Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as premium.
Over the years, the concept of insurance has evolved and now covers a wide range of areas which include life, medical, accident, property, travel, business, pet, etc.
Insurance is a business that yields huge profits. It is based on the principles of risk transfer commonly known as 'pooling' and large numbers. The insurance company charges a premium from policy holders and pools the amount.
Honesty in insurance contracts is a must. If the information provided is proved to be wrong, or if facts are concealed, the insurance policy becomes null and void. A property or asset can only be ensured by a person who owns it. This is known as 'insurable interest'. Indemnity is another basic principle of insurance where in compensation is given only to the extent of the loss and within the monetary limit of the policy.
Over the years, the concept of insurance has evolved and now covers a wide range of areas which include life, medical, accident, property, travel, business, pet, etc.
Insurance is a business that yields huge profits. It is based on the principles of risk transfer commonly known as 'pooling' and large numbers. The insurance company charges a premium from policy holders and pools the amount.
Honesty in insurance contracts is a must. If the information provided is proved to be wrong, or if facts are concealed, the insurance policy becomes null and void. A property or asset can only be ensured by a person who owns it. This is known as 'insurable interest'. Indemnity is another basic principle of insurance where in compensation is given only to the extent of the loss and within the monetary limit of the policy.
No comments:
Post a Comment