MEANING AND INTRODUCTION TO INSURANCE OR WHAT IS INSURANCE

MEANING AND INTRODUCTION TO INSURANCE OR WHAT IS INSURANCE?

Insurance is a contract between two parties in which one party agrees to compensate the loss happen to one party in near future on the behalf of  premium paid by the other party .


Insurance is a method for protection  from monetary losses. It is a type of risk management instrument which is very helpful in protecting from losses  happen due to some risk or uncertainty.
The body which provide insurance is known as insurer ,insurance company or insurance carrier.

A person or entity who buys the insurance is known as insured or policy holder .The losses may or may not be financial, but it must have some monetary value.

PRINCIPLES OF INSURANCE (CLICK TO KNOW MORE)

1. PRINCIPLE OF UTMOST GOOD FAITH
2. PRINCIPLE OF INSURABLE INTEREST  
3. PRINCIPLE OF INDEMNITY
4. PRINCIPLE OF SUBROGATION 
5. PRINCIPLE OF PROXIMATE CAUSE OR CAUSE OF PROXIMA
6. PRINCIPLE OF CONTRIBUTION 
7. PRINCIPLE OF LOSS MINIMIZATION       

METHODS OF INSURANCE

1. CO-INSURANCE
2. DUAL INSURANCE
3. SELF INSURANCE 
4. REINSURANCE 

There is also various types of insurance.

FORMS OF LIFE INSURANCE POLICIES(CLICK HERE)