What are the most common types of insurance?
The document signed between a person and an insurance company is called an insurance policy and enters into force at the time of signing. The amount paid is called the insurance premium, and the price differs from one company to another, but also depending on the chosen terms. Insurance is a method by which a person can enjoy financial protection when something unforeseen happens.
There are several types of insurance that a person can take out, but the most common are: life insurance, home insurance, ecommerce insurance, health insurance, car insurance and travel insurance.
Life insurance is a classic product, which pays the insured amount in case of death of the insured. Conventional insurance may be supplemented by contracts which include clauses relating to the insured 's incapacity for work in the event of an accident or relating to death as a result of an accident.
A health insurance gives protection by covering what we have to pay for a medical problem. This can be concluded by individuals domiciled or resident in Romania, respectively by companies for their employees. The age limit of the insured varies from one insurance company to another. There are also standard health insurance that covers certain interventions, but also some medical services, configurable as desired by the client.
Homes are also threatened by unforeseen events such as fires, earthquakes, floods or even explosions. At the moment there are two types of home insurance : compulsory (PAD) and optional.
Compulsory insurance is regulated by Law 260/2008 and must be concluded for all buildings used as: service housing, social housing, intervention housing (personal accommodation), necessity housing (intended for temporary accommodation), protocol or holiday home. The risks covered by the compulsory housing policy (PAD) refer to natural disasters such as earthquakes, floods or landslides.
Optional home insurance can fully insure apartments, houses or real estate against the occurrence of certain events provided in the insurance contract. The risks covered by the policy are expressly provided in the optional insurance contract that we conclude and differ from case to case.
It is good to know that the optional policy covers the three catastrophe risks included in the mandatory housing policy (floods, landslides, earthquakes) over the limit of the PAD policy (maximum 20,000 euros).
In the case of car insurance, the most common are the compulsory motor third party liability insurance (RCA) and motor vehicle insurance (CASCO) . The purpose of liability insurance is to cover damage that we may cause to another person. The best known such insurance is RCA. It also protects the injured person, guaranteeing the payment of the amount necessary to cover the damages suffered, but also the person who caused the damage, this being exempted from the direct payment of the damage.
Unlike MTPL which is a compulsory insurance, motor insurance (CASCO) is an optional insurance that covers the risk in case of partial or total destruction of the car caused by an unforeseen event. CASCO can also cover the risk of car theft. CASCO insurance can be an additional cost for the driver, but it is often necessary due to the fact that a car is subject to many risks even during parking (damage, theft, fire, etc.).
Travel medical insurance can be taken out by people who have a permanent residence in Romania and travel abroad. This insurance offers us certain free medical assistance services in case of accidents and illnesses that occurred during the trip.