What is Insurance? And how many types are there? If you want to know what is insurance and what are its types. And what are the benefits of all. And if you want to insure yourself, your family, house, and car etc. So this post is going to be very useful for you. After reading the whole post, you will be able to know what is insurance / insurance? And why should it be done?
What is insurance
If understood in simple language, the meaning of insurance is – a system in which any one insurance company guarantees you compensation in case of any kind of loss, illness, accident or death, although insurance helps in every problem. :After a sad event but it is very important for every person. Who knows when what happened in today’s crowded life. In such a situation, if you have insured your valuables, then it works like a backup help for you. How? We will tell you more about this.
Types and benefits of insurance
Different types of insurance have different benefits. Some important types and benefits of insurance are given below.
1. Life Insurance
After depositing a fixed value in the life insurance plan or life insurance, on the death of the policyholder, money is given to the heir of that person’s policy according to the terms and conditions of the policy. People make this policy especially as a support amount for their family because there is no trust in life, so most of the people adopt this policy so that after their death, their family gets some help in terms of money. In simple language – Here the subject matter of insurance is human life. At the time of death of the insurer or at the end of the specified period, the sum assured will be paid. At present, life insurance has the largest number. Because life is the most important asset of a person. Everyone needs insurance. This insurance provides protection to the family in case of premature death or a substantial amount in old age in case of loss of working capacity. Under personal insurance, the payment is made in case of an accident. Insurance is not only a protection but also a type of investment as a certain amount is returned to the insured on death or at the end of the term.
2. General Insurance
General insurance includes property insurance, liability insurance, and other forms of insurance. Fire and marine insurance is strictly called property insurance. Motor, theft, fidelity and machine insurance covers the extent of liability insurance to some extent. The strictest form of liability insurance is fidelity insurance, whereby the insurer compensates the insured for a loss when he is subject to a liability to pay to third parties.
3. Property Insurance
Under property the insured property of the person/s is insured against a certain specified risk. The risk could be fire or marine hazard, property theft or damage to property in an accident.
4. Marine Insurance
Marine insurance provides protection against damage caused by marine perils. Maritime hazards are collisions with a reef, or ship, captured by enemies, fire, and pirates, etc. These hazards do not cause ships, cargo and freight to move and disappear. So, Marine Insurance Ships, cargo, and freight formerly only some minor risks were insured but now the scope of marine insurance was divided into two parts; Ocean Marine Insurance and Inland Marine Insurance. The former covers only marine perils, while the latter covers insured perils and can extend till the cargo is received by the buyer.
5. Fire Insurance
Fire insurance covers the risk of fire. In the absence of fire insurance, fire waste will increase not only for the individual but also for the society. With the help of fire insurance, the loss arising due to fire is compensated and the society is not losing much. The person is given priority from such loss and his property or business or industry shall remain in approximately the same condition in which it was prior to the loss. Fire insurance does not only cover loss, but it also provides some consequential damages, war risk, upheaval, riots etc. can also be insured under this insurance.