Insurace can be classified as following.
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Marine Insurance
Marine insurance is the oldest insurance which was introduced long back to compensate on sea and to compensate the loss due to various sea perils or loss of the ship etc. In today’s context, marine insurance is an important part of trade and commerce and is a significant part of global insurance business. Marine play a key role in international trade. Law relating to Marine Insurance Act 1963.
According to section 3 of marine insurance act, 1963 defines marine insurance as, a contract where by an insurer undertakes to indemnify the assured against marine losses that is to say the losses incidental to marine adventure.
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Fire Insurance
Fire insurance is a recent developed concept in insurance sector. It is covered under the insurance act 1938. Definition:“Fire insurance is a cover against the risk of loss of property due to fire accident.” Fire Insurance is a contract where by the insurer undertakes in consideration of the premium paid to make good any loss cause by the fire during a specific period. The specific amount to be assured or claimed in case of loss should be mentioned or specified in the contract.
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Social Insurance
Social insurance is a government-run insurance programme operated soundly using actuarial techniques but funded primarily by current contributions while relying on the taxing power of the government to guarantee solvency. Social security is a part of social insurance system. This insurance system is not popular in india.The social insurance programmes of countries are drawn up based on their specific Needs. In the United States the following are the characteristics of social insurance:
- Compulsory programmes
- Floor of income- The main aim of social insurance is to provide minimum required benefit to meet the needs.
- Social adequacy rather than individual equity
- Benefits loosely related to earnings
- Benefits prescribed by the law
- No means test: These benefits are given as a right. No formal test is needed.
- Full funding unnecessary
- Financially self-supporting
- Medicare support
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Vehicle Insurance
According to Motor Vehicles Act, every motor vehicle running on the road has to be insured, if not with at least a liability policy. Generally, there are two types of motor insurance policy; one covers the act of liability while the other covers all liability and damages caused to the vehicles. As per the provisions of the MV Act1938 (amended in 1988), it was made compulsory for motorists to insure against the risk of liability to third parties. In other words, the insurance of motor vehicle against risk is not mandatory but insurance of third party liability arising out of use of motor vehicle in public places is mandatory. Important types of policies are:
- Act liability only policy (Form A policy)
- Third party only policy
- Comprehensive policy
- Garage insurance policy
- Collision insurance policy
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Medical Insurance
It covers all medical expenses following hospitalization from sudden illness or expenses from any kind of accident. It is an Insurance against loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses. Policies differ in what they cover, the size of the deductible and/or co-payment, limits of coverage and the options for treatment available to the policyholder. Health insurance can be directly purchased by an individual, or it may be provided through an employer. Medicare and Medical aid are programs which provide health insurance to elderly, disabled, or un-insured individuals. There are a number of companies which provide private health insurance, including Blue Cross, United Healthcare, or Star health. Important policies are:
- Individual Mediclaim policy
- Group Mediclaim policy
- Jan Arogya Bhima policy
- Cancer policy
- Bhavishya Arogya policy
- Overseas medical policy
- Videsh Yatra Mitra policy
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Accident Insurance
This insurance policy allows full compensation for injury and even loss of life caused by an accident. It also includes compensation of cost of treatment and the use of hospital facilities in the process of treatment.
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Burglary Insurance
Burglary insurance policies provide insurance coverage against burglary, theft etc of valuable goods
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Crop Insurance
This insurance is designed to provide a measure of financial support to farmers in the event of crop failure due to drought, flood etc. and to restore credit eligibility for farmers after a crop failure, for the next crop season and to support and stimulate production of pulses and oil seeds. Crop insurance scheme is also known as Rashtriya Krishi Bhima Yojana
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Cattle Insurance
This insurance provides cover against death of animals occurring during any period and if the animal is pregnant for less than four months, the indemnity will be restricted to 50% of the sum assured or market value whichever is less. This policy is also extended to cover the risk of permanent total disability on payment of extra premium.
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Engineering Insurance
This insurance is designed to protect the interest of contractors and principals in respect of civil engineering projects, like building, bridges, tunnel etc. this policy provides an “All Risks” cover. Important policies are:
- Boiler insurance policy
- Engine insurance policy
- Electrical Plant insurance policy
- Lifting machinery insurance policy
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Public liability insurance
Under Public liability Insurance Act, 1991, all the companies, individuals and persons owing and dealing hazardous good are required to take insurance policy satisfying the limits specified in the Act. For the purpose of insurance, public liability risk insurance is classified into;
- Industrial risks insurance
- Industrial All risks insurance
- Non-industrial risk insurance
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Fidelity guarantee insurance
In this insurance, the insurer undertakes to indemnify the insured (employer) in consideration of certain premium,upto certain specified amount insured against for loss arising through the fraud, or embezzlement on the part of the employees. This kind of insurance frequently adopted as a precautionary measures in cases where new and untried employees are given position of trust.
Important types of policies are:
- Individual policy
- Collective policy
- Floating or Floater policy
- Positions policy
- Blanket policy