Unit+1.3+Types+of+Insurance

=Kinds of Insurance=

Motor Insurance
All motor vehicles are required by law to be insured at least against third-party losses. The third party refers to anyone who may be injured by the vehicle other than the insured. A third-party policy covers only pedestrians.

Owners, especially of new vehicles, can insure their vehicles under a comprehensive or first party insurance. This policy provides a wider coverage. It includes injuries, damaged to the insured's vehicle., loss of vehicle and third-party properties. The insured has to pay a higher premium because the insurance company provides a wider coverage.

Workmen's Compensationor Employer's Liability Insurance
Accidents at work places are common. Therefore, employers ar required to insure their workersagainst accidents at work. By doing so, an employer transfers his responsibility of compensating the workers to an insurance company. If any accident happens, the workers who suffer injuries can claim damages from the insurance company.

Personal Accident Insurance
This kind of insurance can be taken out by individuals who wish to cover themselves against injuries, partial or total disablement, death and medical expenses. Self-employed business owners, their employees and individuals can also make full use of the personal accident protection scheme.

People who travel frequently can take out travel insurance. This type of insurance covers risks against personal accidents, medical expenses and other travel related losses. It is cheaper to take out a group personal accident insurance. An example is the students' accident protection insurance.

Fire Insurance
Fire insurance protects properties against loss caused by fire. The insured will be compensated for the loss of their business premises, factory, machinery, stock and even household contents in a fire.

A fire insurance policy, besides providing replacement of properties, also caters to consequential loss suffered by the insured. Consequential loss takes place when a business loses revenue because it stops to operate temporarily while re-construction of the building is in progress or machinery has to be replaced.

Marine Insurance
Marine insurance is designed to offer protection at sea for both ship and cargo loss or damage as the ship travels from one destination to another. All exports that bear the code //c.i.f//. price means that the price include cost of goods, insurance premium and freight charges.

Burglary
Some business premises and factories are not guarded at night. Burglary insurance provides protection against loss resulting from burglary.

Fidelity Guarantee
Because of the nature of their work, some employees have to handle large sums of money or valuable. Their employers can insure them against fidelity guarantee to guard against losses. An employer, for example from a goldsmith shop, can claim from the insurance company if he suffers a loss because of dishonest or misdeed of his employers.

Life Assurance
Insurance offers protection against risks such as personal accident or fire which may or may not happen. In this case of life insurance, the risk covered is sure to happen because the insured will die sooner or later. To differentiate between life insurance and other forms of insurance, it is more appropriate to call it life assurance.

Unlike other forms of insurance, the insured will not be able to benefit from the policy. If the insured dies, only the beneficiary will benefit. This beneficiary is the person nominated by the insured to receive compensation if he dies.