Other Types of Insurance

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  • Q1

    Why do business organisations need insurance?

    Marks:1
    Answer:

    Business organisations are exposed to risk of losses arising from damage to property or good, illness or death of employees due to fire, theft, accident, etc.

    Insurance helps them by providing financial compensation for loss suffered against these risks.

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  • Q2

    What kind of expenses can be covered under Health insurance?

    Marks:2
    Answer:

    Health insurance can cover the following expenses:

    • Basic medical expenses- these include reimbursement of doctor’s fees, medicines, etc.
    • Critical illness medical expenses- these include expenses related to a serious illness or injury
    • Hospitalization charges- these cover the expenses incurred due to being hospitalized for long period due to some illness

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  • Q3

    Name any two types of insurance that provides financial support to farmers.

    Marks:2
    Answer:

    Following are the types of insurance:

    1. Crop insurance

    This provides financial support to the farmers in case their crop is damaged due to natural calamities like drought, flood, etc.

    2. Cattle insurance

    Under this, a sum of money is provided in case of death of animals like cows, buffaloes, etc. due to some disease, accident, etc.

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  • Q4

    Why do people opt for Motor Vehicle Insurance?

    Marks:2
    Answer:

    People opt for motor vehicle insurance because:

    • It covers the risks related to loss or damage to the car due to theft, floods, etc.
    • The Policy also involves passing on the owner’s liability to the insurance company so as to compensate people who were killed or injured due to the negligence of motorists or drivers.

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  • Q5

    State the features of a personal accident insurance.

    Marks:3
    Answer:

    A personal accident insurance is a contract whereby the insurer pays a certain amount of money to the insured in case of injury caused by accident or to the nominees of the insured in case of death by an accident.

    The insured is liable only if the injury or death is caused due to an accident and not due to any natural causes.

    A contract of personal accident insurance is not a contract of indemnity as a fixed amount of money is paid by the insurer in case of an accident.

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