Types and Classification of Insurance

Insurance occupies an important place in the modern world because the risk, which can be insured, have increased in number and extent owing to the growing complexity of the present day economic system.

It plays a vital role in the life of every citizen and has developed on an enormous scale leading to the evolution of many different types of insurance.
In fact, now a day almost any risk can be made the subject matter of contract of insurance.

The different types of insurance have come about by practice within insurance companies, and by the influence of legislation controlling the transacting of insurance business.
Broadly, insurance may be classified into the following categories:

Classification on the basis of nature of insurance

• Life Insurance
• Fire Insurance
• Marine Insurance
• Social Insurance
• Miscellaneous Insurance

Classification from business point of view

• Life Insurance
• General Insurance

Classification from risk point of view

• Personal Insurance
• Property Insurance
• Liability Insurance
• Fidelity Guarantee Insurance