A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.

Insurance is a way to make an individuals financial losses more affordable by transferring them to a large group of people through an intermediary called an insurance company and a legal contract called a policy.

Insurance is the transferance of risk. you have a risk..ex: you might get sick, you might die, etc. insurance TRANSFERS that risk (or rather the financial hardship created by it) from YOU to the insurance comany for a small monthly premium. So for example you MIGHT get sick and need $300,000 worth of medical services...So knowing you could never afford that, you purchase insurance...transferring the risk to the insurance company in exchange for your monthly premium.

Answered by Om Prakash , an ibibo Master, at 7:05 PM on September 26, 2008

Well Yogesh! Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event."
Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected.
For Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person receives a fixed compensation on the death of the insured.
Similarly, in a car insurance, in the event of the car meeting with an accident, the insured receives the compensation to the extent of damage.
It is a system by which the losses suffered by a few are spread over many, exposed to similar risks

Answered by Hemant Kumar , an ibibo Master, at 3:34 PM on September 19, 2008

its protectioon against risk

Answered by Ankit , an ibibo Citizen, at 1:37 PM on September 19, 2008

Insurance is the transferance of risk. you have a risk..ex: you might get sick, you might die, etc. insurance TRANSFERS that risk (or rather the financial hardship created by it) from YOU to the insurance comany for a small monthly premium. So for example you MIGHT get sick and need $300,000 worth of medical services...So knowing you could never afford that, you purchase insurance...transferring the risk to the insurance company in exchange for your monthly premium

Answered by Vipan Thapar , an ibibo Master, at 10:39 AM on September 19, 2008

The insurance can be defined as-

A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.

Insurance is a way to make an individuals financial losses more affordable by transferring them to a large group of people through an intermediary called an insurance company and a legal contract called a policy.

Insurance is the transferance of risk. you have a risk..ex: you might get sick, you might die, etc. insurance TRANSFERS that risk (or rather the financial hardship created by it) from YOU to the insurance comany for a small monthly premium. So for example you MIGHT get sick and need $300,000 worth of medical services...So knowing you could never afford that, you purchase insurance...transferring the risk to the insurance company in exchange for your monthly premium.

A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

Answered by Nagendra , an ibibo Master, at 4:22 AM on September 19, 2008

Insurance is a way to make an individuals financial losses more affordable by transferring them to a large group of people through an intermediary called an insurance company and a legal contract called a policy.
Ok!!! Rate this & comment on it thank you.

Answered by Dhaval , an ibibo Advisor, at 12:44 AM on September 19, 2008