In insurance, the policy is a contract (generally a typical kind contract) between the insurance firm and the insured, referred to as the policyholder, which determines the claims that the insurance firm is lawfully required to pay. In exchange for an initial payment, referred to as the premium, the insurance firm guarantees to pay money for loss caused by perils lined under the policy language.
Insurance contracts are designed to fulfill specific wants and therefore have several features not found in several alternative kinds of contracts. Since insurance policies are normal forms, they feature boilerplate language that is comparable across a large variety of different kinds of insurance policies
The policy is mostly an integrated contract, which means that it includes all forms related to the agreement between the insured and insurance firm. In some cases, however, supplementary writings like letters sent when the ultimate agreement will build the insurance policy a non-integrated contract.
AIMS AND OBJECTIVES :
The aim of this project is to gather information on various types of insurance policies and to understand them.
The objective of insurance is to financially protect against uncertain life incidences. In short, after you get an insurance policy, you make monthly payments, referred to as premiums, to buy protection from financial repercussions associated with things like accidents, health problem or perhaps death. The quantity of your premiums relies on your coverage desires, your personal history, and in some cases, your age, health and even where you reside.
The objective of this project is to understand the various types of insurance policies; to understand the benefits of insurance policies.
METHOD AND METHODOLOGY :
A method used to make this project is a research method. An intensive research about insurance policy and different types of it is done using the internet. Internet research about this project lead to a sort of survey of various insurance policies; various financial firms offering the policy at various rates. The extra information is provided through internet via various sites. After a intensive research, we managed to
make list of various policies which are given below:
- Vehicle insurance
- Gap insurance
- Health insurance
- Income protection insurance
- Casualty insurance
- Life insurance
- Burial insurance
- Property insurance
- Liability insurance
- Credit insurance
DETAIL REPORT OF PROJECT :
Specific types of risk that will produce to claims are referred to as perils. AN insurance policy can begin thoroughly which perils are lined by the policy and that isn’t. Below are non-exhaustive lists of the various different kinds of insurance that exist.
- Vehicle Insurance
Vehicle insurance protects the customer against financial loss within the event of an event involving a vehicle they own, like during a traffic collision.
Coverage generally includes:
- Property, for harm to or larceny of the automobile
- Liability, for the liability to others for bodily injury or property harm
- Medical, for the value of treating injuries, rehabilitation and typically lost wages and ceremonial expenses
- Gap insurance
Gap insurance covers the surplus quantity on your personal loan in an instance where your insurance firm doesn’t cover the complete loan. counting on the company’s specific policies it would or won’t cover the deductible likewise. This coverage is marketed for people who place low down payments, have high-interest rates on their loans, and people with 60-month or longer terms. Gap insurance is usually offered by a no depository financial institution once the vehicle owner purchases their vehicle, however, many automobile insurance corporations provide this coverage to customers as well.
- Health insurance
Health insurance policies cover the value of medical treatments. Dental insurance, like medical insurance, protects policyholders for rental prices. In most developed countries, all voters receive some health insurance from their governments, purchased by taxation. In most countries, health insurance is commonly a part of an employer’s advantages.
- Income Protection Insurance
Disability insurance policies give financial backing within the event of the customer becoming unable to figure due to disabling sickness or injury. short-term and long-term incapacity policies are accessible to people, however considering the expense, long-term policies are usually obtained solely by those with a minimum of six-figure incomes, like doctors, lawyers, etc. short-term disability insurance covers an individual for a amount generally up to 6 months, paying a regular payment every month to cover medical bills and different requirements.
Long-term disability insurance covers a person’s expenses for the long run, up till such time as they’re thought-about for good disabled and thenceforth Insurance firms can usually try and encourage the person back into employment in preference to and before declaring them unable to figure the least bit and thus totally disabled.
Disability overhead insurance permits business house owners to cover the overhead expenses of their business whereas they’re unable to work. Total permanent disability insurance provides advantages once an individual is for good disabled and might not work in their profession, usually taken as an adjunct to life assurance.
Workers’ compensation insurance replaces all or a part of a worker’s wages lost and incidental medical expenses incurred because of a job-related injury.
- Casualty Insurance
Casualty insurance insures against accidents, not essentially tied to any specific property. It’s a broad spectrum of insurance that variety of alternative sorts of insurance may be classified, like automobile, employees compensation, and a few liability insurances. Crime insurance is a variety of casualty insurance that covers the customer against losses arising from the criminal acts of third parties. As an example, an organization will get crime insurance to cover losses arising from larceny or defalcation. Terrorism insurance delivers security against any loss or harm caused by terrorist undertakings. within us within the wake of 9/11, the act of terrorism. Risk Insurance Act 2002 (TRIA) found out a federal program providing a clear system of shared public and personal compensation for insured losses ensuing from acts of terrorism. Kidnap and ransom insurance is intended to safeguard people and companies operative in risky areas around the world against the perils of abducting, extortion, wrongful detention, and hijacking.
Political risk insurance may be a variety of casualty insurance that may be taken out by businesses with operations in countries within which there’s a risk that revolution or alternative political conditions may end in a loss.
- Life Insurance
Life insurance provides a financial profit to a decedent’s family or alternatively selected beneficiary, and should specifically offer for financial gain to an insured person’s family, burial, ceremonial occasion, and alternative final expenses. Life assurance policies usually permit the choice of getting the income paid to the beneficiary either an exceedingly lump sum money payment or a regular payment. In most states, an individual cannot purchase a policy on another person without their information.
Annuities offer a stream of payments and are typically classified as insurance because they’re issued by insurance corporations, are regulated as insurance, and need a similar style of actuarial and investment management experience that life assurance needs. Annuities and pensions that pay a profit for all times are generally considered insurance against the chance that a retired person can outlast his or her monetary resources. In this sense, they’re the complement of life assurance and, from an underwriting perspective, are the reflection of life assurance.
Certain life assurance contracts accumulate money values, which can be taken by the insured if the policy is relinquished or which can be borrowed against. Some policies, like annuities and endowment policies, are money instruments to accumulate or liquidate wealth once it’s required.
- Burial Insurance
Burial insurance may be a very old sort of insurance that is paid out upon death to cover final expenses, like the value of a ceremonial occasion. The Greeks and Romans introduced burial insurance c. 600 ce once they organized guilds known as “benevolent societies” that cared for the extant families and paid ceremonial occasion expenses of members upon death. Guilds within the Middle Ages served the same purpose, as did friendly societies throughout Victorian times.
- Property Insurance
Property insurance provides protection against risks to property, like a fireplace, thieving or whether harm. This might embrace specialized kinds of insurance like insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.
- Liability Insurance
Liability insurance could be a very broad superset that covers legal claims against the insured. Many sorts of insurance embody a facet of liability coverage. As an example, a homeowner’s contract can unremarkably embrace liability coverage that protects the insured within the event of a claim brought by somebody who slips and falls on the property; car insurance also includes a facet of liability insurance that indemnifies against the damage that a crashing automobile will cause others’ lives, health, or property. The protection offered by a liability insurance policy is twofold: a legal defense within the event of a legal proceeding commenced against the client and indemnification (payment on behalf of the insured) with regard to a settlement or court finding. Liability policies usually cover solely the negligence of the insured, and can not apply to results of willful or intentional acts by the insured.
- Credit Insurance
Credit insurance repays some or all of a loan once the receiver is insolvent.
Mortgage insurance insures the investor against default by the receiver. Mortgage insurance is a sort of credit insurance, though the name “credit insurance” more often is employed to consult with policies that cover different kinds of debt.
Many credit cards provide payment protection plans that are a sort of credit insurance. The policy pays the policyholder for lined assets if the debtor defaults on payment.
Collateral protection insurance (CPI) insures property (primarily vehicles) held as collateral for loans created by disposal establishments.
ANALYSIS OF DATA :
The analysis drawn from the above-detailed report is that insurance is must in today’s world. The world we tend to live in is filled with uncertainties and risks. People, families, businesses, properties, and assets are exposed to different types and levels of risks. These embody risk of losses of life, health, assets, property, etc. whereas it’s not perpetually doable to stop unwanted events from occurring, the monetary world has developed a product that defends people and businesses against such losses by compensating them with monetary resources.
Insurance may be a monetary product that reduces or eliminates the value of loss or impact of loss caused by differing types of risks. Apart from protecting people and businesses from several forms of potential risks, the Insurance sector contributes considerably to the overall economic process of the state by providing stability to the functioning of companies and generating long-run monetary resources for the economy comes. Among different things, Insurance sector additionally encourages the virtue of savings among people and generates employment for millions, particularly during a country like India, where savings and employment are necessary.
In today’s monetary world insurance policies are a way to stay one step ahead in financial planning game. The project research has not only made us understand the various insurance policies but also the importance of insurance policy. The more we evolve in life the more we face the risks and uncertain situations of life; which in this world can be handled with money.
The most basic function of an insurance policy is to help us stay financially secured at the times of windfall. The more we read about the uncertain situations of life the more we are inclined to find security; insurance policies provide us that security.
Lastly, to conclude my findings in this project, I would like to start a single insurance policy now that I know the benefits and importance of it.
The discussion of this project with my family and friends was interesting as they helped me understand insurances better. There were many pros and cons discussed insurance policy. While my family members had all the pros and a few cons to discuss; my friends had cons and a few pros to discuss.
The more I discussed this topic, it only yielded me in-depth information about insurance policies. The most common insurance policy is the life insurance policy. Every single person I discussed this topic with said they had life insurance policy.
There were many suggestions made by family members and friends. A few are listed below:
- Customers should be more aware of various insurance policies
- Customers should read the contract or policy thoroughly before signing anything.
- Customers should be made aware of the newest policies available on the market
- People should realize the importance of insurance policy.
- Insurance policies should be made keeping in mind the lower class of people with very little income as well.
My profound gratitude to all the faculty members of the Department, for their timely assistance and encouragement throughout my research work.
I duly acknowledge the encouragement and support from the research scholars in the department, and all my colleagues and friends.
It gives me immense pleasure to take the opportunity to all the people who are directly or indirectly involved in the completion of my project based on Different Types Of Insurance Policies
With deep reverence, I offer my deepest gratitude _____, without whom this project could not have been fulfilled.
Lastly, I thank Almighty, my parents, family members, friends and teachers for their constant encouragement and support without which this project would not be possible.
Name of School/College
BIBLIOGRAPHY / REFERENCE :