Insurance

Insurance
Insurance

is a contract between a company and the

insurance policy holder about the reimbursement to
the insurance holder who has made pre payment
regarding the precious belongings of him and for
which he cannot or does not want to bear loss.

The

prepayments are being made by the insurance

policy holder and are re-paid to the insurance policy
holder at the time of a hazardous situation.

Insurance

Insurance Policy

Insurer

The company selling the services of Insurance is known as Insurer

Insured

Insurance policy is a legal, written document, the contract that is

mutually discussed between the company and the insurance policy
holder and all the details provided in it.

The individual or the policy holder of the insurance is known as

Insured.

Types of Insurance

There are Two main types of Insurance

1. Life Insurance
2. General Insurance

Types of Insurance
Life

Insurance

Life insurance is the type of insurance where the insured

individual or his family members get a certain amount of
the coverage upon the early death, illness or retirement of
the insured individual.
The payment to be made, duration of the payment, and
amount of coverage by the insured to the insurer and the
details of the policy differ form one insurance company to
another.

Types of Insurance
General

Insurance

The risks and the losses that are not covered by Life
Insurance are categorized as General Insurance. The
products of General Insurance vary in various companies
and are named differently.

Products of General Insurance

Property Insurance
Travel Insurance
Vehicle Insurance
Marine Insurance
Engineering Insurance

Property Insurance
Property

Insurance provides coverage

against the risks and losses associated with
the property of the insured. The losses or
the risks associated with the property can
be due to various reasons such as

Fire accidents
Burglary
Earthquake
Storm and Flood
Terrorism
Explosion

Travel Insurance
Travel

Insurance provides coverage against

the risks and losses encountered by the
insured while travelling. The losses or the
risks encountered can be due to various
conditions:

Personal Accident
Delayed Baggage
Travel Delays
Losing Ones Passport, Baggage, Belonging or
Money

Marine Insurance
Marine

Insurance provides coverage against

the risks and losses associated with the
business transactions taking place
offshore through the marine ports. The
losses or the risks can be covered and
provided against:

Imports taking place through marine ports.

Exports taking place through marine ports.
Inland Transits at the marine ports.

Vehicle Insurance
Vehicle

Insurance provides coverage against

the risks and losses associated with the
vehicle of the insured. The losses or the
risks associated with the property can be
due to various reasons such as:
Loss or Damage due to Fire
Loss or Damage due to Theft
Loss or Damage due to Accidents

Engineering Insurance
Engineering

Insurance provides coverage

against the risks and losses associated with
the industrial plant, machinery and equipment
of the insured. The losses or the risks covered
under Engineering Insurance include:

Machinery Breakdown
Computer & Electrical Breakdown
Boiler & Pressure Vessel
Construction all Risk Insurance

Insurance Risk

One of the important Industry of a country is

Insurance Industry which helps minimize the risks, if,
encountered by an individual, business, or a
corporation.

Risk Management is the central task of the

Insurance Companies. Be it a natural disaster that is
faced by a country, city, locality, or an insured
individual has faced an accident, injury, or a bad
health leading to a financial loss.

Insurance minimizes these financial losses and risks

and therefore it is believed that a risk is attached
with insurance.

Co-Insurance

Co-insurance is also known as Percentage

Participation. It refers to sharing of the risk, loss, or
damage by the insurer and the insured at the face of a
loss or damage.

Benefits of Co-Insurance to Insured

Insured can benefit from co insurance by setting up low

insurance premium while getting insured by the insurance
company as long as one can keep aside a certain amount of
money to be paid in the face of a risk or loss.

Benefits of Co-Insurance to Insurer

Insurer can benefit from co insurance by sharing the loss at the

time of its occurrence with the insured and providing insurance
simultaneously to other insured individuals at the time of a
massive loss.

Re-Insurance

Reinsurance is a phenomenon that takes place

when one insurance company cannot hold the
insurance policies of a lot of policy holders and so
sells or share the policy or risk with another
insurance company.

This may take place in situation of a massive

disaster and when the original insurance company
is not able to cater the claims of the insurance
policy holder.

Benefits of Re-Insurance

Reinsurance helps spread the losses faced by one

company to another company or in case of big
losses (hurricanes, earthquakes, floods, terrorism)
to the whole insurance industry of a country even.

Reinsurance helps prevent the original insurance

company form bankruptcy.

Reinsurance helps transfer

insurance companies.

the

risk

to

other

Insurance Companies in
Pakistan
Insurance

companies in Pakistan
are categorized as:

Non-Life Insurer
Health Insurer
Life Insurer
Reinsurer

Non Life Insurer

ACE Insurance Limited (Foreign)

Adamjee Insurance Company Limited
Alfalah Insurance Company Limited
Alpha Insurance Company Limited
Asia Insurance Company Limited
Askari General Insurance Company Limited
Atlas Insurance Limited
East West Insurance Company Limited
EFU General Insurance Limited
Excel Insurance Company Limited
Habib Insurance Company Limited
IGI Insurance Limited
National Insurance Company Limited (State Owned)
New Hampshire Insurance Company (Foreign Branch)
New Jubilee Insurance Company Limited

OTHERS

Other Insurer
Health

Insurance

Allianz EFU Health Insurance Ltd.

Life

Insurance

State Life Insurance Corporation of Pakistan

American Life Insurance Co. (Pak.) Ltd.,
EFU Life Assurance Limited
East West Life Assurance Company Ltd.
New Jubilee Life Insurance Company Ltd
Asia Care Health and Life Insurance Company Ltd
Adamjee Life Assurance Co. Ltd

Reinsurer

Pakistan Reinsurance Company Limited