What is insurance? Types of insurance.

What is Insurance? Types of insurance.

In today's article, I will tell you what is insurance and its type. What is insurance. I have brought all kinds of information to you through this post in detail. I hope you will find the information of this article very good related to insurance.

What is insurance?

insurance is a weapon to deal with any future losses. We do not know what will happen tomorrow, so we try to compensate for the possible loss in the future through an insurance policy. Insurance means protection from risk. If an insurance company insures a person, then the insurance company compensates for every financial loss that person suffers. what is insurance


Similarly, if the insurance company has insured a car, house or smartphone, then in the event of breakdown, explosion, loss, damage or any other fault of that thing, the insurance company will give compensation to its owner according to the pre-fixed condition.  is.


insurance is primarily a contract between the insurance company and the insured. Under this contract, the insurance company collects a certain sum of money (premium) from the insured. And pays damages to the insured or company in the event of any loss as per the terms of the policy.

What Is The Types Of Insurance?

Insurance is mainly of two types:

•  1) General Insurance
•  2) Life Insurance

1) General Insurance

All these are covered under general insurance such as vehicles, houses, animals, crops, health insurance etc.

A little detail of all these insurances.

Motor Insurance

In India, it is very important according to the law to insure a road vehicle. If you drive your vehicle on the road without insuring it, then the traffic police can fine you. According to the motor or vehicle insurance policy, the insurance company pays compensation or more for any damage done to the vehicle. If your vehicle has been stolen or caused an accident, then an auto insurance policy can help you a lot.

You get the most benefit of an auto insurance policy. When a person was hurt or someone died from your vehicle. It is covered under Third Party Insurance. If you also have a two-wheeler / three-wheeler or car, then it must be insured.

Home Insurance

If you insure your home with a general insurance company, then there is protection of your home.  After purchasing an insurance policy, if your house suffers any kind of damage, then the insurance company pays for it.

Coverage from any damage to your home is included in this insurance policy. Damage due to natural disaster to the house includes loss due to fire, earthquake, celestial lightning, flood etc. Artificial disaster includes home damage due to theft, fire, fighting and riots etc.

Crop Insurance

According to the current rules, every farmer taking an agricultural loan is required to buy crop insurance.  Under crop insurance policy, the insurance company gives compensation to the farmer for any loss to the crop. Under the crop insurance policy, compensation is given by the insurance company in case of crop failure due to fire, flood or due to some disease.

Due to the stricter condition of crop insurance policy and not getting compensation according to the cost, there is not much enthusiasm towards crop insurance among the farmers. In fact, to pay compensation for crop failure, insurance companies survey all the fields around that farm. And compensation is given only when the crop of most farmers is damaged.

Health Insurance

Nowadays the cost of treatment is increasing very fast. The insurance company covers the cost of treatment in case of illness when taking Health insurance. Under a health insurance policy, the insurance company pays the amount spent on treatment in case of any disease. The extent of spending on a disease depends on your health insurance policy.

Travel Insurance

Travel insurance protects against loss during a trip. If a person goes abroad for some work or to hang out. And he gets hurt. Or the goods are lost. So the insurance company gives him compensation. Travel insurance policy is valid only from the beginning of your journey till the end of the journey. The condition of different insurance companies for travel insurance policies may vary.

Business Liability Insurance

Liability Insurance is actually to compensate the loss of a company's work or customer to a product. In such a situation, the penalty incurred on the company and the entire cost of legal proceedings has to be borne by the insurance company that does Liability Insurance.

2) Life Insurance

Life insurance covers the life of a person.

Life Insurance

Life insurance means that on the death of a person buying an insurance policy, his or her dependents receive compensation or a higher amount from the insurance company.

If the head of the family dies prematurely, it becomes difficult to manage the household expenses.  To save the wife / child / parents etc. of the main person of the family from financial crisis, it is necessary to take a life insurance policy. In financial planning, it is suggested to first of all buy a life insurance policy.

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Health insurance

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