Question

What are the different types of Insurance?

Answer 1

There are three types of insurance:

1. Life insurance:

It may be defined as a insurance contract where the insurance company undertakes to insure the life of a person for a premium. This premium can be paid in lump sum or installments. Thus, either after the expiry of the term of policy or the death of the person insured whichever is earlier the insurance company pays the fixed sum for which the policy was taken.

2. Fire insurance:

Under a fire insurance contract the insurer undertakes to indemnify the insured against any loss or damage caused due to fire during the period of insurance upto the amount specified in the policy for a premium.

3. Marine Insurance:

Under a marine insurance contract the insurer undertakes to indemnify the insured against any loss by marine perils or perils of the sea for a consideration known as premium.