Describe various types of insurance and examine the nature of risks protected by each type of insurance.

1. Life Insurance : Life Insurance is a contract under which one person, in consideration of a premium paid either in lumpsum or by monthly, quarterly, yearly payments, undertakes to pay to the person for whose, benefit the insurance is made, certain sum of money either on the death of a person whose life is insured or on the expiry of a specified period of time.

2. Fire Insurance : Fire Insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period.
Normally, the fire Insurance policy is for a period of one year after which is to be renewed from time to time.

3. Marine Insurance : Under a contract of marine insurance, the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against. Marine insurance is an agreement by which the insurer undertakes to compensate the owner of a ship or cargo for complete or partial loss at sea.

4. Other Insurance : Other Insurances are as follows :
(i) Health Insurance : Health Insurance is a safeguard against rising medical cost. A health insurance policy is a contract between an insurer and an individual or group, in which the insurer agrees to provide specified health insurance at an agreed upon price. Depending upon the policy, premium may be payable either in a lumpsum or in instalments.
Health insurance usually provides either direct payment or reimbursement for expenses associated with illness and injuries. The cost and range of protection provided by health insurance depends on the provider and the policy purchased.

(ii) Motor Vehicle Insurance : In Motor Vehicle Insurance the owner's liability to compensate people who were killed or insured through the negligence of the motorists or drivers is passed on to the insurance company. The rate of premium under motor insurance is standardized because the business is tariff.

(iii) Burglary Insurance : Burglary insurance falls under the classification of insurance of property. In case of burglary policy, the loss of damages of household goods and properties and personal effects due to theft larceny, burglary, house-breaking and fact of such nature are covered. The actual loss is compensated.

(iv) Cattle Insurance : A contract of cattle insurance is a contract whereby a sum of money is secured to the assured in the event of death of animals like bulls, buffaloes, cows and heifers.
It is contract against death resulting from accident, disease, parturitions or pregnant condition as the case may be.

(v) Crop Insurance : A contract of crop insurance is a contract to provide a measure of financial support to farmers in the event of a crop failure due to drought or flood.
This insurance covers adjacent all risks of loss or damages relating to production of rice, wheat, millets, oil seeds and pulses etc.

(vi) Sport Insurance : This policy assures a comprehensive cover available to amateur sportsmen covering their sporting equipment, personal effect, legal liability and personal accident risks. If desired the cover can also be made available in respect of the named member of insurer's family residing with him.
This cover is no available to professional sportsmen. The cover is available in respect of any one or more the following sports: Angling, badminton, cricket, golf, lawn tennis, squash, use of sporting guns.

(vii) Amartya Sen Siksha Yojana Insurance : This policy offered by the General Insurance Company secures the education of dependent children. If the insured parent/legal guardian shall sustain any bodily injury resulting solely and directly from accident, cause by externa] violent and visible means and if such injury shall within twelve calendar months of its occurrence be the sole and direct cause of his/ her death or permanent total disablement, the insurer shall indemnify the insured student, in respect of all covered expenses to be incurred from the date of occurrence of such accident till the expiry date of policy or completion of the duration of covered course whichever first occurs and such indemnify shall not exceed the sum insured as stated in the policy schedule.

(viii) Rajeshwari Mahila Kalyan Bima Yojana : This policy has been designed to provide relief to the family members of insured women in case of their death or disablement arising due to all kinds of accidents and/or death and/or disablement arising out of problems incidental to women only.