Insurance is an operation by which a person (the insurer) undertakes to provide a service, under an insurance contract, for the benefit of another individual (the insured) upon the occurrence of a risk and subject to the payment of a contribution or a premium. The risk constitutes the object of the insurance. An insured takes out insurance to protect himself against harmful events (illness, fire, theft, death, etc.) or against the risks associated with certain objects he owns (car, home, etc.).
4 Difference between Insurance and AssuranceIn proposition, colorful scholars or insurance have tried to distinguish between these two words;
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First of all, some scholars said that the term insurance is used only where the threat, through probability, can be ascertained, i.e., it may or may not be at a certain time in the future.
Data of reprisal are of this type,e.g., fire and marine insurance.
Alternate, a structure may or may not catch fire; the boat may meet a disaster or may reach the harborage of destination safely.
In similar cases;
The policy may not be sure to come a claim, while assurance should be applied to similar contracts where the policy is bound to come a claim, i.e., where the threat ensured against must be sooner or latterly.
This is so in life contracts.
Industrial Life InsuranceIndustrial life assurance business entirely falls into a different order because of a different gospel and legal counteraccusations involved.
Artificial life assurance has not yet made any entry into the developing request, indeed though prospects are indeed veritably bright.
Time is sure to come when this request will also witness this type of business.
7 Types of Insurance Business are;
Life Insurance or Personal Insurance.
- Property Insurance.
- Marine Insurance.
- Fire Insurance.
- Liability Insurance.
- Guarantee Insurance.
- Social Insurance.
- These are explained below.
- Life Insurance