Insurance

♠ Posted by Unknown at 8:24 AM

         We are exposed to unlimited risk of our life and property too.No one can predict our future losses or our fortune.We cannot extend the life of ourselves by some magic or other certain things.But we can secure or reduce them.Yes,we can reduce the risk of possible losses and damages by insuring ourselves and the properties that are exposed of theft,destroying,losses and so on.Insurance is a medium to protect us like an umbrella.The uncertain risk of can be minimized by insuring it.Insurance is a transfer of risk of an individual by paying a certain amount of money called premium.Every individual can be insured and secure their financial losses.

           There are two parties involved for being insured.They are insurer and insured.Insurer is a insurance company where it promises to compensate our losses and protects our financial condition by protecting them.Whereas insured is the person who pays a certain amount of money called as premium to the insurer so that in the condition of some losses they get compensation.So these are the parties involved in insurance,

     

Insurance is important as it safeguard the interest of people.It may be called as a social device in securing the possible financial losses.Insurance provides financial support nd reduce the uncertain risk from the company and an individual too.It is a medium of controlling the unlimited exposure of risks.The premium collected by insurance helps in generating funds for government securities and stock too.Insurance also helps in encouraging small saving which they get at the maturity of period with some interest on it.So,Insurance premium is a device of controlling larger number of risk and if they occur then they indemnify the losses of an individual it may be of financial companies too.


      So,insurance company acts as a mediator of spreading risk by insured to insurer,The insurer pays the amount with some interest according to the rules,regulations and agreement.Insurance is a policy to encourage saving and protecting themselves from any losses that occurs in the future.The losses firstly are investigated and analyzed properly so that the loss is not done intentionally for the sake of getting compensation.In case of fraud done by company to get compensation there are some rules that could also banned the particular organization or can get some punishment according to the Act.