Insurance is an important tool in risk management. Insurance is the process of transferring the financial burden of the insured to the risk of life, property or liability on the part of the insured. In human society, there are many possibilities of risk, such as risk. The calamities, risks now, today, today, tomorrow, maybe tomorrow. Or the accident is uncertain.
Insurance is an appropriate means of obtaining indemnity by transferring indefinite risk. Uninsured Risk, Accident Individuals or entities may purchase an insurance plan with the condition of receiving indemnity in the event of submitting certain insurance charges as per their risk. Insurance is also a written agreement between the two parties. Insurance is a contract between the insurance company and the insured. In this process, the indemnity burden of the insured is transferred to the insured through insurance.
Insurance is done for a fixed period. During that period, the company with the loss of insurance pays the compensation. The process of ensuring begins with the form of insurance proposal and personal health details. Such forms should be obtained from the respective insurance companies. The insurer can submit the forms through the insurance agent. The insurer is reluctant to accept the proposal of the insured's form. If the insured's offer is accepted then the insurance procedure begins after paying the first kind of insurance fee. The insurance company provides the insurer with all the documents related to the insurance condition after the insurance company accepts the insurance. This is called insurance.
There are two types of insurance.
1. Life insurance
Life insurance is called insurance against the risks associated with a person's life. Life insurance provides financial protection in the event of a disaster. Life insurance is for the financial security of a person or their family. Upon the expiry of certain term of the insurance, the amount specified in the insurance policy and the surplus received under the act will be able to receive the bonus. There are many kinds of calamities in human life. Life insurance offers the ability to cope with these disasters.
Life insurance has great importance in human life. Life insurance offers financial security, investment, and savings opportunities as well as the important benefits of capital formation, tax relief. Therefore, life insurance is also a great way to provide for the essential savings and well being of dependents.
Types of life insurance:
- Life insurance
- Term insurance
- Term Insurance
- Annuity insurance
2. Non-Life insurance:
Non-Life insurance is a contract for a fixed term. It involves a contract between the insurer and the insurer. This agreement is called a contract. The insurance company pays the compensation to the concerned party on the basis of the actual loss incurred on the insured's death or limb in the specified term of the contract, in the event of death or dismemberment of the insured. Non-Life insurance is a contract to relieve the risk of property loss and liability. Though the word lifeless refers to the issue of property and liability, it covers almost all parts of human life. Insurance-related to movable real estate other than life is covered by this.
Types of life insurance: -
- Fire insurance
- Marine insurance
- Air insurance
- Motor insurance
- Miscellaneous insurance
At present, the importance of insurance is increasing day by day. However, the growth in the insurance sector is not what it is. There are many reasons why time and technology do not improve the insurance sector as a whole. The insurance sector has not been able to flourish today due to basic reasons such as lack of insurance awareness, insurance agent not being active. If there are new steps to improve the insurance sector, then there will definitely be an improvement in this sector.
