Insurance
Insurance is the right and specific risk transfer of possible losses of life, property or goods in exchange for money. Through this, the individual or the insurance company receives partial or all possible risks to the client in return for the premium (premium). It is a part of risk management to avoid uncertain damage.
Principles:
By paying premium to insurance companies, the insured person or institution is free from all possible losses and the insurance companies increase the capital by collecting premiums from numerous insured individuals or organizations. In addition to cooperating with the insurer, personal savings can be avoided by the risk of potential risk. [1] In order to determine the insurance process, type of damage and compensation, some basic principles have to be followed.
Insurance eligibility:
To insure by private companies, the principles of seven insurances must be met:
1. The existence of many elements that may suffer similar losses: As an insurance company compensates for damage, in reality, the material that may face such type of damage must be present in abundance. For example, 'Lloyds of London' is famous for the popular artists and the life of players and their important parts insurance. Here are some of the components of the Life Insurance of London which are available in real life and these components are not the same, but they can be classified as same.
2. Specific damage: mean that insurance companies are only contracted to compensate for one or more specific damages. For example, if a car is fire insurance only then insurance company will not be forced to pay any compensation if the car is lost.
3. Accidental losses: The amount of damage that can occur is definitely beyond control. If there is any loss due to negligence, its compensation may not be available.
4. Large size loss: The amount of loss must be reasonable, subject to the insured person.
5. Premiums must be affordable: Regardless of the extent of the potential losses, the insurance premium must be within the reach of the insurer.
6. The amount of damage must be quantitative: Since all types of damage can not be compensated and insurance companies can compensate only in the amount of money, then the probable losses should be measured in the amount of money.
7. The amount of compensation for natural welfare will be limited: Insurance companies refrain from paying such amount of compensation due to flood or earthquake, because such a huge amount of compensation is not possible for any single insurance company.
Types of insurance:
1. Life insurance.
2. Naval or marine insurance.
3. Fire insurance.
4. Social and other types of insurance.
Life insurance:
Life insurance is a strategy to transfer or eliminate the risk of mortality, loss, or danger. In the modern era, life insurance works as an effective means to get rid of the financial loss of the bachelor or his family members during the death of the bidders or old age.
The contractual arrangement is termed as life insurance for the insurer or the insurance company, in return for the payment of premium at a specific rate, or after a certain period after the expiry or after the expiry of their term. So life insurance is a modern agreement between the borrower and the insurer, in which the insurer gives a promise to the insurer or his successor or his nominee to pay the fixed amount after his death or at the end of a certain period as a repayment of a specific premium.
Principles:
By paying premium to insurance companies, the insured person or institution is free from all possible losses and the insurance companies increase the capital by collecting premiums from numerous insured individuals or organizations. In addition to cooperating with the insurer, personal savings can be avoided by the risk of potential risk. [1] In order to determine the insurance process, type of damage and compensation, some basic principles have to be followed.
Insurance eligibility:
To insure by private companies, the principles of seven insurances must be met:
1. The existence of many elements that may suffer similar losses: As an insurance company compensates for damage, in reality, the material that may face such type of damage must be present in abundance. For example, 'Lloyds of London' is famous for the popular artists and the life of players and their important parts insurance. Here are some of the components of the Life Insurance of London which are available in real life and these components are not the same, but they can be classified as same.
2. Specific damage: mean that insurance companies are only contracted to compensate for one or more specific damages. For example, if a car is fire insurance only then insurance company will not be forced to pay any compensation if the car is lost.
3. Accidental losses: The amount of damage that can occur is definitely beyond control. If there is any loss due to negligence, its compensation may not be available.
4. Large size loss: The amount of loss must be reasonable, subject to the insured person.
5. Premiums must be affordable: Regardless of the extent of the potential losses, the insurance premium must be within the reach of the insurer.
6. The amount of damage must be quantitative: Since all types of damage can not be compensated and insurance companies can compensate only in the amount of money, then the probable losses should be measured in the amount of money.
7. The amount of compensation for natural welfare will be limited: Insurance companies refrain from paying such amount of compensation due to flood or earthquake, because such a huge amount of compensation is not possible for any single insurance company.
Types of insurance:
1. Life insurance.
2. Naval or marine insurance.
3. Fire insurance.
4. Social and other types of insurance.
Life insurance:
Life insurance is a strategy to transfer or eliminate the risk of mortality, loss, or danger. In the modern era, life insurance works as an effective means to get rid of the financial loss of the bachelor or his family members during the death of the bidders or old age.
The contractual arrangement is termed as life insurance for the insurer or the insurance company, in return for the payment of premium at a specific rate, or after a certain period after the expiry or after the expiry of their term. So life insurance is a modern agreement between the borrower and the insurer, in which the insurer gives a promise to the insurer or his successor or his nominee to pay the fixed amount after his death or at the end of a certain period as a repayment of a specific premium.
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