Insurance can be regarded as it is legal relationship between an insurer, that is an insurance company, and an insured person. This contract provides the insured with monetary cover under specified conditions to safeguard against risks.
In an insurance policy, the policy holder is bound to make periodic premium payments to the insuree. As for the assured, he promises to pay out a predetermined sum assured in the event of the occurrence of certain misfortunes. Such occurrences can be loss of the insured’s life, or losses in properties of the insured that the insurance company is responsible for compensating.
Types of insurance policies
- Life insurance: This type of insurance is intended to protect the financial status of the family or close ones. It is paid to the nominee in the event of the death of the insured the sum assured is paid to the nominee.
- General Insurance: These include travel insurance, heath care insurance, automobile insurance and property insurance. In general insurance the sum is given when the loss happens in some circumstances and in some measures.
- Health insurance: Health insurance is general insurance contract where two forms are mainly distinguished:
- Mediclaim insurance: Reimburses for the billing cost of the medical procedures undergone by the client.
- Critical health insurance: Has cash payments in a lump sum for the qualified severely and life-threatening illnesses.
- Non-life insurance: It is intended to provide indemnification for losses that can be traced to certain incidences in the financial sphere These may include categories such as car insurance, home insurance, among others.
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