INSURANCE FOR EVERYTHING !!!

(A) PRIMARY FUNCTION:
Primary function of Insurance is to assess the risk and minimize financial risk by various remedial processes to protect from financially loss immediately. It can be again explained as following:
- As we all know, financial risk is unpredictable factor. Insurance is such a company which provides assurance by agreeing to compensate the loss according to premium plan that might take place in future.
- We have a very busy life and we are surrounded by various kinds of risks and uncertainty. In such case, Insurance is that which provides cooperation by sharing risk. Though risk cannot be fulfilled totally by money however, insurance can reduce the impact of risk.
- Insurance guarantees the protection against large or small loss by payment of sum of money according to premium plan. Insurance provides certainty of payment in the time of loss. So we can say that insurance gives feeling of security against the possible risk of uncertain events.
(B) SECONDARY FUNCTION:
As an insurance company, it does not only collect the premium from insured one but also invests a lot of money in various financial sectors. It secondary functions can be stated as
- Insurance company collects premium from its customers and forms a large sum of capital. Some of the capital is used in compensating purpose and other amount is used to invest in industrial and commercial sector for the development of country.
- Anyone who has his life or his property insured feels more safe, active and enterprising due to which insured one can do his work more efficiently.
- Financial market always has to live in fear of financial loss. Insurance company compensates amount of loss at the time of loss which is very helpful to keep the financial market steady.
- Insurance company invests (for its own benefit) a lot of money to research on how a risk of loss can be minimized. The outcomes can be very helpful in making life and property safer. So, it helps in minimizing loss.

Insurance company does not only collects premium from person who wants to get his life or property insured but also mobilizes such sum of money in various financial sector of a country.

Do not ever worry if the thing you want to get insured of is not in the general list of Insurance Company. You can go and talk to the representative of insurance company, if u can convince them it´s especial for you and for them, you can get it insured.

Insurance are of different types. You can not only get life insurance but also get insurance of all your property from any kind of threat (if you want) by paying certain premium to the insurance company with certain terms and conditions.

Yes, you can choose from various type insurance. Generally insurance is classified in two groups, life insurance and another non-life insurance.

LIFE INSURANCE:
It is the most common form of insurance. About 80% of total insurance business is based on it. It was started in England and some European countries in 16th century. In simple, life insurance is a contract between insured and insurer in which insured agrees to pay certain premium amount at certain interval of time for certain period of time and the insurer agrees to pay fixed amount of money on the death or accident of the insured person or on the expiry of certain time. Though life cannot be recovered by money however, it provides financial protection against the risk of life.
Types of life insurance vary company to company. But some of the common types of life insurance are as follows:
(a) Endowment life insurance:
It is the type of insurance policy which is issued for fixed period of time like 10, 15, and 20 years or more according to policy of company. The premium is to be paid for fixed period of time. The total sum of premium paid is returned to the insured one on the expiry of time or on the death of the insured one (to nominee) according to the prefixed terms and conditions. It is very favorite among the people as it works as pension.
(b) Anticipated endowment life insurance:
In this type of insurance policy, insured has to pay the premium as like that of endowment life insurance but the insurer pays abit in different way. This policy generally runs for 15, 20, 25 years. For example if policy is for 15 years, 25 % of amount of paid premium is issued to insured by insurance company in first 5 years, next 25% is paid after 10 years and finally 50% of total sum is paid after 15 years to the insured one with some bonus. Percentage of payment of installment as well as premium varies from company to company.
(c) Whole life insurance:
In this type of insurance policy, insured person has to pay certain premium amount for whole of his life. At the time of his death, sum of money is issued to the the person dependent on him (generally nominee). Premium is not needed to pay after the death of insured person.
(d) Term life insurance:
In this type of insurance policy, insurance is made for short period of time i.e. until the amount of loan is repaid. It is the policy to give security to the lenders or creditors. Generally, premium of such insurance will be very nominal.
(e) Children´s Education and marriage Endowment life insurance:
In this type of insurance policy, guardian of parents should make insurance for fixed period of time for the education and marriage of their children. Parents/guardian chooses their children as nominee. After the fixed period of time, insured amount is issued to the parents so that they can use that sum of money for their children´s education or marriage or both.

Non-life Insurance
Different Insurance companies have different policy in case of non-life insurance. Some of the most common type of Insurance is as follows:
(a) Fire Insurance:
This type of insurance policy is a way to be financially secure against the risk of fire. In this policy, insurance company promises to pay a sum of money to the owner of property according to the premium paid by the insured due to the loss caused by fire. In this policy company does not provide any security to protect property from fire. It just promises to pay the loss caused by fire. If the loss occurs due to some other cause like theft, accident, insurance company will not be liable to for that loss.
(b) Marine Insurance:
This type of insurance policy is a measure to shift the risk of financial loss which may occur due to various factors while transporting goods through marine. In this policy, generally insurer undertakes to indemnify the insured and to the extent they agreed against marine losses, that to say incidental losses to marine adventure. This insurance includes large area of risks like sinking of ship, collision of ships, lost of ship, accident, damage caused by storm and other perils of the sea.
(c) Miscellaneous Insurance:
Other than fire and marine insurance are included in miscellaneous insurance. Some of the most common miscellaneous insurance is as follows:
(i) Vehicle Insurance: This type of insurance policy is most common in this whole world of insurance. Most of the country have made fundamental rule to have a vehicle insured as vehicle are more vulnerable to risk such as accident, theft and many other risk. Insurance company agrees to compensate the loss of vehicle or life and also agrees to pay for the injuries at the time of any accident according to premium policy.
(ii) Aviation Insurance: Air transport is very essential in the present scenario of world. In this type of insurance policy, insurance company agrees to compensate the loss occurred due to accident of air transporter. This is as similar to the vehicle insurance. Generally aviation insurance is too expensi
(iii) Employer´s liability insurance: This type of insurance policy is taken by the owner of company for its employee. Employee of company may die or suffer injuries or become sick at the work time, at such time this type of insurance policy is very useful as it pays for the suffering worker. Employer´s liability insurance has been compulsory in most of the countries.
(iv) Fidelity guarantee insurance: This type of insurance policy is useful to get the compensation of loss which is incurred due to fraud, theft, mistakes (knowingly/unknowingly) by the staffs of organization. For this type of insurance, premium is paid by the company.

Yes, it is. Insurance is very helpful to decrease the impact of loss (life or property). Its benefit can be summarized as:
- Insurance is a measure of financial protection to an insured one. It provides certainty of payment of sum some of money in case of loss thus one can fill more security against possible risks.
- Insurance is very essential in reducing impact of risk by the distribution of risk to the number of parties who has made insurance.
- As insured one has to pay the premium regularly, it encourages the habit of saving.
- Sometime insurance policy can be a way to get loan( it´s easy to get loan if you have insurance)
- Insurance knowingly or unknowingly helps in promoting national and international trades as it shifts risk of loss from the owner.
- Insurance company in some policy returns a lump sum after certain period of time which can be a capital to start some project.

- It is not easy as said to get compensation from Insurance Company. It works on certain terms and condition and has to follow procedures which might make a compensation process abit late.
- Many of the crime that occurs in the society are due to insurance. For the shake of getting compensation from insurance company, people sometime get involve in crime.
- Money cannot be taken out from the insurance company as we withdraw money from our bank account. So in this case bank is better than Insurance Company.
- Sometime total amount of premium might be higher than the policy amount receivable on maturity.