INTRODUCTION
According to the Black Law’s dictionary, Insurance is defined as ‘A contract by which one party (the insurer) undertakes to indemnify another party (the insured) against risk of loss, damage, or liability arising from the occurrence of some specified contingency, and usually to defend the insured or to pay for a defense regardless of whether the insured is ultimately found liable. An insured party usually pays a premium to the insurer in exchange for the insurer's assumption of the insured's risk.’[1]There are many types of Insurance contract and differ in many aspects in within them and the following are the differences in the types of Insurance contract.
MAIN BODY
Subject Matter: It is clear in this point of view that, the main difference in Insurance is the subject matter whereby there are people having insured their property and other have insured their life, the subject matter is the property and life, two things which are quite different to each other.
Classification at risk: The classification at risk is generally simpler in life insurance than in other types of Insurance contract. In life contract it would be standard, sub-standard, and uninsurable but in other insurance it may be several.
Protection and investment: The insurable contract provides protection against loss ,early death and investment to meet the old age requirement; other forms of insurance do not provide investment because the premium paid is not returnable if the contingencies (Hazard) do not occur within the period. Other forms of insurance provide only protection against loss on damage of property against the insured perils.
Occurrence of event: The event, the death, in life insurance is certain but the only uncertainty is the time when death will occur but, in indemnity insurance (such as in fire and marine insurance) the event may not take place at all or may take place in part.
Variance of premium: In life insurance premium is not much variable whereas in other insurance premium is variable in numerous forms.
CONCLUSION
In a nutshell, there are a multitude of different types of insurance policies available, and virtually any individual or business can find an insurance company willing to insure them.
