Vedantu is the leader in the field of digital education in India and we have been pursuing to push boundaries and bring quality education with ease to all sections of students in India. Vedantu brings to you a detailed explanation on the topic of insurance and its various types which shall be beneficial to all students.
Introduction to Insurance
Insurance is one of the most important safety nets that is being used by individuals and property owners in the modern world. Insurance is basically a bond scheme that you sign with a bank or your insurance provider where the insurance provider promises to pay you a certain amount in case of an emergency or as such a situation arises when you are required to pay a large sum of money to anyone. In return for this, you have to pay a monthly premium to the banks which are charged as per your package and requirements. This way the respective banks earn collectively from all the people who have registered for the insurance scheme and in return they pay the amounts to those people who claim insurance amount when they require it.
Types of Insurance
There are various types of insurance schemes that are present in the market and available for people to get themselves insured. The three most prominent insurance schemes are:
Life Insurance- Life Insurance is the most widely used insurance scheme which is enrolled by people. In this scheme, a person ensures his own life and in case of his natural death or death by accident, the family of the insured person receives the insurance amount.
Fire Insurance- Fire Insurance is the type of insurance in which a person insures his property and in case of damage to his property in a fire accident the insurance provider provides the amount to the person to cover for damages for his property.
Marine Insurance – Marine Insurance refers to a contract of indemnity where the insurance provider covers the losses of ships, cargo, etc by which goods are transferred, acquired, or held between the points of origin and the final destination.