What is insurance
There are more definitions for insurance which some of them we would like to stateas beneath
A system under which individuals, businesses, and other organizations or entities, inexchange for payment of a sum of money (called a premium), are guaranteedcompensation for losses resulting from certain perils under specified conditions in acontract.
Insurance, in law and economics, is a form of risk management primarily used to hedgeagainst the risk of a contingent loss. Insurance is defined as the equitable transfer of therisk of a loss, from one entity to another, in exchange for a premium.
A means by which individuals can have fewer expenses and more financial coverage inthe event of death or health issues that cannot be foreseen occurring in the future.
A means of indemnity against occurrence of an uncertain event; The business of providing insurance; Metaphoric: Any attempt to anticipate an unfavorable event;Blackjack: A bet made after the deal, which pays off if the dealer has blackjack.In simple word we can say insurance is a contract in which one party agrees to compensateanother party for any losses or damages caused by risks identified in the contract in exchange for the payment of a lump sum or periodic amounts of money to the first party.The essential elements of insurance
of reimbursement in the case of loss; paid to people or companies so concernedabout hazards that they have made prepayments
: the instrument in which the contract of insurance is generally embodied. Means"you should have read the small print on your policy" which is not the contract but it isevidence of the contract.
Indemnity and premium
: protection against future loss
Insurer & Insured:
person who under taking the risk and the person to be compensated.
Subject-matter of insurance and insurable interest:
the thing or property is called thesubject-matter of insurance and the interest of the insured in the subject-matter is calledhis insurable interest.