Types of insurance are directions in which insurance companies operate in the insurance market.
All types of insurance are divided by insurance objects.
In accordance with the law of the Russian Federation “On the organization of insurance business in the Russian Federation” , the main types of insurance are distinguished :
business risk insurance
This is the official division of the insurance market used in Russia by statistical bodies in the preparation of reports.
Due to the fact that insurance relationships do not stand still and are constantly evolving? There are new types of insurance. We will look at them below.
In personal insurance, the object of insurance is the life, health, working ability and pension coverage of the policyholder or the insured person.
In accordance with the Terms of Licensing of Insurance Activities in the Russian Federation, personal insurance includes:
Is life insurance a guarantee of payment to the insured person? upon the occurrence of an insured event or when a certain age is reached, as determined by the sum insured insurance contract.
In addition, a life insurance policy is a good investment tool that allows you to increase your savings.
Accumulative life insurance got its name because by the time the program ends you will have accumulated a substantial amount, moreover it is a tool for investing money.
In other words, the insurer invests your money in the stock market and transfers a certain percentage of the profit to your account.
Insurance against accidents – the object of insurance is the interests of the insured person in the event of loss of health or death as a result of an accident.
In this type of insurance, insurance events are:
injuries and other injuries;
burns, poisoning, hypothermia and frostbite;
disability and death of the insured.
Medical insurance guarantees the receipt of medical care both at the expense of voluntary accumulation of voluntary medical insurance and at the expense of the state – MHI
Medical insurance in the Russian Federation is represented by two types:
Compulsory medical insurance;
Voluntary medical insurance.
Compulsory medical insurance (MHI) is a kind of compulsory social insurance designed to provide citizens with the onset of an insured event with a minimum of free medical care provided at the expense of budget funds and extrabudgetary funds, in accordance with the approved compulsory health insurance program and within the limits established by federal law .
The purpose of voluntary medical insurance (VHI) is to provide citizens with additional medical services that are not included in the list of mandatory medical services guaranteed by the state under the policy of mandatory medical insurance.
Child insurance . Its essence is to compensate for the costs of restoring a child’s health after an illness, accident or disability.
Insurers can be parents, close relatives, guardians or caregivers . There are no strict limitations on the term of insurance and the age of the insured.
Pension insurance – for this type of payment is made only when you reach the retirement age.
Pension insurance is divided into compulsory and voluntary.
Compulsory pension insurance is provided by the state, payments are made at the expense of the federal budget.
Mandatory pension insurance of citizens is carried out in cases of retirement:
in the development of seniority;
Voluntary pension insurance is provided by non-state pension funds (NPF) or insurance companies.
Insurance is made at the expense of citizens or deductions from wages (6%), which are produced by the employer. It usually comes as a supplement to compulsory pension insurance.
Passenger insurance is mandatory and is carried out by road, air and water transport. His goal is to cover the cost of treatment or cash payment in case of loss of efficiency or death of the insured.
The amount of insurance payment varies depending on the type of transport. The insurance fee is already included in the ticket price. For example, insurance of passengers of the subway, trains, with the implementation of the flight on airplanes, etc.
Employee insurance is made by the employer and is intended to insure the life and / or health of the employee. Basically, it is mandatory (insurance for employees of the Ministry of Internal Affairs, Ministry of Emergency Situations, Medical institutions).
In property insurance, the object of insurance is property that we own, use and dispose of. Movable and immovable property, personal belongings.
The insurance market in this segment develops in two directions: insurance of property of citizens and insurance of property of legal entities.
Property insurance includes:
Real estate insurance allows you to insure buildings, structures, premises, including houses and apartments and all engineering equipment inside the facility (heating, plumbing, sewage, etc.).
The insurance contract can be entered into without moving the agent to the object, in this case the cost of the policy will be lower, but the amount of the insurance payment will also be limited.
When the agent leaves the facility, a more detailed examination of the facility is carried out. In this case, there are practically no restrictions on the terms and amount of the insurance contract.
Insurance of vehicles (land, air, water) is carried out in case of complete destruction of the insured object (both actual and constructive – when the cost of repair exceeds the cost of the object itself) or damage to the hull, machinery, equipment that occurred during the operation and storage of the vehicle in the result:
natural disasters, explosion, fire, overturning, grounding, collisions with other ships and objects;
breakdowns of machinery and equipment;
hijacking or theft of its parts.
Cargo insurance – risks of damage or loss of cargo during transportation, loading / unloading, storage are insured.
It is possible to insure both the entire shipment as a whole and its part. Accordingly, the insurance payment will be made either in full for the cargo or in part of the lost cargo.
In liability insurance, the object of insurance is the property interests associated with the reimbursement by the insured of the harm caused to them to a person or the property of a natural person, as well as harm caused to a legal entity.
Liability insurance includes:
Insurance of civil liability of vehicle owners (CTP) is a tool that guarantees the insurance payment to participants in a traffic accident. In this type of insurance, the state sets tariffs and insurance rules.
Liability insurance carrier – all organizations (regardless of ownership) and individual entrepreneurs are required to insure their liability to passengers.
The policy of compulsory insurance guarantees passengers compensation for damage to their life, health or property during transportation on the following types of transport:
rail transport (commuter, long distance, international transport);
air transport (domestic and international aircraft and helicopters);
inland waterway transport;
bus transportation (intercity, suburban, long-distance and international transport);
urban electric transport (trolley buses and trams);
easy metro and monorail transport.
Insurance of civil liability of enterprises – sources of increased danger – protection of property interests of organizations operating hazardous production facilities, associated with the risk that these organizations cause harm to the life, health or property of third parties and the natural environment as a result of an accident during the operation of a hazardous production facility
Professional liability insurance allows you to protect your property interests related to the performance of professional duties and means that the insurance company indemnifies for damages that are unintentionally caused by employees of the insured to third parties.
In case of professional liability insurance, the insurance company not only compensates for the damage caused, compensates court costs and other claims settlement costs, but also, in cases provided for by the insurance contract, settles claims of third parties.
Liability insurance for non-fulfillment of obligations is the obligation of the insurance company to pay damages in accordance with the procedure established by civil legislation, to pay a penalty to the lender due to non-fulfillment (improper performance) of the obligations of the insured person.
Insurance of liability for the quality of products allows manufacturers to protect themselves from an unplanned outflow of monetary resources in the event that they are sued for inadequate product quality.
General third party liability insurance for injury . The object of insurance is the possible expenses of the Insured (Insured person) arising from his obligation to compensate for the harm caused to the life, health or property of Third Parties.
Business risks insurance (business)
When insuring entrepreneurial risks, the insurance object is the property interests related to compensation for losses to the entrepreneur, as well as not received income from doing business, provided that its counterparties violate their obligations or other changes in the conditions of activity due to circumstances beyond the control of the entrepreneur.
Types of business risk insurance are:
insurance against business interruption in connection with the loss or damage to property as a result of fires, explosions, accidents and other events;
investment insurance against political and commercial risks;
financial guarantee insurance;
non-payment risk insurance;
export credit insurance.
Specific risk insurance
Agricultural insurance includes insurance:
constructions, machines, inventory and equipment of agricultural enterprises and farms;
From the effects of elements and natural factors, such as floods, fire, locust invasion and so on.
International insurance is provided in the following cases:
If you are seeking access to world-class medical services,
advanced medical technologies, methods of treatment, diagnosis and rehabilitation, as well as the services of highly qualified doctors around the world.
If you are a foreign citizen and work in Russia.
If you are often abroad.
Collective insurance, in simple terms, is insured by several persons as a whole. For example, a collective loan, i.e. several people act as borrowers for a loan and insure their life and health or buy insurance against losing their jobs.
Investment insurance allows you to invest money in the stock market without the risk of losing investments.
Allows you to save your capital with tax and legal privileges and get reliable protection in case of unforeseen circumstances related to life and health.
Marine insurance is intended to compensate for the damage caused to the ships of the sea and river fleet and (or) to the transported cargo.
Insurance liability developers – it is the responsibility of the developer to insure the risks of attracting citizens’ funds on the basis of equity in the event of improper performance of obligations to transfer residential premises under a contract of participation in shared construction
Title insurance provides insurance protection in case of loss of property rights or other property rights to real estate, if your transaction is declared illegal by the court because of events that you were not aware of at the time of the conclusion of the contract of sale.
The main difference of title insurance from other types is that it protects the owner from events that have already occurred, which were not known at the time of the conclusion of the real estate transaction.
Insurance of political risks – political risks include risks related to events of force majeure, independent of the will of the parties to the transaction, but causing property damage to the interests of one of them.
In a normal insurance contract, this list of risks refers to the so-called “force majeure clause”, which means that damage to the insurer’s property interests in the event of the listed force majeure events does not entail an insurer’s obligation to compensate for the damage caused.
Classification of types of insurance
Types of insurance are classified as compulsory and voluntary insurance.
Voluntary insurance is when the insurer voluntarily, for the protection of his property, life or health, as well as other interests, concludes an insurance contract.
Compulsory insurance is when the obligation to conclude an insurance contract arises by virtue of the law, and ignoring this obligation can lead to financial penalties. (CTP, OMS, travel insurance, passenger insurance).