Similarly, if the insurance company insures a car, house, or smartphone, then if that thing is broken, broken, lost, or damaged, the insurance company gives compensation to its owner according to the predetermined conditions.
What is insurance
Insurance is actually a contract between the insurance company and the insured. Under this contract, the insurance company takes a certain amount of money (premium) from the insured person and compensates the insured person or the company in case of any loss as per the terms of the policy.
How many types?
In general, there are two types of insurance:
Life Insurance
General Insurance
Life insurance
In life insurance, the life of a person is insured. Life insurance means that upon the death of the person purchasing the insurance policy, the dependent receives compensation from the insurance company.
If the head of the family dies prematurely, it becomes difficult to manage the family expenses. It is necessary to take a life insurance policy to protect the spouse/children/parents, etc. of the head of the family from the financial crisis. In financial planning, first of all, it is suggested for a person purchase a life insurance policy
General insurance
General insurance: includes all vehicles, houses, animals, crops, health insurance, etc.
Home insurance:
If you insure your home with a general insurance company, your home is protected by it. After purchasing the insurance policy, if there is any kind of damage to your home, the insurance company will pay compensation
Coverage against any damage to your home is included in this insurance policy. Damage to the house due to natural disasters includes damage from fire, earthquake, lightning, flood, etc. Man-made disasters include damage to the house due to theft, fire, riot, etc.
Car Insurance:
It is very important to insure any vehicle traveling on the road in accordance with the law. If you drive on the road without insurance, the traffic police can fine you. According to the car or car insurance policy, the insurance company provides compensation for any damage to the car.
If your car is stolen or due to an accident, an auto insurance policy can help you a lot. You will get the most out of your car insurance policy when your car causes injury or death to someone. It is covered by third-party insurance. If you also have a bicycle or two/three-wheeled vehicle, you must insure it.
Health insurance:
Nowadays the treatment cost is increasing very fast. When obtaining health insurance, the insurance company covers the cost of treatment in case of illness. Under the health insurance policy, the insurance company pays the amount spent on treating any kind of disease. The spending limit for any illness depends on your health insurance policy.
Furthermore
Travel Insurance:
Travel insurance protects against loss during the trip. If a person goes abroad for some business or travel and the goods are damaged or lost, the insurance company gives him compensation. The travel insurance policy is valid from the beginning of your trip until the end of the trip. Different insurance companies may have different terms for travel insurance policies.
Crop insurance
According to the current rules, it is necessary for every farmer who has taken an agricultural loan to purchase crop insurance. Under the crop insurance policy, in case of any damage to the crop, the insurance company gives compensation to the farmer. Under a crop insurance policy, compensation is given by the insurance company in case of crop failure due to fire, flood, or due to disease.
Given the stringent terms of the crop insurance policy and the lack of compensation for the cost, there is not much enthusiasm among farmers about crop insurance. In fact, in order to provide compensation in case of crop failure, the insurance companies survey all the fields around that farm, and compensation is given only when most of the farmer’s crops are damaged.
Business Liability Insurance:
Commercial liability insurance is actually to compensate for the loss suffered by the customer due to the work of a company or any product. In such a case, the insurance company doing the liability insurance must bear the full cost of the penalty and legal action against the company.
Final words
The insurance company insures a car, house, or smartphone, then if that thing is broken, the insurance company gives compensation to its owner. types of insurance are vehicles, houses, animals, crops, health insurance, life insurance, etc.
