Insurance

Insurance is required all of us. It is nothing but works as a safe guard. Many types of insurance like motor insurance it includes motorcycle, boat and automobile insurance, health insurance, life insurance, home and travel insurance. However it is required mostly in motor insurance. Insurance is a type of risk which carries risk of many people in replace for small amount of payment from everyone. Insurance transport some risk like in case of theft, illness, one person or group to financially sound person in exchange of payment called premium. It depends on the type of the insurance. Premium may be annual, half yearly, quarterly or monthly. As example if I pay certain amount every year to insuring my car. This represents the insurance company’s consideration of probability if the car is damaged or ruined in future.

Normally data taken from the past record like related to age, profession and driving history of the insurance holder. Even the insurance company make model of the vehicle and accident record, also size of the engine, number of passenger and color of the vehicle. If the prepared model or history in question or the involvement of driver in many cases, the company will charge high premium in expected losses. It means as risk increase premium will increase. Health insurance is the most important for all citizens. Most of the countries have government funded health care that means people can get the medical facility and treatment also the insurance.