Insurance business in India is broadly divided into four types, which include life insurance; fire insurance; marine insurance and miscellaneous insurance. Life Insurance is the contract between the insurer and the person who is insured against the risks to his life. A fire insurance is a contract under which the insurer in return for a consideration (premium) agrees to indemnify the insured for the financial loss which the latter may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period. Marine insurance is an agreement whereby the insurer undertakes to indemnify the assured, in the manner and to the extent agreed, against losses incidental to marine adventure. 'Life insurers' transact life insurance businesses while 'General insurers' transact the rest. No composites are permitted as per law. But, a person can take as many insurance policies as he likes and all the policies can be realised on their maturity. Hence, a policy of 'double Insurance' is offered by the insurance companies. Under it the insured person may insure the same risk with two or more insurance companies in order to protect himself against any loss that may arise due to any of the insurers becoming insolvent and wherein the total sum insured exceeds the value of the subject-matter. If a loss occurs, he may claim payment from the insurers in the order he deems to be fit. However, each insurer is liable to contribute to the loss in proportion to the amount for which each one is liable and the insured cannot recover more than his actual loss from the insurers together.
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