vehicle and accident insurance: Types of Accident Insurance

Let’s Know what is vehicle and accident insurance? About the types of accident insurance. Let’s discuss it today and learn more about it. Apart from fire insurance, boat insurance and life insurance, there are many other types of insurance in circulation which are called miscellaneous insurance. Various insurances are discussed below.


What is vehicle and accident insurance? Types of Accident Insurance

Vehicle insurance

Our country is developing. With that, the standard of living is increasing. Vehicles are increasing by leaps and bounds. Vehicle insurance is mandatory in the developed world. Currently it has been made mandatory in our country as well. Vehicle Insurance Basically: Insurance against the car. Car insurance has to be done against a specific vehicle. But what does car insurance really cover?

It is important to know those things well before taking the insurance policy. Below are the details of these issues:

Injury and Death Penalty: If your vehicle injures or kills someone in an accident, you need to have insurance coverage against the fines and court costs you incur against that injury or death.

Property Damage Liability: If your vehicle causes damage to someone’s property in an accident, check whether the insurance covers it or not. Third party insurance is required to indemnify others in the event of an injury to your vehicle.

Medical Expenses: Insurance covers the medical expenses of passengers or outsiders injured in an accident. It is mandatory in the developed world.

Road Accident: If your car is damaged in a road accident, there is an insurance against the same.

Non-accident damage: Insurance covers car damage due to various causes other than road accidents such as theft, vandalism, fire, storm and flood.
The person responsible for determining the above damages is called the adjuster.

A government adjuster should be consulted to collect all the benefits as per the insurance policy affordability. If the insurance claim is not settled within 3 months then seek clarification from the company. Remember, the insurance company is bound to pay the claim within 3 months unless there is a compelling reason. In case of non-payment, you are entitled to an insurance claim with interest at the prevailing bank interest rate plus 5 percent on a monthly basis for daily delay for the next 3 months.

From the above discussion, it can be seen that accidents are closely related to vehicle insurance.


What is accident insurance?

Road accidents in Bangladesh are like an epidemic. Efforts are underway to bring it down to tolerable levels. Apart from this, other types of accidents occur.

Accidents are events that are unexpected and unintended over which humans have no control, even if they occur suddenly. So it is not possible to predict when the accident will happen. There is a famous case judgment in this regard. Judge Lord Macnagnon in Fenton v. Thorley (1903) said, “Accident is an unexpected bad event or unforeseen occurrence which could not be expected or foreseen”.

Accident insurance covers financial loss due to unforeseen and undesired events and insurance for its safety. You can get this type of insurance for personal life and property as well.

Accident insurance is mainly indemnity insurance. The aggrieved party will be compensated according to the contract. Ultimate faith and insurable interest are also required in this insurance. Now let’s know about different types of accident insurance.

Types of Accident Insurance

3 types of accident insurance. Namely:

1. Personal accident insurance
2. Property Accident Insurance
3. Liability insurance.

Below are the details of these:

a. Personal Accident Insurance

Human performance is closely related to personal accident insurance. Personal Accident Insurance is an insurance to cover the loss of the insured in case of death or total or partial loss of performance due to accident or illness. Here again personal accident insurance can be of several types. These are detailed below:

1. Accidental death insurance

According to accidental death insurance, if the insured dies or is injured in an accident, the policyholder will be entitled to compensation as per the contract. In case of death, his nominee will get the compensation amount.

2. Accidental Disability Insurance

In case of total or partial loss of performance due to an accident, the insured will get compensation from the insurer at a fixed rate as per the insurance contract.

3. Certain disease and accident insurance

According to the insurance policy, the insured will get compensation if he becomes disabled due to any disease mentioned in the insurance contract.

4. Any kind of sickness and accident insurance

There is no mention of any disease in this type of insurance. Loss of performance due to any disease other than accident will be compensated.

5. Medical and hospital expenses insurance

An insurance policy that promises to cover hospital and medical expenses due to an accident or any disease is called medical and hospital expenses insurance. There are various companies for this type of insurance in the developed world. This is known as health insurance. It is mandatory for almost everyone. In our country this practice has started in limited form. Health insurance is known.

b. Property Accident Insurance

The contract entered into between the insured and the insurer to cover the loss of property due to a sudden accident is called property casualty insurance. Apart from marine, fire and life insurance, insurance against loss of property due to accidents is called property casualty insurance.

Below are some types or types of property accident insurance or property accident insurance:

1. Aviation Insurance

Insurance that is taken out to cover the financial loss caused by an aircraft accident is called aviation insurance. Aviation insurance covers loss of passengers, cargo and people and property at the scene of an aircraft accident. We have already seen the horror of a private Bangladeshi airline crash in Nepal. Passengers have received fixed compensation from the insurance company. Air insurance is mandatory.

2. Engineering Insurance

Insurance contracts against loss of machinery and equipment due to industrial accidents are called engineering insurance. Such insurance is accepted for large enterprises, boilers, generators, cranes, transformers, lifts, diesel engines etc. Engineering insurance keeps the heavy engineering industry alive.

3. Theft insurance

Loss of property through theft, robbery, burglary; The insurance policy taken to protect against such losses is theft insurance. Banks provide such insurance to avoid the risk of carrying cash. The insurance which is taken to cover the financial loss due to theft of gold ornaments, money and portable items on the way is called theft insurance.

4. Refrigerator insurance

Perishable products are stored in cold storage. This type of insurance is done with the aim of getting financial compensation against the goods stored in the cold storage for any reason.

c. Liability Insurance

Suppose a doctor is fined a hefty amount due to wrong treatment, that too is an accident. It is also a liability. This liability can be avoided through insurance. Liability insurance is also a type of accident insurance. If an employee is injured or killed in an accident while working in an industrial plant, his responsibility rests with the owner. When the owner transfers such liability to the insurer, it is called liability insurance.

Various types of liability insurance are described below:
1. Employer’s Liability Insurance

If an employee is affected by any kind of accident or any disease related to that industry while working in the factory, his responsibility rests with the owner. The owner can pass this liability on to the insurance company through insurance.

2. Public Liability Insurance

Public Liability Insurance is an insurance that is taken out by the transport owner to provide financial assistance to the passengers in case of death or injury due to an accident while traveling in a motor vehicle, railway or aircraft.

3. Product Liability Insurance

In case of any accidental damage to the goods while moving the goods from one place to another, the liability of the transport company falls on it. Such liability insurance companies through insurance companies can impose on.

4. Professional indemnity liability

According to the Compensation Act, if a worker suffers from any occupational disease, the employer is obliged to pay compensation according to the law. Such liability can be imposed on the insurance company through insurance.

Faisal Ahmed

Hey! I'm Faisal Ahmed, the author of Tips Degree. I have a strong desire to educate people about education, science and technology, finance, and other trending topics through my content that's easy to understand. These contents created by me have helped many trainees around the world grow their careers. In my spare time, I love to swim and watch movies. I'm available on social media sites like Facebook, Pinterest, Medium, Flickr, etc.

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