Insurance Industry Work On Which Concept

As we discussed before insurance is actually a form of contract.

Insurance industry work on which concept. Insurance is a financial product sold by insurance companies to safeguard you and or your property against the risk of loss damage or theft such as flooding burglary or an accident. Some types of insurance you have to take out by law such as motor insurance if you drive a vehicle. In 1993 chandler became president and.

Customers take out policies based on their assessment of a particularly bad thing happening to them and insurers offer them cover based on. While the details of any insurance policy can be complex it s relatively easy to explain the concept of insurance the concept of insurance involves a transfer of risk from one party such as an individual or company buying an insurance policy to another such as an insurance company. The concept of risk may be explained as the possibility of unfavourable results following from any occurrence.

Hence there are certain principles that are important to ensure the validity of the contract. Insurance provides people and companies with protection against major financial losses due to damage or loss of property. 1 utmost good faith.

Thus in business as in private life there are dangers and risks of every kind. The personal insurance includes insurance of human life which may suffer a loss due to death accident and disease. A contract of insurance must be made based on utmost good faith a contract of uberrimate fidei.

The current coo of univers workplace benefits and a former president ceo and chairman of disability insurance provider unum provident. The history of insurance traces the development of the modern business of insurance against risks especially regarding cargo property death automobile accidents and medical treatment. Some you may need as a condition of a contract such as buildings insurance as a requirement of your mortgage.

In exchange for a periodic payment or premium individuals and companies are guaranteed to be compensated or reimbursed under the terms of the insurance policy. Both parties must abide by these principles. Insurance can be classified into 4 categories from the risk point of view.