Kinds of Insurance is the Insurance can be divided into from two angels first from the business point of view and the second from the risk point of view. Business point of view. The insurance can be classified into three categories from business point of view:
1. Life Insurance.
2. Genera Insurance, and
3. Miscellaneous Insurance.
General Insurance is of the following types:
1. Fire insurance 2. Marine insurance 3. Motor Insurance 4. Health insurance 5. Accident insurance.
1. Life insurance: Life insurance is a contract under which the insurer, in Consideration of a certain amount of premium undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a specified period time whichever is earlier.
This insurance provides protection to the family at the premature death of the insured or craning member of the family, or gives adequate amount at the old age when craning capacity is reduced. Under personal insurance a payment is made at the accident. The insurance is not only a protection but is a sort of investment because a certain sum is returnable to the insured at the death or at the expiry of a fixed of a fixed period.
Benefits: The benefits of the life insurance are as follows; A. Protection B. Protection of thrifty C. Liquidity D. Protection against Creditors E. Provision for society and business obligations F. Source of economic development G. Assistance to capital formation and economic development of the country.
Kinds of life insurance policies: 1. .Whole life insurance policies 2. Endowment policy 3. With 4. Annuity policies 5. Single premium or limited payment policies, 6. Sinking Fund policies 7. Various Multipurpose policies.
2. General Insurance: The general insurance includes property insurance liability insurance and other forms of insurance. Fire and insurance and marina insurances are strictly called property insurance Motor theft fidelity, and marching insurance include the extend of liability insurance to a certain extent.
Property insurance: Under Property insurance, properties of persons are insured against a certain specified risk. The risk may be fire or marine perils theft of goods, damage to property.
Fire insurance: The fire insurance policy provides protection against loss damages arising by fire. Fire insurance covers risk of fire. It doesn’t protect only losses but it provides certain consequential losses also. War risk, turmoil riots etc. can be insurance under this insurance too.
So there are various types of insurance, which insure in different aspects.
Kinds of fire insurance policies: 1. Specific 2. Valued policy 3. Floating policy 4. A verge policy 5. Declaration policy 6. Reinstatement policy.
Marine insurance: The marine insurance policy provides protection from loss or damage to property while in shipment it provides predication against loss of marine perils. The marine perils are collision with race or ship, attacks by enemies, fire and capture by pirates etc. these perils cause damage destruction or disappearance of the ship and cargo and non-payment of freight.
Kinds of marine insurance: 1. Open policy 2. Valued policy 3. Floating policy 4. Time policy 5. Voyage policy and 6. Mixed policy.
Reinsurance: It is a device to spread over the risk further under reinsurance, the insurance company transfers a part of their heavy risk to another company by getting the subject matter insured again. it is done either to reduce risk or to take advantage of lower rates of premium.
Life Insurance business in Bangladesh is very small compared to its economy. The annual revenues generated by life insurers constitute only 0.27 percent of gross domestic product (GDP) of the country as estimated in 1993. Poor economic condition is considered to be the main reason for poor life insurance penetration in Bangladesh. The country has a very low per casita income and about 50 percent of the total population lives below the poverty line. Inability to save or negligible savings by a vast majority of population kept them away from the horizon of life insurance. In spite of all these , life insurance business has been growing. It is generally expected that sound and healthy competitive will lead to increase in efficiency in the life insurance market. The competition structure changes over time due to the relation efficiency of individual and education level. With the positive change in these characteristics life insurance.
Business is expected to grow. As the per capita income insurance and peoples to save improvers the potential market for life insurance expands. Increasing campaigns and sales efforts are expected to create general awareness about insurance products. Besides, inflation contributes to the growth of life insurance business in absolute amount.
As expected, the premium revenue generated by the life insurance companies has been growing steadily. The total net premium revenue procured by life insurers all together was 144.71 cores in 1993. The annual average growth of JBC’s net premium revenue was 12.97 percent. The growth JBC’s revenue was particularly notable during early eighties. Although JBC’s net premium revenue increased during this period of time the growth rate of its net premium was less than the growth rate of net premium in the life insurance industry as a whole. This suggests that JBC be falling behind.
ALICO made significant growth since the beginning of its operation in 1974 and its growth of net premium revenue was higher in later years than in earlier years. While JBC and ALICO have the competitive advantage of long experience in the market, local private life insurance companies are relatively new in the life insurance industry. Private insurance companies were allowed to operate in 1985. Within these few years they are struggling to make a position in the market. Since local private insurance companies are new in this business, their renewal premium revenue is relatively lower.