Non-life insurance; - SS2 Commerce Lesson Note

Non-Life Insurance:

Non-life insurance, also known as general insurance, provides coverage for risks other than life-related risks. It includes various types of insurance policies that offer financial protection against specific events or perils. 

Types of non-life insurance

Motor Vehicle Insurance:

Motor vehicle insurance provides coverage for vehicles against potential risks and damages. It typically includes two main types of coverage:

Third-Party Liability: This coverage protects the insured against legal liabilities arising from injury or damage caused to a third party in an accident involving the insured vehicle.

Own Damage Coverage: This coverage protects the insured vehicle against damages resulting from accidents, theft, fire, or other covered perils.

Motor vehicle insurance is mandatory in many countries and helps protect both the vehicle owner and other parties involved in accidents.

Fire Insurance:

Fire insurance provides coverage against damage or loss caused by fire-related incidents. It protects properties, such as homes, buildings, or business premises, from fire-related risks. In the event of a fire, the insurance company compensates the insured for the damage or loss suffered.

Fire insurance can also include coverage for additional perils, such as lightning, explosion, or natural disasters like earthquakes or storms, depending on the specific policy terms.

Fidelity Insurance:

Fidelity insurance, also known as fidelity guarantee insurance, provides coverage against financial losses resulting from acts of dishonesty or fraud committed by employees or trusted individuals within an organization. It protects the insured business from losses caused by employee theft, embezzlement, or forgery.

Fidelity insurance helps businesses mitigate the financial risks associated with employee dishonesty, ensuring that they are safeguarded against potential financial harm.

Burglary/Robbery/Theft Insurance:

Burglary/Robbery/Theft insurance provides coverage against loss or damage to property as a result of burglary, robbery, or theft. It protects individuals or businesses from the financial consequences of theft-related incidents.

This type of insurance typically covers losses to property, contents, or valuable items caused by burglary, robbery, or theft. The insurance company compensates the insured for the value of the stolen or damaged property, up to the policy limits.