What is General Insurance?
General Insurance comprises of non-life insurance policies that provide insurance cover for motor vehicles, houses, health, and travel. These policies have to be renewed according to the tenure prescribed in their respective policy documents, and these have a particular sum insured which is reimbursed depending on the loss from a particular financial event.
Importance of Insurance
Buying insurance is important as it ensures that you are financially secure to face any type of problem in life. Here are the main reasons why having Insurance is absolutely necessary: –
1. Financial Security: No matter how much you are earning or how much you have saved; your financial position can be dented by unexpected event in a moment. Therefore, the best way to become financially secure is to cover yourself, your family, and your assets with insurance. You can buy or renew insurance online and receive a payout for financial support, in case there happens to be an unforeseen event.
2. Transfer of Risk: The contract of insurance works on the ‘principle of transfer of financial risk from the insured to the insurgency company’. As an insured, you pay premiums to receive compensation from the insurer, in case of occurrence of an unforeseen event. So, having insurance reduces the financial burden on your shoulders.
3. Complete Protection for You and Your Family: Family is the most important asset that you have and your family depends on you for financial support. This is why it is important to make sure that you and your family are completely secure to face any emergency.
4. No More Stress or Tension during Difficult Times: None of us can see the future or predetermine the future events. Any unforeseen tragedy can leave you physically, mentally, and financially strained. Therefore, if you have insurance to take care of the outcomes of such tragedies such as illness, injury or permanent disability, even death- you save yourself and your family from tension and stress. With insurance in place, any financial stress will be taken care of, and you can focus on your recovery.
5. Some Types of Insurances are Compulsory: Insurance is necessary because sometimes it is mandatory as per the law. An example of this is motor insurance. As per the Motor Vehicle Act, it is compulsory to have at least a third-party motor insurance for every motor vehicle plying on road in the Maldives.
6. Peace of Mind: Having insurance like health insurance offers you financial security and also peace of mind. No amount of money can replace your peace of mind. So, when you have insurance you know that you are secured against any unforeseen events in life, and this gives you complete peace of mind.
