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Friday 13 December 2019

What are the needs for General Insurance

Importance and need for general insurance
General insurance is one out the two broad classifications of insurance. That major classifications of insurance are life and non-life insurance. Though life insurance policies are selling more in most countries, the need for general insurance cannot be underestimated. General insurance is also known as non-life insurance.

There are many examples of general insurance. These include car insurance, marine insurance, fire, burglary, health and household insurance. These examples of general insurance has really helped organizations and individuals to keep on with their daily activities with less fear.

The Importance of Buying General Insurance

Of what importance is the buying of general insurance policies? What are the importance of general insurance? This is the question that many have asked. Many sometimes think that buying general insurance is a waste of money but it is not so. Many think like this because they do not have deep understanding in the subject.

General Insurance gives Business Owners Peace of Mind

This is one of the major importance of general insurance. When you buy it to cover the goods in your shop as a businessman or woman, you will be at peace. You will know that even if anything like fire or break in occurs, you have less to worry. Insurance is good because it builds trust within a business owner.

Many business owners do not sleep with their two eyes closed because of the fear of disaster that may affect their businesses. They are always not at peace in their minds. This kind of behaviour can cause high blood pressure in some business owners. But those who are wise have minimize this fear by buying general insurance policies that cover the products they sell. Some even buy similar policies from more than two insurance companies.
Importance of general insurance in business and entrepreneurship 

It help Organizations to keep Going

Organizations that render services to people from different parts of the world would not be happy to find their activities shutdown one day. That will be a big slap on their faces as many things will go wrong if that should happen. Many will lose their jobs and the organization on its own will end up losing profits.

To prevent this kind of disaster from having negative effects, many organizations bought general insurance. The general insurance plans bought by the organizations make sure that the materials used in the organization are safe. The building on its own is also protected. If any disaster that may stop the function of the organizations occur, insurance company provides financial support to keep the organization going.

Minimizes Property Expenses due to loss in Homes

Household insurance is a new insurance policy that has met the need of many people. Everyone knows that it is not easy to have quality products in homes after building. Some of the properties can run to thousand of dollars. Losing those properties after spending a lot of money to buy them can be painful.

To avoid the pain that may come in as a result of loss of properties in homes, general insurance becomes important. If any property is lost as a result of insurable perils, insurance companies that insured the properties in the homes pay some cash values for the replacement of the properties. Household insurance has really helped many owners of homes who once lost their properties through fire, theft and other disaster.

After a sudden fire destroyed Gretchen and Brian’s home, Chubb made sure their family could pick up where they left off (Chubb 2018). This was made possible because the family bought household insurance before the incidence happened. They would have spent a lot of money on their own but Chubb Insurance company took over by paying claim to cover the value of the lost properties. Chubb is an insurance company in the United States of America and the incident happened in the same country.

Importance of General Insurance in Automobiles

General insurance has really helped many car owners all over the world. This is clear as government of many countries have mandated car owners that every car must be insured. It is the responsibility of the body in charge in every country to punish drivers and car owners who go contrary to the law of car insurance. Any user of some cars who are not insured faces some fines.

On many occasions, some car owners have accidents with their cars. These accidents are sometimes fatal while others are minimal. Those cars that were insured before the incidence happened are being taken care of by the insurance companies that insures the vehicle. Depending on the level of the damage the car experienced and the type of insurance bought, sometimes insurance companies pay the policyholder some amount of money to repair the car or amount worth the entire price of the car to buy a new one. That is one of the places we see the importance of non-life insurance.

It Protects Small and Medium Enterprises

How does non-life insurance protect small and medium businesses? General insurance serves as protection to small and medium businesses. It gives starters of new businesses the mind to carry on with they journey to make impart in the society they find themselves by buying and selling of goods and services. It is not easy to start a new business. And starting a new business without protection can have a way or ways of imparting negatively in the business.

With the help of general business insurance, Small and Medium businesses have found their feet over the years. Some after they started had a setback as a result of fire or breaking into their shops by thieves. But because they insured the goods and services they sell, insurance companies they signed up with at the inception of their business came to their rescue. They empowered them again financially.
Non-life insurance and its protection on goods in transit 

The Importance of non-life Insurance in Protection of Goods in Transit

Insurance in the recent years have taken different dimensions. These dimensions have really met different needs of different persons. Sincerely speaking, general insurance has really helped many businesses grow. Another where it makes its impact is in goods in transit insurance package.

Quoting from the website of FBN Insurance General on the topic under discussion "This is suitable for the import of goods being conveyed by sea or air from outside Nigeria.

Features

Guarantees indemnity in the event of financial losses as a result of voyage mishap like sinking or stranding of carrying vessel, piracy, water damage to goods, jettison etc.

Coverage is for freight & cost of goods plus handling charges

Cover can be granted from the point of shipment/ loading to the insured’s final warehouse/point of discharge"

That is to say that as a businessman or woman, you do not need to worry too much even as your goods are on the way to reach their destination. If anything happen to those goods, the insurance company will take care of the goods so far all terms and conditions are met. It is a good development by insurance companies.

Importance of General Insurance in Treatment Expenses

Medical expenses can be high sometimes though people do not fall sick all the time. Sometimes when people do not have enough money to treat themselves when they are sick, they are worried. This worries can add to the bad state of theirs.

With the help of health insurance cover, many people are able to get treated in any approved hospital by the insurance company. In as much as the policyholders pay their premiums, they are medically covered. They can visit the hospitals approved by the company, get medical attention and the insurance companies pay the bills. This is one of the areas general insurance shows its importance.

Reference

  • Chubb (2018), At every step, Chubb put the family first, published by Chubb Insurance Company, New Jersey, United States
  • FBN Insurance General (2018), Goods-in-Transit, published by FBN Insurance General, Lagos state, Nigeria

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