Classification of insurance

The agreement on the protection of property in the event of insured events due to the contributions of the subject is called insurance. In this case, the insurer is the entity registered for the conduct of this activity, as well as a licensee for this. The insured is the entity that pays the contributions, and has legal relations with the insurer.

Insurance is divided into certain types. Under the guise, the corresponding tariffs of certain homogeneous objects in a specific amount of insurance liability are meant. The word "insurance" has Latin roots, Western philologists say, and translates as "carefree". In the Slavic languages it is believed that the term "insurance" is a kind of derivative of the word "fear". In the Russian Federation, insurance is a whole scientific system, according to which this type of activity is classified by industry, species, special links and spheres.

The classification of insurance is based on differences in the scope of responsibility. It can also be based on the difference of insurance objects. In 1978, classification and types of insurance were established for the member countries of the EEC. This classification was created in accordance with the laws and the EEC directive on insurance companies. Classification of insurance includes 6 types of long-term and 17 other types of common.

Long-term types:

• Permanent health insurance;
• Pensions;
• Financial losses;
• Life;
• To the wedding and the birth of a child;
• endowment insurance.

Classification of types of insurance related to general:

• Insurance of cars.
• From accidents.
• Material objects (property).
• Railway transport.
• From financial losses.
• Cargo insurance.
• In case of illness.
• Aircraft.
• From natural disasters and fires.
• Civil liability of drivers of vehicles.
• And so on.

Insurance has 4 main industries, which include several sub-sectors.

Insurance of business risks. This can include loss of income (risk when using new technologies, equipment, unrealized benefits due to a canceled transaction, damage from idle equipment, etc.). This industry is divided into:

• Direct loss insurance;
• As well as indirect losses.

Property type of insurance. The object of this industry are tangible items (housing, car, valuables), property insurance has the following sub-sectors:

• Insurance of property of citizens ;
• Public and cooperative organizations;
• Collective farms;
• Tenants;
• State farms;
• State enterprises.

Liability Insurance. This industry includes insurance of obligations to fulfill contractual conditions, to compensate for damage. So, if the insured caused damage to any entity, then the insurer will compensate for this damage. Lines of liability insurance include:

• Insurance against damages;
• Debt insurance.

Insurance of the living standards of citizens. In this industry, the object is life, work capacity, health of the insured. Subsectors related to this industry:

• Personal insurance of citizens;
• Social insurance of employees, workers, collective farmers;
• Insurance of pensions and life.

The leading principle, by which the insurance is classified, consists in the partial inclusion of each subsequent link in the previous one. There are exactly two forms of insurance: voluntary and mandatory. These forms cover all the links. The state establishes compulsory insurance. This occurs in cases when the need for compensation for damage has not only the subjective interests of the injured person, but it affects the interests of the whole society.

Classification of insurance can also be based on the areas of activity of the insurer: the domestic market, the external market, the mixed insurance market.