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Insurance: What are the types? How important is it?

Every person faces sudden things in his life, such as a car accident, the burning of a house, robbery....etc. In those moments, one needs someone to support him, whether financially or otherwise, to overcome these problems, and here comes the role of insurance, which is the help that will support you, and in the following, you learn about the meaning of insurance, its types, and usefulness.

Meaning of insurance: 

Insurance is a social system that aims to form a reserve to face the uncertain losses that individuals and institutions are exposed to by transferring the burden of risk from one person to several people or a group of people, that is, it is a system designed to reduce the phenomenon of the uncertainty of financial losses by transferring the burden of risk.

The benefit of Insurance: 

-Achieving the principle of cooperation between a group of individuals exposed to the same risk and securing their future by sharing the risks to which they are exposed. 

-Preserving the wealth of enterprises by compensating them for the products of the dangers to which these resources may be exposed, such as fire and theft...... Maintaining production capacity. 

-Creating and expanding the scope of credit through loans secured by documents, which contributes to the economic growth of projects.

Insurance contract and its parties:

An insurance contract is an agreement contract between two parties, one of whom is the insurer (the insurance company) and the other is the customer (The insured) by committing the second party to the insured to pay a premium called the insurance premium to the first party, provided that the first party undertakes to pay the appropriate compensation to the insured or his beneficiaries if the insured risk is realized.

Premium:

The premium is the main source of income and is the amount due from the insured under the insurance contract concluded between the two parties who are obligated to pay it to the insured in exchange for obtaining the appropriate compensation when at risk.

Compensation:

Appropriate compensation is that material compensation paid by the insured to the insured if the insured risk is realized so that it maintains the material position of the insured and puts it in the same financial position before the realization of the insured risk, provided that the amount of compensation does not exceed the value of the insurance amount.

Types of insurance:

1- Optional Insurance:

It is the insurance that a person contracts to benefit from it personally in insuring himself from a certain risk, and it is due to the desire of the insured himself. 

Types:

Its dangers vary as follows:

• Accident injury risks are covered by personal accident insurance. 
• Risks of illness covered by medical care insurance. 
• Human life insurance covers risks of death.

2 - Life Insurance:

Life insurance is intended for the risk to an individual, primarily "death ": where the insurance contract requires the company to pay a specified amount of money or monthly salary to the heirs of the deceased person holding the insurance contract, or to persons specified by the person before his or her death, this insurance contract may include other conditions such as The individual policyholder shall receive benefits after reaching a certain age, or in the event of total or partial incapacity, provided that the individual meets the payment due to the company, which may be a monthly or annual contribution, or only once, depending on the policy and regulations of the insurance company under contract.

3 - General Insurance:

Its dangers vary as follows:

1. Fire hazards are covered by fire insurance.
2. Aircraft accident risks are covered by aircraft insurance.
3. Theft risks are covered by theft and burglary insurance.
4. Risks of drowning accidents are covered by marine insurance.
5. Natural disaster risks are covered by earthquake and hurricane insurance.
6. Risks of downtime and covered by downtime insurance. 
7. The risks of civil liability are covered by civil liability insurance,  especially - for business owners, cars, ships, and others.

4- Compulsory insurance:

It is compulsory insurance imposed by the state that covers the civil liability of the insured before others.

5- Insurance travel:

It includes any accidents to an individual, group, or family as a whole, and it covers delays and consequential losses, health conditions and injuries that can occur during travel, compensation in the event of loss of luggage, and the expenses of repatriating bodies in the event of death out; of the country.

6-Insurance health:

purpose of this type of insurance is to cover all costs of treatment such as diagnostics, screenings, surgeries, and medicines needed throughout the individual's life: it can cover all family members, it can be from the company's employees, from universities to its students and employees, or it can be broadly any from the State to its citizens.

7-Insurance companies: 

AXA is one of the best insurance companies in The world.

At the end of the topic, I expect that you have benefited a lot and there are still a lot of types of insurance that I did not mention. I hope you are happy and Almarifa's blog contains a lot of important articles that are waiting to be read. See you in the comments.