General insurance covers a broad range of risks, including theft, fire, liability for personal injury, damage to property, and even business interruption. It's essential to have general insurance in place to protect yourself from financial losses resulting from these risks.

General insurance works by spreading the financial risk of potential losses across a large number of policyholders. The premium you pay will go into a pool of funds.

As a policyholder, if you suffer a covered loss, you can claim your policy and receive compensation from the insurer. Your insurer will use the pool of funds to assist with repairs, replacements, or compensation up to your policy limits.

In a nutshell, general insurance helps to protect the policyholder from incurring a potentially devastating financial loss.

Both types of insurance are essential, but they serve different purposes. Here's a look at the key differences between general and life insurance.

Life insurance is designed to protect your loved ones financially. If you pass on while having an active life insurance policy, the death benefit will be paid out to your beneficiaries. Life insurance can also help replace your income if you meet a premature death.

On the other hand, general insurance includes any coverage that doesn't fall into the life insurance category. General insurance is meant to protect you from the costs associated with unexpected events. For example, if you get into a car accident, your car insurance policy would cover the cost of repairs to your vehicle. If your home were to catch fire, your homeowner's insurance would cover the cost of rebuilding.

A general insurance policy differs from a life insurance policy in four main ways:

When people think of insurance, they often think of health insurance or motor insurance. However, there is a vast world of insurance beyond those two types. Let's explore some general insurance products and categories available to consumers.

We can divide General Insurance into two main categories: commercial lines and personal lines.

Commercial lines are insurance products offered to companies and corporations, while personal lines are insurance products offered to individuals.

Within these two categories, there are various product types, each of which offers its unique benefits.

Listed below are the main types of personal lines insurance products available in Malaysia.

Under the Road Transport Act 1987, all vehicles must have valid motor insurance. While it is a legal requirement, not all policies are created equal.

The type of policy you choose will depend on several factors, including the value of your vehicle, how often you drive, and your circumstances.

However, all policies can broadly be classified into three categories based on the level of protection they offer: fully comprehensive cover, third party fire and theft cover, and third-party only cover.

• a) Comprehensive

Fully comprehensive insurance is the highest level of protection you can buy for your vehicle. It covers you if your vehicle is damaged or stolen.

You are also covered for damages, injuries, or death caused to another person or property. Depending on the insurer, the products might also have many extra benefits, like windscreen protection.

Comprehensive covers tend to cost more because of the level of protection they provide.

• b) Third party, fire, and theft

Third party, fire, and theft insurance cover you for damage caused by your vehicle to other people's property and any injuries or deaths caused to other people. It also covers if your car is stolen or damaged by fire.

• c) Third party

Third party insurance is the minimum level of protection you can buy for your vehicle in Malaysia. It covers you for damage caused by your vehicle to other people's property and any injuries or deaths caused to other people. It does not provide any cover for damage to your vehicle.

Malaysia has 25 general insurance and reinsurance companies, according to the General Insurance Association of Malaysia (PIAM).

Bank Negara Malaysia regulates the general insurance industry under the Ministry of Finance. The industry is governed by the Financial Services Act 2013.

A policyholder pays a periodic premium to the insurer to get protection from an uncertain future event. And it's the job of insurance companies to manage risk for customers through insurance contracts known as insurance policies.

An insurance intermediary is a middle person who helps connect insurance buyers with insurance carriers. In other words, they help you find the right insurance policy to meet your needs from the vast array of options.

Think of it this way: when you're buying a car, you have many options. Knowing which is right for you can be challenging unless you're a car expert. That's where car salespersons come in. They will ask you about what you're looking for in a car and then show you some options that fit your criteria.

The same goes for insurance intermediaries. They will ask you about your needs and then show you some policies that fit them.

There are two main types of insurance intermediaries:

Agents represent insurance companies and do business on their behalf. They can sell insurance policies, collect premiums, and issue cover notes

Insurance agents also help clients file claims with their insurers if needed.

If you're interested in becoming a general insurance agent in Malaysia, you can apply to any available insurance company. The insurance company you choose will help you get qualifications and approval.

Brokers act as full-time professional intermediaries between insurance companies and buyers (policyholders). The difference between agents and brokers is that agents represent insurance companies, while brokers represent their clients.

They must be licensed by Bank Negara Malaysia and registered with The Malaysian Insurance and Takaful Brokers Association (MITBA). Their job is to represent their clients and get them the right insurance. They will also help clients negotiate with insurance companies to get the best deal. Brokers also help their clients file claims with insurance companies, just like insurance agents do.

Purchasing general insurance is affordable, and the added benefit of having a worry-free life is priceless. Purchasing a policy should also be a straightforward process.

At Kurnia, purchasing a general insurance policy is a simple process. Our website offers an easy and convenient way to compare all the available products. You can buy online, from our agents, or walk into our branches nationwide.

Disclaimer: This blog post is strictly for informational purposes, and should not be taken as advice of any kind. Kurnia disclaims all responsibility for any losses resulting from reliance on the information contained in this article.