5 Insurance Coverage That Protect You

Insurance policies provide cover against various types of contingencies. The contingencies could be like damage to house, loss of vehicle, loss of goods, loss of life etc. Life can be extremely cruel at times. It is also full of uncertainties that could arise at any time.

In order to make sure that you are not affected by various unforeseen events of life, it is would be logical to get insured against various risks. The main advantage of various insurance policies is that the risk gets shared over a large number of insured people and each person has to pay only a small amount of premium. Insurance companies follow various principles such as:

1. Indemnity- The insurance company compensates a person only up to the extent he or she is insured. The insurance company is not liable for losses suffered beyond that fixed amount.

2. Utmost good faith- The insurance policies tie the insurer and the insured in a bond of honesty and fairness. They must not hide any
vital information from each other.

3. Insurable interest- This principle states that insured must have some financial benefits from the property or goods that he wants to get insured. If he doesn’t have any interest in the property, goods or person that he wants to get insured then there could be no insurance agreement.

4. Causa proxima-  This principle states that the cause of loss must be among the list of causes mentioned in the initial insurance contract for which compensation is allowed.

5. Affordable premium- Since a very large number of people apply for insurance policies, so the risks gets shared among  all of them.
So the amount of premium that has to be paid on a monthly or yearly basis is an affordable amount.

6. Accidental loss- The losses that can be insured must be accidental by nature. They must not be the outcome of self derogatory activities like gambling or other speculative activities.

7. Calculable nature- The loss which has to be insured must be calculable. It must be numerically calculable. Losses which cannot be calculated numerically cannot be insured.

Various types of insurance policies include:

1. Auto insurance- This kind of insurance insures a person from financial losses arising out of contingencies related to damage to vehicles. An insured person would get compensated in case of damage caused to a vehicle in an accident or in case of theft of vehicle.
In case of an accident an insured person would also get compensated for injuries suffered, loss of wages etc apart from the maintenance
expenses of the vehicle.

2. Home insurance- This kind of insurance provides indemnity in case of damage to home or property arising due to various factors
like flood, earthquake, accidental fire etc. Even while relocating hire Man and Van services which are fully insured for the move making it a  safest way to relocate.

3. Health insurance- These insurance policies aids a person in case of expensive medical treatments.

4. Life insurance- These insurance policies provide monetary compensation to a deceased family in case of untimely or unexpected death.

5. Marine insurance- This insurance covers against losses that could be suffered during the transit of cargo at sea.

Taking in to account the various uncertainties of life and the excellent features offered by various insurance companies, it would be logical to get insured against various risks