Which of the following is a type of pecuniary insurance?

The correct answer relates to a category of insurance designed to cover financial losses resulting from specific risks, which is characteristic of pecuniary insurance. Political risk insurance specifically protects businesses or investors against losses resulting from political disturbances such as expropriation, war, or other political events. It provides a financial safety net in scenarios where these events might impact the ability to conduct business or protect investments in certain regions.

In contrast, other types of insurance listed do not primarily focus on pecuniary losses related to political events. Critical illness insurance typically covers medical costs or provides a lump sum payment in the event of a serious health condition. Professional indemnity insurance is designed to protect professionals from legal claims made against them for negligence or malpractice. Payment protection indemnity insurance covers loan repayments in case the policyholder is unable to work due to certain circumstances, safeguarding against individual financial liabilities rather than broader political risk.