With the popularization of social security, people are already familiar with insurance. In the event of illness, childbirth, unemployment, etc. Insurance can provide people with the necessary help and reduce the burden on the insured. In addition to social insurance, commercial insurance is also more popular. In recent years, the development of commercial insurance in my country has become more and more vigorous. So what is commercial insurance and what is the difference between it and social insurance? What types of commercial insurance are there? These questions are answered below.
What is commercial insurance?
Commercial insurance is relative to social insurance. At present, my country’s insurance is divided into two categories, namely social insurance, and commercial insurance.
Social insurance (including rural cooperative medical insurance, urban medical insurance, enterprise employee medical insurance, etc.), which is underwritten by relevant state departments with low cost, wide coverage, and reimbursement for major and minor illnesses, is welfare provided by the state, mainly to help people reduce the burden of medical expenses, and the underwriting threshold is low, but the reimbursement is limited, and imported drugs, self-paid drugs, etc. are not reimbursed.
The other type is the more common commercial insurance. Commercial insurance is underwritten by insurance companies, with a wide variety of products, which can protect personal safety, health, accident, property, and other aspects. Commercial insurance is an insurance contract signed by the insured and the insurance company, and the insured will take effect after the insured pays the corresponding premium. During the guarantee period, if the insured (or some of the insured’s property) has some insurance accidents stipulated in the insurance contract and meets the insurance company’s responsibility, the insurance company will bear the loss and pay the corresponding insurance money according to the contract.
What are the types of commercial insurance?
Given the complexity of commercial insurance, the main products of different insurance companies are different, and the scope of protection they focus on is also different. At present, there are many types of commercial insurance, which are divided into property insurance and personal insurance.
Property insurance
Property insurance is mainly based on people’s property protection. Commonly there are auto insurance, family property insurance, enterprise property insurance, ship insurance, liability insurance, cargo transportation insurance, accident insurance, agricultural insurance, engineering insurance, credit insurance, etc.
It can be seen that there are many subdivision types of property insurance, and the main purpose is to reduce people’s property losses. Auto insurance is closely related to ordinary users, and the more common motor vehicle loss insurance, third-party injury insurance, etc., are property insurance.
Personal Insurance
Life insurance is a major category of commercial insurance, mainly related to “people” and closely related to people’s health and life expectancy. At present, the more common life insurances on the market are accident insurance, critical illness insurance, medical insurance, life insurance, and annuity insurance.
Among many personal insurances, critical illness insurance, medical insurance, accident insurance, and life insurance are the four most popular types of insurance.
Critical illness insurance:
Taking specific diseases as the insured object, it is divided into multiple critical illness insurance and single payment critical illness insurance according to the number of critical illness payments. At present, most critical illness insurance has a relatively rich coverage, which can cover multiple protection responsibilities. In addition to critical illness protection, it often also takes into account the protection responsibilities for moderate and mild illnesses. The model means that as long as the insured meets the diseases stipulated in the insurance contract and meets the insurance liability, the insurance company will pay the corresponding insurance money, and the insured is not required to be treated first.
Medical insurance:
The insured’s certain medical behavior is the object of protection. At present, short-term medical insurance is mostly used. Most medical insurance adopts the “reimbursement compensation” method of claim settlement, that is, the insured person receives treatment first, and then applies for insurance benefits by the process. The amount of insurance paid by medical insurance is often less than the actual cost of treatment spent by the insured, and the purpose is to “compensate”.
Life Insurance:
Based on the life of the insured, it is divided into fixed life and whole life insurance. The purpose of life insurance is to continue the love and responsibility of the insured, and the beneficiary and the insured are often not the same people.
Accident Insurance:
It can reimburse the death/disability or medical expenses of the insured due to accidental injury. Accident insurance covers a wide range of coverage, especially comprehensive accident insurance, which often has the characteristics of low premium and high insured amount. Moreover, this type of insurance has few restrictions on users, and the product is cost-effective.
