Insurance Tutorials

What is insurance?

Insurance is the contract between two parties, in which one party promise to fulfill the loss of other party.

Parties in insurance:

There are two parties in insurance contract.

               i) Insurer

               ii) Insured

Who is Insurer?

Insurer is the party who pays the claim.

Who is Insured?

The party who faces the loss and claim for the recovery of loss.

What is Policy in insurance?

It is the document which shows the contract between insured and insurer.

What is Premium in insurance?

It is the payment which is given by the insured at the time of signing a contract.

Types of insurance:

Insurance has following  types;

               i)   Life Insurance

               ii)  Group Life insurance

               iii) General Insurance

What is Indemnity?

It is the amount given by the insurer to the insured when insured faces any loss.

Why we purchase insurance?

Life is full of uncertainties. There is always a chance of loss. We purchase insurance for our financial security. If we have lost all savings then insurance will help us to recover all losses. Insurance provides us the security against any loss. It is the best way to secure our family financially.

Importance of insurance:

Economic stability is not permanent. There is always a chance of financial crises. We can’t secure our future financially no doubt how many savings we have. Life insurance provides a platform to secure our future financially. It provides an option to save money over a long time.

Impact of insurance on Economy:

Insurance sector plays a vital role in the economy of the state.  Insurance sector eliminates the unemployment factor from the region because insurer continuously invests in different businesses.  It provides new and best techniques and ideas to start a business.

As insurance sector does business at large scale so it pays large amount tax to the sate which in result to increase the economy of the state. It is the best way to boost up the economy in any country.