Insurance is a deal whereby a company or the state proceeds to provide a guarantee of compensation, usually a sum of money, for specified loss, damage, illness, or death in return for payment of a specified premium. Insurance provides protection against unforeseen future events and ensure the person or the latter’s family is taken care of.
In case there is no insurance, 3 possible individuals bear the burden of an economic loss, namely:
• the individual suffering the loss or damage • the individual causing the loss or damage via negligence or unlawful acts • a particular party or group of people who have been assigned the burden of the legislature
There are multiple types of insurance, such as life insurance, critical illness insurance, cancer insurance, child insurance, and more. While each insurance policy varies according to the type, the main aspect remains the same which is to protect the individual in case of loss or damage.
Insurance companies have a strict set of rules that they need to follow to be in accordance with the law and the Government. However complex the insurance world may seem, insurers work closely with each client to ensure a win-win situation.