The public is often confused because there are so many kinds of insurance products around them with various names and features. In fact, these products are basically combinations and modifications of basic insurance products. So in this article we are going to do a short but thorough review of those basic products. The language used will be kept as simple as possible so that the article is useful for readers with minimal insurance knowledge.
Ok, Let's start….
These types of insurance can be traced from at least two angles, namely the risk object and who owns the risk. In this article, we review from the first angle only, the risk object.
The risk object here refers to assets that contain risk or are exposed to risks around it. This asset can be something real (have mass, can, seen, touched, felt and take up space in the real world). This is referred to astangible asset. Assets can also be something that is not real(intangible asset), for example good name or reputation.
Real Assets
Real assets ortangible eg house, mobil, office building, industrial facilities, machines, valuables, Money, ship, airplanes and so on. Of various typestangible asset This gave birth to various forms of insurance such as property insurance(property insurance), motor vehicle insurance(motor insurance), engineering insurance(engineering insurance), money insurance (money insurance), sea freight insurance (marine insurance), flight insurance (aviation insurance) etc.
We take a house or property as an example. Losses can occur due to various reasons such as fire, gas explosion, lightning strike, flood, earthquakes and so on. For many reasons, Fire is the main cause of loss and most often occurs. Therefore insurance companies issue fire insurance products (fire insurance), included in the property insurance family. Even though it's called fire insurance, This police also compensates for losses due to lightning strikes(lightning), explosion(explosion) as well as objects that fall from airplanes(aircraft). The scope of this standard coverage is often abbreviated as FLEXA.
Engineering insurance(engineering) basically divided into two major groups, namely construction insurance and insurance for machinery or electronic equipment.
Motor vehicle insurance for motor vehicle owners (mostly cars and motorbikes) to protect against damage and loss of vehicles as well as the responsibility of the driver to third parties who may be injured or have their property damaged by our vehicles. Freight insurance, good sea(marine) nor air(aviation) generally divided into two, namely insurance on goods(cargo) and ship hull(hull).
In addition, there is also insurance designed to protect specific assets such as money insurance, accident insurance(bulglary), insurance for art objects and so on.
Liability
In addition to the property itself can suffer physical damage or destruction that causes loss, Ownership of an asset or object can also trigger losses in other formsintangible which is the responsibility of a third party. This responsibility arises when someone's assets or something happens to that asset resulting in a loss to a third party (other people), either in the form of loss of life, physical injury or damage or even destruction of property or assets.
An example of liability to a third party is if you own a car and crash into another car, causing the occupants of the car to be injured and the car damaged. The passenger and the owner of the car can sue you for negligence causing the loss. Even the claim can be brought up to court. It is for the responsibility arising from this negligence that you must pay all losses suffered by third parties, either in the form of medical expenses and or vehicle repairs. This is then reimbursed by insurance. This type of insurance is called insuranceliability or liability to third parties.
source: dkhairat.com
