Insurance.Docx

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Table of contents
Table of Contents
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{text:bookmark-start} 1. Overview of indemnification policy {text:bookmark-end}
{draw:frame} policy is a contr figure push through between two parties whereby one troupe agrees to undertake the risk of another in exchange for servant known as premium and promises to pay a located sum of money to the other caller on contingency of an uncertain event (death) or after the expiry of a certain period in case of life indemnity or to indemnify the other party on hazard of an uncertain event in case of general insurance.

The party bearing the risk is known as the insurer or assurer and the party whose risk is covered is known as the insured or assured. Insurance provides financial security measure against a loss arising out of calamity of an uncertain event. A person can avail this protection by paying premium to an insurance company.

A jackpot is created through contributions made by persons seeking to protect themselves from public risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool. Following figure explains the mechanism of insurance.


Insurance works on the basic principle of
risk-sharing.




A great advantage of insurance is that it
spreads the risk of a few people over a
large group of people exposed to risk of
kindred type
{text:bookmark-start} 2. Types of Insurance {text:bookmark-end}
Insurance is of two types:
Life Insurance Non – Life Insurance or universal Insurance {text:bookmark-start} {text:bookmark-start} {text:bookmark-start} 2.1 Types of general insurance {text:bookmark-end} {text:bookmark-end} {text:bookmark-end}
car *I*nsurance* :*- Auto insurance protects you against financial loss if you have an accident. It is a lease between you and the...If you want to get a full essay, ordain it on our website: Orderessay



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