Insurance means to get financial protection against any loss as a result of any uncertain event and that policy insured will get through insurance company by payment of premium amount and as a result of legal agreement. Insurance is regulated in Pakistan as a result of insurance ordinance, 2000 and from past some time insurance is becoming a developing market in Pakistan. Its reason is only the unsatisfactory conditions in Pakistan that’s the reason people in Pakistan are attracted towards insurance and they want to take insurance against their property, mortgage, vehicle and health etc. Insurance in Pakistan is mainly divided into three categories like in life insurance, general insurance and health insurance. Insurance also contribute a lot in the GDP in country like Pakistan that is around 54 % which is more than as compared to any other sector in Pakistan that is why no one can neglect the importance of insurance. At present, numbers of insurance companies are working in Pakistan like State life insurance company, EFU life insurance, Beema-Pakistan company, Universal insurance company limited and Jubilee insurance company etc. In fact, there is competition created in the field of insurance in Pakistan because there are lots of risks are involved in Pakistan in the lives of people. There are various types of insurance policies are available in Pakistan which are offering insurance companies like
Life insurance: It is important insurance policy through which any person can get protection against his or her life by paying premium amount against all the dangers like if any injury or death occurs to him or her as a result of an accident or due to any reason. Then as a result through this insurance policy his or her family will find monetary benefits in a lump sum cash payment or through an annuity.
General Insurance: It is basically an insurance policy through which insured person protects against losses and damages other those covered through life insurance so it is different type of insurance policy. This type of insurance is further divided in other categories like in
- Vehicle insurance: If any person makes a contract with the insurance company to get this type of insurance policy then through this policy he will get protection against his vehicle against theft or any damage or through liability coverage.
- Health insurance: Through this insurance policy any person can get protection against the cost of expensive private treatment as a result of accident, sickness or remedy of any disease.
- Property insurance: Through this insurance any person can get protection against his property against any disaster or risk like fire, theft, weather damage, flood and earthquake and against property damage.
- Credit insurance: Through this insurance any person can get protection against loan that he has taken when certain things like death, disability and unemployment happen with him or her.
- Liability insurance: This type of insurance covers legal claims that occur against the person who has taken this insurance policy.
All types of insurance polices that we have discussed above can be get for short period or long period depend upon the requirement of person who wants to get any of above insurance policy.