Insurance Types

insurance business types

Product description.

TWO MAIN TYPES OF INSURANCE

Long term insurance business

Long term insurance business is associated with risks related to person's life. This contracts usually exceed one year.

GENERAL INSURANCE BUSINESS

General insurance business is associated with non-life related types of risks. This are usually short term contracts that don't exceed 1 year.

Types of long term insurance

Life assurance is a contract between the insurance company and the insured where the insurance company will pay out a specified amount of money the event of death of the insured during a particular time frame.

An annuity is a contract between the insurance company and the insured whereby the insured makes specified payments to the insurance company in return he/she receives steady income from a specified future date.

Pension refers to a fund in which money is contributed during ones employment life, the person then receives steady payment after retirement. 

Group life refers to life assurance for a group of people. This cover is usually taken by an employer for employees or by members of a common interest group. It makes a payment to the next of kin in the event of death of any person in the group.

Group credit insures credit offering institutions against losses related to death of the borrowers. The insurance company pays out the loan balance in the event of death of the borrower.

Permanent health insurance refers to a contract between the insurance company and the insured where the insurance company provides replacement income in the event that the insured can no longer work due the effects of an illness or accident. 

Investment products refer to contracts between the insurance company and the insured where the insurance company promises to give the insured future income at maturity of the contract.

Types of General insurance

Aviation insurance refers to a contract between an insured and an insurance company where the insurance company makes payment for claims arising from ownership, use or maintenance of aircraft,airports or hangers. This claims include damage to the aircraft, personal accident of crew and passengers and property damage. 

Engineering insurance refers to a contract between the insurance company and the insured where compensation is provided for losses arising from plant and machinery. This risks include explosion and collapse of boilers, electrical /mechanical breakdown of plant, lift, cranes and damage to surrounding insured's property and third party liabilities.

Fire domestic insurance refers to a contract between the insurance company and an insured where the insurance company provides compensation for losses caused by fire to the insured's residential property.

Fire industrial insurance refers to a cover between an insurance company and the insured where the insured is compensated for losses to his/her commercial property caused by fire.

Liability insurance refers to a contract between an insurance company and the insured where the insurance company pays for costs related to specified lawsuits.

Marine insurance refers to a contract between the insurance company and the insured where the insurance company compensates for losses or damages to goods, vessels and other liabilities when goods are being transported from one country to another international trade.

Motor private insurance refers to a contract between an insurance company and an insured where the insurer provides compensation for specified losses caused to or by the insured's private vehicle. 

Motor private insurance refers to a contract between an insurance company and an insured where the insurer provides compensation for specified losses caused to or by the insured's commercial vehicle. 

Personal Accident insurance refers to a contract between an insurance company and an insured where the insurance company provides compensation for certain losses caused by accidents to the insured. This losses include death, disability and medical related expenses.

Theft insurance refers to a contract between an insurance company and an insured where the insurer provides compensation for loss or damage resulting from unlawful taking of property.

Workmen's Compensation insurance refers to a contract between an insurance company and an insured where the insurance company provides legal compensation to employees of the insured for injury or death of the employees while at work.

Medical insurance refers to a contract between an insurance company and an insured where the insurance company pays for specified medical related expenses of the insured.

Micro insurance refers insurance covers that are specially packaged for low income earners.

Miscellaneous insurance refers to other types of insurance contracts that cover losses from emerging risks.