Question

In which type of insurance, the element of risk is the damage/loss to a property or an asset?

Hint:

Life insurance covers human life, while general insurance covers property, vehicles, health, and other tangible assets.

Answer 1

Insurance is mainly divided into life insurance and general insurance.
Life insurance deals with the life or death of a person and provides financial security to the insured’s family.
On the other hand, general insurance covers all non-life risks where the risk is related to property or assets.
Examples include fire insurance, marine insurance, motor insurance, and health insurance.
In these cases, the risk is the possibility of damage or loss to physical property or assets.
If any damage happens, the insurance company compensates the insured for the financial loss.
Therefore, when the risk involves damage or loss to property or assets, it falls under General Insurance.