What is Insurance?

Insurance is a risk transfer mechanism where a person or company can transfer all or part of their insurance risk exposures to a professional insurance company or underwriter in consideration for an agreed risk premium.

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.  more

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 ...  more

Insurance is a financial risk management tool which can cover unexpected financial expenses. But to take avail of such a cover, you need to give an insurance agency a timely premium - monthly, quarterly, half-yearly or annually.  more

Insurance is the business of a company or agent offering protection of one's person or property against damage, loss, death etc. The client agrees to pay a set sum in return for a guarantee they will be reimbursed within mutually agreed terms and circumstances.  more

Insurance is a promise to help you get your life back to normal in case of an accident, theft or disaster. Insurance uses the payments of many to cover the losses of a few. When you buy insurance it helps to protect you against serious and unforeseen loss or injury that you could not pay for otherwise. Every year, your premium goes into one large pool, which is used to pay for any claims - it is about spreading or sharing the risk. Insurance is divided into different lines of business. YOU-Insurance is focused solely on property and casualty insurance, which includes car and home insurance.  more

Insurance is a system of protection against loss in which an individual agrees to pay a certain sum for a guarantee that they will be compensated under stipulated conditions for any specified loss. It is a contract guaranteeing such protection.  more

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event.  more

Insurance is protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premium to provide this protection. A loss is paid out of the premium collected from the insuring public and the Insurance Companies act as trustees to the amount collected.  more