Types of non-life insurance

A non-life insurance includes both to people and inanimate objects and instead of being a long-term contract, it is renewable periodically. At present, there are two main types of non-life insurance: damage and service insurance.

Damage insurance

Damage insurance serves to cover the assets or assets of a person against risks or possible threats. Its purpose is to repair the patrimonial loss when some type of loss occurs.

For damage insurance there is the modality of pro rata, in which a proportional rule is made to pay the interested party the value of the damage suffered. There is also the insurance at new value, in which the normal guarantees of the policy are extended by paying an extra premium. It serves to equalize the difference between the real value of the insured assets at the time of the claim and the one they have when they are new.

Finally, there is the first risk insurance, in which a certain amount is insured, without applying any proportional rule.

Types of damage insurance

Damage insurance is the most widely used non-life insurance. Their purpose is to repair the loss suffered, they have a fairly extensive classification:

• Fire insurance: Serves to insure real estate from damages that can be caused by accidental fires.
• The scivil liability insurance: The insurer undertakes to cover the damages that the insured may cause to third parties. This can be derived from the use of vehicles as a general: errors and omissions, hunter’s insurance, etc.
• Auto insurance: Aims to repair and take care of compensation derived from accidents.
• Agricultural insurance: They cover the possible risks that may affect agricultural, forestry or livestock operations. For example, crop fires, animal deaths or illness, or hail or hail insurance.
• Miscellaneous pecuniary loss insurance: Serves to cover losses caused by credit or surety operations. For example, there is insurance for loss of profits or loss of rents.
• Theft insurance: The insurance company undertakes to compensate the insured for damages suffered as a result of the theft of goods or for damages due to attempted theft.
• Credit insurance: Its purpose is to guarantee a person that he will be able to collect the credits that he has in his favor in the event of the insolvency of the debtor.

Service provision insurance

Service provision insurance is another type of non-life insurance, which serve to offer one or more services stipulated in the policy in the event that the policyholder needs it. These are usually:

• Health care insurance: It serves to guarantee the insured the provision of medical services if an accident or illness occurs. Typically, it includes medical, surgical, drug, and hospital or clinic care.
• Death insurance: The insurance covers the costs and services necessary for the funeral.
• Legal defense insurance: They have the purpose of taking care of the costs of litigation or legal claims. This type of insurance is widely contracted as a complement to automobile insurance, to cover civil liability derived from an accident.
• Travel and tourist assistance insurance: This type of non-life insurance It serves to cover the possible incidents that could arise during a trip, both to the policyholder and his companions. They usually cover medical assistance, loss of luggage or damages due to flight cancellation.

Master in Insurance and Risk Management to be an expert in non-life insurance

The insurance companies sector is very broad, with constant changes. In order to have the necessary knowledge and dominate the insurance market, EALDE Business School has designed a unique training program in Spanish.

The Master in Insurance and Risk Management prepares future specialists so that they can identify and mitigate risks within the world of insurance companies. With this training, delivered entirely online, a learning of legislative texts is guaranteed, the pillars of Solvency II are studied in depth, and they are trained to master the concepts of non-life and life insurance.

You can get more information about the Master in Insurance and Risk Management from EALDE Business School by clicking on the following link:

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