Types of insurance


Professional liability insurance protects the insured’s property interest in cases where property, life and health of third parties (service consumers) are damaged as a result of unintentional errors, oversights, omissions, etc. in the course of providing professional services.

In the case of voluntary insurance, there are no clearly defined insurance amounts – liability limits that must be specified in the contract. In each case, the limit is set by agreement of the parties. If it is a compulsory type of insurance, the terms of insurance are clearly regulated by law.

One of the most important mechanisms for redistributing risks is reinsurance, which is a system of economic relations under which an insurer, when accepting risks, transfers part of the liability for them to other insurers on agreed terms in order to create a balanced insurance portfolio and ensure the financial stability of insurance operations.

Depending on the degree of freedom of the reinsurer and reinsured to cede and accept reinsurance risks, they are distinguished:

  1. Optional reinsurance. The reinsurer cedes certain risks to reinsurance, and the reinsurer must obtain an accurate understanding of the individual risk offered to it before assuming the obligations under the reinsurance agreement.
  2. Bond reinsurance. The reinsurer undertakes to reinsure all specifically identified risks within the agreed territory of insurance coverage, i.e. the reinsurer does not identify and assess the risk in each case.

Depending on the system of risk allocation between the reinsurer and the reinsured, there are different types of risk sharing:

  1. Disproportionate reinsurance is reinsurance under which the reinsurer is liable for losses exceeding a certain amount.
  2. Proportional reinsurance is reinsurance in which the reinsurer and reinsured share in a fixed proportion of premiums and losses for each risk in accordance with the agreement reached.

Aviation insurance is a compulsory type of insurance regulated by the resolutions of the Cabinet of Ministers of Ukraine.


  1. Aircraft hull insurance. The aircraft is insured against the risks of total destruction and damage as a result of any aviation events that may occur both in the air and on the ground, while taxiing or under other circumstances.
  2. Responsibility of the aircraft operator. The policy covers unintentional damage that the aircraft operator may cause to third parties.

For example:

  • liability to third parties;
  • responsibility to passengers;
  • responsibility for hand luggage;
  • responsibility for luggage, cargo/message.

Aviation insurance is intended for aircraft owners, persons who do not own aircraft but operate them legally. In other words, both private owners and legal entities – airlines that operate flights on a regular basis – can act as insureds under the contract.


VHI (voluntary health insurance) is a type of personal insurance that provides insurance for medical expenses necessary to restore the health of the insured person.

Corporate VHI programs include a number of standard (risk) options, including: outpatient clinic, inpatient treatment, emergency care, and provision of medicines. Additional options at the client’s request may include dentistry, wellness, etc. The VHI program provides access to medical institutions of various levels, including highly specialized ones.

Another advantage of the VHI is the possibility of access to the service of organizing medical care (the so-called medical assistance). Assistance reduces the time spent by the insured person to find and receive the necessary medical services. This type of insurance is relevant in any business, as the company’s productivity is always directly related to the efficiency of its employees.

International health insurance is a type of voluntary premium insurance.

This type of insurance makes it possible to receive medical care abroad, mainly in Europe. A number of legislative issues in Ukraine limit the possibility of obtaining this type of insurance for legal entities.

As a rule, international VHI is used in tandem with a local VHI program. It is in demand by top managers and business owners in all market segments.

Accident insurance is a type of personal insurance that covers such risks as injury, disability (groups 1, 2, 3) and death of the insured person as a result of an accident, i.e. due to external factors. There are two forms of this type of insurance: compulsory insurance and voluntary insurance.

The main indicators of the quality of an accident insurance program are the sum insured and the payout percentage. The beneficiary in this type of insurance is the insured person, unlike VHI, where the beneficiary is usually a medical institution.

This inexpensive type of insurance, due to the low risk of an insured event, is typically used in the industrial sector by companies whose activities are related to production. Such insurance is also in demand by companies whose employees are exposed to increased risks associated with their professional activities, such as pharmaceutical companies whose pharmacists spend most of their working time driving.

Term life insurance is a type of personal insurance that covers such risks as death and disability (groups 1, 2, and in some cases 3) as a result of illness.

Due to the low cost (given the low risk of an insured event), a mix is usually used: when the above risks are supplemented by coverage not only as a result of illness, but also as a result of an accident (i.e., for any reason), which makes it possible to include the risk of injury in the coverage. The beneficiary, just as in accident insurance, is the insured person. Unlike long-term accumulative insurance, the term life insurance period is 1 year.

As a rule, it is in demand by companies that have faced social responsibility to employees who have become disabled or families who have lost their main breadwinner.

Insurance of medical expenses in case of traveling abroad provides for the organization of medical care in acute emergency cases. The beneficiary can be either the insured person (as compensation for expenses) or a health care facility. Routine medical services are not covered.

The tariff for this type depends on the number of days of stay abroad during the year. Insurers usually use outsourcing companies that have international assistance, which is the main indicator of program quality.

It is used by companies whose employees often travel abroad for professional activities (projects abroad) or for vacation.


This type of insurance is suitable for all participants in the logistics chain involved in the transportation process – the cargo owner, freight forwarder or carrier.

Cargo insurance is designed to cover the risks to which cargoes are directly exposed during their transportation/transportation, loading/unloading/shipping and intermediate storage. In other words, this type of insurance covers physical damage to cargo, its complete destruction or loss as a result of any adverse events, including theft and disappearance of the means of transportation, but excluding mysterious disappearance.

Insurance is based on one of three conditions:

  • With responsibility for all risks. All risks are covered, except for those specifically stipulated. It is used for all types of transportation.
  • With liability for a private accident. Several specially stipulated risks are covered. It is mainly used for insurance of goods transported by sea.
  • No liability for damage, except in the event of an accident. Several specially stipulated risks are covered. In this case, damages are not covered, but only if they occurred not in the event of an accident.

This type of insurance is based on the liability borne by the freight forwarder and/or road carrier for the cargo accepted for transportation to the cargo owner or the customer of transportation.

The insurance is suitable for transport operators that legally provide forwarding services (freight forwarders, road carriers) and can be carried out on the basis of one of the conditions:

  • All the risks. Risks of liability to the cargo owner and/or the customer of transportation and liability to third parties for damage caused to the cargo as a result of any event, except as specifically agreed, are covered.
  • The risks are named. Risks of liability to the cargo owner and/or the customer of transportation and liability to third parties for damage caused to the cargo only as a result of the specified risks, for example: Road traffic accidents, road traffic collisions, theft, fire, etc.

Upon additional agreement, the contract may cover liability for late delivery. In addition, this is one of the few types of insurance where it is possible to notify the insurance company not upon the occurrence of an event, but upon receipt of a claim from third parties. Such a possibility is agreed upon separately before the conclusion of the insurance contract and is specified in it.

One of the main activities of the largest insurance companies is the insurance of sea and river vessels, specialized marine equipment, and other means of water transport.

As a rule, insurance is provided on an annual basis, but upon agreement with the owner, it is possible to insure the vessel for a shorter period or for a single voyage.

Objects of insurance under a marine hull insurance policy:

  • damage and/or destruction of the vessel as a result:
  • marine hazards;
  • fire, explosion;
  • intentional damage to the vessel by third parties;
  • Throwing cargo or parts of the vessel overboard to save it;
  • piracy;
  • contact with fixed and floating objects;
  • ship collisions;
  • volcanic eruptions, earthquakes, lightning strikes;
  • the presence of latent defects and unforeseen breakdowns of the hull, machinery and equipment;
  • negligence and negligence of the ship’s crew, officers, pilots and stevedores;
  • negligence and negligence during ship repair;
  • Baratria;
  • contact with aircraft;
  • contribution to the general accident by the ship’s share;
  • Rescue costs;
  • costs to prevent, reduce and determine losses.

Insurance premium rates depend on:

  • the vessel’s service life;
  • type of vessel;
  • of the swimming area;
  • the scope of insurance coverage;
  • franchise.

And they are approximately:

  • for vessels with a service life of 1-10 years – 0.2% – 1.0%;
  • for vessels with a service life of 10-20 years – 0.7% – 2.0%;
  • for vessels with a service life of 20-30 years – 1.7% – 3.0%.

The insurance rules may, by agreement of the parties, provide for a refund of the agreed part of the premium for the time the vessel is at a safe port for more than 30 days.


By purchasing a CMTPL policy, you disclaim liability for material damage that you may cause to the life and health, as well as property of the victims, within the policy limit. The mechanism of compulsory civil liability insurance will work even if the culprit of the accident is not known or the insurer is declared bankrupt. The victim of an accident will still receive compensation from the association of insurers – MTIBU (Motor (Transport) Insurance Bureau of Ukraine).

Compulsory motor third-party liability insurance is a protection mechanism that is implemented to ensure compensation for damage caused to the life, health, and property of persons who suffered as a result of road traffic accidents. According to the Law of Ukraine “On Compulsory Insurance of Civil Liability of Owners of Land Vehicles”, this type of insurance is mandatory for any vehicle owner, regardless of ownership (legal entity or individual). The limit of indemnity within which the insurer undertakes to compensate the victims for the damage caused upon the occurrence of an insured event is set by the Law “On Compulsory Insurance of Civil Liability of Owners of Land Vehicles”:

  • UAH 100,000 for damage to the victim’s life and health;
  • UAH 50,000 for damage to the victim’s property.

The cost of the policy depends on the following factors: type of vehicle, place of its registration, ownership of the owner, insurance terms, and the scope of use of the vehicle (taxi). The cost is calculated by applying correction factors to the basic payment (UAH 180). All coefficients are developed by the MTIBU, so the cost of an MTPL policy practically does not differ from one insurance company to another.

Voluntary insurance of civil liability of owners of land vehicles (VCL)

By its very nature and purpose, voluntary motor third party liability insurance is no different from MTPL. The main differences are as follows:

  • Unlike compulsory insurance, this type is voluntary and is intended to cover losses in excess of the limits set for compulsory insurance;
  • the limit is not restricted by law, but only by the insurer’s financial capabilities.

There are a lot of vehicles worth more than 50 thousand on the roads. UAH. And it often happens that the established limit for compulsory insurance is not enough, and even if you have a compulsory insurance policy, you still have to pay part of the amount out of your own pocket. However, in the case of purchasing a VCL policy, losses in the amount of more than 50 thousand. UAH will also be reimbursed.

Motor hull insurance is a protection against a set of risks to which a vehicle is exposed while in motion or during storage. Vehicles and additional equipment can usually be insured against:

  • Damage or destruction as a result of an accident;
  • Damage or destruction due to unlawful acts of third parties;
  • Illegal seizure of a car as a result of theft (theft, robbery, robbery);
  • Damage or destruction due to natural disasters, falling trees and other objects;
  • Damage or destruction of the insured car as a result of fire or explosion;
  • Damage or destruction due to animal attack.

This type of insurance is suitable for any vehicle owner, regardless of the form of ownership – whether it is a legal entity or an individual.

Insurance rates are based on the type of vehicle, its age, cost, use and storage. This type of insurance takes into account the driver’s length of service, road traffic accidents, the duration of insurance, and the insured’s share of the insurance indemnity. The sum insured shall be set within the actual market value of the vehicle at the time of entering into the insurance contract.


Property insurance is one of the most extensive areas of insurance, including various types of insurance for legal entities and individuals, where the object of insurance is a property interest related to the ownership, use and disposal of property, most often real estate or inventory.

Property insurance is also known as “fire” or “fire risk” insurance, although the list of risks usually included in property contracts is much broader. Standard insurance coverage includes the risks of damage to the insured property as a result:

  • fire, lightning, smoke damage;
  • different types of explosions;
  • natural disasters (floods, earthquakes, heavy rains, etc.);
  • illegal actions of third parties, including theft or robbery.

When insuring property, it is possible not to choose a list of risks from the proposed ones, but to insure against any unforeseen event. Such insurance is called “Allrisk” insurance and covers all risks, except for certain exceptions specified in the contract (for example, terrorism), but it costs about 30% more than regular insurance.

First of all, property insurance is useful for owners of large real estate objects, operators of warehouse complexes, and owners of large consignments of expensive goods.

This type of insurance covers the risks to which buildings and structures under construction, as well as installation facilities (e.g., power lines) may be exposed during their construction or installation.

Insurance is provided after a comprehensive risk assessment by insurance company underwriters. The insurance coverage starts from the moment of commencement of construction works or after unloading of construction materials and other insured items at the construction site and ends at the moment of commissioning of the facility. In addition to the main insurance period, it is also possible to extend the insurance coverage to the maintenance period.

In some cases, companies resort to insuring unfinished real estate as ordinary property. Most often, if such insurance is required by a bank that has the unfinished building as collateral. However, it should be borne in mind that such insurance does not cover construction risks and the property owner will not be provided with full insurance coverage.

Third-party civil liability insurance is one of the most effective and reliable methods of protecting property interests related to liability for damage caused to life, health or property of third parties. It will be useful for large companies, small entrepreneurs, and even individuals.

When insuring this type of liability, there are no clearly fixed amounts of insurance. The sum insured is set by agreement of the parties. Also, at the request of the parties, the insurance agreement may set separate limits of indemnification for a particular case. According to the client’s wishes, the tariff for each specific agreement is determined.