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Insurance refers to the commercial arrangement in which a business establishment accepts the liability of risks faced by individuals for a small sum of fee called premium. Companies providing such insurance are called insurance companies.
Insurance companies help to spread the risk of loss among a large number of their clients. For example when a company insure your car for a small sum against accidents, it charges a yearly insurance which is much less than the losses you may have to bear if the accident actually happened. In return it will compensate you for the actual losses incurred if an accident actually happens.
In this arrangement the clients of the insurance companies benefit by avoiding a major but uncertain loss which they may be ill prepared to bear by accepting to pay a small but certain premium. Not only they avoid the big loss they also buy the Peace of mind by knowing that if some thin goes wrong, the insurance companies will bear the losses. The insurance companies benefit as the premium is so calculated the even after paying for all the losses occurring against insured events, they will still be left with some surplus profit.
Insurance and insurance companies are grouped in two broad classes - life insurance and general insurance. Life insurance is protection against pre-mature death of a person. In case, of premature death of a person, his nominated survivors are paid a sum substantial sum of money. This sum of money is agreed in advance and the insured person pays premium to insurance company in proportion to this.
General insurance refers to insurance for any thing other than life. It covers loss of property due to reasons such as theft, accidents, and natural calamities. It also covers expenses for some specific purposes such as medical treatment and liability for payment of compensation to victims of road accidents.
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Objectives of Bajaj Allianz Life Insurance Co Ltd?
what are the objectives Bajaj allianze life insurance
What is the Objectives of Micro Finance?
it is to provide basic financial services such as loans savings and insurance to underprevilege people
How is the statutory sector funded?
statutory sectors are funded through : local & national taxation insurance lottery funding direct donations
Does bank of America own nationwide insurance co?
No, Bank of America does not own Nationwide Insurance Company. Nationwide is an independent insurance and financial services company, while Bank of America is primarily a banking and financial institution. They operate separately in their respective sectors.
What company purchased equitable life insurance company?
In 2021, the Equitable Life Insurance Company of Canada was acquired by the Canada Life Assurance Company. This acquisition aimed to enhance Canada Life's offerings in the life insurance and investment sectors. The deal was part of a broader trend in the insurance industry towards consolidation.
What are the aims and objectives of primary sector businesses?
its a business sectors
Career objectives and goals for insurance sector?
career objectives in the insurance sector as claim handler
Objectives of Bajaj Allianz Life Insurance Co Ltd?
what are the objectives Bajaj allianze life insurance
Why do different sectors of businesses have different aims and objectives?
they have different aims and objectives because they all do different things. Aims and objectives depends on the sector and they type of business
What are the objectives of public sector accounting?
Standards of consistency, quality, information sharing between Accountants, and transparency in reporting are the base objectives of public sectors accounting.
What is the difference between public and private sectors aims and objectives?
private anf public
Can someone explain the difference between P and you insurance and FDD insurance?
FDD insurance is normally using in shipping insurance sectors. FDD is an abbreviation of 'Freight Demurrage And Defence'
Objectives of private sector?
* a private sectors aim is to maximise profits or increase market shares. * they set objectives to be able to acheive it * for instance to advertise more attractive things
What are the objective and function of rural banking?
The rural bank's vital objectives is providing credits and others. Its functions is develop the all sectors.
What are the ways that healthcare insurance is financed in public and private sectors?
grants consumers employers employees
What are the Objectives of financial markets?
The objectives of financial markets are to channel funds from savings sectors into investment sectors, with the least cost and inconvenience to investors. Tight regulation of this process is required in order to ensure that all parties - lenders, investors, products, companies, shareholders, etc - receive equitable treatment with respect to their financial transactions and interests.
What are some of the risks that life insurance covers?
LIfe Insurance policies cover against unfortunate eventuality of the policy holder, whereas for non-life sectors (including Health Insurance) there are General Insurance Companies offering various covers.
