Insurance is a contract in which one party (the “insured”) pays money (called a premium) and the other party promises to reimburse the first for certain types of losses (illness, property damage, or death) if they occur. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of Insurance, large number of people exposed to similar risks makes contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.
Terms to Know
- Policy: The contract which outlines what the insurance company will pay in case of loss.
Benefit: The money or services an insurance company provides in case of loss.
Insured: The person who receives the insurance benefit. However, in the case of life insurance, the “insured” is the person whose life is insured, and the person who receives the benefit is called the “beneficiary.”
Premium: The money the insured pays the insurance company.
Claim: A request for benefits when loss occurs.
Coverage: The types of losses which the insurance company will reimburse.
Insurance Agent: A person who is licensed to sell insurance in a particular state
Main Types of insurance
Motor vehicle insurance
So if you are being harassed by your insurer or are facing issues in getting your insurance claim then book your first free consultation with us to learn how we can help you.