Insurance is nothing but transfer of risk
. In other words “Insurance is acontract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay afixed sum of money to the other party on happening of an uncertain event”.
The future is always uncertain.
The entire business process has to face numerous risks and uncertainties.
Uncertainty comes from changes in economic, social and political trends.
Most business decision making takes place on the basis of expectationabout the future
Risk refers to the possibility that something dangerous might happen.
Making decision on the basis of assumptions, expectation and forecast of future events involves taking risk.
For all this types of risks can be reducing by the help of insurance.
Insurance is nothing but it is only risk transfer to other’s shoulder.
Many natural risks or losses can be avoided through insurance.
There are many insurance companies in India which is taking lifeinsurance as well as also general insurance.
There are two types of insurance life insurance & non-life insurance.
And there are three types of general insurances.
V.M. Patel College Of Management StudiesGanpat University, Kherva2