What is insurance, what is the type of insurance?
Hello friends, welcome to Media Tech Support. In today’s post, What is insurance, what is the type of insurance? Will discuss it. In today’s times where accidents are frequent, insurance is very helpful to avoid future losses. So let’s know about this.
Insurance is a weapon for dealing with potential future losses. We don’t understand what’s going to happen tomorrow, so through an insurance policy, we are trying to compensate for the potential loss in the future. Insurance is therefore created to compensate for future losses.
Insurance is risk protection. If an insurance company insures an individual, that individual will be compensated by the insurance company for the economic loss. Normally the task of an insurance company is that the insured individual assumes that suddenly there is a monetary issue with him in which he receives an economic loss, then that person’s loss is compensated by the insurance company.
Similarly, if the insurance business has insured a vehicle, house or smartphone, the insurance firm will compensate its owner according to the pre-fixed situation in case of breakdown, breakdown, loss or harm.
In fact, insurance is an agreement between the insured and the insured. Under this agreement, the insurance company shall receive from the insured a set sum (premium) and shall pay damages to the insured individual or firm in the case of any failure in accordance with the policy conditions.
What is the type of insurance?
There are usually two kinds of insurance:
1. Life Insurance
2. General Insurance
Life insurance covers a person’s life.
Life insurance means that his or her dependent receives compensation from the insurance company upon the death of an individual purchasing an insurance policy.
If the head of the family dies early, the household’s costs will be hard to handle. It is essential to take a life insurance policy to save the wife /child/parents etc. of the family’s primary individual from the financial crisis. It is suggested to purchase a life insurance policy first of all in financial planning.
General insurance involves cars, houses, livestock, plants, health insurance and so on.
If you insure your home with a general insurance business, your home will be protected. If your building gets any harm after buying an insurance policy, the insurance firm pays for it.
This insurance policy includes coverage of any harm to your home. House damage caused by natural disaster involves fire harm, earthquake, heavenly lightning, flood harm, etc. Artificial catastrophe involves harm to the house, fire, fighting, riots, etc.
According to the law, insuring a car operating on the highway is very essential in India. If you drive your car on the highway without having to insure it, then you may be fined by the traffic police. The insurance company provides compensation for any harm done to the car according to the engine or auto insurance policy. If your car has been robbed or caused an accident, you can be helped by an auto insurance policy.
If an individual is harmed or someone has died from your car, you get the most advantage from an auto insurance policy. It is covered by the insurance of third parties. If you also have a vehicle or two-wheeler/three-wheeler, it should be insured.
Treatment costs are growing very rapidly nowadays. The insurance company will cover the price of therapy in case of disease when taking health insurance. The insurance company provides the quantity spent on therapy in the event of any type of disease under a health insurance policy. Your health insurance policy relies on the extent of the expenditures incurred on a disease.
Travel insurance during a journey protects from loss. If an individual goes overseas for a job or travelling and gets harmed or the products are lost, then he is compensated by the insurance company. Travel insurance policy is only valid from the start of your trip to the end of the trip. For a travel insurance policy, distinct insurance companies may have distinct circumstances.
Every farmer who receives an agricultural loan is needed to purchase crop insurance under the present regulations. The insurance company provides compensation to the farmer under the crop insurance policy for any loss to the crop. In the event of crop failure due to fire, flood or some disease, the insurance company provides compensation under the crop insurance policy.
Due to the very strict situation of crop insurance policy and the lack of cost-based compensation, there is not much enthusiasm among farmers for crop insurance. In reality, to pay compensation for crop failure, insurance companies survey all the areas around the farm and compensation is only provided when the crop is damaged by most farmers.
Business Liability Insurance:
In fact, liability insurance is to offset a customer’s loss from the job or product of a company. In such a situation, the liability insurance company must bear the penalty incurred on the company and the entire cost of the legal proceedings.
Friends, we learned what is insurance, what is the type of insurance? Hope you have liked this post. If you have any question or suggestion, then please tell us in the comment box. And share this post on your social media.