TYPES Chapter
OF
INSURANCE
9.1 INTRODUCTION
Ariefoverview of classification of insurance has already been discussed in chapter 4. We have studied
tat insurance is of two major types, first, social insurance, and second, private insurance. The private
isurance was further categorized into property, personal/life, and liability insurance. In this chapter we
wil diseus private insurance in detail covering personal and private insurance. Though liability insurance
s also one of the important private insurance, but a part of liability insurance i.e. negligent liability
iSurance will be discussed in chapter 12. Amongst private insurance, fire, motor, marine, automobile,
ndhealth insurance are discussed in this chapter. The insurance practices covering risk of health
hazard or death are called as personal or life insurance. On the other hand, insurance policies with the
aim of protecting and compensating loss to property of an individual or business, e.g., loss while
production, storage or transportation of goods, are known as general insurance.
tis to revise that property insurance has different implication as compared to health or life insurance. It
s generally considered that health or life insurance is an investment. Besides the loss occurred, due to
demise ofany earning member of family especially on whom other members were depended, cannot be
cerfained accurately as human life is invaluable. Similarly, permanent damage of any limb is difficult to
caliculate in terms of its
expected future gains. On the other hand, the value of goods or property can be
aSSessed equivalent to actual cash value following various method already discussed in last chapter.
Derefore, the health or life insurance is called as assurance, and coverage of risk of property is known
nsurance. A key differences between
general and life insurance are given below.
ne risk undertaken in life insurance is certain that is death as no one is immortal. The uncertainity,
n case of general insurance, may or may not take place, e.g., blaziing of fire in a chemical factory
is based on probability only.
2.
ne general insurance contract, normally, has life of one year and need to be renewed after lapse
poliey term. Most of general insurance policies are of single insurance premium policies. On
other hand, life insurance policies have long-term life, say 15, 20 or 25 years. Premium to be
Paid on life insurance policies are in instalments with frequency of month, quarter, biannual
or year
, General Insurance
General Insurance
|Personal and Life Insurance
Fire insurance Liability Insurance
Marine Insurance
Marine Insurance
Reinstatement Value Time and Voyage Health Insurance
Floating Policy Policy
Life Insurance
Liability Only
Policy Accidental Insurance
Declaration Policyy Valued Policy Government Health
Insurance Policy
Package policy
Policy A, Band C Unvalued Policy Private Individual Individual Policy
Policy
Floating Policy Group Accident
Employer's Policy Policy
Open Policy Group Insurance
Health Policy
Figure 9.1
Classification of Private Insurance
T
OF
INSURANCE
9.1 INTRODUCTION
Ariefoverview of classification of insurance has already been discussed in chapter 4. We have studied
tat insurance is of two major types, first, social insurance, and second, private insurance. The private
isurance was further categorized into property, personal/life, and liability insurance. In this chapter we
wil diseus private insurance in detail covering personal and private insurance. Though liability insurance
s also one of the important private insurance, but a part of liability insurance i.e. negligent liability
iSurance will be discussed in chapter 12. Amongst private insurance, fire, motor, marine, automobile,
ndhealth insurance are discussed in this chapter. The insurance practices covering risk of health
hazard or death are called as personal or life insurance. On the other hand, insurance policies with the
aim of protecting and compensating loss to property of an individual or business, e.g., loss while
production, storage or transportation of goods, are known as general insurance.
tis to revise that property insurance has different implication as compared to health or life insurance. It
s generally considered that health or life insurance is an investment. Besides the loss occurred, due to
demise ofany earning member of family especially on whom other members were depended, cannot be
cerfained accurately as human life is invaluable. Similarly, permanent damage of any limb is difficult to
caliculate in terms of its
expected future gains. On the other hand, the value of goods or property can be
aSSessed equivalent to actual cash value following various method already discussed in last chapter.
Derefore, the health or life insurance is called as assurance, and coverage of risk of property is known
nsurance. A key differences between
general and life insurance are given below.
ne risk undertaken in life insurance is certain that is death as no one is immortal. The uncertainity,
n case of general insurance, may or may not take place, e.g., blaziing of fire in a chemical factory
is based on probability only.
2.
ne general insurance contract, normally, has life of one year and need to be renewed after lapse
poliey term. Most of general insurance policies are of single insurance premium policies. On
other hand, life insurance policies have long-term life, say 15, 20 or 25 years. Premium to be
Paid on life insurance policies are in instalments with frequency of month, quarter, biannual
or year
, General Insurance
General Insurance
|Personal and Life Insurance
Fire insurance Liability Insurance
Marine Insurance
Marine Insurance
Reinstatement Value Time and Voyage Health Insurance
Floating Policy Policy
Life Insurance
Liability Only
Policy Accidental Insurance
Declaration Policyy Valued Policy Government Health
Insurance Policy
Package policy
Policy A, Band C Unvalued Policy Private Individual Individual Policy
Policy
Floating Policy Group Accident
Employer's Policy Policy
Open Policy Group Insurance
Health Policy
Figure 9.1
Classification of Private Insurance
T
