Question

1. Briefly describe the three general categories into which private or voluntary insurance may be divided.

Answer 1

The three broad categories of private insurance are:-

1) Life insurance: This deals with insurance for the buyer of insurance against loss of life and provides a guarantee for the nominee to get a sum insured value on the death of the insured person

2) Health insurance: Health insurance or accidental insurance provides the insured person with a sum of money to compensate the person for loss of wages due to sickness and also to take care of the hospital and medical expenses incurred for treating the health condition or illness.

3) Property insurance: Property insurance is a product to compensate the property owner in case of any damage to the property or loss of the property and also to protect the property owner against any liability arising out of the ownership of the property.