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Most insurance companies make money in two ways: Charging premiums to the policyholders and investing the insurance premium payments.
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General Insurance or non-life insurance is the insurance that covers all the types of properties and health excluding the life of the customer. General insurance includes products such as Home insurance, Automobile insurance, Property insurance, health insurance, Liability insurance, Marine insurance, and other miscellaneous insurance. All the general insurance policies would be underwritten only by the general insurance companies in India.
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The insurance company collects money in the form of premiums from all its customers based on the sum insured and pays the losses due to the insured event.
foreign direct investment (FDI) limit in the insurance sector is increasing from 49% to 74%.
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