The different types of insurance
There are two main categories of insurance: those covering a natural person and those covering property. And depending on their purpose and scope, insurance operations can be classified according to two major families:
They include the following two categories:
- Property insurance: they guarantee the compensation of damages suffered by the insured as a result of damage and loss to property belonging to him.
- Liability insurance: They guarantee the pecuniary consequences of the civil liability that the insured may incur due to bodily injury, material or immaterial damage caused to third parties.
This insurance can be classified as follows:
- Life insurance : its purpose is to cover risks the occurrence of which depends on the survival or death of the insured ;
- Personal injury and sickness / maternity insurance : the purpose of which is to cover risks to the bodily integrity of the insured person, risks related to sickness or maternity, or risks of disability and infirmity.
- Capitalization : which is intended to constitute savings with a guaranteed minimum return.
Main differences between personal insurance and damage insurance
Damage insurance is based on the indemnity principle stating that the indemnity payable by the insurer may not exceed the amount of the damage suffered by the insured or the injured third party. When it comes to personal insurance, the insured amounts are fixed on a flat rate basis by the insurance contract.
Under the damage insurance contracts, the insurer is subrogated to the extent of the indemnity he has settled in the rights and actions of the insured against the third parties who, by their doing, caused the damage that gave place to its guarantee. As for personal insurance, this subrogation may be exercised by the insurer only for the reimbursement of benefits of a compensatory nature (medical expenses, hospitalization ...) provided for in insurance contracts against illness and accidents affecting individuals.