What Is Insurance?


12 Answers

Nikhil Kar Profile
Nikhil Kar answered
Insurance is a promise or an assurance by the insurer to the insured to compensate for specific potential future losses in exchange for periodic payments (premiums). Insurance is designed to protect individuals, entity, firms, etc. Against unexpected financial losses. Some insurance forms are mandatory by law while others though extremely useful like life and health insurance are optional.
Haider Imtiaz Profile
Haider Imtiaz answered
Insurance: Human life is exposed to many risks, which may result in heavy financial losses. Insurance is one of the devices by which risks may be reduced or eliminated in exchange for premium. In words of Chief Justice Tindal, "Insurance is a contract in which a sum of money is paid by the assured in consideration of the insurer's incurring the risk of paying larger sum upon a given contingency.

In this legal aspect it is a contract whereby one person agrees to indemnify another against a loss which may happen or to pay a sum of money to him on the occurring of a particular event. All contracts of insurance (except marine insurance) may be verbal or in waiting; but practically contracts of assurance are included in a document.

Some principles of insurance: The following are the basic essentials or requirements of insurance concerned.
1. Utmost good faith. All types of contracts of insurance depends the contracts of utmost good faith. Both parties (insurer and the insured) in the contract must disclose all material facts for the benefit of each other. False information of non-disclosure of any important fact makes the contract avoidable. So the conditions to show utmost good faith are very strict on the part of the insured.

2. Insurable interest. The insured must possess an insurable interest in the object insured. It may be defined as a financial interest in the subject matter of contract. The presence of insurable interest is a legal requirement. So an insurance contract without the existence of insurable interest is not legally valid and cannot be claimed in a Court. The object of this principle is to prevent insurance from becoming a gambling contract.
Anonymous Profile
Anonymous answered
Vermin in insurance claims
Piyush Kumar Profile
Piyush Kumar answered
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 the premium. When the unexpected misfortune is encountered, the insurance company can step in, helping you out to sail through the dirt.

Insurance comes in many forms and types. You can have liability insurance, life insurance, property insurance, auto insurance and much more.

Life insurance and property insurance are always in the trend but now auto insurance also takes an important part for people. It is also known as vehicle insurance. Vehicle insurance include cars, trucks, motorcycles, and other road vehicles. Car Insurance from the company ranked highest in auto insurance customer satisfaction in India.
Abhishek Ranjan Profile
Abhishek Ranjan answered

Insurance is a type of coverage which cover financial needs of a insured individuals. It also protect a individuals from medical emergencies. Insurance also helps to recover from risk. There are many types of insurance

  1. Health Insurance
  2. Car Insurance
  3. Home Insurance
  4. Life insurance
  5. Travel Insurance
With so many insurance around it is very difficult to make wise decision before purchasing any insurance . So it is always better to compare insurance before buying it.

Akash  kumar Profile
Akash kumar answered

Insurance is commonly known as life assurance. It is an agreement between the consumer and the insurer, where the insurance company offers financial protection or coverage to your family so that they can continue to lead a stable life even in your absence. The payment regarding terminal illness and critical illness depends upon the norms of the insurer. The consumer pays a specified premium amount in lump sum or at regular intervals. Here, your life cover premium depends upon various factors such as age, gender and health condition.

There are various types of insurance are used for different purpose like Life insurance, Car insurance , Home insurance , Health insurance and much more .

Anonymous Profile
Anonymous answered

Insurance is something that gives you the freedom to be stress free and enjoy your life to the fullest. Whether it is car insurance, Life Insurance or so on. But if you had any bad time then Your Insurance company helps you to cope up with the expenses

Simran Kaur Profile
Simran Kaur answered

There are different types of contracts between the insurance policy, the policyholder and the insurance company, which reduce the risk. Broad categories include life, health, car insurance, travel, bike insurance, commercial and business insurance.

Gargi Singh Profile
Gargi Singh answered

Insurance is a legal arrangement by which the government or a company promises to provide a guarantee of financial compensation on death, illness, for specified loss, or damage in return for a payment of a specified premium. It is a protection against a possible eventuality or in simpler terms, a risk-transfer mechanism that ensures complete or partial financial reimbursement against the loss or damage caused by event(s) beyond the control of the insured party.

The insurance company groups clients' risks to make payments more affordable for the insured. There are various forms of Insurance prevalent in the market today. A few types of Insurance available today are:

  • Life Insurance
  • General Insurance
  • Health Insurance
  • Car Insurance
  • Term Insurance
  • Travel Insurance
  • Bike Insurance

Anil Kumar Profile
Anil Kumar answered

Insurance is a contract between the insurer and the insured, where the first promises to compensate any kind of loss incurred to the latter in lieu of the premiums paid to them.

Life Insurance, Mortgage Protection, Final Expense Insurance, Annuity, Health Insurance and Automobile Insurance are some of the most popular insurance types. There are various insurance portals where you can get multiple top insurance quotes online.

Optinsure is such a portal that provides multiple top insurance quotes quickly from a large pool of trusted insurance providers.

thanked the writer.
Tom  Jackson
Tom Jackson commented
Not correct: "in lieu of the premiums paid to them"

I'd never want to use and insurance agent who doesn't know what he is talking about..
Anil Kumar
Anil Kumar commented
Thanks for your comment but it seems that you didn't get what was written above. Insurance companies don't offer the coverage for free. In order to receive the coverage promised in the insurance agreement, you need to pay the premiums on a regular interval to the provider, failing which you may be prohibited from the same. So basically, insurance premiums are offered as a return of premiums only.
Tom  Jackson
Tom Jackson commented
It's very dangerous to even assume I don't get was has been posted---by you or anyone else.

"In lieu of" is incorrect. You are covered because you are paying the premiums.
Anonymous Profile
Anonymous answered

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship.

The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.

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