Insurance and its various types: - CNN BLOG

Insurance and its various types:


Concept of insurance:

Insurance was defined as a contract between two parties, the first party is called the insured (the insurance company), and the second party is called the insured, and according to this contract, the insurance company is obligated to pay an amount of money, that is, material compensation to the insured when he is exposed to an accident or danger shown and proven in a contract Insurance leads to a material or physical loss to the insured, in return for the insured to pay fixed installments (monthly, semi-annual or annual) to the insurance company.

Insurance has developed with the development of economic and social life over time, and insurance has become in the modern era one of the civilizational standards for countries, and the best way to deal with the various types of risk, because it sends a spirit of reassurance and safety in the hearts of individuals that there is a certain party that will compensate for the losses they may suffer either In themselves or with their money, as it represents a correct way to confront the damages and losses that result from the dangers of all kinds.

Types of insurance:

There are many types of insurance, including:

1 – Cooperative insurance

2 – Commercial insurance, which is divided into:

A – Damage Insurance:

It is divided into:

First: Insurance of money and property,

Second: Liability Insurance towards others

B – Personnel Insurance:

It is divided into:

First: Life insurance: which is divided into:

1- Death risk insurance

2 – Insurance against risk of survival for a certain age

3- Hybrid insurance

Second: Insurance from physical accidents.

For cooperative insurance:

It is insurance carried out by a specific group of people, whose members agree to compensate for damages or losses (which one of them may suffer as a result of being exposed to a certain risk) from the total contributions that each of them pledges to pay. And members of the cooperative insurance company do not seek to make a profit, and it is managed by the same individuals who participate in it, and each of its members is insured and insured.

As for commercial insurance:

In this type of insurance, which is currently prevalent and for which the word insurance is used, the insured is obligated to pay an amount of money in the form of fixed installments agreed upon with the insurance company, in return for the insurance company to compensate the insured for actual damages or loss that he may suffer as a result of A specific accident is confirmed in the insurance policy, and the insurance company consists of individual contributors who are the beneficiaries of the company’s profits, and the commercial insurance company seeks to make a profit unlike the cooperative insurance company whose purpose is to cooperate in warding off risks.

There are other types of insurance, including:

-Private and social insurance

-Fire insurance

-Insurance against theft risk

– health insurance

– Cars Insurance

-Marine insurance

-Other types of insurance


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