Insurance

Whenever we heard about insurance a question comes in our mind, what is insurance & why we need it. Insurance in regulation and economics’ is type of risk power primarily used to get around against the risk of dependent loss. Insurance can be define as the reasonable transfer of the risk of a loss, from one person to another, in substitute for a premium, and can be thought of assured and well known small loss to avoid a large, probably destructive loss. An insurance company sells his insurance policy. Here insurance rate is also a factor used to conclude the amount to be charged for a certain amount of insurance coverage, called premium.

Now insurance has types like health insurance, car insurance or may be bike insurance or any other industrial insurance. Here is a question what is the benefit of insurance, suppose we purchased a health insurance policy, how it is beneficial to us? Yes it is hundred times beneficial to us because we need treatment and do not have the money, that moment health insurance works. Now bike insurance, it also the same, suppose an accident occurred and bike is destroy that time the insurance company is responsible. An insurance company sells their insurance policy according to the company finalized rate and according to that premium is settled. In health insurance many policy comes like, accidental policy or accidental death policy. In accidental death policy, policy holders get extra return from the company.