Types of insurance | Explaining each stage of insurance
Types of insurance
- Liability Insurance Third party general civil liability insurance, civil liability or comprehensive general liability insurance...
- Property insurance...
- Engineering insurance...
- Car insurance...
- Marine and aviation insurance...
- Insurance of oil and gas products...
- Insurance package...
- Terrorism/political violence
To protect your loved ones and provide financial security, life insurance is a crucial consideration. Life insurance offers peace of mind and ensures that your beneficiaries are taken care of in the event of your passing. There are various types of life insurance policies to suit different needs and budgets, including term life insurance and whole life insurance. By investing in life insurance, you can secure a stable future for your family.
In summary, there are different types of insurance available to protect individuals and their assets. Life insurance is a crucial form of coverage that provides financial support to loved ones in the event of an individual's passing. It can help cover funeral expenses, outstanding debts, and provide for the future financial security of dependents. To safeguard your loved ones and ensure their continued well-being, it is essential to consider obtaining life insurance.
In summary, understanding the different stages of insurance
is crucial for making informed decisions about coverage. Whether you are
considering life insurance, health insurance, or property insurance,
understanding the different types available can help you choose the right
coverage for your specific needs. From basic to comprehensive policies, the
various stages of insurance provide options for individuals and businesses
alike. Take the time to research and compare policies to ensure you have the
proper coverage to protect yourself and your assets.
In summary, understanding the different stages of insurance
is essential for making informed decisions about coverage. From the application
process to policy renewal, each stage plays a crucial role in protecting
individuals, businesses, and assets. It is important to consider the various
types of insurance available, such as life, health, auto, and property
insurance, to ensure comprehensive coverage for any potential risks. By
familiarizing oneself with the different insurance stages and exploring the various
types of insurance, individuals can make sound decisions to protect their
financial well-being.
Liability Insurance Third party general civil liability insurance, civil liability or comprehensive general liability insurance...
Liability towards third parties: This type of insurance is considered mandatory. Different types of cars are vulnerable to road accidents and therefore must be covered by a liability policy towards third parties, as indicated by Saudi law.
Risks covered by insurance
The third party liability insurance policy covers the insured’s liability against bodily injury and material damage resulting from:
Cars and their passengers (unless the person riding them is a relative of the believer)
pedestrians
Properties
Responsibility towards others:
Material damage as specified in the document and under the law
Physical harm as specified in the policy and under the law
Property insurance...
Property insurance is property insurance against risks, such as fire, theft, or against some damage caused by weather. Insurance for a specific property may be limited to fire insurance only, drowning (flood) insurance only, or earthquake insurance.
Home insurance usually does not include insurance against earthquakes, floods, or damage resulting from terrorism or war. Insurance against named perils, such as fire or theft, requires monitoring a list of lost items and the cause of the damage in order for the insurance company to pay compensation for the damage. Among the perils that are usually insured against are insurance against fire, lightning, explosion, and theft.
Insurance companies have a program called All Risks Insurance that includes all types of risks that can occur on property.
Engineering insurance
Protect your business from risks encountered during construction-related activities (including but not limited to machinery and equipment)
- Main risks covered:
- fire
- Overvoltage
- Injuries
- Floods
- Lightning-related problems
- Stealing
- Electrical/mechanical malfunctions
- Main risks covered:
- fire
- Overvoltage
- Injuries
- Floods
- Lightning-related problems
- Stealing
- Electrical/mechanical malfunctions
- Products
Construction All Risks: Coverage for loss or damage to projects or contractors, machinery and equipment, third party property and bodily injury.
Construction All Risk (CAR):
Coverage of loss or damage to all parties involved such as contractors, facilities, tools and equipment, third party liability claims and any temporary buildings during construction and maintenance periods.
Machinery breakdown (MB):
- Covering losses resulting from unexpected or sudden internal or external damage to machinery and equipment when used
- Contractor Equipment and Machinery (CPM)
- Coverage of loss or damage to construction plants, machinery and equipment used, including electrical and mechanical failures
Vehicle insurance
What is the compulsory insurance policy related to vehicles?
The compulsory vehicle insurance policy covers damage caused by your vehicle to others (people and property). This policy does not cover damage to your vehicle or to you when driving the vehicle. Example: When an accident occurs in which you are responsible, the insurance company will 100% compensate the injured person for all the damages you caused to others according to the limits stipulated in the policy, and the company will not pay any compensation for the damages that occurred to you or your vehicle.
What is the comprehensive insurance policy related to vehicles?
In such documents, there are two parts. The first part relates to damages related to the vehicle driver and other passengers and damages related to the vehicle itself (covers the vehicle against fire and theft in addition to accidental accidents), while the second part relates to covering the insured’s liability towards third parties (property and people). Example: In the event of an accident involving two vehicles, the comprehensive insurance policy covers all damages that you caused or occurred to you in accordance with the agreed upon terms and commitment stipulated in the policy, as the company pays all costs of repairing your car and repairing and compensating for the damages to other parties that you caused and you were responsible. About her...
The comprehensive vehicle insurance program can be expanded for an additional premium to include the following coverages:
A- Renting a replacement vehicle for the insured during the repair period of the damaged vehicle
B- Roadside assistance service
C- Damaged vehicle repair service at the agency or one of the workshops
Coverage limits:
The coverage amount stated in the policy or the market value of the vehicle at the time of the accident, whichever is less, represents the maximum liability of the insurance company for compensation, so be sure to inform the company of the true estimated value of your vehicle when insuring, and at each renewal of the insurance policy without increase or decrease, because the insurance policy It is a compensation document, not an enrichment document
Consumption rate:
The idea of depreciation that is applied to the subject of insurance is essentially due to the principle of compensation, which aims to place the insured in the same financial position that he was in before the loss occurred. This method is widely used by insurance companies as a means of compensating for the actual value. For damage resulting from a covered loss, taking into account the expected lifespan of consumable spare parts. Example: If a car was involved in an accident that led to the car being completely damaged after six months of insurance, and the value of the car was 100,000 riyals when the insurance policy was purchased, the insurance company will not compensate the insured for the full amount, but will deduct the car’s depreciation amount. Over a period of six months...
- Deduction for not submitting a claim:
Some insurance companies grant the insured (the vehicle owner) a discount called the “failing to file a claim discount,” according to which the insurance premium for the coming year is reduced due to the insured not submitting a claim to the insurance company and his record being free of accidents during the previous insurance year. This is considered a matter of Encouraging drivers not to commit traffic accidents. In return, some insurance companies raise the insurance premium for the new insurance year if the insured submits a claim to the insurance company during the previous insurance year.
What are the documents supporting the claim in vehicle insurance?
In addition to the unified form for submitting vehicle claims, documents supporting the claim include attaching evidence of the validity of insurance coverage and the circumstances of the occurrence of the event resulting from that claim. They also include other documents such as the accident report from traffic and any other documents the company may request, including the following:
-Traffic license.
-Vehicle ownership form.
-Insurance document.
What are the policy exceptions?
It is necessary to be aware of the cases in which the insurance company is not responsible for compensating you for damages that your vehicle may sustain as a result of an accident, which are stated in the policy under the heading “Exclusions”, “Exceptions from Coverage Limits” or “General Exclusions”. Example:
- Disaster risks
- Dangers resulting from driving a vehicle by a person under 18 years of age
properties Insurance
What types of property can be covered?
This type of insurance covers potential risks to private property, including factories, companies, goods and warehouses, as they are insured in the event of any disasters such as fires, lightning strikes, etc.
The properties that can be insured can also be divided into three categories:
A- Buildings: This means the structure of the building and everything attached to it that is covered by the insurance policy
B- Machinery and other contents: everything except the stock that may be inside the warehouses or building.
C- Inventory: All property owned by the insured or in his custody, and materials and goods held by the establishment, whether they belong to it or not.
What are the limits of insurance coverage for property insurance?
1- Covering the thing that is the subject of the insurance itself, whether it is real estate or movable property, from risks, for example (fire, theft, pipe damage, natural disasters, etc.)
2- The contents of the item subject to insurance
3- Personal responsibility.
4- Legal liability for deaths due to accidental property accidents and injuries
5- Covering the loss of rent for the owner of the property due to its unsuitability for rent due to a defect or risk covered by insurance, according to the insurance policy.
Providing alternative housing during the repair period of the damaged property
What are the risks excluded from property insurance?
A- Damages resulting from riots and civil unrest, provided that they were not agreed upon in the insurance policy to add them.
B- Damages resulting from wars, whether declared or not
Marine and aviation insurance
It covers the process of transporting goods in relation to losses and damages that occur during sea, air or land transport and that result from risks incidental to the method of transport as agreed upon. Many insurance coverages are available and provided to meet their needs, which relate to any type of public or specialized transportation. This insurance coverage is provided for transportation risks, in addition to the risks of wars and strikes. Insurance policies may be issued to cover payments or shipments within a specified period of time.
Marine insurance
The company offers many insurance covers for a huge range of cargo ships. The types of these ships are as follows:
Ocean-going cargo ships.
Oil and gas tankers.
Coastal vessels and port vessels.
Yachts and other leisure craft.
Dry docks and floating docks.
This insurance coverage is provided and provided against navigational risks, protection liabilities, damages, mortgage interest, delay losses, work stoppages, ship repair workers, builders' risks, war risks, riots, strikes and civil disobedience.
Aviation insurance
Many insurance covers are available and offered in relation to airlines or companies that own a fleet of aircraft for special purposes
Loss or damage to the aircraft structure.
Responsibilities towards aircraft and civil liability.
Personal accident, civil liability and passenger coverage.
Responsibility towards airport owners and operators.
Risks related to aircraft structures during war.
Risks related to ship structures during wars.
Insurance of oil and gas products
The following insurance coverage is available and provided in respect of works undertaken during the construction phase, exploration phase, as well as the production phase.
Equipment insurance against all risks.
Insurance for monitoring costs, liability for leakage and pollution, and re-excavation expenses.
Civil public liability insurance.
Physical damage insurance in relation to property, internal and external piers, pipelines, drilling rigs and the like.
Insurance in respect of external mixed construction, transportation and civil liability.
Property document against the dangers of political violence
Overview
This policy guarantees compensation to the insured for all material damage to the insured property (the building or its contents) or any part thereof as a result of its loss or damage as a result of:
- Acts of terrorism.
-Sabotage.
- Riots, strikes and/or civil commotion.
- Intentional damages.
- Armed insurrection, revolution or conspiracy.
- Rebellion or military coup.
- War or civil war.
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