Importance, Types and Benefits of Insurance
The contract that helps a buyer transfer the risk of his investment to an insurance company is called Insurance. The contract can happen between a singular person and the insurance company, or between a business and the company. The contract asks you or your business to pay little amounts to the insurance company. This money is pooled in and kept for your purpose. In case of an accident or a loss, the insurance company will pay you back the amount you saved under them. Several clients are there from where the company pools in the money. If you have insurance of three lakhs and you have only saved up to thirty thousand rupees under them, you will still be receiving the entire amount promised to you in the contract, if all the clauses are agreeable. The clauses of the contract, referred to as insurance policies like the Car Insurance is based on the risk factor, the type of insurance coverage, and the hazard caused.
What are the various types of Insurance?
The two major categories under which the Insurance policies are divided –
- Property Insurance – If you have a property insurance policy then the Insurance Company will be liable to pay for any damage caused to your property. It can go up to the extent of replacing your old, damaged property with a new one.
- Casualty Insurance – This kind of Insurance help to secure lives like you will be able to pay damage and medical bills if you have undergone an accident. In case of a death due to an accident, the family members are provided with the financial help of the amount the Casualty Insurance was done for.
These two major categories are furthermore divided into six types-
- Fire Insurance
- Liability Insurance
- Marine Insurance
- Personal Insurance
- Life Insurance
- Guarantee Insurance
How does car insurance Dubai help its buyer?
The contract that builds up between you and the insurance company where the company will provide you a sum a money thereby protecting you against a loss in finance in case your car been stolen or had been in an accident is a car insurance or auto insurance. Car Insurance falls under the category of both property and casualty insurance. The huge loss that you can face in case of theft or an accident can be managed.
The following manners in which the insurance can help offset losses are:
- If the car accident has resulted in a death, the survivors are given financial support and benefits.
- Lawsuits including the legal fees of your lawyers and consultants in case charges have been brought against you in case of an accident will be covered by the insurance.
- Bills that will come out the work that had to be done to reinstate your car in case of an accident will be covered by the insurance.
There are three kinds of insurances that Car Insurance companies provide. They are-
- Liability insurance – this kind of insurance provides support and legal help in case your car has been in an accident and you are charged for it.
- Collision Insurance – it pays the bills needed to repair your car or even replace your car if your car had undergone an accident or was stolen respectively.
- Comprehensive Insurance- This kind of insurance covers both the services mentioned above. Not only will this insurance help you get and pay for the legal aid you require, but it will also get your car fixed up too. In case you are purchasing an expensive new model of car, comprehensive auto insurance is the best and most recommended insurance policy for you.
