insurance that covers the risk of death, disability, and loss of earnings. It is typically used for people who have been diagnosed with terminal illness or disability.

Life insurance covers the life or death of the policyholder. On the other hand, non-life insurance covers the health and property of the policyholder, depending on the policy

Both are crucial. Life insurance protects loved ones after you're gone, while non-life insurance safeguards your assets and health.

Follow the steps below:

  • Contact your insurer ASAP
  • Report the incident as per policy guidelines (e.g., file a police report for theft)
  • Gather the required documents 
  • Submit your claim (online or by mail)
  • Cooperate with the insurance company's investigation

Promptly contacting your insurer and following policy instructions expedites the claim process.

Common types of non-life insurance products include health insurance, motor insurance, home insurance, travel insurance, marine insurance, and liability insurance. These non-life insurance examples protect assets and health against financial loss due to accidents, theft, damage, or medical emergencies.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

Recent Blogs

How do I Surrender my Life Insurance Policy?
18 Feb '26
887 Views
6 minute read
Learn how to surrender your life insurance policy, reasons not to, required documents, and whether you can surrender your term plan with Canara HSBC Life Insurance.
Read More
Life Insurance
Can I Buy A Life Insurance Policy For Someone With A Critical Illness?
17 Feb '26
878 Views
Life insurance may be difficult to obtain if you suffer from a critical illness. However, it is not impossible. Here are the details regarding this kind of life cover.
Read More
Life Insurance
Where Do Life Insurance Companies Invest Your Premiums?
17 Feb '26
2415 Views
10 minute read
Curious where life insurance companies invest your money? Get insights into how your premiums are managed for long-term growth and security.
Read More
Life Insurance
5 Ways to Cash Out a Life Insurance Policy in 2026
17 Feb '26
4906 Views
15 minute read
Learn five common ways to cash out a life insurance policy, including surrender, loans and withdrawals, and understand the impact on coverage and payouts.
Read More
Life Insurance
Prepaid Insurance: Meaning, Examples & How Does it Work?
17 Feb '26
1552 Views
6 minute read
Learn about prepaid insurance, its benefits, and why it’s crucial for securing your financial future by ensuring continuous coverage without interruptions.
Read More
Life Insurance
What is Risk Retention in Insurance? Meaning & Importance
17 Feb '26
2150 Views
7 minute read
Learn about risk retention in insurance, its meaning, importance, and how it helps manage financial risks. Explore with Canara HSBC Life Insurance.
Read More
Life Insurance
How Life Insurance Reduces Financial Stress During Illness?
12 Feb '26
62 Views
7 minute read
Learn how life insurance helps manage medical expenses, income loss, and family financial security during serious illness with practical examples.
Read More
Life Insurance
What Is Non-Traditional Life Insurance & Why It Matters?
11 Feb '26
127 Views
5 minute read
Explore non-traditional life insurance plans, how they differ from traditional policies, and why they matter for modern financial planning.
Read More
Life Insurance
GST on Life Insurance: Rates, Charges & Rules in India
10 Feb '26
2898 Views
10 minute read
What impact does the Goods and Services Tax have on life insurance plans and your premium payments towards them? Here’s all you need to know.
Read More
Life Insurance

Life Insurance - Top Selling Plans

We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.

Family Shield: Enhanced Protection

iSelect Smart360 Term Plan
  • 3 Plan options
  • Life cover till 99 years
  • Steady income benefit
  • Block your premium at inception

Start Young, Pay Less, Stay Secured

Young Term Plan
  • Life cover till 99 years
  • Coverage for spouse
  • Block your premium rate
  • Covers 40 critical illness

Fixed Returns, Zero Risks & Worries

iSelect Guaranteed Future Plus
  • 4 Plan options
  • Life cover + Guaranteed benefits
  • Accidental death benefit
  • Premium protection cover