Insurance

Insurance:

Insurance is a means of overcome your financial loss. It is under the risk management. Insurance company pays the premium to the insurer against any loss or date of maturity. Insurance is a simple concept; customers pay a monthly or annual premium in exchange for protection against financial risks. We buy home and contents insurance to protect against losses due to a house fire or a burglary, pet insurance to protect against the cost of vet bills and travel insurance to stop holiday disasters costing the earth.

Risk management is the bigger part of any business either it is small business or large one. Owner thinks that how they overcome against any loss. To reduce their business from loss this concept helps a lot. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured established by ownership, possession, or preexisting relationship.

Types of insurance:

There are hundreds of types of insurance, it depends on the insurer concept that how they perceive it. Following are some main type of insurances.

• Life Insurance
• Health Insurance
• Auto Insurance.
• Property/Home Insurance
• Business Insurance

How It works:

Insurer can buy any policy by contracting with insurance company after studying its rules and regulation. It depends on the company’s works that how they made insurance policies by categorizing the types of the insurance.  Some companies start to pay the premium 0% to 100%, depends how long the insurance policy is and what amount of money they insured.

Insurance Claim:

Insurer can claim to the  insurance company for payment either they lost some thing or date of maturity occur according to the claim contract. An insurance claim is a formal request to an Insurance company asking for a payment based on the terms of the insurance policy. The insurance company takes detail reviews the claim for its validity and then pays out to the insured or requesting party once claim approved.

Type of major losses

• Earthquake
• Flood
• Machinery Breakdown
• Fire
• Accident
• Professional indemnity and etc…