What is Insurance? Types of Insurance
Insurance is a legal contract between two parties, i.e., an insurance company (the insurer) and an individual (the insured). Insurance is a way of managing your risk. When you buy the insurance you buy protection against unexpected financial loss. The insurance provider pays you or the person of your choice if something unfavorable happens to you. If you have no insurance and an accident occurs, you may be responsible for all related costs. How works Insurance? The insurance company and the insured get a legal contract for insurance, called an insurance policy. An insurance policy contains details about the terms and conditions under which the insurance company will pay the sum assured to the insured person or their nominee. Generally, insurance in India can be broadly divided into five categories: Life Insurance Health Insurance Vehicle Insurance Education Insurance Home Insurance Life Insurance A life insurance policy is a contract between an insurance policy holder and a...