What are the 7 main types of insurance

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Life Insurance

When compared to other types of insurance, life insurance stands out due to the fact that the policyholder’s life itself serves as the underlying asset being insured against.

The fixed amount of insurance coverage will be paid out by the insurer either when the insured person passes away or when the policy’s term comes to an end.

Because a person’s life is the most valuable possession they possess, life insurance has become increasingly popular in recent years.

This insurance protects the family in the event that the breadwinner passes away unexpectedly or provides a sufficient sum in old age when earning capacities are less likely to be present. In the case of personal insurance, a payment is made at the scene of the accident.

Because the insured is entitled to receive a predetermined amount either upon their demise or upon the conclusion of a given time period, the insurance serves not only as a

Marine Insurance

The dangers of the sea include things like running into a rock or another ship, being attacked by hostile forces, being burned alive, and being taken captive by pirates, among other things. These dangers result in damage, destruction, or disappearance of the ship and its cargo, as well as a failure to pay the freight.

In the past, only a few nominal risks were covered by insurance, but now the field of marine insurance is split into two distinct categories: ocean marine insurance and inland marine insurance.

The first type of insurance covers only maritime risks, whereas the second type of insurance protects against inland risks, such as those that may occur upon the delivery of cargo (gods) from the go-down of the insured and may continue until the buyer (importer) receives the cargo at his go-down. The former type of insurance only covers maritime risks, whereas the latter type of insurance protects against both maritime and inland risks.

 

Responsibility to a Third Party –

This is the most fundamental level of car insurance coverage available in India. According to the Motor Vehicles Act of 1988, this is the bare minimum obligatory requirement that all owners of motorized vehicles must meet. The limited financial assistance that is available results in premiums for such policies generally being kept at a low level.

These insurance policies will only pay the financial liability to the third party that was affected in the aforementioned mishap. This will ensure that you will not have to deal with any legal hassle as a result of the accident. They do not, on the other hand, provide any kind of financial assistance to policyholders in the event that an accident occurs with the policyholder’s vehicle.

 

Coverage That Is Complete

Comprehensive insurance plans provide a higher level of safety and protection than the option of third-party liability coverage. These plans not only protect policyholders from third-party liabilities but also pay for the costs of repairing any damage to the policyholder’s own vehicle that may have been caused by an accident.

In addition, comprehensive plans provide a payout in the event that your vehicle sustains damage as a result of a fire, man-made or natural disasters, riots, or any other similar event. Last but not least, if you have a comprehensive cover for your bicycle, you will be able to get your money back if it is stolen.

With a comprehensive auto insurance policy, a person has the option to purchase a number of additional coverage options that can round out their protection. A few of these add-ons consist of things like breakdown assistance, zero depreciation cover, engine and gear-box protection cover, consumable cover, and so on.

 

Your Own Damage Coverage –

 

Consumers can purchase this specialised kind of car insurance from insurance providers like State Farm and Geico. In addition, you are only qualified to make use of such a plan if you bought the automobile or two-wheeler after the month of September 2018. The car cannot be used in any way, shape, or form; it must be brand new. You should also keep in mind that the only way you’ll be able to purchase this stand-alone cover for your own damages is if you already have a motor insurance policy that protects you from liability to third parties. Own damage cover provides essentially the same benefits as a comprehensive insurance policy, but without the portion of the policy that covers liability to third parties.

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