Why do you need insurance?
It is one of the biggest truth everywhere you will find risk and fearful moments in some point of your life. Sometimes, when you drive your car on a road full of idiots, when you get transfer to a new country, when you are travelling and having some adventurous trips, whenever you find yourself in fear that if something wrong happens and you die, then what will be about your family. If such thinking goes in your mind, then insurance is one of the best solution for all of your problems and fear in your life. Insurance is process through which a company or a state provides any guarantee for any specific damages, loss, illness and death for which an insurance must be liable for certain premium for that policy.
Insurance are broadly of two types which you need in your life:
- Life Insurance
- General Insurance
In Indian economic market, there are majorly 7 Types of Insurance policies provided in India. Like Life Insurance or Personal Insurance, Property Insurance, Marine Insurance, Fire Insurance, Liability Insurance, Guarantee Insurance, social insurance. Then let’s discuss about each of them briefly
Life insurance is one of the most important insurance that most of the people opt for in their part of life. In life insurance the most important factor is the expectancy of the life of a human being. The insurance company has to pay the amount fixed under a certain policies that a person takes before the time of his death. Life insurance has been a top priority for most of the people who are genuinely concern about their health as a part of their property. Life insurance is important for every person because it provides a medium of survival to the families during any premature death or any death occurs due to any chronic disease that affects your span of life. On the other hand, personal insurance plays a crucial part along with the life insurance. Personal insurance provides security of payment while happening of any sort of personal damages like accidents or any mishappenings.
When it comes to property matters whether it may be movable or immovable there are certain risks that are involved. The risk may be of numerous ways it may be through theft, fire, air or water and any other form that damages your property comes under the scope of property insurance.
In the recent times, most of the foreign sector trades are conducted through ships and marine perils. There are most of the cases where two cargo containers or ships has collided with each other and the goods got damaged due to such incidents. So most of the public as well as private sector insurance companies provides marine insurance, where the damages relating to marine transportations while having any collision with rocks, ships, attacks of enemies or fire. In recent times the scope of risks on marine properties has been divided into two parts: Ocean Marine Insurance and Inland Marine Insurance. The insurance period of marine related properties are quite stipulated. But this insurance has given scope for international trading without any barrier.
Fire is consider to be one of the most common risk. It is not considered to be a risk for an individual it’s a social risk as well. But if a person insures his/ her property with a fire insurance, then he/she can claims against the losses that they suffered during such happenings. The fire insurance compensates the loss that has happened and try to revive such property like before the loss due to fire. But in such insurance, after the money has been received through losses all the remaining damaged properties are taken by the insurer in most of the agreements.
Under the general insurance, it includes liability insurance, where the insured is liable to pay the damages of properties or any kind of compensation for any injury or death of another person. This insurance is seen in the form of fidelity insurance, automobile insurance, and machine insurance, etc.
It is the most innovative and most appreciable to the companies that provides such type of insurance. Social insurance is a guarantee given by the insurer for the weaker section of the society who are unable to meet up their daily expenses and unable to pay the amount of insurance premium. Industrial insurance, sickness insurance, pension plans are some of the examples of social insurance.
Under this insurance the insurer will pay the compensation on the behalf of the non-compliance of the second party having any monetary obligation to the first party. In most of the contracts there is a chance of dishonesty, bankruptcy and fraud. So to protect from all this problem guarantee insurance plays an important role.
Other Forms of Insurance
Beside all of these insurance mentioned above I,e liability, social, guarantee insurance, there are other general insurance available to the people for their personal development and growth. Some of these insurance like state employees insurance, medical insurance etc., where the insurer is guaranteed to pay certain amount at the occurrence of certain event.