7 Types of Insurance Business are;
Life Insurance or Personal Insurance.
- Property Insurance.
- Marine Insurance.
- Fire Insurance.
- Liability Insurance.
- Guarantee Insurance.
- Social Insurance.
- These are explained below.
- Life Insurance
Life Insurance is different from other insurance in the sense that, then, the subject matter of insurance is the life of a mortal being.
The insurer will pay the fixed quantum of insurance at the time of death or at the expiry of a certain period.
At present, life insurance enjoys maximum compass because life is the most important property of an existent.
Each and every person requires insurance.
This insurance provides protection to the family at the unseasonable death or gives an acceptable quantum at the old age when earning capacities are reduced.
Under particular insurance, a payment is made at the accident.
The insurance isn't only a protection but is a kind of investment because a certain sum is returnable to the ensured at the death or the expiry of a period.
Fire and Marine Insurances are rigorously called Property Insurance.
The strictest form of liability insurance is dedication insurance, whereby the insurer compensates the loss to the ensured when he's under the liability of payment to the third party.
Under the property insurance property of person/ persons are ensured against a certain specified threat. The threat may be fire or marine threats, theft of property or goods damage to property at the accident.
Marine insurance provides protection against the loss of marine threats.
The marine threats are; collision with a gemstone or boat, attacks by adversaries, fire, and captured by rovers,etc. these threats beget damage, destruction or exposure of the boat and weight and remitment of freight.
So, marine insurance insures boat ( Housing), weight and freight.
Preliminarily only certain nominal pitfalls were ensured but now the compass of marine insurance had been divided into two corridor; Ocean Marine Insurance and Inland Marine Insurance.
The former insures only the marine threats while the ultimate covers inland threats which may arise with the delivery of weight ( gods) from the go-down of the ensured and may extend up to the damage of the weight by the buyer ( importer) at his go down.
Fire Insurance covers the threat of fire.
The existent is preferred from similar losses and his property or business or assiduity will remain roughly in the same position in which it was before the loss.
The fire insurance doesn't cover only losses but it provides certain consequential losses also war threat, fermentation, screams,etc.