What does an insurance policy mean, and what does a policy in insurance mean

The umbrella insurance contract refers to the insurance contract in which the insurer determines a total insured amount for all the properties of the same place and the same owner insured regardless of the category, and in the event of loss, regardless of the type of property lost, as long as it is within the limit of the total insured amount, it can obtain compensation.

A blanket insurance policy, also known as a closed insurance policy, is a general insurance policy for a certain insured subject matter by the insurer within the agreed insurance period, which is applicable to cargo insurance that is shipped in batches for multiple times in a whole batch, with a short transportation distance, and similar types and values of each shipment[1].

For example, a life insurance policy, the payment period is often as long as 10 or 20 years, and some policyholders will inevitably fail to pay in time due to various reasons, resulting in the policy "disconnection" and invalidity.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

The insurance policy must clearly and completely record the rights and obligations of both parties to the insurance, and the policy mainly contains the name of the insurer and the insured, the subject matter of the insurance, the amount insured, the insurance premium, the insurance period, the scope of liability for compensation or payment, and other specified matters. The insurance policy is the main evidence for the insured to claim compensation from the insurer when the insured suffers losses due to an accident and is also the basis for the insurer to collect insurance premiums.

The main contents of the insurance policy include:

1. Statements.

The important information provided by the applicant is set out in the insurance contract as the basis for the insurer to assume the risk of hardship. Such as the name and address of the insured, the name and place of the subject of insurance, the amount of insurance, the duration of the insurance, the number of premiums paid, and the warranties or undertakings made by the insured to the relevant dangers.

2. Insurance matters.

That is, the insurance liability that the insurer should bear.

3. Exclusions.

That is, the insurer's liability is appropriately modified or limited, and the insurer is not liable for losses caused by the excluded perils.

4. Conditions.

That is, the obligations that both parties to the contract need to perform in order to enjoy the rights, such as the liability of the insured after the accident, the statute of limitations for applying for claims, the exercise of the right of subrogation, the change, transfer, cancellation of the insurance policy, and the choice of compensation.

5. Other matters.

Such as dispute resolution clauses, statute of limitations, etc.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Summarizing the evaluation of insurance policies.

In this insurance method, the insured only needs to agree on an insurance scope with the insurance company, specify the subject matter of insurance, the total amount of insurance, the voyage, the type of insurance, etc., pay a total insurance premium, and the two parties agree on an insurance period, during which all goods within the scope of insurance are covered[1].

The insured does not have to notify the insurer when each shipment of goods, and the insurer does not calculate the insurance premium for each shipment. In the event of compensation, it will be deducted from the total amount of insurance, and the total amount will be deducted, and the insurance liability will be terminated. If the insured wants to continue to receive insurance protection, he or she can add a reinstatement clause and pay a pro-rata premium to restore the original insurance liability.

This type of insurance policy is mostly used for goods that are sold in batches, shipped in multiple batches, have short transportation distances, and have similar types and values of goods for each shipment. It has the advantages of simplifying insurance procedures and saving time for both insurers and policyholders.

There are several types of insurance: property insurance, life insurance, liability insurance, and credit insurance.

Property insurance is divided into car insurance, fire insurance, plant insurance, flood insurance, enterprise property insurance, family property insurance and other life insurance, which is divided into health insurance, financial insurance, accident insurance, etc., among which there are dividend insurance, universal insurance, investment-linked insurance, pension insurance, children's insurance, critical illness insurance and other classifications.

Liability insurance includes product liability insurance, public liability insurance, etc.

Credit insurance includes import and export credit insurance, loan credit insurance, etc.

According to the provisions of China's "Insurance Law", the establishment of an insurance contract does not depend on the issuance of an insurance policy, as long as the policyholder and the insurer agree on the terms of the contract, the insurance contract is established, even if the insurance policy has not been issued, the insurer should be liable for compensation. Except where the parties to an insurance contract agree in the contract that the issuance of an insurance policy shall be a condition for the contract to take effect.