A protection against financial losses termed as insurance. Primarily this is a form of Risk Management to overcome the risk of uncertain loss.
An Entity that provides insurance called as insurer, that may be an insurance company or insurance carrier. And the person who buys the insurance called as insured person or policy holder. The person who takes the insurance receives an insurance policy, a contract which includes conditions and the circumstances lies between the insurer and the insured person. The money that is charged by the insurance company to the insured person for the insurance policy is called as an insurance premium.
This insurance policy is contracts for a limited period of time, if the insured person faces loss which is covered by the insurance policy, then the insured person can claim to insurer for adjustment of his claim. Auto insurance, Gap insurance, Health insurance, Income Protection insurance, Casualty insurance, Life insurance, Property insurance, Liability insurance, Credit insurance, etc. are some major types of insurance that are available in the market.