Insurance covers various types of risks. All. contract of insurance can be broadly classified as follows:
1. Life Insurance (or) Life Assurance
2. Non – life Insurance (or) General Insurance
It can be further classified into:
1. Fire Insurance
2. Marine Insurance
3. Health Insurance and
4. Miscellaneous Insurance.
1. Life Insurance: Life Insurance may be defined as a contract in which the insurance company called insurer undertakes to insure the life of a person called assured in exchange of a sum of money called premium which may be paid in one lump sum or monthly, quarterly, half yearly or yearly and * promises to pay a certain sum of money either on the death of the assured or on expiry of certain period.
2. Non – Life Insurance or General insurance: It refers as the insurance not related to human but related to properties.
3. Fire Insurance: Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by a fire during a specified period upto the amount specified in the policy.
4. Marine Insurance: Marine insurance is a contract of insurance under which the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. The insured . pays the premium in consideration of the insurer’s (underwriter’s) guarantee to make good the losses arising from marine perils or perils of the sea.
5. Health Insurance: In mid 80’s, most of the hospitals in India were government owned and treatment was free of cost. With the advent of Private Medical Care, the need for Health Insurance was felt and various Insurance Companies introduced Health Insurance as a Product. Presently the health insurance exists primarily in the form of ‘Mediclaim policy’.
