Tuesday, September 8, 2009

Top Insurance Company

Insurance Company is a financial company or institution which does the work of selling insurance policies of all types in order to hedge the risk of contingent future losses or damages or hazards.

These possible risks are not certain to take place in the future because future is uncertain. But a person cannot take a wait-and-see approach because it would subject them to sheer risk. If the casualty or damage or loss do happen then the person without any insurance would not get any compensation from the insurance company.

If a person buys an insurance against any future risk then in case of actual causation the insurance company would compensate for the resulting financial loss.

Issuance of insurance by an insurance company is not a free affair. Rather the policy holder of insurance is needed to pay a regular payment amount to the insurance company till its maturity. This amount is either repaid in entirety or in part to the insurance holder in case of occurrence of the hazard or casualty or loss. But it has been observed that many insurances are not claimed due to non-occurrence of the risk and thus the premiums paid by the policy holders become the profit of the insurance company.

Insurance companies offer insurances on the following categories :-

  • Life Insurance
  • Medical Insurance
  • Non-life or General Insurance

Non life or general insurance issuing companies can again be classified under :-

  • Standard Insurance Company
    This type of insurance companies generally issue insurances against commercial and residential related risks, automobile related risks and the risks associated with businesses. These are mainly standardized policies with minimum scope of customization in accordance with personal needs of the customers. The characteristic features of this type of companies include lower rate of premium and direct sales to the customer approach.
  • Excess Insurance Company
    This type of insurance company is involved in insuring the risks which are out of the fold of the Standard Insurance companies. These insurances are given to those persons who are not licensed insurers of the concerned state.