INTRODUCTION

The Indian insurance law is the product of various legislations made on the basis
of the English law of insurance. The expansion of the insurance business in different
fields prompted the enactment of Indian Life Assurance Companies Act, 1912 based on
the English Act of 1909 to deal with life insurance business. In other words, in the initial
stages, the insurance business was governed by the provision of the Companies Law.
Later a draft bill was introduced with an aim to consolidate the laws of insurance,
applicable to all the types of insurance business. But, the bill was not passed for various
reasons. The Insurance Companies Act 1928 was drafted on the guidelines of the bill that
was tabled earlier in England. But, it did not have sufficient regulations and provisions to
meet the needs and control the insurance business. The ‘ever increasing’ nature of the
insurance business, particularly the life insurance and some general insurance fields, were
warranted. The need to have one comprehensive Act, to govern all the multifarious
insurance forms of business.
The general insurance business is fundamentally covered by the provision of the
Insurance Act, 1938, and some special contracts are governed by different acts such as
Marine Insurance Act, 1963, Public Liability Act, 1991, and Motor Vehicle Act, 1988.
Most of the provisions of the Insurance Act, 1938 are applicable to the Life Insurance
Contract and in addition to those provisions the provisions of the Life Insurance Act,
1956 are also applicable to the life insurance business.

INSURANCE CONTRACT
The insurance mechanism has two fundamental characteristics; shifting or
transferring of risk of loss or damage, from owners and thereby sharing of losses by all
the members of the group. Thus a contract of insurance is a contract by which one party
undertakes to make good the loss of another, in consideration of a sum of money, on the
happening of specified event. For example, fire accident or death.
The offer acceptance communication and consideration are very important
elements of the contract. Apart from this the other important elements are the intention of

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the party to create the legal relationship, the capacity of the parties to enter into a
contract, free consent of the parties who enter into such legally binding contract
(‘consensus ad idem’), its certainty and possibility of performance and lastly the said
contractual agreement entered into by both the parties. Both the parties should not be
declared void under the act and also should not have been forbidden by any law of the
land.
“All agreements are contracts if they are made by free consent of the parties,
competent to contract, for a lawful consideration and with a lawful object and which are
not hereby declared to be void.”
The insurance contract involves –
a) The element of general contract,
b) The elements of special contract relating to insurance.
a) The element of general contract
i. Agreement (offer & acceptance):
ii. Legal consideration.
iii. Competent to make contract.
iv. Free consent.
v. Legal object.
b) The elements of special contract of insurance involves principles:
1) Insurable Interest.
2) Utmost Good Faith.
3) Indemnity.
4) Subrogation
5) Proximate Cause
6) Contribution
7) Warranties.
1. INSURABLE INTEREST: For an insurance contract to be valid, the insured
must posses an insurable interest in the subject matter of insurance. The insurable interest
is the pecuniary interest whereby the policy-holder is benefited by the existence of the
subject-matter and is prejudiced by the death or damage of the subject-matter.
The essential of a valid insurable interest are the following:

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  There must be a subject-matter to be insured.
 The policy-holder should have monetary relationship with the subject-matter.
 The relationship between the policy-holders and the subject-matter should be
recognized by law.
 The financial relationship between the policy-holders and subject-matter be
such that the policy0holder is economically benefited by the survival or existence of the
subject-matter and/or will suffer economic loss at the death or existence of the subject-
matter.
When a person fulfils the above criteria or when a person has such a relationship
with the subject-matter, it is said that he has insurable interest and it is only then that he
can insure.
WHEN INSURABLE INTEREST EXISTS
Insurable interest exists in the following cases:
I. Owners: Owners have got insurable interest to the extent of full value.
II. Part owners or joint owners: They have insurable interest to the extent of their
part or financial interest.
III. Mortgagor/Mortgagee: Mortgagor, being the owner of the property, has got
insurable interest. Mortgagee though not owner, has got insurable interest to the extent of
the money advanced, plus interest and an amount to cover up insurance premium.
IV. Ballees: They have got insurable interest because of a potential liability being
created if goods belonging to others get lost or damaged whilst in their custody.
V. Carries: Like bailees, carries have also got insurable interest in view of
potential liability that might devolve on them for any mishap to the goods belonging to
others, but whilst in their custody.
VI. Administrator, Executors & Trustee: They have insurable interest in view of
responsibility put on them by law.
VII. Life: A person has got insurable interest in his own life. A husband has also
got insurable interest in the life of his wife and vice-versa. No other relationship as such
merits existence of insurable interest. However, insurable interest has been created up to
$30 on the lives or parents, step-parents and grand-parents, under the Industrial
Assurance & Friendly Societies Act, 1984 & 1958 of U.K., for funeral expenses.

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 VIII. Debtors and Creditors: A debtor has insurable interest in his own life, but he
has no insurable interest in the life of his Creditor. A creditor on the other hand has
insurable interest in his own life and he has also insurable interest in the life of his debtor
to the extent of the loan, interest and something to cover up premium. This is because of
the financial interest being created by advancing money.
IX. Insurers: They have got insurable interest because of a potential liability
undertaken from the insured under a policy, and this justifies taking out a reinsurance
policy.
X. Liability: The creation of a potential liability justifies existence of insurable
interest. The best examples are third party motor insurance, public liability insurance etc.
It should be remembered that a person in the lawful possession of goods of another has
got insurable interest so long responsible for goods. More possession without
responsibility does not carry any insurable interest. Similarly a person having illegal
possession of goods has got no insurable interest, e.g., thieve. One important point with
regard to insurable interest is that it must be capable of being valued in terms of money.
Sentimental value is co criteria.
WHEN INSURABLE INTERST MUST EXIST
When insurable interest must exist varies depending on the type of insurance. The
position is as follows:
Marine: Insurable interest must exist at the time of claim although. It need not
exist at the time of effecting the policy.
Fire: Insurable interest must exist both at the time of affecting the policy and at
the time of claim.
Life: Insurable interest must exist at the time of affecting the policy and it may not
exist at the time of claim.
Accident: Like fire, insurable interest must exist both at the time of affecting the
policy and the time of claim.
2. UTMOST GOOD FAITH: The doctrine of disclosing all material facts in
embodied in the important principle ‘utmost good faith’ which applies to all forms of
insurance. Both parties of the insurance contract must be of the same mind (ad item) at
the time of contract. There should not be any misrepresentation, non-disclosure or fraud

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concerning the material facts. An insurance contract is a contract of uberrimae fidei, i.e.,
of absolute good faith where both parties of the contract must disclose all the material
facts truly and fully.
Material Facts A material fact is one which affects the judgment or decision of
both parties in entering to the contract. Facts which count materially are those which
knowledge influences a party in deciding whether or not to offer or to accept such risk
and if the risk is acceptable, on what terms and conditions the risk should be accepted. In
case of life insurance, the material facts or factors affecting the risk will be age,
residence, occupation, health, income etc, and in case of property insurance, it would be
use, design, owner and situation of the property.
Full and True Disclosure The utmost Good Faith says that all the material facts
should be disclosed in true and full form. It means that the facts should be disclosed in
that form in which they really exist. There should be no concealment, misrepresentation,
mistake or fraud about the material facts. There should be no false statement and no half
truth nor any silence on the material facts.
Duty of Both the Parties The duty to disclose the material facts lies on both the
parties, the insured as well as the insurer.
FACTS WHICH ARE REQUIRED TO BE DISCLOSED
The following facts are required to be disclosed:
(a) Facts which would render a risk greater than normal. In the absence of this
information the insuree would consider the risk as normal and deceived.
(b) Facts which would suggest some special motive behind insurance, e.g.,
excessive over-insurance.
(c) Facts which suggest the abnormality of the proposer himself e.g., making
frequent claims.
(d) Facts explaining the exceptional nature of the risk.
FACTS NEED NOT BE DISCLOSED BY THE INSURED
The following facts, however, are not required to be disclosed by the insured:
I. Facts which tend to lessen the risk.
II. Facts of public knowledge.
III. Facts which could be inferred from the information disclosed.

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 IV. Facts waived by the insurer.
V. Facts government by the conditions of the policy.
3. PRINCIPLE OF INDEMNITY: Insurance is usually a contract of indemnity.
The insurer agrees to pay for actual loss suffered by the insured, and no more. The
purpose of the contact is to shift the burden of risk from the insured to the insurer. So,
according to this principle, the insurer undertakes to put the insured, in the event of loss,
in the same position that oct45grcupied immediately before the happening of the event
insured again.
USES: To avoid intentional loss: According to the principle of indemnity insurer
will pay the actual loss suffered by the insured. If there is any intentional loss created by
the insured the insurer’s is not bound to pay. The insurer’s will pay only the actual loss
and not the assured sum (higher is higher in over-insurance).
To avoid an Anti-social Act: If the assured is allowed to gain more than the actual
loss, which us against the principle of indemnity, he will be tempted to gain by
destruction of his own property after it insured against a risk. So, the principle of
indemnity has been applied where only the cash-value of his loss and nothing more than
this, through he might have insured for a greater amount, will be compensated.
To maintain the Premium at Low-level: If the principle of indemnity is not
applied, larger amount will be paid for a smaller loss and this will increase the cost of
insurance and the premium of insurance will have to be raised.
If premium in raised two things may happen –
 First, persons may not be inclined to insure and
 Second, unscrupulous persons would get insurance to destroy he property to
gain from such act.
CONDITIONS OF INDEMNITY PRINCIPLE: The following conditions should
be fulfilled in full application of principle of indemnity.
 The insured has to prove that he will suffer loss on the insured matter at the
time of happening the event and the loss is actual monetary loss.
 The amount of compensation will be the amount of insurance. Indemnification
cannot be more than the amount insured.

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  If the insured gets more amount then the actual loss; the insurer has right to get
the extra amount back.
 If the insured gets more amount then from third party after being fully
indemnified by insurer, the insurer will have right to receive all the amount paid by the
third party.
 The principle of indemnity does not apply to personal insurance because the
amount of loss is not easily calculable there.
METHODS OF PROVIDING INDEMNITY: There are various ways through
which indemnity may be provided. These are:
Cash payment: This is the usual way of making payment of a claim. This method
is simpler, easier and less cumbersome.
Repair: This is also another way of providing compensation. Rather than making
cash payment, the insurers will get the loss repaired to pre-loss condition as practicable.
Replacement: Usually in case of total loss the insurers may replace the subject-
matter by another one of the same standard, age & quantity.
Reinstatement: The insurers may also reinstate the property by option. This is
usually considered with regard to buildings damaged or destroyed by fire.
4. DOCTRINE OF SUBROGATION: The principle of indemnity is also
implemented by the principles of subrogation. This principle gives the insurance
company whatever right against third parties the insured may have as a result of the loss
for which the insurer paid him. So, the doctrine of subrogation refers to the right of the
insurer to stand in the place of the insured, after settlement of a claim, in so far as the
insured’s right of recovery from an alternative source is involved.
ESSENTIALS OF DOCTRINE OF SUBROGATION
Corollary to the Principle of Indemnity: If the damaged property has any value
left, or any right against a third party the insurer can subrogate the left property or right of
the property because it the insured is allowed to retain, he shall have realized more than
the actual loss, which is contrary to principle of indemnity.
Subrogation is the Substitution The insurer, according to this principle, becomes
entitled to all the rights of insured subject-matter after payment because he has paid the

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actual loss of the property. He is substituted in place of other persons who act on the right
and claim of the property insured.
Subrogation only up to the amount of payment The insurer is subrogated all the
rights, claim, remedies and securities of the damaged insured property after
indemnification, but he is entitled to get these benefits only to the extent of his payment.
The Subrogation may be applied before payment If the assured got certain
compensation from third party before being fully indemnified by the insurer can pay only
the balance of the loss.
Personal Insurance The doctrine of subrogation does not apply to personal
insurance because the doctrine of indemnity is not applicable to such insurance. The
insurer has no right of action against the third party in respect of the damages.
HOW THIS RIGHT OF SUBROGATION ARISES As already indicated, right of
subrogation arises in the following ways:
Under tort This is a wrongdoing to another. A person cannot be wrong to another
thereby causing damage to another’s property of inflicting injury to the person of that
another. If it is so done then a right of action accrues in favor of the wronged and to the
determent of the wrong-doer.
Under contract A contract may put some obligation on the person making breach
of the contract to compensate the person who has been aggrieved as a result of the breach.
As for example, obligation under contract of afferightment and contract of bailment etc.
Under statute Statutes may also create liability, for making compensation, arising
out of a breach thereof. Examples are, Factories Act, Occupies Liability Act, The Riot
Act, and Carriage of Goods by Sea Act etc.
5. PROXIMATE CAUSE The rule is than immediate and not the remote cause in
to be regarded. The maxim is sed causa proxima non-remote spectature i.e., see the
proximate cause and not the distant cause. The real cause must be seen while payments of
the loss. If the real cause of loss is insured, the insurer is liable to compensate the loss;
otherwise the insurer may not be responsible for loss. So, Proximate cause means the
active efficient cause that acts in motion a rain of events which brings about result,
without intervention of any force started and working activity from a new and
independent source.

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 DETERMINATION OF PROXIMATE CAUSE
The determination of real cause depends upon the working and practice of
insurance & circumstances to loss. Also-
1. If there is a single cause of the loss, the cause will be the proximate cause and
further if the peril (cause of loss) was insured insurer will have to indemnify the loss.
2. If there are concurrent causes, the insured perils and excepted perils have to be
segregated. The concurrent causes may be first, separable and second, inseparable.
Separable causes as those which can be separated from each other. The loss occurred due
to a particular cause may be distinguishing known. If the circumstances are such that the
perils are inseparable, then the insurers are not liable at all when there exists any excepted
peril
3. If the causes occurred in form of chain, they have to be observed seriously--
a) If there is unbroken chain the excepted and insured perils have to be separated.
If an excepted peril precedes the operation of the insured peril so that the loss cause by
the latter is the direct and natural consequences of the excepted peril, there is no liability.
b) If there is a broken chain of events with no excepted peril involved, it is
possible to separate the losses. The insurer is liable only for that loss which caused by an
insured peril; where there is an excepted peril, the subsequent loss caused by an insured
peril will be a new and indirect cause because of the interruption in the chain of events.
6. PRINCIPLE OF CONTRIBUTION: Contribution is a right that an insurer has,
who has paid under a policy, of calling other interested insurers in the loss to pay or
contribute ratably to the payment. This means that if at the time of loss it is found that
there is more than one policy covering the same loss then all policies should pay the loss
proportionately to the extent of their respective liabilities so that the insured does not get
more than one whole loss from all these sources. If a particular insurer pays the full loss
than that insurers shall have the right to call all the interested insurers to pay him back to
the extent of their individual liabilities, whether equally or otherwise.
CONDITIONS/WHEN CONTRIBUTION OPERATES Before contribution can
operate the following conditions must be fulfilled: There must be more then one policy
involved and all policies covering the loss must be in force.

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 II. All the policies must cover the same subject-matter. If all the policies cover the
same insured but different subject-matters altogether then the question of contribution
would not arise.
III. All the policies must cover the same peril causing the loss. If the policies
cover different perils, some common and some uncommon, and if the loss is not caused
by a common peril, the question of contribution would not arise.
IV. All the policies must cover the same interest of the same insured. It should be
remembered that if any of the above four factors is not fulfilled, contribution will not
apply.
7. WARRANTIES: There are certain conditions and promises in the insurance
contract which are called warranties. A warranty is that by which the assured undertakes
that some particulars thing shall or shall not be done, or that some conditions shall be
fulfilled, or whereby he affirms or negatives the existence of a particular state of facts.
Warranties which are mentioned in the policy are called express warranties. There are
certain warranties which are not mentioned in the policy. These warranties are called
express warranties.

TYPES OF INSURANCE
Any risk that can be quantified probably has a type of insurance to protect it.
Among the different types of insurance are:
1. Life Insurance: This is a contract by which the insurer in consideration at
a certain premium either in a gross sum or periodical payments undertakes to pay the
person for whose benefit the insurance is made, stipulated sum, of annuity equivalent,
upon the death of the person whose life is insured. Life insurance provides a cash benefit
to a decedent's family or other designated beneficiary, and may specifically provide for
burial and other final expenses.
2. General Insurance: With the awareness in the general insurance, the
insurance business has developed by leaps and bounds after independence. The growth
of a general insurance is also directly proportional to the economic growth of the country.
As a result, after independence, a number of companies have come into the business of
general insurance with an objective to earn profits.

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 3. Fire insurance: The fire insurance contracts are the contracts covering the
risk of the fire. They insure that risk of laws caused either by fire or incidental to fire.
Thus fire insurance policies cover the insurance business in which the risk to the asset is
from fire or incidental to fire.
4. Marine Insurance: The law of marine insurance was enacted in the year
1963, in India. The Act is based on the English Marine Insurance Act. The Marine
Insurance law developed in its full form from that date and removed some of the
difficulties faced by the courts, while defining insurable interest, over good faith and
other important concepts of the insurance business. It is an agreement whereby the insurer
undertakes to indemnify the assured, in the manner and to the extent thereby agreed,
against marine losses, that is to say, the losses incidental to marine adventure section (3).
It also includes liability to a third party included by the owner of the ship or other person
interested in the property assured on happening of the maritime event. These maritime
peril or event of risk is consequent on or incidental to, the navigation of the sea, that is to
say perils of the seas, fire, war perils, pirates, and rovers thieves, capturers, seizures,
restraints, and detainments of princes and peoples, jettison, barratry, and any other perils
which are either of the like kind or may be designed.
Other types are as follows:
1. Automobile insurance: This is also known as auto insurance, car insurance
and in the UK as motor insurance, is probably the most common form of insurance
and may cover both legal liability claims against the driver and loss of or damage to
the vehicle itself. Over most of the United States purchasing an auto insurance policy
is required to legally operate a motor vehicle on public roads. Recommendations for
which policy limits should be used are specified in a number of books. In some
jurisdictions, bodily injury compensation for automobile accident victims has been
changed to No Fault systems, which reduce or eliminate the ability to sue for
compensation but provide automatic eligibility for benefits.
2. Boiler insurance (also known as Boiler and Machinery insurance or
Equipment Breakdown Insurance) Casualty insurance insures against accidents, not
necessarily tied to any specific property.

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 3. Credit insurance pays some or all of a loan back when certain things happen
to the borrower such as unemployment, disability, or death. Financial loss insurance
protects individuals and companies against various financial risks. For example, a
business might purchase cover to protect it from loss of sales if a fire in a factory
prevented it from carrying out its business for a time. Insurance might also cover
failure of a creditor to pay money it owes to the insured. Fidelity bonds and surety
bonds are included in this category.
4. Health insurance covers medical bills incurred because of sickness or
accidents.
5. Liability insurance covers legal claims against the insured. For example, a
homeowner's insurance policy provides the insured with protection in the event of a
claim brought by someone who slips and falls on the property, and brings a lawsuit
for her injuries. Similarly, a doctor may purchase liability insurance to cover any legal
claims against him if his negligence (carelessness) in treating a patient caused the
patient injury and/or monetary harm. The protection offered by a liability insurance
policy is two-fold: a legal defense in the event of a lawsuit commenced against the
policyholder, plus indemnification (payment on behalf of the insured) with respect to
a settlement or court verdict.
6. Annuities provide a stream of payments and are generally classified as
insurance because they are issued by insurance companies and regulated as insurance.
Annuities and pensions that pay a benefit for life are sometimes regarded as insurance
against the possibility that a retiree will outlive his or her financial resources. In that
sense, they are the complement of life insurance.
7. Total permanent disability insurance provides benefits when a person is
permanently disabled and can no longer work in their profession, often taken as an
adjunct to life insurance.
8. Locked Funds Insurance is a little known hybrid insurance policy jointly
issued by governments and banks. It is used to protect public funds from tamper by
unauthorised parties. In special cases, a government may authorize its use in
protecting semi-private funds which are liable to tamper. Terms of this type of

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insurance are usually very strict. As such it is only used in extreme cases where
maximum security of funds is required.
9. Nuclear incident insurance - damages resulting from an incident involving
radioactive materials is generally arranged at the national level. (For the United
States, see Price-Anderson Nuclear Industries Indemnity Act.).
10. Political risk insurance can be taken out by businesses with operations in
countries in which there is a risk that revolution or other political conditions will
result in a loss.
11. Professional Indemnity Insurance is normally a mandatory requirement for
professional practitioners such as Architects, Lawyers, Doctors and Accountants to
provide insurance cover against potential negligence claims. Non licensed
professionals may also purchase malpractice insurance, it is commonly called Errors
and Omissions Insurance and covers a service provider for claims made against them
that arise out of the performance of specified professional services. For instance, a
web site designer can obtain E&O insurance to cover them for certain claims made by
third parties that arise out of negligent performance of web site development services.
12. Property insurance provides protection against risks to property, such as fire, theft
or weather damage. This includes specialized forms of insurance such as fire
insurance, flood insurance, earthquake insurance, home insurance, inland marine
insurance or boiler insurance.
13. Terrorism insurance: Title insurance provides a guarantee that title to real
property is vested in the purchaser and/or mortgagee, free and clear of liens or
encumbrances. It is usually issued in conjunction with a search of the public records
done at the time of a real estate transaction.
14. Travel insurance is an insurance cover taken by those who travel abroad,
which covers certain losses such as medical expenses, lost of personal belongings,
travel delay, personal liabilities, etc.
15. Workers' compensation insurance replaces all or part of a worker's wages
lost and accompanying medical expense incurred due to a job-related injury.

KINDS OF INSURANCE.

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 Permanent life insurance: Permanent life insurance is a form of life
insurance such as whole life or endowment, where the policy is for the life of the
insured, the payout is assured at the end of the policy (assuming the policy is kept
current) and the policy accrues cash value. This is compared with Term life
insurance where insurance is purchased for a specified period (typically a year, or
for level periods such as 5, 10, 15, 20 even 25 and 30 years) where a death benefit is
only paid to the beneficiary if the insured dies during the specified period.
Permanent life insurance originally was offered as a fixed premium fixed return
product known as whole life insurance also known as cash surrender life insurance.
This offered consumers guaranteed cash value accumulation and a consistent
premium. Consumers later wanted more flexibility which was offered in the form of
universal life insurance. Universal life insurance allows consumers flexibility in
when premiums are to be paid and the amount that they would be. Universal life
policies also allowed consumers to permanently withdraw cash from the policy
without the interest associated with the loan provisions in whole life policies.
Universal life policies retained the fixed investment performance of whole life
policies. Variable life insurance follows the mold of whole or universal life, but it
shifts the investment risk to the consumer along with the potential for greater
returns. Variable universal life insurance combines this with the flexibility in
premium structure of universal life to create the most free form option for
consumers to manage their own money (at their own risk). Variable universal life
insurance policies are considered more favorable to other permanent life insurance
alternatives due to the favorable tax treatment of all permanent life insurance
policies and their potential for greater returns than other permanent life insurance
products.
Whole life insurance/ Ordinary life insurance) Whole Life Insurance, or
Whole of Life Assurance (in the Commonwealth), is a life insurance policy that
remains in force for the insured's whole life and requires (in most cases) premiums
to be paid every year into the policy.
Health insurance :The term health insurance is generally used to describe a
form of insurance that pays for medical expenses. It is sometimes used more broadly

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to include insurance covering disability or long-term nursing or custodial care
needs. It may be provided through a government-sponsored social insurance
program, or from private insurance companies. It may be purchased on a group
basis (e.g., by a firm to cover its employees) or purchased by individual consumers.
In each case, the covered groups or individuals pay premiums or taxes to help
protect themselves from high or unexpected healthcare expenses. Similar benefits
paying for medical expenses may also be provided through social welfare programs
funded by the government. By estimating the overall risk of healthcare expenses, a
routine finance structure (such as a monthly premium or annual tax) can be
developed, ensuring that money is available to pay for the healthcare benefits
specified in the insurance agreement. The benefit is administered by a central
organization, most often either a government agency or a private or not-for-profit
entity operating a health plan.
Group insurance: Group insurance is an insurance that covers a group of
people, usually who are the members of societies, employees of a common employer,
or professionals in a common group. Group insurance may or may not be converted
to individual coverage. As group insurance gets big business for an insurance
company with minimum operational expenses (under one master policy issued to an
employer, union or any recognised group), it is usually less expensive than individual
policies. Group coverage can help reduce the problem of adverse selection by
creating a pool of people eligible to purchase insurance who belong to the group for
reasons other than for the purposes of obtaining insurance. In other words, people
belong to the group not because they possess some high-risk factor which makes
them more apt to purchase insurance (thus increasing adverse selection); instead
they are in the group for reasons unrelated to insurance, such as all working for a
particular employer.
Accidental death and dismemberment insurance: Accidental death and
dismemberment insurance (also known as AD&D) is a form of insurance covering
death or specific types of injury as a result of an accident. In the event of accidental
death, this insurance will pay benefits in addition to any life insurance held. Death
by illness, suicide, or natural causes is generally not covered by AD&D. Additionally,

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AD&D generally pays benefits for the loss of limbs, fingers, sight and permanent
paralysis. The types of injuries covered and the amount paid vary by insurer and
package, and are explicitly enumerated in the insurance policy.
Dental insurance: Dental Insurance in the United States is insurance
designed to pay the costs associated with dental care. Dental insurance pays a
portion of the bills from dentists, and other providers of dental services. By doing so,
dental insurance protects people from financial hardship caused by unexpected
dental expenses. Not all dentists are pleased about participating in any type of dental
plan. It means more work for them (and especially more paperwork), and less pay.
It is also important to have adequate coverage for your situation, so you can access
the features you need and are not paying for something you will not use. Most group
dental insurance plans do not have restrictions, such as pre-existing conditions but
do have annual maximum payments.
Pet insurance: Pet Insurance pays the veterinary costs if one's pet becomes ill
or is injured in an accident. Some policies will also pay out when the pet dies, or if
it's lost or stolen. The purpose of pet insurance is to mitigate the risk of incurring
significant expense to treat ill or injured pets. As veterinary medicine is increasingly
employing expensive medical techniques and drugs, and owners have higher
expectations for their pets' health care and standard of living than previously, the
market for pet insurance has increased.
Terrorism insurance Terrorism insurance is insurance purchased by property
owners to cover their potential losses and liabilities that might occur due to terrorist
activities. It is considered to be a difficult product for insurance companies, as the
odds of terrorist attacks are very difficult to predict and the potential liability
enormous. For example the September 11, 2001 attacks resulted in an estimated
$31.7 billion loss. This combination of uncertainty and potentially huge losses makes
the setting of premiums a difficult matter. Most insurance companies therefore
exclude terrorism from coverage in Casualty and Property insurance, or else require
endorsements to provide coverage.
Crop insurance: Crop insurance is purchased by agricultural producers,
including farmers, ranchers, and others to protect themselves against either the loss

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of their crops due to natural disasters, such as hail, drought, and floods, or the loss
of revenue due to declines in the prices of agricultural commodities. The two general
categories of crop insurance are called crop-yield insurance and crop-revenue
insurance.
Home insurance: Home insurance, also commonly called hazard insurance
or homeowners insurance (often abbreviated in the real estate industry as HOI), is
the type of property insurance that covers private homes. It is an insurance policy
that combines various personal insurance protections, which can include losses
occurring to one's home, its contents, loss of its use (additional living expenses), or
loss of other personal possessions of the homeowner, as well as liability insurance for
accidents that may happen at the home. It requires that at least one of the named
insured occupies the home. The dwelling policy (DP) is similar, but used for
residences which don't qualify for various reasons, such as non-occupancy or age. It
is a multiple line insurance, meaning that it includes both property and casualty
coverage, with an indivisible premium, meaning that a single premium is paid for all
risks. Standard forms divide coverage into several categories, and the coverage
provided is typically a percentage of Coverage A, which is coverage for the main
dwelling.
Property insurance: Property insurance provides protection against most
risks to property, such as fire, theft and some weather damage. This includes
specialized forms of insurance such as fire insurance, flood insurance, earthquake
insurance, home insurance or boiler insurance. Property is insured in two main
ways - open perils and named perils. Open perils cover all the causes of loss not
specifically excluded in the policy. Common exclusions on open peril policies include
damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism and
war. Named perils require the actual cause of loss to be listed in the policy for
insurance to be provided. The more common named perils include such damage-
causing events as fire, lightning, explosion and theft.
Vehicle insurance: Vehicle insurance (also known as auto insurance, car
insurance, or motor insurance) is insurance purchased for cars, trucks, and other

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vehicles. Its primary use is to provide protection against losses incurred as a result of
traffic accidents and against liability that could be incurred in an accident.
Wage insurance: Wage insurance is a form of proposed insurance that would
provide workers with compensation if they are forced to move to a job with a lower
salary. The idea is usually proposed as a response to outsourcing and the effects of
globalization, although it could equally be proposed as a response to job
displacement due to increasingly productive technology (e.g. factories, or
computers). Economic consensus generally holds that in both cases -- the integration
of the global economy through free trade, on one hand, and greater technological
efficiencies, on the other -- the changes will have a net benefit across the world.
However, economic theory also indicates that, while people over the aggregate will
be better off, many individuals will not be able to keep their current job at their
current wages. Those individuals may be able to retrain and move to more highly
paid wages, and the reduced cost of goods (which is likely to result from either case
under consideration) may offset at least some of the wage loss. These compensating
effects are likely to take several years to come about, however, and some people
might never be fully compensated by normal market mechanisms. Wage insurance
would offer compensation in these situations.
Mortgage insurance: It's more expensive than it's worth. Besides, you could
do better with another policy -- one that you might already have. These policies are
designed to make your mortgage payments if you die or become disabled. If you're
worried about burdening your heirs with mortgage payments, you'd be better off
buying straight life insurance. Adding on to your existing life insurance policy is less
expensive than mortgage life.

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