Insurance is a policy to get rid of risk of loss. It’s based on risk management. Generally it is used to evade uncertain loss and risk of contingent. An insurer is selling the insurance and other person is buying the insurance. Which person buys the insurance is known as policyholder. There is a certain number of amount money is charged of insurance is called premium.
Basically to controlling risk is the main target of insurance. Its secure future. Insurance premium is fixed based on risk and time. Insurance bears the cost of losses and damage. That’s why it has a special social value. The theory of insurance is encouraging investment in loss reduction. Any risk can potentially be insured. Insurance is also known as a deal. Agreeing all term and policy of insurance creates a contract between the insured and the insurer. The policyholder pays part of loss and the rest of money is paying by insurer.
Insurance companies are provide service to their customers. Insurance company often use their dependable agent to initially market their customers. Agents are capable to present their servicing system. The existence and success of a company highly depend on insurance agent. There are many highly reputed insurance companies in the world. Those companies are achieving their goodwill by providing very good service to their customers. According to the book of chartered insurance institute has some type of method of insurance. Such as
in co-insurance risk shared between insurers. In dual insurance, risk having two or more policies with same coverage. In self-insurance risk is not transferred to insurance companies. And finally reinsurance all risks to another insurer is known as re-insurer.