Different Modes of Insurance for Securing Lifes

Travel Insurance is required whenever one needs to travel by air from one place to another. The form of insurance in this regard and the process of obtaining insurance cover for travelling is quite different from the conservative style of obtaining insurance for say a house, car, building, furniture or health or life insurance. The two modes of insurance i.e. conservative or usual or normal insurance and travel insurance shall be discussed in the lines to come separately and in great details.

In case of normal conservative insurance, there are two parties to an insurance contract. The insurer is one who is possibly a company issuing insurance policy to its various corporate and individual clients who are called as insured. The corporate clients are more attractive for the company as it brings a huge amount of revenue in the form of insurance premium. Insurance premium depends on the amount of sum insured which is determined separately for new or used items.

The simple process of insurance starts when the person approaches an insurance company. The sum to be insured is agreed if the subject matter of insurance which is also called the item to be insured in brand new. In case of old items the company, for the purpose of determining the value of the subject matter of insurance, hires a value that assess the value of the item by carrying out a valuation exercise. A valuation report is then issued which details several particulars including the sum insured. On the basis of sum insured as described in the valuation report, the amount of premium in decided. This amount of premium is increase by certain tax and duties which are nominal.

In case of travel insurance, most of the policies issued in this regard are not entered into the normal or conservative manner. The company hires several travel agents who have connections with the travel agencies where customer comes to book tickets for the airline. Here they convince the customer to get the insurance of their luggage and to travel in a relax mode. If the client agrees then the agent forthwith issues a certificate of insurance by obtaining the premium from the client. The agent also intimates the company that certain travel policies have been issued by him on behalf of the company. Alte
atively the agent sends the book for recording the travel insurance policies to the company after some time period to let the company record the revenue.

The agent to be recruited for selling travel insurance must scrutinized in a more strict sense as honesty is required and the agent must be expected to adopt certain values of the company. The agent must show that he or she values the company rules and regulations and abide by them. Business ethics also plays an important role in this regard. Medical Insurance is also a part of normal or conservative style of insurance. Health insurance cover are obtained by companies who by doing so avoids themselves with the large medical expenses of their employees by giving a pre determined and fixed amount of premium each year.