Sunday, December 17

A Brief Discription On " Insurance "

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Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.

An insurer is a company selling the insurance; an insured, or policyholder, is the person or entity buying the insurance policy.

The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium.

Types of Insurance

  1. Life Insurance: Life Insurance policy is the most popular and taken by the most number of people. Many of us buy life insurance policies, because we want to make sure our loved ones remain financially secure after we die. Insurance companies offer both individual as well as group insurance policies.

Individuals getting a life insurance cover have to pay the monthly/quarterly/half yearly/yearly premium/life insurance rate, which depends on the amount insured. The premium amount also increases or decreases with different life insurance plans, age of the individual etc

  1. Marine Insurance:Marine insurancecovers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.Marine insurance falls under commercial insurance. The policy is taken to reduce business risks. It caters to small scale business organizations to large corporate. Policy does not cover loss or damage due to willful misconduct, ordinary leakage, improper packing, delay, war, strike, riot and civil commotion.

Amount of premium depends on factors like nature of cargo, scope of cover, packing, mode of conveyance, distance and past claims experience. Premium can be paid on a monthly/quarterly/half-yearly/yearly basis

  • In case of loss/damage in transit, a monetary claim should be lodged with the carrier within the time limit to protect recovery rights

  • Appointment of surveyor or claim representative in agreement with the insurer to determine the nature, cause and extent of loss/damage

  • The surveyor informs the insurer of the approximate value of loss incurred

  • The claim procedure takes from one to three weeks

  • Travel Insurance: Travel Insuranceis insurancethat is intended to cover medical expenses and financial (such as money invested in nonrefundable pre-payments) and other losses incurred while traveling, either within one’s own country, or internationally. Temporary travel insurance can usually be arranged at the time of the bookingof a trip to cover exactly the duration of that trip, or a more extensive, continuous insurance can be purchased from travel insurance companies, travel agents or directly from travel suppliers such as cruiselines or tour operators. However, travel insurance purchased from travel suppliers tends to be less inclusive than insurance offered by insurance companies. Travel insurance often offers coverage for a variety of travelers. Student travel, business travel, leisure travel, adventure travel, cruise travel, and international travel are all various options that can be insured.
  • Auto Insurance: Aviation insuranceis insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation. Aviation insurance policies are distinctly different from those for other areas of transportation and tend to incorporate aviation terminology, as well as terminology, limits and clauses specific to aviation insurance
  • Home insurance: The home insurance policy is usually a term contract—a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station; if the house is equipped with fire sprinklers and fire alarms; or if the house exhibits wind mitigation measures, such as hurricane shutters. Perpetual insurance, which is a type of home insurance without a fixed term, can also be obtained in certain areas
  • Vehicle insuranceVehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other road vehicles. Its primary use is to provide protection against physical damage resulting from traffic collisionsand against liability that could also arise there from.

The auto insurance does not include:1).Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage2).When vehicle is used outside the geographical area

3).War or nuclear perils and drunken driving


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