Insurance is the payment of a small predictable amount of money ("premium") to protect
against a larger unpredictable expense ("loss/claim").This transfers the risk from
you to the insurance company for a fee.
Insurance is a risk management technique primarily used to hedge against the risk
of a contingent, uncertain loss that may be suffered by those individuals or entities
who have an insurable interest in scarce resources, by transferring the possibility
of this loss from one interested person, persons, or entity to another.
Insurance involves pooling funds from many insured entities (known as exposures)
to pay for the losses that some may incur. The insured entities are therefore protected
from risk for a fee, with the fee being dependent upon the frequency and severity
of the event occurring.
Here’s the Various Insurance Industries in India…!!