What is insurance | What are the 3 main types of insurance?

What is insurance | What are the 3 main types of insurance?

What is insurance | What are the 3 main types of insurance?

What is insurance?

Insurance is the transfer of the equitable and specific risk of possible loss of life, property, or property in exchange for money.

This allows the individual or insurance company to take partial or all possible risks of the client in return for money (premium). This is part of risk management to avoid unforeseen losses.

What are the 3 main types of insurance?

What is insurance | What are the 3 main types of insurance?
What is insurance | What are the 3 main types of insurance?

Life insurance

Life insurance is a strategy for transferring or avoiding the risk, loss, or danger of death. Life insurance in the modern age serves as an effective means of relieving the insured or his family members from financial loss in case of death or old age of the insured.

Life insurance is a contractual arrangement in which the insurer or insurance company promises to pay a pre-determined amount after a certain period of time or after his death in return for paying a premium at a fixed rate to the insured.

Life insurance is thus a modern agreement executed between the insured and the insurer to pay a specified amount of premium to the insured or his heirs or his nominee after his death or at the end of a certain term.

Marine insurance

The contract that the insurer executes with the guarantee of compensation in case of damage to the vessel, ship’s goods or freight insured by a certain danger is called naval insurance or marine insurance.

According to Halsbury, a treaty that promises to compensate for maritime losses in a certain way, up to a certain limit, is called naval insurance.

Fire insurance

R.S. According to Sharma, fire insurance is a contract where one party agrees to bear the risk of a certain amount of financial loss to the other party in return for compensation which means the loss or destruction of something by fire.

According to MN Mishra, fire insurance is a system that compensates for fires.

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