The insurance types

 Insurance is a contract, represented by a policy, in

which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured

Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party

Life Insurance is different from other insurance in the sense that, here, the subject matter of insurance is the life of a human being

The insurer will pay the fixed amount of insurance at the time of death or at the expiry of the certain period

At present, life insurance enjoys maximum scope because the life is the most important property of an individual

Each and every person requires the insurance

This insurance provides protection to the family at the premature death or gives an adequate amount at the old age when earning capacities are reduced

Under personal insurance, a payment is made at the accident

The insurance is not only a protection but is a sort of investment because a certain sum is returnable to the insured at the death or the expiry of a period

The general insurance includes Property Insurance, Liability Insurance, and Other Forms of Insurance

Fire and Marine Insurances are strictly called Property Insurance. Motor, Theft, Fidelity and Machine Insurances include the extent of liability insurance to a certain extent

The strictest form of liability insurance is fidelity insurance, whereby the insurer compensates the loss to the insured when he is under the liability of payment to the third party

Under the property insurance property of person/persons are insured against a certain specified risk. The risk may be fire or marine perils, theft of property or goods damage to property at the accident

Marine Insurance

Marine insurance provides protection against loss of marine perils. The marine perils are a collision with a rock, or ship, attacks by enemies, fire, and captured by pirates, etc. these perils cause damage, destruction or disappearance o’ the ship and cargo and non-payment of freight

Previously only certain nominal risks were insured but now the scope of marine insurance had been divided into two parts; Ocean Marine Insurance and Inland Marine Insurance

The former insures only the marine perils while the latter covers inland perils which may arise with the delivery of cargo (gods) from the go-down of the insured and may extend up to the receipt of the cargo by the buyer (importer) at his go- down

Fire Insurance covers the risk of fire. In the absence of fire insurance, the fire waste will increase not only to the individual but to the society as well

With the help of fire insurance, the losses arising due to fire are compensated and the society is not losing much

The individual is preferred from such losses and his property or business or industry will remain approximately in the same position in which it was before the loss

The fire insurance does not protect only losses but it provides certain consequential losses also war risk, turmoil, riots, etc. can be insured under this insurance, too

The general Insurance also includes liability insurance whereby the insured is liable to pay the damage of property or to compensate for the loss of persona; injury or death

This insurance is seen in the form of fidelity insurance, automobile insurance, and machine insurance, etc

Social Insurance

The social Insurance is to provide protection to the weaker sections of the society who are unable to pay the premium for adequate insurance

Pension plans, disability benefits, unemployment benefits, sickness insurance, and industrial insurance are the various forms of social insurance

Insurance can be classified into four categories from the risk point of view

The personal insurance includes insurance of human life which may suffer loss due to death, accident, and disease

Therefore, the personal insurance is further sub-classified into life insurance, personal accident insurance, and health insurance

The property of an individual and of the society is insured against loss of fire and marine perils, the crop is insured against an unexpected decline in deduction, unexpected death of the animals engaged in business, break-down of machines and theft of the property and good

The guarantee insurance covers the loss arising due to dishonesty, disappearance, and disloyalty of the employees or second party. The party must be a party to the contract

His failure causes loss to the first party. For example, in export insurance, the insurer will compensate the loss at the failure of the importers to pay the amount of debt

Other Forms of Insurance

Beside the property and liability insurances, there are other insurances which are included in general insurance

The examples of such insurances are export-credit insurances, State employees insurance, etc. whereby the insurer guarantees to pay a certain amount at the certain events

This insurance is extending rapidly these days

Miscellaneous Insurance

The property, goods, machine, Furniture, automobiles, valuable articles, etc. can be insured against the damage or destruction due to accident or disappearance due to theft

There are different forms of insurances for each type of the said property whereby not only property insurance exists but liability insurance and personal injuries are also insurer

When choosing a policy, it is important to understand how insurance works

A policy's premium is its price, typically expressed as a monthly cost. The premium is determined by the insurer based on your or your business's risk profile, which may include creditworthiness. For example, if you own several expensive automobiles and have a history of reckless driving, you will likely pay more for an auto policy than someone with a single mid-range sedan and a perfect driving record. However, different insurers may charge different premiums for similar policies. So finding the price that is right for you requires some legwork

The policy limit is the maximum amount an insurer will pay under a policy for a covered loss. Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum

Typically, higher limits carry higher premiums. For a general life insurance policy, the maximum amount the insurer will pay is referred to as the face value, which is the amount paid to a beneficiary upon the death of the insured