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Classification of insurance policies

Insurance policy can be categorized into indemnity insurance and non-indemnity insurance.

What is indemnity insurance?

Indemnity insurance is an insurance guarantee to provide security or protection against possible hurt, damage, loss or liability. Here, an agreed lump sum (as stated inside the insurance policy) is paid as compensation on the risk insured against any incurred loss or damage.

Indemnity insurance is broadly divided into three forms, as follows:

1. Marine

2. Aviation, and

3. Others (other indemnity insurance)

Marine insurance

Marine insurance includes all vessels designed for aquatic transportation, both on marine and freshwater territories. This includes the huge commercial insurance on hull s and cargo, sailing dinghies, yachts, motor boats, and small crafts generally.

Marine insurance covers these areas of the ship:

• Hull insurance

• Cargo insurance

• Freight insurance

• Others such as insurance of liability

For more explanation, click the blog below.

The marine insurance can be insured in different policy forms such as:

• Voyage policy

• Time policy

• Valued policy

• Un-valued policy

• Floating policy

For more explanation, click the blog below.

Aviation insurance

Aviation insurance guarantees hulls of aircraft, third-party liability, and legal liability to passengers. Compensations, or rather claims, often reach extremely vast amount, although liability passengers is limited by international conventions.

All the above marine insurance coverage areas and policy are also applicable to aviation industry, with little or no exception.

Other indemnity insurance

Other indemnity insurance policies are listed as follows:

• Fire

• Theft and burglary