Meaning of Insurance

Insurance is an important thing that should be done in this century we are in. First of all we have to define what insurance is INSURANCE: This is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. OR; It is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. There are various types of insurance based on the category its needed, they would be listed below: TYPES OF INSURANCE § Life Insurance or Personal Insurance. § Property Insurance. § Marine Insurance. § Fire Insurance. § Liability Insurance. § Guarantee Insurance. § Social 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 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. GENERAL INSURANCE 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. 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 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. FIRE INSURANCE 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. 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. PERSONAL INSURANCE 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. 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. 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.
Meaning of Insurance Meaning of Insurance Reviewed by Huncho on January 11, 2019 Rating: 5

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