Methods of insurance

Here are various types of insurance that are present today. However, unfortunately, many of us are not aware of how to settle claims after the loss has occurred. Many times, they are exploited by the agents. The article provides a complete detail on the procedure for the settlement of claims in case of fire and marine insurance.

By Wikipedia: According to the study books of The Chartered Insurance Institute, there are variant methods of insurance as follows:

1. Co-insurance – risks shared between insurers

2. Dual insurance – having two or more policies with overlapping coverage of a risk (both the individual policies would not pay separately – under a concept named contribution, they would contribute together to make up the policyholder's losses. However, in case of contingency insurances such as life insurance, dual payment is allowed)
3. Self-insurance – situations where risk is not transferred to insurance companies and solely retained by the entities or individuals themselves
4. Reinsurance – situations when the insurer passes some part of or all risks to another Insurer, called the reinsurer.

(By kenyaplex.com) Steps involved while undertaking an insurance process:

1. Filling of a proposal form:-
Any person willing to be insured by the insurance company is expected to fill a proposal form provided by the insurance company. 

The information to be filled on this form include; full names of the person to be insured, ID Number, a policy he intends to undertake, his occupation, salary/income, the duration for the policy, next of kin, age, sex.

2. Reception of the proposal form by the insurance company or its agent. The insurance company will, therefore, scrutinize the information filled in the form and sometimes if necessary inspect the property to be insured. This information is relevant to enable the insurance company to effectively compute premium payable.

3. After accepting the proposal form and having computed premium, the insured pays the first premium. After paying 1st premium he is issued with a cover note which takes 30 days before it expires.

4. After one month the insured is issued with a policy certificate which is the main agreement between the insurer and insured.

5. In case of occurrence of a risk, the insured is required to notify them