Types of insurance

Insurance relations are designed to provide insurance protection of organizations, citizens and their interests in envisaged insured events from various dangers. Insurance includes all types of insurance activities – not only primary insurance, but also coinsurance and reinsurance. The type of insurance is a set of insurance services aimed at ensuring the protection of specific homogeneous objects. In each type of insurance, insurance services are provided at established tariff rates in the agreed amount. The classification of insurance services by types is based on the object of insurance and the list of risks and dangers against which the object will be insured.

Types of Insurance Funds

There are three main types of insurance funds, which differ on the basis of the way they are formed:

• The insurance fund of an insurance organization is formed at the expense of premiums paid by participants interested in insurance. Such a fund is created exclusively in the form of money.
• A self-insurance fund is a decentralized insurance fund formed by an economic entity from cash and in-kind reserves. It is designed to ensure the uninterrupted operation of the commodity producer.
• The Centralized Insurance Fund is a state reserve fund created at the expense of budget funds.

Main types of insurance

Insurance activities are classified into the following main types of insurance:

• Personal insurance – pension, life, travel insurance, health and accident insurance.
• Liability insurance – for car owners and car owners traveling abroad, civil and professional liability insurance, liability insurance for employers, officials and service providers.
• Property insurance – insurance of cargo, housing, vehicles, insurance against construction and installation risks and risks of natural disaster and fire.
• Specific Risk Insurance – Political Risk Insurance, Title Insurance.
• Financial insurance – insurance of unfulfilled financial obligations.