TYPES OF INSURANCE

Ajitav Acharya
MEANING OF LIFE INSURANCE
 Life insurance is a contract between the insurer
and the insured, whereby the insurer agrees to
compensate to the insured a certain agreed sum
on the expiry of a certain period, or on death,
whichever is earlier, for a consideration that is
premium.
 Life insurance is very popular form of insurance.
MEANING OF GENERAL
INSURANCE
 Insurance other than Life Insurance is generally
regarded as General Insurance.
 Policies under general insurance business, also
referred to as non-life insurance business, are
normally issued for twelve months or shorter
durations. Recently long-term agreements have
made an entry into this type of business but the
duration does not normally exceed five years.
MEANING OF RE-INSURANCE
 Risk is the starting point of insurance. Insurance
acts as an one of the risk management
techniques.
 Reinsurance is a mechanism which insurance
companies use to spread the risks assumed.
 Reinsurance is insurance for insurance
companies.
MEANING OF MICRO INSURANCE
 Micro insurance is a category of insurance policies designed
for the betterment of the economically vulnerable
population of the country. This category has been created
by the Insurance Regulatory and Development Authority of
India (IRDAI).
 Micro insurance is governed as per the IRDAI Micro
insurance Regulations, 2005. Such a policy can belong to
General Insurance as well as the Life Insurance category.
 However, the defining quality of such policies is that the
sum assured offered by them is equal to or less than Rs.
50,000.
 Micro insurance can enable some sort of insurance
cushioning for the economically vulnerable population.
Such plans can provide a sense of security to low-income
people that are unable to afford the popular form of
insurance.