Insurance is a mean of protection from economic or financial loss. It provide protection from the risk to uncertain loss. There are few insurance provider which are know as insurer, insurance company or insurance carrier. Similarly there are some persons/ individual who buy insurance known as insured or policyholder. The insurance transaction involves the insured assuming a guarantee that they will compensate in case of loss. The loss is not always is term of financial, it is according to the insured.
Every insurance company has its own insurance policy, which shows how much benefit one can get. Once a person goes in an insurance company, he/she must read its insurance policy in detail. It contains the terms and conditions/ circumstances under which the insured will be compensated. Company charge some amount from the person( insured) which is called premium. If insured faced some loss he will claim his insurance from insurer. In this way this system works.
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