In this Blog, we will be covering following topics. What is the meaning of insurance? Types of insurance principles, of insurance? Difference between life insurance and General Insurance, types of life insurance and types of General Insurance.
What is the meaning of insurance and Arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium. Now let's see, which are the different types of insurance. There are two types of insurance. First is life insurance, and the other is General insurance or non-life insurance. Now we'll see principles of insurance. First principle is principle of utmost good faith. According to this principle, the insurance contract must be signed by both parties that is insurer and insured in an absolute good faith or belief trust. They should not hide anything from each other. Then the second principle is the principle of insurable Interest. The principle of insurable Interest states that the person getting insured must have insurable interest in the object of insurance. That means you cannot get the insurance policy for the Neighbors cow, or for the neighbor's kid. You shall have the insurable interest in the, in the property, or the person where you are invest taking the insurance plan. The third Insurance principle is principle of Indemnity. According to the principle of Indemnity. And insurance. Contract is signed only for getting protection against unpredicted Financial losses arising due to Future uncertainties. That means that the role of the insurer is to provide the good to the loss happened.
The next principle principle number 4 is principle of contribution. It applies to all contracts of Indemnity. If the insured has taken out more than one policy on the same subject matter. According to this principle, the insured can claim the compensation only to the extent of actual loss, either from all insurer or from any one insurer. If one insurer pays full compensation than that insurer can claim protection proportionate claim from other insurers. So if your car has 100000 rupees of princip Indemnity, then you can take maximum up to that amount. The next principle is principle of subrogation according to the principle of subrogation, when the insured is compensate for the losses due to damage to the, to his insured property than the ownership rights of such property shifts to to the insurer principle. Number six is principle of loss minimization. According to the principle of loss, minimization insured must always try his best to minimize the loss of his insured property in case of certain events, like a fire break out or blast, Etc. You shall call the insured person shall call the police or the fire brigade, and he should put all his efforts to minimize the loss to the product, or the property. And the next.
And the last principle is a principle of cause approxima or nearest Koch proximate cause is concerned with how the actual princess loss or damage happened to ensure party, and whether it is a result of an insured parallel it looks for what is the reason behind the loss is that he is an insured Peril or not. Now, the difference between life insurance and General Insurance life insurance is an insurance contract which covers the life risk of the person insured, whereas The General insurance is anything which is not covered under life insurance like motor house held at sector. They are General Insurance. Life insurance is a form of investment, whereas General Insurance is only a contract of Indemnity. Life insurance is for short or long term, where is General Insurance is short term for safer.
Two months one year or three years in life, insurance premium has to be paid over the year. However, in general, insurance premium has to be paid on lump sum. Life insurance amount is paid either on the occurrence on of the event or on maturity, whereas in The General insurance loss is reimbursed or liability will be repaid on the occurrence of Uncertain events in life. Insurance must be present. The insurable interest must be present at the time of contract, whereas in general insurance, the interest must be present at the time of contract as well as at the time of loss. And the last is policy value, life insurance. It can be done for any value based on the premium policy, whereas in general insurance, the amount payable under the life inch under the insurance contract is to the actual loss suffered. So the maximum amount you get is the loss happened like types of life insurance, first storm Insurance. It is the pure insurance form. It feeds your nominee. The sum insured in case of your demise within the sit down, it does not have any sum assured or maturity. Amount premium is very low. Second is endowment plant. These plants are. These are insurance and investment plan. A certain portion of the premium is paid for protection of the life. And rest amount is invested in low-risk debt instrument. So at the time of maturity, the insured person gets a predefined amount.
Third is Julie unit licked insurance plans. These are newly introduced. Plants are a couple of decades ago. They were launched. Your lips, offer Life protection as well as the opportunity for capital appreciation by investing in various funds of varying degree of risks, just like endowment policy in your lips, a certain portion of the premium goes in providing life cover. They generally invest in equity Market. Therefore, the return is not predefined. It depends on the market return. It has certain lock in Period, say, three years or five years, up to that time, you cannot withdraw the insurance. Then we come to The General Insurance types of General Insurance. The first and the important is health insurance. A general health insurance plan is an Indemnity plan. That P is for hospitalization expenses up to the summit short. While you can Avail a standalone Health policy, family, floater plan, provide coverage to all the members of your family. Next is motor insurance.
Motor insurance covers your week against accident damage theft, vandalism and so on. The form of insurance comes in two forms comprehensive and third-party comprehensive covers 360 degree of your car. When it's third party gives you protection from third-party damage has happened to do to your vehicle. Then the home insurance, a home insurance policy protects your home and it, its belongings from the damage suffered due to man-made or natural disasters. Some home instances. Insurance policies also provide coverage for temporary living expenses, in case you are living out rent due to your home undergoing renovation. Then one other important insurance General insurance policy is the travel insurance policy I travel insurance policy protects you against losses suffered due to loss of damage.
