Casualty

Casualty insurance is often associated with liability insurance. It is usually used to give a description of a particular area of insurance which is not directly related with life or property insurance. If it would be defined strictly, casualty insurance has been in a problematic status in the recent years through the increased popularity of high-end insurance contracts. It is basically used in describing liability of a person or other organizations for its negligent omissions or acts. However, the elastic terminology had been used in describing property insurance pro aviation insurance, machinery and boiler insurance, as well as crime and glass insurance. It may also include marine insurance for losses at sea, shipwrecks, surety and fidelity insurance, in addition to political risk insurance, earthquake and terrorism insurance.

One of the most usual types of casualty insurance these days is the automobile insurance. In its basic forms, auto insurance offers liability coverage in the case when a vehicle driver is found to be at fault as a result to an accident. The said insurance may cover medical expenditures of persons involved in the particular accident and so with the repair and restitution of the property being damaged. All of these can fall into the dominion coverage of casualty insurance.

If coverages are extended in order to cover damage in one person’s own vehicle, or from theft, then the policy would not anymore be exclusively set for casualty insurance policy.

In the state of Illinois, vehicle, worker’s compensation, liability, legal expenses, glass and other miscellaneous insurance are included under its own class of casualty insurance. In the year 1956, Clarence A. Kulp wrote in the preface portion to the 4th edition of “Casualty Insurance”, and stated that it was never possible to give a definition of casualty insurance. As spoken broadly, casualty insurance can be defined as one list of individual insurances usually written in separate policy with three extensive categories: liability or third party, accident or disability, and health and material damage. One outstanding result in comprehensive policy writing is to lift up the query on the usefulness of the traditional theory of casualty insurance. Other insurance holders predict that casualty insurance in the future will include disability and liability lines only.

Additionally, chapter two of the said book explains that insurance has been traditionally categorized under fire-marine, life and casualty insurance. And since multiple-end contract policies are started to be written, the most recent categories started to merge. Casualty and fire-marine were immense terms. When the NAIC accepted multiple underwriting in the year 1946, the casualty insurance was being defined as a cover term for the legal liability with the exception to disability, medical care, marine, and other damages to physical belongings.

Some provisions from loss of property and persons that cover legal hazards are also the same as those of sickness and accident. Some major classes include theft, credit, liability, and title. Liability insurance policies can cover a liability arising from the use of vehicle, negligence in profession, property ownership, and malpractice in insurance. Credit insurance, on the other hand, can cover risk against bad debts from death, insolvency, disability, the risk of loss of savings due to bank failure, and the risk of loss of an export because of political and commercial changes.