Insurance
Insurance
► Insuranceis a contract between a company and the
insurance policy holder about the reimbursement to the
insurance holder who has made pre payment regarding the
precious belongings of him and for which he cannot or does
not want to bear loss.
► Theprepayments are being made by the insurance policy
holder and are re-paid to the insurance policy holder at the
time of a hazardous situation.
Insurance
► Insurance Policy
▪ Insurance policy is a legal, written document, the contract that is
mutually discussed between the company and the insurance policy
holder and all the details provided in it.
► Insurer
▪ The company selling the services of Insurance is known as Insurer
► Insured
▪ The individual or the policy holder of the insurance is known as
Insured.
► Types of Insurance
▪ There are Two main types of Insurance
1. Life Insurance
2. General Insurance
Types of Insurance
► Life Insurance
▪ Life insurance is the type of insurance where the insured individual
or his family members get a certain amount of the coverage upon
the early death, illness or retirement of the insured individual.
▪ The payment to be made, duration of the payment, and amount of
coverage by the insured to the insurer and the details of the policy
differ form one insurance company to another.
Types of Insurance
►General Insurance
▪ The risks and the losses that are not covered by Life Insurance are
categorized as General Insurance. The products of General
Insurance vary in various companies and are named differently.
► Products of General Insurance
▪ Property Insurance
▪ Travel Insurance
▪ Vehicle Insurance
▪ Marine Insurance
▪ Engineering Insurance
Property Insurance
► Property Insurance provides coverage against the
risks and losses associated with the property of
the insured. The losses or the risks associated with
the property can be due to various reasons such
as
▪ Fire accidents
▪ Burglary
▪ Earthquake
▪ Storm and Flood
▪ Terrorism
▪ Explosion
Travel Insurance
► Travel Insurance provides coverage against the
risks and losses encountered by the insured while
travelling. The losses or the risks encountered can
be due to various conditions:
▪ Personal Accident
▪ Delayed Baggage
▪ Travel Delays
▪ Losing One’s Passport, Baggage, Belonging or Money
Marine Insurance
► Marine Insurance provides coverage against the
risks and losses associated with the
business transactions taking place offshore
through the marine ports. The losses or the risks
can be covered and provided against:
▪ Imports taking place through marine ports.
▪ Exports taking place through marine ports.
▪ Inland Transits at the marine ports.
Vehicle Insurance
► Vehicle Insurance provides coverage against the
risks and losses associated with the vehicle of the
insured. The losses or the risks associated with the
property can be due to various reasons such as:
▪ Loss or Damage due to Fire
▪ Loss or Damage due to Theft
▪ Loss or Damage due to Accidents
Engineering Insurance
► Engineering Insurance provides coverage against
the risks and losses associated with the industrial
plant, machinery and equipment of the insured.
The losses or the risks covered under Engineering
Insurance include:
▪ Machinery Breakdown
▪ Computer & Electrical Breakdown
▪ Boiler & Pressure Vessel
▪ Construction all Risk Insurance
Insurance Risk
► One of the important Industry of a country is Insurance
Industry which helps minimize the risks, if, encountered by
an individual, business, or a corporation.
► Risk Management is the central task of the Insurance
Companies. Be it a natural disaster that is faced by a
country, city, locality, or an insured individual has faced an
accident, injury, or a bad health leading to a financial loss.
► Insurance minimizes these financial losses and risks and
therefore it is believed that a risk is attached with
insurance.
Co-Insurance
► Co-insurance is also known as “Percentage Participation.”
It refers to sharing of the risk, loss, or damage by the
insurer and the insured at the face of a loss or damage.
► Benefits of Co-Insurance to Insured
▪ Insured can benefit from co insurance by setting up low insurance
premium while getting insured by the insurance company as long
as one can keep aside a certain amount of money to be paid in the
face of a risk or loss.
► Benefits of Co-Insurance to Insurer
▪ Insurer can benefit from co insurance by sharing the loss at the
time of its occurrence with the insured and providing insurance
simultaneously to other insured individuals at the time of a massive
loss.
Re-Insurance
► Reinsurance is a phenomenon that takes place when one
insurance company cannot hold the insurance policies of a
lot of policy holders and so sells or share the policy or risk
with another insurance company.
► This may take place in situation of a massive disaster and
when the original insurance company is not able to cater
the claims of the insurance policy holder.
Benefits of Re-Insurance
► Reinsurance helps spread the losses faced by one company
to another company or in case of big losses (hurricanes,
earthquakes, floods, terrorism) to the whole insurance
industry of a country even.
► Reinsurance helps prevent the original insurance company
form bankruptcy.
► Reinsurance helps transfer the risk to other insurance
companies.
Insurance Companies in Pakistan
► Insurance companies in Pakistan are
categorized as:
▪ Non-Life Insurer
▪ Health Insurer
▪ Life Insurer
▪ Reinsurer
Non Life Insurer
▪ ACE Insurance Limited (Foreign)
▪ Adamjee Insurance Company Limited
▪ Alfalah Insurance Company Limited
▪ Alpha Insurance Company Limited
▪ Asia Insurance Company Limited
▪ Askari General Insurance Company Limited
▪ Atlas Insurance Limited
▪ East West Insurance Company Limited
▪ EFU General Insurance Limited
▪ Excel Insurance Company Limited
▪ Habib Insurance Company Limited
▪ IGI Insurance Limited
▪ National Insurance Company Limited (State Owned)
▪ New Hampshire Insurance Company (Foreign Branch)
▪ New Jubilee Insurance Company Limited
►OTHERS
Other Insurer
► Health Insurance
▪ Allianz EFU Health Insurance Ltd.
► Life Insurance
▪ State Life Insurance Corporation of Pakistan
▪ American Life Insurance Co. (Pak.) Ltd.,
▪ EFU Life Assurance Limited
▪ East West Life Assurance Company Ltd.
▪ New Jubilee Life Insurance Company Ltd
▪ Asia Care Health and Life Insurance Company Ltd
▪ Adamjee Life Assurance Co. Ltd
► Reinsurer
▪ Pakistan Reinsurance Company Limited