Types of Insurance

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(a) Life insurance

Some other types of life insurance policy and plan are as under:

(b) Fire Insurance

  • Contract whereby the insurer in consideration of premium.

  • Undertakes to compensate the insured for the loss or damage suffered because of fire.

  • Premium is payable in single installment.

  • Contracts are generally taken up for one year.

  • Renew the policy every year by paying the premium on time.

  • Claim for loss by fire is payable in such condition like:

  • There must have been actual fire

  • Fire must have been accidental, not intentional; the cause of fire being immaterial.

(c) Marine Insurance

  • In contract insurance company agrees to indemnify the owner of a ship or cargo against risks.

  • It includes incidental to marine adventures.

  • Variety of risks such as collision with other ship, collision of ship with hidden rocks, fire, storm, and so on.

  • Entire loss is grouped into 3 categories:

  • Loss to the ship

  • Loss to the cargo

  • Loss of freight.

  • Covers the risk of loss of cargo is known as Cargo Insurance.

  • Owner of a ship is insured against loss on account of perils of the sea known as Ship or Hull insurance.

  • Shipping company may also seek insurance of the risk of loss of freight known as freight insurance.

(d) Other types of Insurance

  • Motor Vehicles Insurance: Insurance of passenger cars, vans, commercial vehicles, motor cycles, scooters, etc.

  • Health Insurance: Termed as medi-claim insurance and insurance now-a-days.

  • Crop Insurance: Protects the farmers from the loss suffered because of crop failure in the event of drought or flood.

  • Cash Insurance: Protects the banks and other business establishment against loss of money in transit.

  • Cattle Insurance: Death of a cow, buffalo, heifer, bull, etc. caused by accident, diseases etc.

Principle of Insurance