Forms of Insurance Policy | Marine Insurance | Life Insurance (or Assurance) | Fire Insurance | Accident Insurance

Marine Insurance

This kind of insurance consists of insurance cover for both ships and goods against the perils of the sea. They relate to three special areas of risk namely

1. Ship Insurance
2. Cargo Insurance
3. Fright Insurance

Ship Insurance: Here the ship owner takes up a policy to cover him against loss of the ship and its machinery by the operations of perils of the sea. This type of insurance is usually issued for a year.

Cargo Insurance: It refers to all insurance on respect of goods produce or merchandise carried by the ship.

Fright Insurance:  This is the money paid to the ship owner for the carriage of goods to their destination. Money is being paid only when the goods are therefore delivered. If peradventure the ship got loss and the goods are there not delivered there is no fright insurance. It is introduced to cover risk of loss of the fright in case the cargo is loss or not delivered. The policy has some forms, which are as follow:

1. Time policy: This talks about a fixed period not more than 30 days, 60 days, one year etc.
2. Voyage policy: They operate depending on the period of the voyage.
3. Mixed policy: Here it covers the subject matter for the voyage and a period thereafter example, while in part.
4. Small craft which are comprehensive in style and aimed at small boats. It covers a wide range of damages including liability insurance.
5. Building Risk Policy: The policy indicates to cover the construction of marine vessels.
6. Floating policy: This kind of policy provide the policy holder with a large range of cargo cover.

Life Insurance (or Assurance)

This is a contract between the insurance company and the insured whereby the insurer promises to pay a certain amount of money at the death of all insured for a consideration called premium. They are in various forms.

1. 1. Term life insurance: Here the policy holder may insure his life for a particular period after which he gets nothing. They may also be an option to renew at the end of the term (renewable term policy).
   2. Endowment life insurance: This kind of policy emphasis more on savings. The insured pays a certain amount of money within a given period. If the insured dies before the maturity data of the policy, the beneficiaries receive the value of the policy
   3. Ordinary Life Insurance: This class of business is usually found in policy holder or his wife (or husband) by regular installment up to a year for a given number of years. At the end of this term or at death, the policy matures and the assured or his representatives receive the nominal value of the policy together with any bonuses or profit that may have accrued over the years.
   4. Limited payment life insurance: In this type of insurance, premium is said to be paid within a period stated number of years or when the insured reaches a certain age. This is generally 60-65 years or retirement. At this time, the policy is said to be paid up. The protection also will remain in force until insured withdraws the value or dies.

Fire Insurance

This type of insurance is one of oldest type of insurance policy. This insurance is very important to all owners of property, whether premise or good. In the industrial and commercial sectors, premises are often unoccupied during the night or at weekends with results that damage caused by fire is likely to be severe. The business person in a way should therefore adequately insure his premises and contents against fire, particularly where the later include expensive machinery or stock.

If the fire is serious involving the destruction of both premises and contents, it may be a while before the business can be started again. The amount of premium depends on many factors, which include the type of building; it is construction, inflammability of the contents and the adequacy of firefighting equipment such as an automatic sprinkler system.

As with other forms of insurance, the insurance company will pay the owners the value of the property at the time of the destruction and not the value of a new item without special arrangement being made.

Accident Insurance

This covers all types of insurance except fire, life and marine and is therefore far reaching. It includes personal accidents, sickness, motor aviation, yachts, and money in transit fraud subsidence, television and weather. Certain forms of accident insurances are compulsory by law as in the case of third party cover for all motor vehicles on the highway.

The business person must carefully consider the liabilities attached to his employee and authorized visitors on his premises. Likewise, the householder may insure against possible claims made against him by a visitor that accidentally kill or injure on his premises. Such claims could amount to many thousands of naira of particularly where damage is assessed in monetary form through the courts.