According to Wikipedia ” Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.”
Person who provide insurance called insurer,insurance company.Person who has insurance called insured.or policyholder.
Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be an insurable risk, the risk insured against must meet certain characteristics. Insurance as a financial intermediary is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.
Social effect of Insurance can have various effects on society through the way that it changes who bears the cost of losses and damage. On one hand it can increase fraud; on the other it can help societies and individuals prepare for catastrophes and mitigate the effects of catastrophes on both households and societies.
- Dual Insurance
- Self-insurance and
Types Of Insurance :
- Health Insurance : Health insurance policies cover the cost of medical treatments. Dental insurance, like medical insurance, protects policyholders for dental costs. In most developed countries, all citizens receive some health coverage from their governments, paid for by taxation. In most countries, health insurance is often part of an employer’s benefits.
- Life Insurance: Life insurance provides a monetary benefit to a decedent’s family or other designated beneficiary, and may specifically provide for income to an insured person’s family, burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. In most states, a person cannot purchase a policy on another person without their knowledge.
- Auto Insurance or Vehicle Insurance:
- Property coverage, for damage to or theft of the car.
- Liability coverage, for the legal responsibility to others for bodily injury or property damage.
- Medical coverage, for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
- Property Insurance : Property insurance provides protection against risks to property, such as fire, theft or weather damage. This may include specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance. The term property insurance may, like casualty insurance, be used as a broad category of various sub types of insurance.
- Gap insurance : Gap Insurance mostly done by finance company .
- Income Protection Insurance : Disability Insurance,Long-term Disability Insurance,Total Permanent Insurance & Workers Compensation are listed in this insurance .
- Casualty insurance
- Burial insurance
- Liability Credit
- Insurance financing vehicles
- Closed community and governmental self-insurance