Types of Insurance

Things to remember

• Insurance is a way, which provides security to the man and his property against the risk and uncertainty.
• There are two types of insurance. They are life insurance and non-life insurance.
• Life insurance is the contract in which the insured agrees to pay the premium to the insurer against which the insurer promises to compensate the insured a sum of money on the happening of an event.
• The insurance which is done for the physical properties other than human life is known as non-life insurance.
• Non- life insurance is taken as a means of providing financial protection for building, machinery, equipment, furniture, and vehicle and merchandise items against the risk of fire, earthquake, accident and theft.
• Non-life insurance includes fire insurance, marine insurance, and miscellaneous insurance.