What Is Non-Life Insurance? Types & Coverage Explained

2023-03-01

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There is so much you may want to achieve in your life. However, there is nothing in your life that you can say will happen with surety. Also, there are certain things you want that should happen without compromise. For example, you want your children to study in a good college.

Given the life uncertainties and if an unfortunate event happens, your dream may shatter. There is a way to ensure life against uncertainties - by buying a life insurance policy. It gives you comfort and security in life.

Similarly, if you plan an international holiday, you want your luggage to reach its destination. In case it does not, you should get a claim in return. You can make this possible by buying a non-life insurance policy.

Key Takeaways

Non-life insurance provides protection for 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.	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 an 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.

When Do you Need a Non-Life Insurance Policy?

Also Read: Term Insurance Vs Endowment Plan

Non-life insurance is also known as general insurance, and it covers assets like a vehicle, home, travel, accidents, etc. Life insurance is a must-have for every individual. It protects you and your loved ones in multiple ways. Similarly, non-life insurance is a must depending on your lifestyle. However, health insurance is one non-life insurance everyone must-have.

Let us look at the non-life insurance types to understand the need for it:

Individual Non-Life Insurance	Corporate/Group Non-Life Insurance
Health Insurance Motor Insurance Home & Home Content Insurance Asset Insurance	Marine Insurance Liability Insurance Workmen Compensation Insurance Group Health & Personal Accident Insurance

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How to File Claims for Non-Life Insurance Policies?

The claim process will depend on the type of non-life claim you make. The process and documents required for a health insurance claim are different from a motor claim. Below is how you can file a health insurance claim:

Get all the receipts and bills from the hospital and arrange them properly.
Ask for a claim form from the health insurance company or download it from their website.
You need to submit the original policy document, claim application form, hospital certificate, etc. Check the insurance company site and get the list of all documents required.
Keep the copy of the original documents with you. In case the original documents get misplaced, they will be handy.
File the claim online or offline with all the documents.

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.

Did You Know?

Certain non-life insurance plans, like some critical illness riders attached to health insurance, can provide a payout in the event of a severe diagnosis.

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. Chose an insurance plan offering maximum sum assured 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 garages, no pre-policy health check, etc.
Claim settlement ratio 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 prints. 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.

Why Choose a Non-Life Insurance Policy by Canara HSBC Life Insurance?

Here's why you should definitely consider investing in a Canara HSBC non-life insurance policy:

Trusted Network: Canara HSBC Life has a strong reputation in the insurance industry. By partnering with reliable general insurance providers, they can offer access to a network of trusted insurers.
Convenience: You might be able to manage both your life and non-life insurance policies under one umbrella, simplifying your insurance portfolio management.

Financial Strength: Canara HSBC Life is a joint venture between Canara Bank, a leading public sector bank in India, and HSBC Insurance, a global insurance group. This strong financial backing could give you confidence in their ability to meet your claims.

Customer Service: Canara HSBC Life is known for its customer-centric approach. You might benefit from their existing customer service channels for any inquiries related to your non-life insurance policy.

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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. Non-life insurance, which includes policies like motor insurance, health insurance, and home insurance, is essential for protecting against unexpected expenses. Here’s a step-by-step guide to help you renew your non-life insurance policy online seamlessly.

Documents Required for Renewal

Before proceeding with 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 Aadhar 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 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:

Claim: A formal request from a policyholder to an insurance company for financial compensation covered under their insurance policy.
Incurred Claim Ratio (ICR): A financial metric that indicates the percentage of claims an insurance company pays out relative to the premiums it collects.
Premium: The periodic payment made by a policyholder to an insurance company to maintain coverage under an insurance policy.
Sum Assured: The guaranteed payout amount an insurance company will provide upon the fulfilment of the policy terms

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 upon 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 below steps.

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 expedite the claim process.

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.