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What is Insurance?
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Insurance is the method of sharing the losses of the few individuals in a group who suffer them among the many members of that group who do not.

Technically, insurance is a contract in which one party, the insurer, for monetary consideration agrees to reimburse another, the insured, for loss or liability for a loss on a defined subject caused by specified hazards or perils.

By making a small periodical payment called “premium” you can be protected from financial losses due to an unforeseen events. Your insurance policy in such cases provides compensation. By this process one person's misfortune is spread over all the people who contribute to the common fund by way of premium. The purpose of Insurance is to put you back in the same financial position as you were in prior to the loss.

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