Types of Insurance
Life Insurance -- 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 a certain period. At present, life insurance enjoys maximum scope because life is the most important property of an individual.
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.
General Insurance -- 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.
Property Insurance -- 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 the loss of marine perils.
The marine perils are; collision with a rock or ship, attacks by enemies, fire, and captured by pirates, etc. these perils cause damage, destruction or disappearance of the ship and cargo and non-payment of freight.
So, marine insurance insures ship (Hull), cargo and freight.
Liability Insurance -- 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 4 categories from the risk point of view.
Personal Insurance -- The personal insurance includes insurance of human life which may suffer a loss due to death, accident, and disease. Therefore, personal insurance is further sub-classified into life insurance, personal accident insurance, and health insurance.
Property 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 goods.
Guarantee Insurance --- 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.