QN: Identify and describe various types of general insurance products, including but not

limited to:
– Health Insurance
– Motor Insurance
– Travel Insurance
– Property Insurance
– Commercial Insurance
– Asset Insurance, and
– Pet Insurance
Explain the coverage, terms, and conditions of each type of insurance product
……………………………………………………………………………………………………....
SOLUTION
o General insurance is any type of insurance that is not life insurance (Institute and Faculty
of Actuaries)
o The types of general insurance products cover can be classified under four main
categories:
1. Liability
2. Property damage
3. Financial loss
4. Fixed benefits
o We are going to describe and explain coverage term and conditions for a number of
general insurance product including health insurance, motor insurance, travel insurance,
property insurance, commercial insurance, asset insurance, pet insurance and crop
insurance.

1. Health Insurance
Health insurance is a type of insurance product that provides coverage for medical expenses
incurred by the insured due to illness or injury. It provides coverage for hospitalization,
doctor consultation fees, medical tests, and other related expenses.
o Health insurance can be classified as a fixed liability product.
The terms and conditions
The coverage and terms can vary depending on the policy and provider, but here are some
common coverage, terms, and conditions of health insurance:
 o Coverage: Health insurance typically covers a range of medical expenses, including
hospitalization, doctor's fees, medical tests, and other related expenses. Some policies
may also provide coverage for maternity care and alternative therapies
o Deductibles: Health insurance policies often have a deductible, which is the amount the
policyholder must pay out of pocket before the insurance coverage kicks in. The
deductible can vary depending on the policy and provider
o Co-payments: Co-payments are the portion of the medical expenses that the
policyholder must pay out of pocket after the deductible has been met. The co-payment
amount can vary depending on the policy and provider
o Pre-existing conditions: Some health insurance policies may exclude coverage for pre-
existing conditions, which are medical conditions that the policyholder had before
signing up for the policy
o Limits: Health insurance policies may have limits on the coverage provided, such as a
maximum amount per year or per lifetime. Some policies may also have exclusions for
certain types of medical procedures or treatments

2. Motor Insurance
o Motor insurance is mandatory for all vehicle owners in most countries. It provides
coverage for damage to the vehicle due to accidents, theft, and natural calamities, as well
as third-party liabilities.
o It can be classified as either liability or property damage
o The three main type of motor covers available are:
i. Third party
ii. Third part, fire and theft (TPF & T )
iii. Comprehensive

 Third party cover: This insurance indemnifies the owner of a motor vehicle
against compensation payable to third parties for personal injury or damage to
their property. The benefit cab be paid in lump sum or periodically to the injured
party.
 Third part, fire and theft (TPF & T ): It provides the same cover as third part
insurance plus losses or damages caused to the insured’s own vehicle from fire or
theft.
 Comprehensive: This the highest level of motor insurance which includes
covers provided by third party and TPF & T and additionally accidental or other
malicious damage to the insured’s own car.
o The maximum benefit is the depreciated value of the vehicle. In most cases of damage
the insurer will have to pay to have the vehicle repaired.
The terms and conditions of motor insurance
The terms and conditions of motor insurance policies can vary depending on the policy and the
provider. Some common terms and conditions of motor insurance policies include:
 o Deductibles: Motor insurance policies often have a deductible, which is the amount that
the policyholder is responsible for paying before the insurance coverage kicks in. The
deductible can vary depending on the policy and provider.
o Limits on coverage: Motor insurance policies may have limits on the coverage provided,
such as a maximum amount per accident or per year.
o In order to be eligible for motor insurance coverage, the policyholder must maintain a
valid driver's license

3. Travel Insurance
o Travel insurance provides coverage for losses incurred during domestic or international
travel. It covers expenses related to trip cancellation, lost baggage, medical emergencies,
and other travel-related issues.
o The coverage can be customized as per the traveler's requirements, such as single-trip,
multi-trip, or student travel insurance
The coverage can vary depending on the policy and the provider, but here are some common
coverage, terms, and conditions of travel insurance:
o Trip cancellation/interruption: Travel insurance policies may provide coverage for trip
cancellation or interruption due to unforeseen events such as illness, injury, or death of
the policyholder or a family member.
o Medical expenses: Travel insurance policies may also provide coverage for medical
expenses incurred while traveling, including emergency medical treatment,
hospitalization, and evacuation.
o Baggage loss/delay: Travel insurance policies may provide coverage for loss or delay of
baggage, including reimbursement for necessary items such as clothing and toiletries
o Emergency assistance: Travel insurance policies may include emergency assistance
services such as 24-hour hotlines and travel assistance, which can provide help with
medical emergencies, travel arrangements, and other unexpected events
o Pre-existing conditions: Some travel insurance policies may exclude coverage for pre-
existing medical conditions, which are medical conditions that the policyholder had
before signing up for the policy.
o Limits: Travel insurance policies may have limits on the coverage provided, such as a
maximum amount per trip or per year. Some policies may also have exclusions for
certain types of activities or destinations

4. Property damage
o The main characteristic of property damage insurance is indemnifying the policyholder.
Here the indemnity is against loss of or damage to policyholders’ own material property
due to natural calamities, theft, or other perils.
o The main types of property that are subject to such damage are:
 Motor insurance
 Buildings insurance, which includes both residential buildings (houses) and
commercial buildings, such as offices, shops and industrial buildings
  Contents insurance
Moveable property (for example, the contents of a home or of commercial
premises)
 Marine craft
 Aircraft
 Goods in transit
 Property under construction
 Engineering plant and machinery
 Goods insured under an extended warranty policy
 Crops.
o The coverage can include both structural damage and personal property damage
The terms and conditions of property insurance policies can vary depending on the policy and
the provider. Some common terms and conditions of property insurance policies include:
o Deductibles: Property insurance policies often have a deductible, which is the amount
that the policyholder is responsible for paying before the insurance coverage kicks in.
The deductible can vary depending on the policy and provider
o Coverage limits: Property insurance policies may have limits on the coverage provided,
such as a maximum amount per incident or per year. Some policies may also have
exclusions for certain types of damages or losses.
o Exclusions: Property insurance policies may exclude coverage for certain types of
damage, such as flood damage or earthquake damage. To obtain coverage for these types
of events, the policyholder may need to purchase additional coverage or a separate
policy.
o Personal liability: Property insurance policies may also include personal liability
coverage, which provides protection in case the policyholder is found responsible for
causing damage or injury to someone else's property or person

5. Commercial Insurance
o Commercial insurance provides coverage for businesses against financial losses due to
unforeseen events such as fire, theft, or natural calamities.
Some common types of commercial insurance include:
o Property insurance: This type of insurance provides coverage for damage or loss to a
business's physical property, such as buildings, equipment, and inventory.
o Liability insurance: The main characteristic of liability insurance is providing indemnity
where the insured is legally liable to pay compensation to third part. This type of
insurance can include general liability insurance, professional liability insurance, and
product liability insurance.
o Workers' compensation insurance: This type of insurance provides coverage for work-
related injuries or illnesses suffered by employees. Workers' compensation insurance can
 help cover medical expenses, lost wages, and other costs associated with an employee's
injury or illness
o Business interruption insurance: This type of insurance provides coverage for lost
income and other expenses if a business is unable to operate due to a covered event, such
as a fire or natural disaster.
o Cyber liability insurance: This type of insurance provides coverage for losses related to
data breaches, cyber-attacks, and other types of cyber threats.
o Commercial vehicle insurance: This type of insurance provides coverage for vehicles
used for business purposes, such as delivery trucks or company cars.
The terms and conditions of commercial insurance policies can vary widely depending on the
type of policy and the provider. However, here are some common terms and conditions that may
be included in commercial insurance policies:
o Coverage limits: Commercial insurance policies may have limits on the coverage
provided, such as a maximum amount per incident or per year. It's important to
understand the coverage limits of the policy and ensure that they are sufficient to cover
the potential risks faced by the business.
o Deductibles: Commercial insurance policies often have a deductible, which is the
amount that the policyholder is responsible for paying before the insurance coverage
kicks in. The deductible can vary depending on the policy and provider.
o Exclusions: Commercial insurance policies may exclude coverage for certain types of
events or risks, such as acts of terrorism or intentional acts by the policyholder. It's
important to review the exclusions carefully and understand what risks are not covered by
the policy
o Premiums: Commercial insurance policies require the payment of premiums in exchange
for coverage. The amount of the premium can vary depending on the type of policy, the
coverage provided, and the risks associated with the business.
o Claims process: The process for filing and resolving claims can vary depending on the
policy and provider. It's important to understand the claims process and ensure that it is
clear and straightforward.
o Renewal and cancellation: Commercial insurance policies may have terms regarding
renewal and cancellation, such as a requirement for notice before cancellation or an
automatic renewal clause. It's important to review these terms carefully and ensure that
they are acceptable to the policyholder.

6. Asset Insurance
o Asset insurance provides coverage for valuable assets such as jewelry, art, and antiques.
o It coverage include the cost of repair or replacement of the asset in case of damage, loss,
or theft.
The terms and conditions of asset insurance policies can vary depending on the policy and the
provider. Some common terms and conditions of asset insurance policies include:
 o Security requirements: Asset insurance policies may require the policyholder to take
certain security measures to protect the assets, such as storing them in a safe or installing
an alarm system.
o Appraisals: Asset insurance policies may require the assets to be appraised by a
professional to determine their value. The appraisal may need to be updated periodically
to ensure that the coverage is adequate.
o Coverage limits: Asset insurance policies may have limits on the coverage provided,
such as a maximum amount per item or per incident.
o Deductibles: Asset insurance policies often have a deductible, which is the amount that
the policyholder is responsible for paying before the insurance coverage kicks in.
o Exclusions: Asset insurance policies may exclude coverage for certain events or risks,
such as damage caused by wear and tear or damage caused by intentional acts.

7. Pet Insurance
o Pet insurance provides coverage for veterinary expenses incurred for the treatment of
pets. It covers the cost of medical treatment, surgery, and hospitalization, among others.
The terms and conditions of pet insurance policies can vary depending on the policy and the
provider. Some common terms and conditions of pet insurance policies include:
o Coverage limits: Pet insurance policies may have limits on the coverage provided, such
as a maximum amount per incident or per year. It's important to understand the coverage
limits of the policy and ensure that they are sufficient to cover potential veterinary
expenses.
o Deductibles: Pet insurance policies often have a deductible, which is the amount that the
policyholder is responsible for paying before the insurance coverage kicks in. The
deductible can vary depending on the policy and provider.
o Exclusions: Pet insurance policies may exclude coverage for certain types of events or
risks, such as pre-existing conditions or certain breeds of pets. It's important to review the
exclusions carefully and understand what risks are not covered by the policy.
o Premiums: Pet insurance policies require the payment of premiums in exchange for
coverage. The amount of the premium can vary depending on the type of policy, the
coverage provided, and the risks associated with the pet.
o Claims process: The process for filing and resolving claims can vary depending on the
policy and provider. It's important to understand the claims process and ensure that it is
clear and straightforward.

8. Crop insurance
o Crop insurance is a type of insurance that provides coverage for losses to crops due
to natural disasters, weather events, and other unforeseen circumstances.
The terms and conditions of crop insurance policies can vary depending on the policy and the
provider. Here are some common terms and conditions of crop insurance policies:
o Coverage levels: Crop insurance policies may offer different coverage levels, with
higher levels of coverage typically resulting in higher premiums. The coverage level can
be based on the expected yield, the market price of the crop, or a combination of both.
o Premiums: Crop insurance policies require the payment of premiums in exchange for
coverage. The amount of the premium can vary depending on the type of policy, the
coverage provided, and the risks associated with the crop.
o Deductibles: Crop insurance policies often have a deductible, which is the amount that
the policyholder is responsible for paying before the insurance coverage kicks in. The
deductible can vary depending on the policy and provider
o Coverage levels: Crop insurance policies may offer different coverage levels, with
higher levels of coverage typically resulting in higher premiums. The coverage level can
be based on the expected yield, the market price of the crop, or a combination of both.
o Premiums: Crop insurance policies require the payment of premiums in exchange for
coverage. The amount of the premium can vary depending on the type of policy, the
coverage provided, and the risks associated with the crop.
o Deductibles: Crop insurance policies often have a deductible, which is the amount that
the policyholder is responsible for paying before the insurance coverage kicks in. The
deductible can vary depending on the policy and provider

NB: Each type of insurance product may have different coverage, terms, and conditions,
depending on the insurance company's policy. It is essential to read the policy document
carefully before purchasing any insurance product to understand the coverage and exclusions.