Today let me share with you another facet of financial matters. In law and economics, general insurance is defined as a form of risk management basically used to hedge against the risk of a contingent, uncertain loss. General insurance is also defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is an institution or a company selling the insurance; an insured or policyholder is the person or entity who is buying the insurance policy. The general insurance rate is a factor used to determine the amount to be charged for a particular amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has come out as a discrete field of study and practice.
The transaction involves the clients assuming a guaranteed and known relatively very small loss in the form of money or payment to the insurer in exchange for the insurer’s promise to indemnify the insured in the case of a large, possibly bad loss. The insured receives a contract which is called the insurance policy that details the conditions and circumstances under which the insured will be compensated or indemnified.
These are the common types of general insurance:
- Home Insurance: Houses, lands and other real estate properties and hard assets are subject to accidental risks like theft, damage, destruction due to natural disasters or fire accidents etc. with such large investments gone into buying a real estate property like your home or office, the problem or risk involved is a loss of large amount of money.Home and property insurance protects you in managing and protecting against these risks. The cost of a real estate property and its monetary insurance is mostly based on the value of the already insured hard assets and also the place or location in which the assets are situated.
- Travel Insurance: This is intended to shoulder or cover any of the financial or any other losses which were basically incurred by the insured while on his journey or traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers or simply as a tourist.
- Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, some times bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require or obliged you to have an auto insurance while on road in your vehicles.If you have an accidental auto crash, a total repair could cost you a lot or a fortune. On the other hand, a little scratch on your Land Cruiser may also soar up your bills to a high level.Whether or not you want or need auto insurance mostly depends on the type of automobile you own.If you have an expensive car and a little repair could worry you out financially, you should therefore decide in buying an all-inclusive and crash insurance which will protect you against any and every harm done to your vehicle.
- Health Insurance: Whether you like it or not, almost always we face certain health challenges that may cause us a lot through medicines, hospitalization bills and other related expenditures. If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment.
- Fire insurance: Fire is one truly big problem that may endanger our valuables, properties and even businesses. Worse it may threaten our lives and those of or loved ones. Well this would not be very hard unless we are ready to face such calamity with fire insurance. This will help us become more secured and ready to face fire cases
- Why Car Insurance Is Must
- Dispute an Insurance Claim
- The Indemnity Principle of General Insurance
- How to Select the Right Health Insurance Policy
- Detecting Flaws in Business Insurance
In conclusion, we must be very practical and smart these days. In order to really live well and make the most out of our lives, we must invest with general insurances. This way we will be always safe from all forms of challenges and calamities in view of our properties, lives and the lives of our loved ones.