What is Insurance?
Insurance follows the basic principle of indemnity. This principle states that a person or entity shall be placed in a financial situation equivalent to that which they were prior to the loss. Insurance places the financial burden for losses with the company or carrier providing the coverage. The earliest known form of insurance is Life Insurance. The rudimentary beginnings of Life Insurance date back to before Jesus Christ’s time. Some ancient civilizations would allow a portion of a person’s wages to be placed into a pool of funds that could be drawn on in the event of that person’s death. The widow would receive the money so as to be able to provide a proper burial and sometimes to be able to provide a dowry for a new husband as well. Property and Casualty Insurance as we know it today takes its roots in the olden days of ship merchants and pirates. Where businessmen would gather in port towns or shipyards, usually bars & pubs, a chalkboard of sorts would be displayed on the wall de
Insurance is the means by which those unfortunate enough to be the victim of some loss can gain compensation. Insurance Companies are able to offer protection by grouping together a large number of people who all feel exposed to the same risk. The Insurance Company gathers these people together estimating that in any one very few in the group will actually suffer any loss. By collecting an amount of money out of which the losses suffered by the few victims can be paid. The money paid to an insurance company is called a premium. It is a very small amount in relation to the value of the loss it is intended to cover.
Related Questions
- I currently have a job and insurance for myself and my son, but after 3 months of my maternity leave if I decide to resign my job, will I be able to get FAMIS for myself and my two sons including my husband who has Obama care?
- I want to renew car insurance policy. So How can i get Premium, IDV and cashless facility?
- What is OOP with regards to insurance?
