How numerous types of insurance and what are they?
In simple terms, insurance means contract. In the language of the books insurance is a bilateral agreement or an agreement between two parties. The contract that the client executes with the company for a fixed term is called insurance. There are generally 5 types of insurance.
1. General insurance
2. Life insurance
3. Health insurance
4. Boat or marine
5. Fire insurance
1. General Insurance
Human wealth similar as; Ensures safety of buses, houses, manufactories, etc.
2. Life insurance
Life insurance is a strategy for transferring or avoiding the threat, loss, or peril of death. In the present age, life insurance serves as an important means of getting relieve of the fiscal loss of the ensured or his family members in case of death or old age of the ensured.
Life insurance is a contractual arrangement in which the insurer or insurance company promises to pay a fixed quantum after a certain period of time or after the death of the ensured by paying a fixed rate to the ensured. Life insurance is therefore a ultramodern agreement executed between the ensured and the insurer in return for a fixed decoration payment which the insurer promises to pay to the ensured or his inheritors or his designee after his death or after a certain period.
3. Health insurance
Health insurance is a type of contract that covers the insurer's medical charges in the event of an accident, illness or serious illness.
4. Boat or marine
The contract that the insurer executes with the guarantee of compensation in case of damage to the vessel, boat's goods or freight ensured by a certain peril is called nonmilitary insurance or marine insurance. According to Halsbury, a convention that promises to compensate for maritime losses in a certain way, up to a certain limit, is called nonmilitary insurance.
5. Fire insurance
R.S. According to Sharma, fire insurance is a contract in which one party agrees to bear the threat of a certain quantum of fiscal loss to the other party in return for compensation which means loss or destruction of commodity by fire.
Purpose of fire insurance
1. Compensation One of the most important purposes of fire insurance is to compensate for the damage caused or destroyed byfire.However, the insurer pays applicable compensation, If the insured property of the ensured is damaged in a fire.
2. Investment Creation Insurance companies reinvest a large portion of the plutocrat they earn from fire insurance in colorful businesses and diligence. Insurers are involved in the insurance business for the purpose of these investments.
3. Threat sharing Since fire insurance also distributes one's loss among other people in the society, it protects a person from a single major loss.
4. Other Insurance Life Insurance, Fire Insurance, Naval Insurance, Accident Insurance, etc. No insurance alone can handle the overall insurance conditioning.
Read More: Insurance-Desh Bangla