Prior to nationalization of the general insurance companies there were about 108 companies transacting general insurance business in India, LIC was also one of them. However, in the year 1972, by a central Act of parliament, the Government of India nationalized the general insurance business in the country and constituted the General Insurance Corporation of India under the General Insurance Business (Nationalisation) Act, 1972. All the companies were merged to form four companies wholly owned by the Government of India and they were subsidiaries to the GIC.
While life insurance policies cover the life of the insured person with extended cover for accidents, critical illness etc. according to the requirements of the person insuring, the non-life insurance policies cover all the other things under the sun. Some of the non-life policies for example are:
- Fire insurance
- Miscellaneous insurance
- Marine insurance
- Motor insurance
- Cattle insurance
- Other rural insurances
- Personal accident
Health insurance comes as a branch under the miscellaneous class of business. The companies offer under this class, Mediclaim policies to individuals, families or to groups of persons. The entry age and the exit age are fixed by the companies. The premium would vary depending on the limit of cover opted, age of the insured and certain other aspects. The pre-existing diseases are not generally covered under this policy.
All the policies issued by the general insurance companies are annual contracts and every renewal is deemed as a fresh contract.
Written by: Healthplus24 team
Date: Dec 23rd,09