Liability insurance or ansvarsforsikring can be described as means of hedging against financial loss. This is a general form of risk management basically used to hedge or safeguard against contingent risk as well as uncertain loss.
An entity that provides insurance generally is referred to as an insurance company or insurer like Knif Trygghet Forsikring AS. An insurance transaction is the one whereby the insured assuming a guaranteed and relatively small loss basically in the form of payment to a specific insurer in the exchange for the insurer’s agreement to compensate the insured just in the case of a covered loss. In particular, the loss may be financial or not. It however must be convertible to financial terms, and should involve something whereby the insured has insurable interest specifically established by possession, ownership, or already preexisting relations.
The following include some of the general principles of insurance.
1.Legal requirements such as indemnity and utmost good faith.
2.Insurability principle which involves such as affordable premiums.
3.Indemnification.This is whereby the loss is totally insured or covered. An individual is reinstated to the position that he/she was in, to the extent possible and prior to the occurrence of a specified peril.
General insurance covers issues like burglary, theft, insurance against fire, health, personal insurance accidents and travel insurance. Categorically, general insurance covers all types of insurance except life.
The common general insurance types include; fire, motor, health, travel, home, marine and other forms of miscellaneous non-life insurance.
Home insurance or boligforsikring. This involves insuring the physical structure and home contents. This type of insurance protects the house and what it contains.
Health Insurance. The common types of this form of insurance policies include surgery cover, comprehensive health cover, individual policy among many others.
Motor Insurance. This covers damage to vehicles against road emergencies.
Travel Insurance or reiseforsikring. This may include business travels, student travel, family travel as well as senior citizens’ travel policies.
The tenure of policies relating to general insurance normally are not permanent unlike the life insurance policies. In fact, most of the general insurance agreements are annual. However, there are a few products that are long term.