What do u mean by insurance class 11?

Insurance is a contract under which the insurer undertakes the responsibility to indemnify the insured against any damage for which it has taken insurance. The insured needs to pay a certain amount of premium to the insurer to avail insurance. Insurance is a contract of indemnity and also is based on utmost faith.

What is insurance and its example?

Simply speaking, insurance is protection against the risk of loss, primarily financial loss. Insurance can be purchased to cover nearly any aspect of life, including your home, your automobile, your health, your income… the list is endless. This is best portrayed in a simple example of how automobile insurance works.

What do you mean by insured and insurance?

Insured is a generic term that refers to any person or entity legally entitled to receive the benefits of an insurance policy, typically claim payments. Insurers make payments to insureds after they experience a covered loss, damage, or an injury that qualifies for payment under the policy’s terms.

What are types of insurance?

Broadly, there are 8 types of insurance, namely:

• Life Insurance.
• Motor insurance.
• Health insurance.
• Travel insurance.
• Property insurance.
• Mobile insurance.
• Cycle insurance.
• Bite-size insurance.

What is insurance policy in simple words?

From Wikipedia, the free encyclopedia. In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay.

What do you mean by insurance and explain the functions importance of insurance?

Provide safety and security:- Insurance provides financial support and reduces uncertainties in business and human life. It provides safety and security against special incidents. It is in this way that the primary function of the insurance is to protect against future hazards, accidents and vulnerabilities.

What is the important of insurance?

Insurance provide financial support and reduce uncertainties in business and human life. It provides safety and security against particular event. Insurance provides a cover against any sudden loss. For example, in case of life insurance financial assistance is provided to the family of the insured on his death.

Why do we need insurance?

Need for Insurance Insurance plans will help you pay for medical emergencies, hospitalisation, contraction of any illnesses and treatment, and medical care required in the future. The financial loss to the family due to the unfortunate death of the sole earner can be covered by insurance plans.

What is the main purpose of insurance?

Purpose of insurance Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee—an insurance premium—to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.

What is the importance of insurance?

Buying insurance is important as it ensures that you are financially secure to face any type of problem in life, and this is why insurance is a very important part of financial planning. A general insurance company offers insurance policies to secure health, travel, motor vehicle, and home.

What is the main principle of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution. The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized.

What is exactly the meaning of insurance?

Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. There many types of insurance policies. Life, health, homeowners, and…

What is insurance and types of insurance?

The general insurance includes Property Insurance, Liability Insurance, and Other Forms of Insurance. Fire and Marine Insurances are strictly called Property Insurance. Motor, Theft, Fidelity and Machine Insurances include the extent of liability insurance to a certain extent.

What do you mean by insurance?

The legal definition of insurance where I live is as follows; (aa) “insurance” means the undertaking by one person to indemnify another person against loss or liability for loss in respect of certain risk or peril to which the object of the insurance might be exposed or to pay a sum of money or other thing…

What is the definition of terms of insurance?

Definition of term insurance : insurance for a specified period that provides for no payment to the insured except on losses during the period and that becomes void upon its expiration : insurance in effect for a set term; specifically : term life insurance at life insurance