Insurance and Finance are research programs that are usually set up for the study for Insurance and Economics. Insurance also means to relate that it is a way of protection from financial losses that incure when you lose something valuable.
We call INSURANCE a risk factor. But why?
It is primarily a risk factor management primarily focused on hedge against the risk of contingents and uncertain loss. The entity or the factor that provides us the insurance are the insurers of the insurance company or more generally the insurance carriers.
- The person who usually gets insurance from the company is called the insured or the policyholder.
- The insurance is usually done involving the insured that a small and assured guaranteed sum of money is provided to incur the small relative loss in the form of either payment in exchange to compensate the loss of the product of the insurer in the event of a loss.
- The insured then receives a contract from the insurance company citing that with respect to the terms and conditions of the insurance company the insurer will be profited with compensation duly for his loss.
The incurred loss may not be such a huge financial loss but that must be reducible to financial terms and that must involve an insured interest established on the product either directly or indirectly. The amount that is transferred to the insurer by the insured for the loss coverage set forth by the insurance company is called the Premium.
What happens when we mess up with an Insurance:
If and suppose the insured experiences a loss which can be covered up by the insurance companies he can then claim to the insurer for processing of loans by a claims adjuster. The same time the insurance schemes are rightly available for business process and for legalizing their demands and papers.
Loses are usually compensated
- The small portion of loses are usually taken up by the companies and are usually financed to compensate for their loss.
- The insurer then has to pay on small debts to the insured on regular basis until the amount received is paid accordingly.
- The insurance is usually claimed by the insurer on products that are directly owned by him where he is the master of it and if he is not able to incur the loss price he usually goes for an insurance.
- Many government sectors provide insurance to people on different aspects like home and gold finance mortgaging their properties and taking it up later after they complete it.