What is insurance? Insurance in short is the protection against loss. It is a form of risk management. The risk is hedged against an uncertain loss.
A premium is asked by the insurer for taking on the risk. The amount of the premium depends on the risk. The risk is determined, and a premium is worked out.
The insured receives an insurance policy. This policy details the terms and conditions of the agreement.
In case of an loss, or unexpected event, the insurer compensates the client.
You get different types of insurance: