Terminology. (Words Used)
v Insurer: Insurance Company
v Insured: Who took insurance Police.(Policy Holder)
v Motor Vehicle: 2Wheeler, 4Wheeler (Car, Bike)
What is Insurance?
Insurance means protection from financial losses. When uncertain events(Injuries, illness), certain events(Marriage, Wedding anniversary... etc) happen to be strong and safe financially for those events that need Insurance.
· Risk Management
· Long-Term Savings
· Share Your Own Risk With Others( The same risk which is you have)
· Mandatory in Motor Vehicle.
What is the Insurance Policy?
Ø It is a contract between the insurer and insured.
Ø Promise to make financial losses again the risk of contingent or uncertain losses.
Ø Legal Agreement Between insurer and insured.
How Insurance Work.
I will tell you in very a simple way to understand easy and I will give an example also.
We know insurance is a contract between the insurer and insured, for an uncertain event, assume if the uncertain event happened the insurer will liable for that event how much its cost.
Ex: If ‘A’ a person has taken insurance from ‘B’ Insurance Company, for the C event. After a few months, the ‘C’ Event Happened. Then the insurance company will liable to that ‘C’ Event.
What Types of Insurance are there?
I have a habit that is to speak everything in a simple way. (with one word if it possible only) So I don’t want to confuse you with a big description.
Life Insurance
§ Long-Term Policy(Minimum 5Years)
§ Saving Type.
§ Best for certain Events like Marriage of child, Education, Business, Feature Savings.
Health Insurance.
§ Health Insurance covers medical expenses cost for Treatment, Hospitalization.
§ Various types of Health Insurance policy covers are available.
Motor Insurance.
§ It is Mandatory as pet MV Act 1938.
§ Lon-Term ( 2Wheelers 5 Years TP, 4Wheelers 3 Years TP)
You have to know
What is Insurance Meaning?
What is an Insurance Premium?
What is the Insurance Policy?
What is the insurance company?
What is the Insurance Contract?
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