Kinds of insurance

The insurance can be divided from two angles: first, from the business point of view & second, from the risk point of view.

*** Business point of view:

The insurance can be classified into three categories from business point of view: (i) Life insurance (ii) General insurance (iii) Social insurance.

(i) Life insurance: Life insurance is different from other insurance in the sense that, here, the subject matter of insurance is life of human being will pay the fixed amount of insurance at the time of death or at the expiry of certain period. At present, life insurance enjoys maximum scope because the life is the most important property of the society or an individual. Each & every person requires the insurance. This insurance provides protection to the family at the premature death or gives adequate amount at the old age when earning capacities are reduced. Under personal insurance a payment is made at the accident. The insurance is not only a protection but is a sort of investment because a certain sum is returnable to the insured at the death or at the expiry of a period.

(ii) General insurance: The general insurance includes property insurance, liability insurance and other forms of insurance. Fire and marine insurance are strictly called property insurance. Motor, theft, fidelity and machine insurances include the extent of liability insurance to a certain extent. The strictest form of liability insurance is fidelity insurance, whereby the insurer compensates the loss to the insured when he is under the liability of payment to the third party.

(iii) Social insurance: The social insurance is to provide protection to the weaker section of the society who is unable to pay the premium for adequate insurance. Pension plans, disability benefits, unemployment benefits, sickness insurance and industrial insurance are the various forms of social insurance. With the increase of the socialistic ideas, the social insurance is an obligatory duty of the nation. The Government of a country must provide social insurance to its masses.

*** Risk point of view

Insurance is divided into property liability and other from high point of view.

** Property insurance

(a) Marine insurance

(b) Fire insurance

(c) Miscellaneous insurance

** Liability insurance: The general insurance also includes liability insurance whereby the insured is liable to pay the damage of property or to compensate the less of personal injury or death. This insurance is seen in the form of fidelity insurance, automobile insurance & machine insurance etc.