In our daily life we all hear this word “Insurance” many times, but actually how many people know about Insurance that what is insurance all about. OK, think and
tell me what comes into mind when we hear about insurance. Yes! It is right that is an kind of assurance or guarantee in it like we pay something and other party guarantee for our help in a uncertain conditions with us or any kind of loss. Now try to understand insurance with a general and easy example in simple words if I purchase an insurance plan from a insurance company to insure my home from any kind of damages or losses than first I have to fill the agreement and sign it with a promises’ not to cheat the company in how and pay money for this insurance.
tell me what comes into mind when we hear about insurance. Yes! It is right that is an kind of assurance or guarantee in it like we pay something and other party guarantee for our help in a uncertain conditions with us or any kind of loss. Now try to understand insurance with a general and easy example in simple words if I purchase an insurance plan from a insurance company to insure my home from any kind of damages or losses than first I have to fill the agreement and sign it with a promises’ not to cheat the company in how and pay money for this insurance. And further more it is for a specific time period till than we have to pay money to the insurance company to continue with the agreement. Either we suffers any home loss than insurance company cover this loss in compare with our agreement or after completing the insurance period they paid our amount with some interest and bonus as per insurance agreement.
Now we are discussing insurance in a professional way, here as per law and economics, insurance is a term of risk management, it provides the coverage against uncertain loss or damages for entity .It can be defined as equal funds transfer to another entity by exchanging payment for the risk.
In insurance, insurer sells insurance agreement called insurance policy, and insured or who takes the policy known as policy holder. Insurance company charges an amount for this policy to provide the risk cover against any loss or damages to the entity , these charges known as premium and insurance premium is calculated by insurance rate factor. Insurance policy creates a legal bond between insurer company and policy holder.
Now we are discussing insurance in a professional way, here as per law and economics, insurance is a term of risk management, it provides the coverage against uncertain loss or damages for entity .It can be defined as equal funds transfer to another entity by exchanging payment for the risk.
In insurance, insurer sells insurance agreement called insurance policy, and insured or who takes the policy known as policy holder. Insurance company charges an amount for this policy to provide the risk cover against any loss or damages to the entity , these charges known as premium and insurance premium is calculated by insurance rate factor. Insurance policy creates a legal bond between insurer company and policy holder. 
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