Insurance

Student’s Name

Institution 

Contents

Family Insurance Services. 3

Abstract 3

Introduction. 4

Types of Family Insurance. 4

AED 200, 000 Car Budget 4

Quotations of Insurance Companies. 5

Difference Between the Motor Insurance Types. 5

Travel Insurance. 6

The Reason for Dependence on Car and Health Insurance. 7

How to Create Market For Other Insurance Services. 8

Report on Investment in Trade of Shares. 8

Reasons for Change in Prices of Shares. 9

Income from owning Shares. 9

Reduction of Capital Loss in Shares Investment 9

Conclusion. 10

References. 11

Family Insurance Services

Abstract

 

There are varied insurance service types that cover family losses and damages. However, the most common in the UAE are the car and business insurances. So many factors including ignorance and monetary value are key to the little use of the other services among the UAE citizenry. As such, the insurance companies should employ strategies that aim at increasing their customer base (Clarke, 1997).

The two types of car insurance, comprehensive cover and the third party insurance, cover for the losses in car ownership on varied scales depending on the monetary value. Apart from compensation for the damages and losses incurred, insurance also come with other packages of benefit like leasing of cars in the case of car insurance (Clarke, 1997).

 

Introduction

 

The equitable reassignment of risk and jeopardy with monetary value is the primary definition of insurance (Clarke, 1997). Insurance services are varied and cover numerous fields. Beneficiaries of insurance services may be institutions, parastatals, businesses or even families (Ferrarini, 2006).

Types of Family Insurance

 

Among the most common insurance types that are secured by family households include property insurance, travel insurance, health insurance, and life insurance. Travel insurances offer compensation for inconveniences met during long trips (Ferrarini, 2006). Health insurance helps families meet medical bills that fall beyond the household income on one hand. On the other hand, life insurance offers monetary compensation for loss of loved ones. Property insurance is a reimbursement for property damage or complete loss (Merkind and Stuart, 2004).

AED 200, 000 Car Budget

 

With a 200, 000 AED budget, my objective would be to purchase a car with powerful and modern features that still allows room for purchase of the best insurance cover. That would influence my choice to a BMW Z4 automatic with a horsepower of 2000cc. The vehicle is averagely priced at 185, 000 AED. The horsepower allows for regulated fuel consumption hence reducing expenses.

Quotations of Insurance Companies

 

Several companies have sprung in the recent past to offer insurance services in the UAE. Emirates Insurance Company (Eminsco), for instance, has grown to become one of the dominant factors in the industry. Eminsco’s third party car insurance policy covers only covers damage to property and or property loss in the event of an accident. Its comprehensive cover, on the other hand, covers all the inconveniences burdened upon a client in the case of an accident. For a brand new Toyota Landcruiser that costs 185,000 AED, Eminsco charges 1,800 AED for third party and fire insurance. For comprehensive cover, the company charges 4,500 AED.

American International Group, Inc (AIG), is the other company that has gained ground in the UAE. It’s services are virtually the same compared to Eminsco. The American company charges 1,700 AED for third party insurance and 4, 150 AED for comprehensive cover.

My preference would be a comprehensive protection from AIG because apart from the compensation, they also offer a three-month lease period in case of serious accident or loss of car. In as much as the compensation offered by Eminsco meets the challenges set by AIG, the rental period is quite limited and is set at 21 days.

Difference Between the Motor Insurance Types

 

The two types of motor insurance have variations that range from price to cover (Clarke, 1997). The Third Party insurance cover offers compensation for occupants of a vehicle in two dimensions. The first dimension is angled at covering the losses incurred through property damage to individuals whose property were at the accident scene. The second option covers theft of property or loss through fire in case the vehicle is stolen or catches fire. The insurance of the Third Party covers not the damage to or loss of car.

On the other hand, Comprehensive insurance is more diversified and covers all aspects of risks and losses that can be incurred in the event of an accident (Ferrarini, 2006). It may cover damage to both the vehicle or to property at the scene of the accident. Like the third party, it also covers loss of property through theft. The cover may also come with additional services like lease of another for the duration in case of theft or complete damage (Merkind and Stuart, 2004).

The Third party insurance is offered at a lower charge compared to a comprehensive insurance. That is a resultant of inclusion of a wider range of risks. It is the risk range covered by a comprehensive scheme that makes it a better option (Merkind and Stuart, 2004).

The Third Party may not be necessarily cheaper compared to the comprehensive cover despite the few risks it covers (Merkind and Stuart, 2004). Moreover, it doesn’t provide satisfaction for compensation of losses. Its provisions are mere consolations and still leaves the owner with great financial and emotional disorientations. I would, therefore, choose a comprehensive cover for my car so accrue the full benefits of insurance and avoid tremendous financial losses (Merkind and Stuart, 2004).

Travel Insurance

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