First of all let's take the meaning of insurance:
Definition:
Insurance is a contract made by two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixes sum of money to the other party if an uncertain event happens (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event -mentioned in the above statement- in case of general insurance. Thus, this contract ties two parties (the insurer(assurer) -the insurance company- and the party whose risk is covered the insured(assured) -the client- .
There is a warning though!
There are indeed alot of legit insurance companies but not all of them! I am talking of course about scams. Ghost companies that would like to eat your money and when you are in danger they would laugh at you. If you know of any scam insurance companies feel free to post them here on my blog in comments.
From my point of view insurance provides financial protection against a loss arising out of happening of an uncertain event such as: Cataclismic events (earthquakes, tsunamis, tornadoes etc), Car accidents, Explosions, etc. A person can avail this protection by paying premium to an insurance company. There are probably thousands or hundreds of thousands of insurance companies around the world that are offering cheap or expensive insurance services, -depending on the type- that would want to have you as it's client. By becoming their client, contributions made by yourself and other persons are used as a service to protect yourself from common risk. Thus a pool is created through these contributions, meaning that any loss to the insured in case of happening of an uncertain event is paid out of this pool. Therefore, insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.
Definition:
Insurance is a contract made by two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixes sum of money to the other party if an uncertain event happens (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event -mentioned in the above statement- in case of general insurance. Thus, this contract ties two parties (the insurer(assurer) -the insurance company- and the party whose risk is covered the insured(assured) -the client- .
There is a warning though!
There are indeed alot of legit insurance companies but not all of them! I am talking of course about scams. Ghost companies that would like to eat your money and when you are in danger they would laugh at you. If you know of any scam insurance companies feel free to post them here on my blog in comments.
This was my first post: Have a great day; Alin
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