Insurance an introduction Insurance is a business based on contract. According to this contract, one party pledges to provide protection to the other party from the adverse consequences of accidental events. In a contract of insurance, the risk-taking party is the insurer (Insurance). The other party is called the insurer (insurance) who returns the premium to the insurer. (Extradition), the document in which the contract terms are written is called a policy or policy.
Meaning of insurance
Insurance is a contract between two parties whereby one party who insures is called an insurer, the other party who insures is called an insured or insured. The one who gives a definite return to the beneficiary is called a premium, in exchange for the occurrence of the specified event against which the insurance is insured and pledges to pay a certain amount of insurance. When the Ikit event promises an amount provided or compensation. ” According to Maggie DH – “Under the insurance, the insurer promises to pay the loss due to the occurrence of a certain event in return for the premium.”
Type of insurance
Depending on the subject matter or nature of the insurance, the insurance can be classified as follows: 1. Life insurance 2. Fire insurance 3. Marine insurance 4. Other types of insurance.
Human life is full of uncertainties. In order to live, a person has to do many actions, in which there are risks at every step. An accident or illness can lead to untimely death. In such a situation the family of the deceased has to face financial difficulties. Similarly, in old age, the person does not have enough money to live comfortably, get medical treatment. A large amount of money is required to get your children married or to get them higher education. With life insurance, we can get protection from future situations. In this, the insurer pledges to pay a certain amount on the death of the insured or at the end of a certain period. In return, the insurer (insurance company) takes a fixed premium in installments. Now because the insured risk is sure to happen. Therefore, the insured person is also sure to get the insurance amount late. The insured person feels safe, so life insurance is also called life assurance.
Life insurance was introduced to provide protection from life’s uncertainty. But gradually its area has been extended to health insurance, disability insurance, pension scheme etc. There are basically two types of life insurance policies. A. Life insurance policy and B. Endowment insurance policy. In the life insurance policy, the premium amount has to be paid regularly for the life assured or for a fixed period. The amount is payable to the insured’s insured after his death. This policy is taken by a person who wants to extend financial assistance to his dependents after his death. On the other hand endowment insurance policy is for a fixed period of time ie the sum assured is paid by the insurance company in the event of death of the insured before he attains a certain age or before attaining that age. In addition to life and endowment policies. Many other policies were also introduced. The aim of which is to encourage customers to invest funds. The importance of protecting and saving from the risks together increases their importance.