What is Insurance ?
Insurance is a financial arrangement that protect against potential financial losses or liabilities. It operates on the principle of risk transfer, where individuals or entities pay premiums to an insurance company in exchange for coverage against specified risks. In the event of a covered loss, the insurance company compensates the policyholder according to the terms of the insurance policy.
Features of Insurance:
- Risk Transfer
- Policy Limit
- Coverage
- Deductible
- Risk Pooling