The idea of insurance is that someone assumes the liability for a non-predictable damage or another event inflicted on another against consideration. In practice, this is done by means of an insurance contract between an insurance company and its customer, where the insurance company promises to pay compensation to the customer, if the customer suffers damage or an event specified in the contract.
Insurance is commonly divided into life insurance and property and casualty insurance (P&C insurance, non-life insurance).
- Life insurance includes the traditional life insurance policies, or so-called term life insurance, pension insurance, savings life insurance, health and accident insurance granted by a life insurance company, capitalisation agreements and management of group pension funds.
- Property and casualty insurance comprises health and accident insurance granted by P&C insurance companies, insurance concerning different vehicles, fire insurance and other insurance covering damages to property, traffic insurance, liability insurance, credit insurance, guarantee insurance, legal expenses insurance and travel assistance insurance.
21 December 2012