Importance of insurance

Insurance is a defensive measure used against future conditional losses to cover the possible risks of the future. This is a legal contract that protects a person from contingent risk of losses through financial means and provides a means for individuals and companies to handle some of the risks faced in everyday life.

These insurance policies are called and are provided by insurance companies. Insurance companies charge a regular amount from customers, which is returned, in part or in full, to customers in case of permanent loss. This amount regularly charged customers is called the premium.

REASONS OF INSURANCE:

Sometimes in life you can not avoid losses. For example, people can get sick. You can die of illness or accidents or their homes or other property may be damaged or stolen. So in all these cases and must face the loss of income or savings. So, insurance is a way financially to ensure that if such an incident occurs then the loss does not affect the present well-being.

DOCTRINES OF INSURANCE:

1 There should be some permanent loss took place at a known time, in a known place and a known cause. Therefore, the time, place and cause of loss must be sufficiently clear.

2 The incident that represent the cause of the credit must be accidental or beyond the control of the recipient.

3 The size of the leak must be significant from the point of view of the insured. Insurance premiums should cover both the estimated cost of losses, plus the cost of the policy, which regulates the losses, and the principal that is needed to guarantee logically that the insurer would be able to repay their loans.

4 The amount of the premium must be accessible.

5 The possibility of loss and the cost of compensation should be calculable or predictable

Types of insurance:

Here are some types of insurance.

Life insurance:

Life insurance policy ensures the life of the insured. The insurance company is legally obliged to provide a monetary benefit to the family of a deceased or the beneficiary after the death of the contractor. Income is paid to the beneficiary in a lump sum or an annuity

MEDICAL INSURANCE:

Medical insurance is also called medclaim. With this policy, the insurance policy pays the amount to the insured for its health objective. This amount covers the cost of medical care.

Disability insurance:

There are two types of insurance.One disability disability insurance is simple and the other is total disability insurance. In the simplest case of disability, financial support on a monthly basis is provided by the insurer to the policyholder if he is unable to work due to injury or illness. But the permanent disability insurance provides reimbursement if a person becomes permanently disabled.

GENERAL INSURANCE:

It includes automobiles insurance, business insurance, property insurance etc.

Automobile Insurance:

In the UK this insurance is called motor insurance. It compensates for the loss or damage occurred to the vehicle. But the U.S. policy of auto insurance is essential to legally operate a vehicle on public roads.

Insurance activities:

Insurance protects companies against the risk of losses and damages and compensates for loss

Insurance:

This type of insurance protects the property against risks such as fire, theft, etc. This category also includes fire insurance, flood insurance, earthquake insurance, etc.

Fire Insurance:

This is an insurance that covers damage to property caused by fire.

Flood Insurance:

This type of insurance pays the policyholder in the event of any loss or damage to property due to flooding. It protects the property against flooding.

Earthquake Insurance:

This insurance compensates for property damage caused by earthquake.

IMPORTANCE OF INSURANCE:

Insurance plays an important role in sharing the risks of people in an accessible form.It helps people recover quickly from damage and loss ....