What is General Insurance or Non-Life Insurance?

With all its wonderful opportunities life has its own share of hazards. Risks and hazards with its variety
and sudden unlikely to require strength and ingenuity on the part so that they are properly. General
insurance aims to cover different areas of risk protection including property, business, vehicles,
borrowing money and various other forms of professional, except for the victim's death.
DIFFERENCE BETWEEN LIFE & GENERAL INSURANCE
While life insurance caters to risk death and their consequential eventualities; General Insurance seeks
to protect the risks posed by various aspects of life and its various assets. In fact, any form of asset
owner may be entitled to General insurance. Operational within the perspective of a country, there are
different kinds of laws and statutes to guide and distinguish between life insurance and general
insurance. General Insurance House rural areas of automobile, property and companies are
called"standard l ines" considering that an insurance product that serves to protect any thingout of the
characteristics mentioned are known as"excessive". Encapsulates the essence of insurance, general
insurance and life insurance also revolves around an agreement between insurer and insured. With
proper grouping in funds such as premium and your proper investment, general insurance also serve the
purpose of the risk management, distribute the respective claims. But general insurance usually involves
an agreement between the insurer and the insured with the term short term extension not more than
one year.
. Importance of General Insurance
Ensure an agreement between insurers and insured to constitute the basis of its financial operations,
General Insurance sells products and insurance policies save various facets of risks focused on the
property. It seeks to protect properties home or property against natural hazards of fire, floods, storms,
floods and earthquakes. It also covers the risks related to the robbery and theft. They can also come to
the factory and its associated facilities, along with breakdown of machinery under the command of
general insurance. Besides real estate, movable property even comes under protective domain general
insurance. There are general insurance products or policies covering the interests of owners of cars and
cargo owners. Safe against the time limit damage caused naturally over time and theft, shipwrecks and
accidents where the insured had no direct role in
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its occurrence also come under its scope of protection. There are specific policies that ought to protect
the hulls of boats because of their greater exposure to risks.
Some of the General insurance related areas are oriented to the benefit of individual personality.
Commonly known as safe personal, accident and health insurance are offered by such beneficial
products regardless of the risk of death. This insurance generally covers the cost of hospitalization
through reimburse victims or sometimes give way to hospitalization without cash. It is important to note
that accidental and health insurance have enough products of different customizations to address the
safety of an individual or a group of individuals. For example the employees working under an
organization can come under its purview. Group insurance is cheaper because the insured can have

various discounts. Liability insurance meet the responsibility of a third party comes into play when there
is a risk to another person's life or health because of the property of the owner and the owner is legally
required to compensate well for dangerous situations arising from a legal action course, liability which is
also a part of general insurance insurance it becomes beneficial. Car owners, homeowners, factory
owners and physicians can come under the rule of liability insurance. There are political make especially
taking into account the group or groups of individuals whose activity can come at the risk of lawsuits.
Even secure credit seeks to protect the interests of lenders financial and private are protected by
general insurance. To meet the contingencies that arise from the general requirement of travel by
travelers insurance is known as Traveller insurance. Pet insurance, a common idea in the West, to cover
costs involved in connection with the maintenance of pets and other domestic animals. Even the loss of
a pet is covered by this special branch of general insurance, known as pet insurance. Also there is
insurance to meet the risks of private as well as public management groups. The real value of the
property, along with the expected value of the loss is usually counted for purposes of insurance
coverage. Therefore the price and quality of a policyare deter mined. If the actual value of the property
is not known, as part of its calculation of risk; in the case of its occurrence in reality, owner must pay the
additional premium. Actuaries a special group of professionals play an important role in terms of prices
and quality of a product related to General insurance is concerned. The majority of policies involve the
advance payment of the premium; while only a few of them are adjustable with premium payment
being dependent on the annual turnover of benefit or value half of action. General insurance is essential
for every individual and all forms of owners. Partial or total damage can be devastating; but general
insurance serves to mitigate the extent of the damage. Just as the industrial and business houses need
to protect your unit and find the coverage suitable for different costs of repairs. They also need
resources to counter the risk of liabilities. General insurance extends protection to all these riskprone
areas. Knowledge is needed along with some exposure to the elements of concern in order to provide
maximum benefit.
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For this a prospective policyholder needs to make a calculation of the risks of loss due. A good policy
from their point of view should be profitable where the amount of quantitative loss is greater than the
total cost of annual premium and insurance which is demanded as part of a general policy of insurance.
What is Channel Distribution?
The path through which goods and services travel from the vendor to the consumer or payments for
those products travel from the consumer to the vendor. A distribution channel can be as short as a
direct transaction from the vendor to the consumer, or may include several interconnected
intermediaries along the way such as wholesalers, distributors, agents and retailers. Each intermediary
receives the item at one pricing point and movies it to the next higher pricing point until it reaches the
final buyer. Coffee does not reach the consumer before first going through a channel involving the
farmer, exporter, importer, distributor and the retailer.
Figure 1.Intermediaries: The link between company and Insureds.
Role of Distribution Channels in Value Creation in insurance companies

ion represents the major element of costs and impacts the profitability of insurers.
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concern of the regulatory mechanism. Distribution of insurance is carried out in a number of ways. The
most common is through the use of insurance intermediaries. Insurance intermediaries serve as the link
between insurance companies seeking to place insurance policies and consumers seeking to purchase
critical coverage. Intermediaries, traditionally called "runners" or"agents" or "the producers", offer
advice, information and other services in connection with the application, negotiation and sale of
insurance. In the last two decades, many professional intermediaries have developed services that go
beyond the services related to the transfer of the risk of policyholders to insurers; Brokers now offer
services such as assessment and implementation of alternative means of financing for potential losses,
management strategies risk and claims management. This article will explain to you what is an insurance
intermediary, the role of intermediaries in the insurance market and the economy in general, and the
services provided by intermediaries to insurance providers and consumers and what can be done to
improve service so that not only the insurance companies, but also the company can benefit. Insurance
Intermediaries
Insurance intermediaries facilitate the placement and purchase of insurance, and provide services to
insurance companies and consumers that complement the insurance placement process.
Traditionally, insurance intermediaries have been categorized as either insurance agents or insurance
brokers. The distinction between the two relates to the manner in which they function in the
marketplace.
Insurance Agents
Insurance agents are, in general, licensed to conduct business on behalf of insurance companies. Agents
represent the insurer in the insurance process and usually operate under the terms of an agency
agreement with the insurer. The insurer-agent relationship can take a number of different forms.
In some markets, agents are independent and work with more than one insurance company (usually a
small number of companies); in others, agents operate exclusively either representing a single
insurance company in one geographic area or selling a single line of business for each of several
companies. Agents can operate in many different forms independent, exclusive, insurer-employed and
self-employed.
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Insurance Brokers
Insurance brokers typically work for the policyholder in the insurance process and act independently in
relation to insurers. Brokers assist clients in the choice of their insurance by presenting them with
alternatives in terms of insurers and products. Acting as agent for the buyer, brokers usually work with

multiple companies to place coverage for their clients. Brokers obtain quotes from various insurers and
guide clients in determining the adequate policy from a range of products.
In some markets, there are distinctions among brokers depending upon the types of insurance they are
authorized (licensed) to intermediate all lines of insurance, property and casualty or life/health
coverage. While most, if not all, brokers are active in commercial lines, some also intermediate personal
lines policies. There are also distinctions between retail brokers, who negotiate insurance contracts
directly with consumers, and wholesale brokers, who negotiate insurance contracts with retail brokers
and agents, but not directly with consumers.
The following Channels are used by insurers either in limited manner or on full scale, or a combination
of all or most of these channels; making it a multiC