Write short notes on each of the following
(a) Marine insurance,
(b) Accident insurance
(c) Group insurance
(d) Export Credit Guarantee insurance
(e) Fire insurance
Explanation
(a) Marine Insurance; is the type of insurance that covers possible losses in respect of ships and goods against the perils of the sea. In foreign trade all goods carried by sea including ships must be covered by marine insurance. Marine insurance policies include Hull, Time , Voyage and Cargo. etc.
(b) Accident Insurance; makes provision for compensation against injuries or hazards which may be due to a person or group of persons. It includes personal accidents, employees liability, accident to properties.
(c) Group Insurance Policy; is taken to cover a number of people instead of issuing each person with a separate policy. This type of insurance can also be taken to cover a group of workers in a company. For instance, if a football team is covered by a group insurance, each will be compensated.
(d) Export Credit Guarantee insurance; is normally taken to cover exporters against the risk of incurring bad debts as a result of selling goods to customers overseas. It also covers risks arising from exchange restrictions and diversion of voyage leading to loss of goods.
(e) Fire Insurance policies; cover all types of risks occasioned by fire to the property during the period covered by the policy. Losses caused by fire may involve a complete loss of the building, factories, shops, etc.