What Is Meant By Insurance Premium – The insurance is defined as the process of transferring the risk from the owner (from assets) to the insurance company in exchange for an insurance premium. The insurance is a financial contract between the insurance company and the insured party when the insurance company offers financial protection or reimbursement of the insured in the event of losses suffered by the insured due to damage to the assets insured under certain circumstances. In return for financial protection, the insured pay for a certain amount known as an insurance premium to the insurance company to bring the risk. Insurance is a form of risk transfer. In insurance, individuals or organizations transfer the risk to the insurance company in exchange for an insurance premium. The insurance company, in turn
The insurance works on the concept of combining customer risks. Insurance companies receive insurance premiums from insured persons (police holders), and companies, in turn, promise to recover the insured in the event of losses suffered by them due to certain dangers. Therefore, insurance is an agreement to disseminate the loss caused by a special risk in a set of people at this particular risk. Insurance companies act as an intermediary to combine a group of people at a general risk.
What Is Meant By Insurance Premium
Consider an example of a factory owner at risk of damage caused by a factory fire. The factory fire accident would mean a loss of beliefs due to damage to factories and machines, stocks, buildings and more. In this way, the owner of the factory will take preventive measures to secure his fire factory. In addition, the owner of the factory will also guarantee that he is buying a fire insurance policy. The insurance policy will reimburse the insurance lessee for any damage to the assets insured due to the fire and allied dangers.
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By buying an insurance policy, the factory owner guarantees the risk of damage to the factory due to a fire accident
General insurance, also known as the name of the insurance that is not life, is an agreement between the common insurance company and the insurance leasing, in which the insurance company provides compensation to the insurance lessee for damage to the insured assets due to the hazards covered. All non -life insurance policies are classified as general insurance policies. Common insurance deals with inhuman assets such as factories, cars, cargo and more. General insurance is also known as real estate insurance and injuries in certain countries.
There are different types of general insurance policies that cover different exposures of the risks that are facing faces and companies below:
Health insurance police cover the costs of hospitalization of an insured person made due to illness or injury. The policy also offers coverage for expenses before and after hospitalization, kindergarten procedures, Ayush treatment and more.
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Car insurance police provide coverage for random damage to the insured vehicle, as well as the legitimate obligations arising due to bodily injuries or material damage caused to third parties due to an accident caused by the insured vehicle
Travel insurance police are offering medical expenses that may occur due to illness or injury to the insured during travel, as well as various unexpected incidents that may occur during travel.
Fire insurance police cover losses or damage to guaranteed assets due to fire and allied dangers. The policy covers the cost of repairing or replacing damaged assets and goods.
Cybersecurity Police protects the activity of insured against financial losses and obligations of third parties made after a cyber attack or incident with a violation of data
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A common civil liability insurance policy, also called CGL insurance policy, provides coverage for defense and compensatory damage suffered by insured due to bodily injuries or material damage suffered by a third party due to incidents arising from the trade operations of the insured company or due to the consumption of the insured products.
Police for liability insurance due to the products protect the company from legal liability as a result of complaints of bodily harm or material damage to third parties due to the consumption of the products of the insured company.
Liability insurance police provide coverage of defense and compensatory damage costs that the insured company becomes legally likely to pay due to bodily harm or material damage suffered by a third party due to accidents occurring in the insured’s commercial premises.
Civil Liability Insurance Policy for Administrators and Managers, also known as a D&M liability policy, protects the administrators and managers of a company against proceedings stating that unjustified actions carried out by them in their management capacity. Unjustified acts include violation of obligations, confidence, mistakes, omissions, negligence, anomalies or fraudulent declarations.
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Trade Credit Insurance Police provide insurance coverage against the risk that the client of the company does not pay the goods or services they have received.
A group health insurance policy provides coverage of the hospital expenses incurred by employees throughout the year. In addition to the scope of hospitalization costs, group medical insurance policy also covers the costs before and after hospital people, the coverage of existing diseases and the procedures for kindergartens.
Entrepreneurs, the entire risk insurance policy guarantees the coverage of the essential damage and the liability of the third countries of civil construction projects.
Bind obligations are a legally enforceable tripartite contract that guarantees performance and / or payment. Guarantees are used to guarantee the execution of an entrepreneur, supplier or other party in a commercial transaction.
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The erection font all risks, also known as the Ear Insurance Police, provide full insurance coverage for the entire installation / erection of machinery and equipment from the time of the first shipment of the site and ends at the end of the erection / test / commissioning or the factory that happens in the first place.
The sea insurance policy protects the insured party for damage to the load provided during the transit.
Animal Insurance is an agreement between the insurance lessee and the life insurance company, through which the insurance company pays the death service to the beneficiary at the death of the insured person or the maturity of the police in exchange for an insurance premium. Animal insurance guarantees people’s lives. Animal insurance guarantees human capital or profit capacity for the insured person.
Family members benefit from the profits of the person and the death of the person provided by unexpected events means that people depending on the insured person lose the services. Life insurance police will provide assistance to persons with the guaranteed person by providing compensation in the event of death by the insured person.
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There are different types of life insurance policies to meet the requirements of the lessee, indicated below:
The long -term life insurance policy is a type of life insurance plan that provides lip payment as a death service for the candidate in the event of death.
A group policy for life insurance provides a payment of lips as a death service for the employee’s family member in the event of the employee’s death.
A unit insurance scheme, also known as ULIP, is the type of life insurance policy, which combines the benefits of the investment plan to achieve long -term goals and insurance coverage to ensure financial security in the event of an unfortunate event.
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Insurance plans for children are a type of life insurance plan, which is mainly used to guarantee the needs of higher education of the future. An insurance plan for children combines savings and insurance when parents pay bonuses on behalf of the child.
The retirement plan, also known as the pension plan, is a type of life insurance policy that has saved you money over the years so that you can take advantage of a stable and fixed flow of income during the retirement years. The police holder receives a pension payment until his death on a retirement plan.
A donation plan, also called a savings plan, combines a savings plan that allows you to build a financial corps to help you achieve your short and long -term financial goals, as provided by life insurance.
Assistant interest means that one benefits from the continuous presence of assets or is harmful to the loss of the topic. The principle of insurance interest to insurance means that the insured can only guarantee the assets in which he has legal financial interest.
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The principle of Uberrimae Fidei, a Latin phrase, the meaning of the principle of extremely conscientiousness, is one of the basic principles of insurance, which statistics that both parts of the insurance contract to inform the insured on the terms of the insurance policy.
The immediate cause or immediate effective cause is the main or dominant risk factor in the causal chain that causes the loss. This is the reason which determines
