Find What Value Do Insurance Policies Have In Our Lives?
To minimize risk factors or to provide better options against some catastrophic situation, role of insurance policies cannot be neglected. Insurance companies offer a variety of insurance policies which are very beneficial. Two important kinds of policies are National Insurance and business insurance.
With the modernization in all fields and technology, risk management
techniques have also grown up to the advanced level and the concept of
insurance has developed with greater expansion. Insurance in simple
words can be defined a form of risk management, which helps minimizing
the risk of uncertain loss or losses. Insurance has been a great
advantage as it can help in reducing the effects of some misfortune to
the normal life routine. But while taking any insurance policy, one must
go through the entire policy carefully as he or she may not understand
all the aspects of policy and may buy some unfavorable or irrelevant
policy. But still insurance policies have made the life much easier and
provide great benefits to policy holders. For example, if one is not a
policy holder and need to be hospitalized for some treatment, the one
will have to bear all the heavy expenses of treatment by oneself which
will result in extreme burden on the person or the family, especially
the person or family is not financially strong enough to face and manage
sudden troubles. Contrary to this situation, if policy holder faces
same situation, although in some cases he/she will have to bear expenses
by himself/herself, but his/her amount will be reimbursed later. This
is a small example why insurance policies have become popular. Due to
its ever growing value, a number of insurance companies have been
established that started offering many different kinds of insurance
policies. Two very well known and famous types of insurances policies
are National insurance and business insurance.
National insurance can be understood as a system of insurance for workers and employers. This type of insurance was introduced as a system for benefit of the employees when they fell sick or during their unemployment. Further improvements introduced other benefits of pension, children education, etc. The system involves payment of nominal fixed contribution by employees or employers from their income on monthly or weekly basis and sometimes annually in order to get medical and professional facilities of insurance. This type of insurance became so popular over the time that almost all the organizations provide this facility to their employees now; even the self-employed individuals also use this facility.
Another kind of very popular insurance policy is Business insurance. Different forms of this type of insurance have been offered by many Insurance companies
and involve various kinds of professional liability insurance. A
businessman may need different types of risk management measures to
secure his/her business. All these aspects of risk managements are
covered under this insurance. Out of many types of insurance policies, a
few important ones are described here for clear understanding. Trade
credit insurance covers the insurance of receivable accounts and in case
debtor defaults on payments, the company pays the receivables to the
policy holder, thus, securing him/her from any loss. Business
Interruption insurance gives an edge to the business man in case some
hazard interrupts his/her routine business operation and covers loss of
income. These kinds of policies are of great advantage, especially for
those who are new to business or small business owners as they feel a
sense of security while making investment.
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ABOUT THE AUTHOR
Andy Robert is a reputed insurance agent and has been working in the
Insurance industry for the last five years. He has worked as a
consultant with a number of reputed financial institutions and have
extensive experience in Business Insurance, Property Insurance & specially National Insurance offered by Insurance companies in UAE. He is currently residing in Abu Dhabi.