Benefit of Insurance

Insurance exists long time ago where it was first to serve as a protection to the global trader’s goods against loss due to pirate attacks in the sea. The insurance company during that period of time will bear all the losses of the unfortunate traders using the money it has gathered from other participating traders in order to help the unfortunate traders.
The purpose of insurance in a general term is mainly to help the unfortunate one by using some portion of the collected/pooled money to compensate whatever amount of loss to the victim. With this method, many of the unfortunate victims can carry on with their daily lives immediately without having to worry about other financial obligations.
There are many classes of insurance available through out the world. Each country has its own meaning and definition of each insurance class. However, I am not going to elaborate on the different meaning by each country. What I am about to discuss here mainly on the general factors and the benefit it could bring to each individual life in this world.
Property Insurance / Fire Insurance
Fire Insurance is an insurance which protects the Insured’s (person who buys the insurance policy) property from any disaster or unfortunate event due to or caused by basic fire & lightning or other perils such as Aircraft Damage, Earthquake and Volcanic Eruption, Storm, Tempest, Flood, Explosion, Impact Damage, Bursting or Overflowing of Water Tanks Apparatus or Pipes, Electrical Installations, Bush Fire, Subsidence and Landslip/Landslide, Spontaneous Combustion, Riot Strike and Malicious Damage, Damage By Falling Trees or Branches and Objects Therefrom, and/or even a Cold Storage.
If any of these perils has caused the fire on each property building, the Insured therefore has the right to make a claim against the Insurance Company where the policy is written.
Why it is so important for you to take up Fire Insurance for your property/properties? It is because the benefit it offers is huge. As you can see above, the Fire Insurance policy not only covers fire but also other perils such as Damage by Falling Trees!
So learn the benefits this Fire Insurance can offer to you and start insuring your property immediately. Remember, prevention is better than cure.
Houseowner/Householder Insurance
Similar with Fire Insurance policy, the Houseowner/Householder Insurance mainly covers the property you have against theft, fire, and also flood (depends on the extended perils you may add). Instead protecting the building, Householder Insurance covers all the belongings inside your property such as your HiFi, Plasma TV, Sofas, Kitchen Cabinet, Expensive Vases, Expensive Sculpture, and many more.
Some people only take up Fire Insurance but forgetting about the household items which could be higher than the property itself.
So my suggestion is, whenever you buy Fire Insurance policy from your insurance provider, try asking about the Householder/Houseowner Insurance as well. Make it as add on item in your Fire Insurance policy.
Motor Insurance
Motor Insurance policy or some states called it as Vehicle Insurance policy is vital and a must have policy for car/vehicle owner to own.
Motor Insurance covers any mobile items ranging from its cubic capacity, model, type, and usage of each vehicle. Normally, a lower cubic capacity engine vehicle will bear a lower premium amount if to compare with a higher cubic capacity engine.
As for motor sport vehicle or high performance race car, other types of Motor Insurance will apply and normally the premium rate is much higher than other normal vehicle.
In general, Motor Insurance policy covers the insured against loss or damage to his/her own vehicle and the third party vehicle.
In addition, some insurance providers do add PA (Personal Accident) Insurance policy in the Motor Insurance policy to add value as well as to satisfy their customers’ needs.
Travel Insurance / Travel PA
It’s a must have insurance policy especially for travelers. The policy coverage can be for one day trip or to a month trip depending on the purpose of the Insured.
Why a travel insurance?
Travel insurance can protect the insured from loss due to flight delay, where some insurance providers will compensate the Insured with the unavoidable factors like this. Some Travel Insurance also covers the insured against loss of baggage, hospitalization, accident, or other misfortune depending on each insurance provider.
Summary
I urge every one of you to have awareness on the benefit of insurance and get use to it by buying at least one insurance product for your household. To recap, there are four (4) type of insurance in this part I article which are; Fire Insurance, Householder Insurance, Motor Insurance, and Travel Insurance.
In my next article on “The Benefit of Insurance (Part II)”, I will elaborate on the Electronic Equipment Insurance, Machinery Insurance, Burglary Insurance, and Marine Insurance.
Till then, enjoy reading and wait for my other upcoming articles.