Introduction
Nowadays, there is talk about insurance everywhere and everyone is curious about it. But still, there are many myths and misconceptions in people’s minds, especially about General Insurance. These myths are so common that many people are not able to take the right decision. In this blog, we will bust 10 Common Myths About General Insurance and explain in simple language what the reality is. If you are thinking of taking an insurance plan, then it is very important to understand these myths.
Myth 1: General insurance is only for car or bike
Many people think that general insurance means only motor insurance.
Reality: General insurance is very broad. It includes health insurance, travel insurance, home insurance, fire insurance, marine insurance and commercial insurance. That means it covers all your short-term risks.
Myth 2: Health insurance is only for illness
People believe that health insurance is useful only when you are admitted in hospital.
Reality: Nowadays, health insurance covers OPD, daycare procedures, pre and post hospitalization expenses, ambulance charges and even preventive health checkups. Meaning you get benefit not only for major surgery but also for small medical needs.
Myth 3: General insurance is just an extra expense
Many people say that “taking insurance is like wasting money.”
Reality: Insurance is not an expense, it is an investment in risk management. If you have an accident, fire, theft or health emergency, then you can incur an expense of lakhs. Insurance manages that risk and gives you financial security.
Myth 4: It is difficult to claim insurance
It is a big myth that making a claim is very complicated.
Reality: Nowadays IRDAI and insurance companies have made the claim process simple and transparent. Online claim intimation, cashless hospitals, dedicated claim settlement teams – everything is available. If you make a claim after understanding the terms of the policy, then settlement is easy.
Myth 5: Only sick people should take health insurance
Log sochte hain ki health insurance tabhi lena chahiye jab aap already sick ho.
Reality: Health insurance tabhi sasta aur effective hota hai jab aap healthy ho. Kyunki us time waiting period aur premium dono manageable hote hain. Agar aap bimari ke baad plan loge toh ya toh premium high hoga ya exclusions aayengi.
Myth 6: Company insurance is enough
People who work think that the health cover provided by their employer is enough.
Reality: Company insurance is temporary. If you change jobs or retire, that cover ends. That is why it is very important to get your personal health insurance.
Myth 7: Small policies are not necessary
Many people take only big insurance products like life and motor insurance seriously.
Reality: Small plans like travel insurance, home insurance, cyber insurance are also equally important. For example, travel insurance for a short trip abroad can save you medical bills worth lakhs.
Myth 8: Insurance is only for rich people
It is a common notion that buying insurance is a luxury for the middle class.
Reality: General insurance is a safety net especially for the middle class. Insurance is what saves you from losing your home, car, health and other small savings in a single incident.
Myth 9: Every policy covers everything
Many people take it for granted that everything is covered for them.
Reality: Every policy has its inclusions and exclusions. Example: health insurance does not cover cosmetic surgery or dental procedures (unless it is accidental). Hence, it is important to read the details before buying the policy.
Myth 10: Buying insurance means a loss if you don’t make a claim
People say that “I have taken the policy for 5 years, did not even make a claim – money wasted.”
Reality: If you do not have to make a claim, it means you are healthy and safe. This is the real success of insurance. Anyway, in health insurance you get No Claim Bonus (NCB) which increases your sum insured.
Conclusion
Myths about insurance are very common, but it is important to bust them so that you can make informed decisions. General insurance is a financial safety net that protects you and your family from short-term risks.
Bust your myths today and choose the right insurance cover.
