bullet Insurance bullet Classification of Insurance from Risk point of view

images Classification of Insurance from Risk point of view

Insurance can be divided into property, liability and other forms of insurance.

(1) Property Insurance

Under the property insurance property of a person is insured against a certain specified risks. The risk may be fire or marine perils, theft of property or goods, damage to property at accident. Examples of this are:
– Home insurance
– Business insurance
– Commercial insurance
Marine Insurance
Marine insurance provides protection against loss of marine perils. The marine perils are collision with rock, or ship attacks by enemies, fire and capture by pirates etc. These perils cause damage, destruction or disappearance of the ship and cargo and non-payment of freight. So, marine insurance insures ship (Hull), cargo and freight. Types of policies are:
– Voyage policies
– Time policies
– Valued policies
– Hull insurance
– Cargo insurance
– Freight insurance

Fire Insurance
Fire insurance covers risks of fire. In the absence of fire insurance, the fire waste will increase not only to the individual but to the society as well. With the help of fire insurance, the losses, arising due to fire are compensated and the society is not losing much. The individual is protected from such losses and his property or business or industry will remain in the same position in which it was before the loss. The fire insurance does not protect only losses but it provides certain consequential losses also. Policies available in this insurance are:
– Consequential loss policy
– Comprehensive policy
– Valued policy
– Valuable policy
– Floating policy
– Average policy

Miscellaneous Insurance
The property, goods, machine, furniture, automobile, valuable goods etc., can be insured against the damage or destruction due to accident or disappearance due to theft. There are different forms of insurances for each type of the said property whereby not only property insurance exists but liability insurance and personal injuries are also insured. Miscellaneous insurance covers:
– Motor
– Disability
– Engineering and aviation risks
– Credit insurance
– Construction risks
– Money insurance
– Burglary and theft insurance
– All risks insurance

(2) Liability Insurance
The general insurance also includes liability insurance whereby the insurer is liable to pay the damage of property or to compensate the loss of personal injury or death. The examples of this type of insurance are fidelity insurance, automobile insurance and machine insurance. Examples are:
– Third party insurance
– Employees insurance
– Reinsurance

(3) Other Forms
Besides the property and liability insurances, there are certain other insurances, which are included under general insurance. The examples of such insures are export credit insurances, state employees insurance, etc. whereby the insurer guarantees to pay certain amount at the happening of certain events. Examples are:
– Fiduciary insurance
– Credit insurance
– Privilege insurance

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