TYPES OF INSURANCE

Lakshay BANSALLakshay BANSALMBA (FYIC);Sec-BMBA (FYIC);Sec-B

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CONTENTS What is Insurance Principles of Insurance Types of Insurance Life Insurance Marine Insurance Fire Insurance Auto Insurance Home Insurance Conclusion

What is Insurance?

Insurance is a legal contract Insurance is a legal contract that transfers risk from a that transfers risk from a

policy holder to an Insurance policy holder to an Insurance provider. provider.

Principles of Insurance Insurable interest : This means you can only insure something, if they benefit from its existence and will suffer if it ceases to exist.

Utmost good faith :It is assumed by the insurance company that the facts you disclose on a proposal form are accurate.

Indemnity : This means the insured cannot make a profit from a insurance claim.

Subrogation : This means the insurance company has a legal right to claim compensation for any other party that caused the accident.

Life Insurance Life insurance is a contract between an insurance policy holder and a insurer, where the insurer promises to pay a designated beneficiary a sum of money (the ”benefits”) upon the death of the insured person.

In the event of death, a Life Insurance Policy could:

Provide income to your family members so they can maintain their lifestyle.Provide for your children’s college educationPay for the final expenses of a funeral.Provides an emergency fund to handle an unexpected financial crisis.Provide for settlement of your personal debts.

Procedure to get a Life Insurance Policy

Kinds of Life Insurance Policies

Max New York Life

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Marine Insurance is concerned with overseas trade. There are many dangers during the transshipment. The persons who are importing the goods will like to ensure the safe arrival of their goods. The shipping company wants the safety of the ship. So marine insurance insures the coverage of all types of risks which occur during the transit.

Marine Insurance has two branches

Subject Matter to be Insured by Marine Insurance

Kinds of Marine Insurance Policy

Fire Insurance A fire insurance is an agreement between two parties i.e., insurer and insured, whereby insurer undertakes to indemnify the loss suffered by the insured in consideration for his (insured) paying of certain sum called ‘premium’.

Fire Insurance must satisfy two conditions

There must be actual fire.The fire should be accidental. The property must be damaged or burnt by fire. If the property is damaged by heat or smoke without ignition it will not be covered under fire insurance.

Types of Fire Insurance Policies

Various factors that causes Fire

Auto Insurance

An Auto insurance policy is a contract between you and an insurance company. You pay a premium, and in exchange, the insurance company promises to pay for specific car-related financial losses during the term of the policy.

Why do we need Auto

Insurance To cover the risk of damages that you cause to your own property as well as damages to someone’s else property. They will also give you and your passengers medical and related expenses caused by injuries from a car accident.

How to buy Auto Insurance?

Buying auto insurance means making important but sometimes confusing choices about coverage amounts. If we choose amounts that are too high we end up paying extra coverage we may not need. On the other hand, if we choose amounts that are too low, our risk remains uncovered in case of an accident.

Home InsuranceA basic home policy covers perils, which are specifically named risks such as lightning, theft, fire, smoke and wind.

Coverage Dwelling which includes Residence,

attached / built-in garage. Other structures include structures you

own that are not attached to the house, such as storage sheds, etc. Motor vehicles such as your grass cutter or motorized wheelchair are covered, but your automobile must be covered by a separate auto insurance policy.

Personal property covers damage, theft or destruction of items such as television, stereos, furniture, etc.

Additional living expenses covers the additional costs of living in case you have to move out of your home and live in a hotel while it is being repaired for a covered loss.

Lightning damage to trees, plant, shrubs and lawns.

Insurance is an integral part of any personal financial plan. The type of insurance and the amount of coverage you obtain all depends on your financial and family circumstances, and must be evaluated carefully. When considering purchasing coverage, you should review all the potential risks and the financial impact of these risks on your financial health. What you need to keep in mind is that you do not want to be underinsured or overinsured, which means you have to do your homework before you buy.