How many types of insurance companies are there?
Insurance companies – Primarily, insurance companies are divided into two, namely, life insurance and non-life insurance companies.
The former type transacts only in the space of insurance coverage of human life. If you put it in perspective, by life insurance what we mean is “DEATH INSURNACE”. That is, life insurance comes of use ONLY when the insured life is lost and sustenance of the family or surviving members becomes a questions mark.
The basic component of life insurance is the human life value one can attribute to one’s life depending on what the family expects from the sustained life of a person up to a typical productive age. The savings element, maturity value are all subsequent additions to the concept of life insurance, and are extensions to the core concept of life insurance.
Though non-life means other than life, it still touches human life including accident and health of human beings. Non-life (or General) insurance is insurance that deals with all other types of losses and contingencies, including accidents and diseases to human beings. Mainly non-life insurance deals with mishaps and unfortunate incidents connected with human activities like trade, commerce and related events and happenings.
It includes property, casualty, liability, trade risks, credit, agriculture, transit, motor vehicles, and so on and on.
The traditional account is that, Non-life insurance covers everything under the sun, except life!!!..
