Classes of Insurance explained. Generally, once we have input that risk is always at the doorstep of every insurance, it should be known that risk is at the center of our life. This is because, for every human activity or endeavor, there is always a risk as a result of the different pursuits of economic interest.
However, the possibility of an unfortunate occurrence of an economic or financial loss has awakened the interest of the general public to embrace the various classes of insurance. For instance, when some unwanted events happen like a fire accident, an explosion of a valued engineering plant, an earthquake, an air disaster, sickness or illness, a motor accident, etc.
Insurance is needed as security over the happening of such an unfortunate event. By the Degree of 1976, the different classes of insurance are contained in these Templates.
1. Life Insurance
2. General Insurance Business.
And these two classes are very important to every human endeavor.
Life insurance provides for financial reimbursements in case of death or medical bill in the case of illness. Most life insurance policies do offer financial compensation after retirement or a certain period of time.
Life insurance provides coverage or financial security to the children of a deceased man in his absence. In the case of life insurance, there shall be three (3) categories.
i. Individual life insurance business
ii. Group life insurance business
Life insurance can assist you to meet up with your general family’s most pressing needs at retirements age. This is dependent on the type of life coverage obtained.
General Insurance Business
General insurance is an insurance contract that provides reimbursement for any financial loss other than death and Sickness. It ensures coverage to almost all other insurance happening apart from life.
General insurance as the name implies provides financial compensation for the reimbursement of losses related to car accidents, an explosion of a valued engineering plant, motor accidents, an air disaster, earthquakes, oil, and gas spillage, and many other coverages.
The issue of general insurance, there shall be categorized into eight (8)
i. General accident insurance business
iii. Marine and auction insurance.
iv. Oil and gas insurance business
v. Engineering insurance business
vi. Miscellaneous insurance business
Basically, it is very important to note that, general insurance offers financial protection for all your properties against the occurrence of an economic loss, damage, theft, and other liabilities.
It is not the same with life insurance which becomes effective at the death or ill state of the insured. For proper understanding, we are going to list the various life and general insurance policies in a more detailed manner.
1. Whole life assurance
2. Endowment assurance
3. Term assurance
4. Decreasing term assurance
5. Constant term assurance
6. Pure endowment assurance
7. Convertible term assurance
8. Assurance for children
9. Group life scheme
1o. Group pension scheme
12. Joint and last survivor
13. Equity-linked policies
14. Industrial life policies
15. Ordinary life policies
16. Money-back policies
General Insurance Policies
1. Motor insurance
2. Marine aviation insurance
3. Fidelity guarantee insurance
4. Agricultural insurance
5. Product liability insurance
6. Legal expenses insurance
7. Fire insurance
8. Property insurance
9. Motor insurance
10. Consequential loss insurance
11. Engineering insurance
12. Credit insurance
13. Credit insurance
14. Professional liability insurance
15. Theft insurance
16. Personal accident insurance
17. Sickness insurance
18. Permanent health insurance
19. Employers insurance
20. Public liability insurance
21. Business risk insurance
22. Goods in transit insurance
23. Weather insurance
24. Cash in transit insurance
25. Class insurance
26. First loss insurance, bonds
27. Home insurance.
Meanwhile, a legal practitioner will classify insurance into two;
a. Indemnity contract and
b. Non-indemnity contract.
An account will classify insurance into
a. Short term and
b. Long term contract
Insurance classification has been an ongoing business. They are classified in different forms by different authorities, each classification is aimed at solving the problem of an unexpected happening or event.
However, this classification of insurance will provide guiding principles and an enabling environment for beginners in the business of insurance.