Principles of Insurance Insurance is a legal contract between the insurer (insurance company) and the insured (policyholder i.e. individual or a business). Understanding the principles of insurance and how these principles work can be beneficial for you in deciding whether or not you need the insurance contract or not. Further, these principles let you decide…
What are the Functions of Insurance? Insurance is a collective device that aims to minimize insured parties’ financial risks. The followings eight are the main functions of insurance policies. Protects Financially To Insured Parties One of the key functions of an insurance contract is to protect the policyholder financially in case of an unforeseen event…
What is Insurance? Insurance is a legal agreement between two parties an insurer (insurance company) and the insured (an individual) in which the insured parties receive financial compensation for any unexpected losses and events. In the insurance agreement, insured parties are agreed to pay some money periodically which is called an insurance premium in exchange…