About Insurance Policy
An insurance is a policy which offers a compensation towards the loss incurred by any firm or person (the insured). Risks or loss of different nature are covered by different kinds of policies.
The contract document between the insured and the Insurance Company is called policy.
An Insurance policy will be for a definite period only. By a policy the Insurance company promise the insurer an assured sum to compensate the loss occurred to him. The insured has to make periodical payment called insurance premium during the policy period.
A beneficiary is the person named in the policy to get the assured amount on the death of the insured. As per the conditions in the policy, the Insurance Company will provide a compensation to cover only for the type of risk stated in the policy. The liability of the Insurance Company to provide cover will be limited to the period up to which the policy is valid. The sum assured depends on premium and the duration of the policy.
There are different types of Insurance Policies. Main policies are Life insurance, Home insurance, Auto insurance, Travel insurance and Health care Insurance.
Insurance Companies offer different kinds of policies. Some of the well accepted policies are Life Insurance, Travel Insurance, Auto Insurance, Health Care Insurance and Home Insurance.
An insurance policy enables the survivors in the family to cover the loss of income due to the death of the bread winner of the family.
There are different types of Life Insurance policies. Term Insurance policy, Endowment policy, Whole life Policy and Money back policy are some of the popular variations in the life Insurance policies. Conditions of each of these policies will be varying. In all cases the Insured or the beneficiary will get the sum assured as per the terms of the policy.
The risk of accident to a vehicle is covered by the Auto Insurance policy and owner gets the cost of repair of vehicle if it is getting involved in an accident. The compensation to be paid to a victim of a vehicle accident will be met by the insurance company if the vehicle is covered by the policy called Third Party policy. This is not paid to the owner of the vehicle.
An insurer can get cover for his vehicle against accident under an Auto Insurance. If the vehicle of the insurer gets damaged in an accident, then the repair charges will be met by the Insurance Company. By a Third party insurance, the Insurance company takes the liability of compensation to the victim of an accident involving insured’s vehicle. No compensation will be paid to the owner of the vehicle.
A travel insurance policy is taken to cover the loss during travels. The insured is covered against potential losses of money and other valuables during travel.
Health care insurance is that covers the hospital expenses of the insured for certain specified diseases.
A person can get information about various insurance policies from a authorised insurance agent or Net. Insurance is a very effective risk management measure.
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