Property and Liability Insurance

Personal Insurance

Property insurance deals with the financial consequences associated with losses caused to property of families and individuals. The financial consequences of property losses include reduction in the value of property due to the loss, consequential expenses like loss of income resulting and subsequent increased expenses like rent paid while the property is repaired. Property includes:

 Real property: A house and the land on which it was constructed, items embedded in the land like the foundation and underground pipes and separate structures on the land like a garage or a storage shed.

Personal Property: Includes high value personal property like jewelry and with unusual intrinsic value like curios; the contents of the dwelling including furniture and clothing, business personal property like computer equipment and printer, and automobiles, motor vehicles, sailboat, trailers, watercraft and aircraft.

Liability insurance:

The insurance pays for money damages arising due to the breach of civil and criminal laws. Liability losses arise due to tort liability including libel, assault, trespassing and nuisance; contractual liability and statutory liability.  The financial consequences arise due to the liability declared by the court of law whenever the defense is not successful. The cost of investigation and defense also add up as the financial liability.

Types of Insurance Products

Products that are offered for sale by General Insurers include various types of

1)Property Insurance

• Fire Insurance
• Marine Insurance - Ocean marine and Inland water Insurance
• Motor Insurance
• Other Miscellaneous Insurances

The coverage offered by Property Insurance include risks of
Fire,Windstorm, hail aircraft, vehicle damage, riot and civil commotion, explosion, smoke, vandalism, sprinkler leakage, water damage, sinkhole collapse,volcanic action earth movement and crime.

2) Casualty Insurances

• Auto liability
• General liability
• Workers Compensation
• Professional Liability
• Umbrella and Excess liability
• Package Policies
• Small accounts and Surety bonds

Coverage is offered for various types of liabilities to third parties of the Insured.
Legislation and court decisions require frequent changes to policy forms and underwriting guidelines.

Products offered by Life Insurers include:

1) Assurances: The coverage offered include benefit in the event of death besides other benefits It can be classified into two sub groups: Pure death benefit contracts also called Term Assurances and Endowment benefit contracts  which provide a death benefit if death takes place and a survival benefit during the period of contract which is also called Money Back Assurance.

2) Annuities: The product provides benefits on the event of survival at stipulated time intervals besides other benefits. It can be classified into two sub-groups: Deferred Annuity which provides an immediate annuity after a specified period called 'deferment period' and Immediate Annuity that provides a series of payments at a stipulated interval on survival.