Question

What is insurance? What are the different types of insurances available in Pakistan? Make suggestions to the following individuals. Suggest whether they should take insurance and of what type.

Mr Waheed has a wife and 3 smalls kids. He likes adventures. recently he booked a tour to south Africa and plans to do sky diving there. He also goes for motorbike racing frequently.

His wife runs a small business. She has her outlet in a mall and a warehouse where she keeps her all stock.

Answer 1

Insurance is a term in law and economics. It is something people buy to protect themselves from losing money. People who buy insurance pay a "premium" (often paid every month) and promise to be careful (a "duty of care").

Major types of insurance include:

• Life Insurance.
• Property Insurance.
• Fire Insurance.
• Liability Insurance.
• Guarantee Insurance.
• Social Insurance.

Mr. waheed is into risky sports such as racing and sky diving therefore he should get a life insurance foe himself

his wife should also get her goods insured from theft fire etc so that her compensation for goods remain safe