What is Insurance…….?


Insurance is taken to bear and manage the financial loss of the company or person. It is taken to console the high-risk loss and to handle the loss burden. Insurance is taken to fill the gap between the uncertain loss which has occurred

How many parties are involved?

There are a minimum of two parts involved in an insurance contract namely the insurer and the other one is insured
Where the insurer is the person who undertakes the amount of compensation on behalf to pay the beard loss.
On the other hand, the insured is a person who has to fix the sum amount of money on monthly basis to the insurance company

Underlying the subject matter?

The main subject is the entity, business, or any organizations which have to secure any assets e.g; property, life, industry, warehouse, etc against which the policy is to be taken

What is Policy?

It is the terms and conditions or we can say rules made by the company to be signed by both the parties at the time of making the agreement which includes the sign of the insurer and the insured


It is the demanded or needed money which is being lost due to any reason
The insured end up claiming the amount of money to the insurer by providing the compensatory loss

There are three types of insurance

1)Life Insurance 
2)Marine Insurance 
3)Fire Insurance

Life Insurance 

Introduction:- It is a contract or we can say an agreement between two parties so-called insurer and insured. Where they come in contact for a certain sum of money for the insurer’s life till the expiry of the policy or death of the holder whichever is earlier

Five Types of Life Insurance Policy

  • Full life policy 
  • Age insurance policy
  • Tenure insurance policy 
  • Lump insurance policy 
  • Monetary back policy 

Full Life Policy

After taking this policy the person who is taking the policy his/her whole life is being insured. The insurer will not get a penny till he/she is breathing or not yet declared dead. The compensate money is liable only after the death of the person to the nominee holder or the legal person left behind with a name on the policy contract

Age Insurance Policy

In this policy, the policy contract is made for a certain period of time. The sum total amount with bonus is given to the policyholder after the death of the policyholder or by the expiry of the policy whichever is earlier

Tenure Insurance Policy

In tenure insurance policy the premium is the lowest among all the insurances compared. This insurance is taken up for a specific or provided period of time. The amount is fixed and cannot be changed by any means of action. This type of policy  gives benefits to the dependents of the policyholder e.g; family members, grandchildren, or any guardian

Lump Insurance Policy

Here the insurance company has to pay a fixed or we can say lump sum amount of policy to the policyholder. He/she can get the amount in installments too whichever is suitable for the company

Monetary back Policy

As we all know monetary means money. It is the policy where a regular or fixed percentage is selected to pay the sum amount during the on-going of the life which assures the benefit of full compensation amount after the death of the policyholder to the dependents Mostly the money-back policy is taken for a 12-year term, 15-year term, 20-year term, a 25-year term and goes on.


1)Date, place, and cause of death
2)Death certificate
3)Enclosed copy of the insurance policy
4)Deeds of assignment
After completing the formality the company can now go ahead to settle with the claim amount

Marine Insurance 

In this insurance, the protection is taken against the ship or the cargo goods loaded on the ship or passengers It covers the contract covering loss and damage to the above assets.

Types of marine insurance policy

  • Valued policy
  • Blanket policy
  • Port risk policy
  • Fleet policy
  • Block policy

Valued policy

In this policy, the goods are insured for an agreed value between both the parties insurer and insured at the time of taking the policy from the insurance company
The compensation amount will be the ongoing market value

Blanket policy

The poli8is taken for a maximum limit of the required amount for the protection of goods. The premium amount i.e compensation amount is paid at the beginning of the policy. It describes the nature of goods features of goods, places of ports, routes of the dock, etc
It covers the multiple lining of risk involved on one property or it may cover any property or goods under a single policy

Port risk policy

Port risk policy covers all types of risk of a ship, yacht, or boat till it is near the port or standing at the port. The policy uplifts the danger till it is standing at the port that is before the departure

Fleet policy

In this policy several or we can say the single or sole owner of many ships belonging to the single owner or person takes this policy

Block policy

In block policy, the cargo owner is secured against damages or loss of cargo in several ways of transport through which the cargo goods are carried by covering all the risk of sea, rail, road, transport

Fire Insurance

Under a fire insurance contract, the insurer needs in return for consideration i.e something in return undertakes the insured against the loss of property
Any property loss due to fire, or an explosion, or because of corrosion in the lightbox meets up with fire is also covered by fire insurance

Types of Fire Insurance policy

  • valuable policy
  • Exceeding policy
  • Comprehensive policy
  • Loss policy
  • Leakage policy

Valuable policy

The valuable policy is taken for those goods which have a market value high or it becomes difficult to calculate in case of loss by fire e.g; policy can be taken for artwork, sculptures, paintings, valuable showpieces, etc.

Exceeding policy

After the policy is taken there are higher chances that the value of the goods or assets or property may rise or may get less demanded. Fluctuation can take place at that time the excess policy is taken by the insured apart from normal policy E.g; If the value of a house is ₹15 lakh and ₹20 lakh then one policy is taken for ₹15 lakh and another policy is taken for the upper exceeding amount that is ₹5 lakh

Comprehensive policy

Eventually, a fire insurance policy does not access losses taken place because of war in the country or any riots taken place in the country. The risk only covers loss due to fire explosion and lightning.

Loss policy

In this the loss can be of tangible i.e goods which can be seen, touch or intangible assets i.e which cannot be seen or touch but only felt
All the expenses are covered under this policy

Leakage policy

Leakage policy covers damages to the property done by a sprinkler system that has leaked water accidentally rather than in connectivity to fire and smoke
Repair of building, earthquake, war, the explosion is not covered by this policy


Insurance Company also provides other insurance such as:-

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