Explain four categories of insurance covers
Categories of insurance covers
Life assurance
This is a contract whereby the insurer, in consideration of periodical payment of premium undertakes to pay to the person for whose benefit the insurance is made a certain sum of money or annuity or death of the person whose life is insured.
Fire insurance
This is a contract by which the insurer or underwriter undertakes to indemnify the other against any loss or damage caused to the property insured in the event of fire.
Marine insurance
This is a contract whereby the insurer undertakes to indemnify the insured against loss arising from certain perils and sea-risks.
Burglary insurance
Burglary insurance is a contract to indemnify the insured against loss arising from burglary. Such a policy would be voidable at the option of the insurer if the property insured is deliberately overvalued.
Accident insurance
An accident insurance contract is a contract by which the insurer agrees to pay specified sum of money upon the happening of certain events, usually death of the insured in an accident.
Motor vehicle insurance
Its one effected pursuant to the motor vehicle insurance(motor vehicle 3rd party risk) Act to cover any liability which a motorist may incur as a result of causing death/injury to third party.
