What is Insurance

Insurance in its basic form is defined as "a contract between two parties, where one party has asked Insurer agrees in exchange for a fixed sum called premiums to be paid to the other party known as a fixed sum insured some money on the events of a certain event. "

In simple terms, it is a contract between the person who buys insurance and an insurance company which sold the policy. Upon entering the contract of the insurance company agrees to pay the policy holder or his family members a predetermined amount of money in the event of unfortunate event for a fixed sum paid to normal, which is called term Premiums insurance.

Insurance is essentially a protection against financial loss that may arise when an unexpected event occurs. Insurance companies offer rewards to be collected for such protection. By paying a very small amount of money a person can protect himself and his family financially an unfortunate event.

For example, if a person buys a life insurance policy by paying a premium to the insurance company, family members of the insured person to receive a fixed compensation in the case of an unfortunate event like death.

There are different types of insurance products available, such as life insurance, vehicle insurance, home insurance, travel insurance, health insurance or Mediclaim.