Insurance is a means of protection against financial loss. It is a form of risk management that is mainly used to cover the risk of a quota, an uncertain loss.
A customer is known as an insurer to an insurance company. A person or entity that takes out insurance is called insured or policyholder. The insurance contract means that the insured accepts a relatively small loss and is guaranteed as a payment to the insurer in return for the insurer’s promise to indemnify the insured for a covered loss. The loss may be financial, but it must be reduced financially and must include something in which the insured has an insurable interest determined by the property, property or existing relationship.
The insured receives a contract, called an insurance policy, which mentions the terms and conditions in which the insured is financially compensated. The amount of money that the insurer charges the insured for the coverage mentioned in the insurance policy is called the premium. If the insured suffers a loss that can be covered by the insurance policy, the insured will pay a claim to the insurer for treatment by a non-life insurer.