question_answer

Describe various types of insurance and exercise the nature of risks protected by each type of insurance.

Answer:

Ans.     There are many types of insurance. Some of them are shown with the help of diagram given below:

Type of Insurance	Meaning	Type of Risk Covered
Life Insurance	Life Insurance is a contract, under which the insurer in consideration of a premium, agrees assured, or on the expiry of a certain fixed period, whichever is earlier.	It provides protection to the family at the premature death to pay a specified amount on the death of the or gives adequate amount at old age when earning capacity is reduced.
Fire Insurance	Fire Insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to compen-sate the insured for any loss that may result due to the occurrence of fire.	Protects the goods against the risk of fire.
Marine Insurance	Marine Insurance is a contract of insurance under which the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses.	Protects the goods against the risk of loss in sea voyage.
Health Insurance	Health Insurance policy is a contract between an insurer and an individual or group, in which the insurer agrees to provide specified health insurance at an agreed upon price (the premium).	Protects against unseen health problems.
Motor Vehicle Insurance	It is a contract whereby the insurer agrees to indemnify the insured, in consideration of a fixed premium, for a loss caused by theft, fire, accident, earthquake etc.	It protects the value of motor vehicles against risk of theft accident and fire etc. It also covers the owner's liability to compensate who are killed or insured through negligence of the motorist.
Burglary Insurance	It is a contract whereby the insurer agrees to indemnify the insured, in consideration of a fixed premium, of loss due to theft, burglary, house breaking and acts of similar nature	It covers the risk of loss due to theft, burglary, house breaking and acts of the similar nature.
Cattle Insurance	It is a contract whereby a sum of money is secured to the assured in the event of death of animals like bulls, buffaloes, cows and heifers.	It covers risk of death of cattle due to accident, disease or pregnancy.
Crop Insurance	It is a contract to provide financial support to farmers in case of crop failure due to drought or flood.	It covers all risks of loss or damages to the crop.
Sports Insurance	It assures a comprehensive cover available to amateur sportsmen covering their sporting equipment, personal effects, legal liability and personal accident risks.	It is available to the following sports: angling, badminton, cricket, golf, lawn tennis, squash, use of sporting gun, etc.