Management 202: Types of Insurance

BUSINESS LAW

insurance-3

TYPES OF INSURANCE

The types of Insurance include:

  • Life Insurance
  • Fire Insurance
  • Marine Insurance
  • Motor vehicle Insurance
  • Burglary Insurance
  • Fidelity Insurance
  • Bad debts Insurance
  • Employers Accident liability Insurance

Life Insurance

This means a contract by which the Insurer undertakes to pay a certain amount of money on the death of person insured or on the expiry of a specified period, whichever comes first. A contract of life Insurance is not one of Indemnity but it is merely a contract to pay a certain amount which has been agreed upon. In this case, the premium may be paid at once or by periodical installments.

Fire Insurance

This means a conduct whereby the insurer undertakes to make good the loss/damage suffered by the insured due to fire during a specified period. The contract specifies the maximum amount which the insured can claim in case of loss by fire. This amount is fixed by the parties at the time of the contract. However it does not reflect the amount of loss because loss can only be determined after fire has occurred. A contract of fire insurance is strictly one of indemnity.

Marine Insurance

This means a contract whereby the insurer undertakes to indemnify the insured against marine losses. That is losses caused by marine adventure such as fire, war, pirates, captures, Jettisons and so on. The policy may be extended to cover inland navigation but the insured must continue having insurable interest in the subject matter.

Motor Vehicles Insurance

This insurance covers vehicles, damaged or lost in accidents. Under the motor vehicle 3rd party risks Act (Cap 405) every driver of a motor vehicle is required to be insured against liability in respect of death or bodily harm to any person caused by the use of the vehicle on the road. It is an offence to use a vehicle on the road without having a valid insurance policy in respect of injuries to 3rd parties.

Burglary Insurance

This is a contract of insurance whereby the insurer undertakes to compensate the insured against any loss caused by theft or burglary.

Fidelity Insurance

This is a contract of insurance which protects employees against financial loss caused by employees handling cash such as accountants, cashiers bursaries and so on.

Bad debts Insurance

This is a contract of insurance which protects traders against losses caused by failure of their customers to pay their debts.

Employers Accident liability Insurance

This is a contract of insurance which safeguards the employers against any damage caused by his negligence or mistakes of his workers.

THE MANAGEMENT SYLLABUS

© 2016 Management Tutorials Africa

Winston_Tony Eboyi is a Project Manager who runs programs on Personal Development and matters Business Branding. www.twicgroup.com

 

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