Let us a close look how the insurance sector is classified into different categories:
In India, insurance business is classified primarily as life and non-life or general. Life Insurance includes all risks related to the lives of human beings and general insurance covers the rest.General insurance has three classifications they are Fire(dealing with all fire related risks),Marine(dealing with all transport related risks and ships) and Miscellaneous(dealing with all others like liability,fidelity,motor,crop,engineering,construction,aviation,personal accident,ect.).Personal accident and sicknes insurance,which are related to human beings,is classified as "non-life" in India,but is classified as "life",in many other countries.
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Showing posts with label health insurance. Show all posts
Showing posts with label health insurance. Show all posts
Friday, November 27, 2009
Insurance is your soldier
Yes, Insurance is your soldier to protect you from unseen consequences. Let us see the reasons.
There are certain principles, which make it possible for insurance to remain a preferred fair arrangement. The first is that it is difficult for any one individual to bear the consequences of the risks that he is exposed to.It will become bearrable when the community shares the burden.The second is that the peril should occur in an accidental manner.Nobody should be in a position to make the risk happen. In other words, none in the group should set fire to his assests and ask others to share the loss. This would be taking unfair advantage of an arrangement put into place to protect people from the accidental risks they are exposed to. The occurence has to be random, and not the deliberate creation of the insured person.
The manner in which the loss is to be shared can be determined before hand. It can be equal among all. It can also be proportional to the risk that each person is exposed to. The trader who has sent Rs.100 lakhs worth of goods on a ship will bear double the loss to be borne by another trader who has got Rs.50 lakhs worth of goods on the same ship. Current practice is to make the sharing proportional to the exposure to risk. The share could be collected from the members after the loss has occured or the likely shares may be collected in advance, at that time of admission to the group.Insurance companies collect in advance and create a fund from which he losses are paid.
Please leave your valuable comments on this post.
There are certain principles, which make it possible for insurance to remain a preferred fair arrangement. The first is that it is difficult for any one individual to bear the consequences of the risks that he is exposed to.It will become bearrable when the community shares the burden.The second is that the peril should occur in an accidental manner.Nobody should be in a position to make the risk happen. In other words, none in the group should set fire to his assests and ask others to share the loss. This would be taking unfair advantage of an arrangement put into place to protect people from the accidental risks they are exposed to. The occurence has to be random, and not the deliberate creation of the insured person.
The manner in which the loss is to be shared can be determined before hand. It can be equal among all. It can also be proportional to the risk that each person is exposed to. The trader who has sent Rs.100 lakhs worth of goods on a ship will bear double the loss to be borne by another trader who has got Rs.50 lakhs worth of goods on the same ship. Current practice is to make the sharing proportional to the exposure to risk. The share could be collected from the members after the loss has occured or the likely shares may be collected in advance, at that time of admission to the group.Insurance companies collect in advance and create a fund from which he losses are paid.
Please leave your valuable comments on this post.
How Insurance Works?
Let us have a close look at the working principle of Insurance:
The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and make good to the person who lost. All people who send goods by ships are exposed to the same risks, which are related to water damage, sinking of the vessel, piracy,etc. Those owning factories are not exposed to these risks, but they are exposed to these risks like fire,hailstorms,earthquakes,lightning,burglary, etc.Like this, different kinds of risks can be identified and seperate groups made,including those exposed to such risks. By this method, the heavy loss that any one of them in the group may suffer( all of them may not suffer losses at the same time) is divided into bereable small losses by all the others in the group. In other words, the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all.Insurance helps to spread the costs or risks.
Please leave your valuable comments on this post.
The mechanism of insurance is very simple. People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and make good to the person who lost. All people who send goods by ships are exposed to the same risks, which are related to water damage, sinking of the vessel, piracy,etc. Those owning factories are not exposed to these risks, but they are exposed to these risks like fire,hailstorms,earthquakes,lightning,burglary, etc.Like this, different kinds of risks can be identified and seperate groups made,including those exposed to such risks. By this method, the heavy loss that any one of them in the group may suffer( all of them may not suffer losses at the same time) is divided into bereable small losses by all the others in the group. In other words, the risk is spread among the community and the likely big impact on one is reduced to smaller manageable impacts on all.Insurance helps to spread the costs or risks.
Please leave your valuable comments on this post.
Thursday, November 26, 2009
Pure Risks and Speculative Risks
Let us have a close look at Pure and Speculative risks:
The latter are in the nature of betting or gambling where the risk is, to some extent, under the control of the person concerned, while a picture is not so. It is more in the nature of an Act of God. Insurance deals with only pure risks and not speculative risks.
Doubts and queries regarding this post is kindly and acceptable and kindly post your valauable comments.
The latter are in the nature of betting or gambling where the risk is, to some extent, under the control of the person concerned, while a picture is not so. It is more in the nature of an Act of God. Insurance deals with only pure risks and not speculative risks.
Doubts and queries regarding this post is kindly and acceptable and kindly post your valauable comments.
Classification of Risks in our Daily Life
Risks are classified into various types based on the damage to be caused. If we understand this then we can know when to take the insurance for our assests and for our lives:
Risks are classified in various ways:-
Critical or Catastrophic risks
Financial or Non-Financial risks
Dynamic and Static risks
Fundamental risks
Pure and Speculative risks
If you have and queries or doubts please leave your valuable comments on this post.
Risks are classified in various ways:-
Critical or Catastrophic risks
Financial or Non-Financial risks
Dynamic and Static risks
Fundamental risks
Pure and Speculative risks
If you have and queries or doubts please leave your valuable comments on this post.
Wednesday, October 14, 2009
Insurance
Insurance:
Insurance can be explained like the future plan in case of avoiding huge financial crisis when any disaster happened to your life or general things that you will be needed in your day to day life. It’s your personal care to assure protection against the damage occurred to the valuable things. You can insure your life and your personal thing like health, travel, auto, and property etc., Insurance is like a deal between you and the Insurance Company.
You pay particular amount called premium to the company for few years or months depending on the plan you have taken and when any damage happened to your personal things or any sudden catastrophe then the Insurance Company take care of your things and help you financially.Types of Insurance and their functions are described in the next post.
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Saturday, August 8, 2009
Types of Insurance
These days people are understanding Insurance in a positive way which helped in development of Insurance Sector.As a result it introduced various types of insurance for people to overcome damage. There are various types of insurance not only to take care of your valuable things but also your family after your absence.
Types of Insurance:
Auto Insurance
Unemployment Insurance
Dental Insurance
Home Insurance
Travel Insurance
Medical Insurance
Direct Car Insurance
Cheap Van Insurance
Performance Car Insurance
Critical Illness Insurance
Private Health Insurance
Health Insurance Companies
Life Assurance
Life Insurance Ireland
Budget Home Insurance
Conents Insurance
Sports Insurance
Ski Insurance
Extreme Sports Insurance
Sailing Insurance
Cheap Pet Insurance
Cat Pet Insurance
Dog Insurance
Shop Insurance
Nationwide Insurance
RAC Motor Car Insurance
Ensurance
Travel Insurance Companies
Renters Insurance
Life Insurance
Disability Insurance
Term Insurance
Farmer Insurance
Types of Insurance:
Auto Insurance
Unemployment Insurance
Dental Insurance
Home Insurance
Travel Insurance
Medical Insurance
Direct Car Insurance
Cheap Van Insurance
Performance Car Insurance
Critical Illness Insurance
Private Health Insurance
Health Insurance Companies
Life Assurance
Life Insurance Ireland
Budget Home Insurance
Conents Insurance
Sports Insurance
Ski Insurance
Extreme Sports Insurance
Sailing Insurance
Cheap Pet Insurance
Cat Pet Insurance
Dog Insurance
Shop Insurance
Nationwide Insurance
RAC Motor Car Insurance
Ensurance
Travel Insurance Companies
Renters Insurance
Life Insurance
Disability Insurance
Term Insurance
Farmer Insurance
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