Basic Knowledge About Insurance, You Must Know About

Basic Knowledge About Insurance, You Must Know About

Definition

A contract (policy) in which an individual or entity receives financial protection or repayment against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

Types of Insurance

There are three basic types of insurance given bellow:
  • Assets and Revenue Insurance
  • People Insurance
  • Liability Insurance

Principles of Insurance

There are generally seven principles of insurance:
  • Utmost Good Faith
  • Insurable Interest
  • Principle of Indemnity
  • Principle of Contribution
  • Principle of Subrogation
  • Principle of Loss Minimization
  • Principle of 'CAUSA PROXIMA'


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