Insurance is a contract or a legal agreement between an Insurance company (Provider) and an insured (Policy Holder). This contract provides individuals, businesses, and organizations with protection against potential financial losses or risks.
In exchange for regular payments known as premiums, an insurance company agrees to cover certain specified losses, damages, or liabilities that the policyholder may encounter. These potential risks can include events like accidents, illnesses, property damage, liability claims, and more.
Different types of insurance policies are available to address various specific needs and risks, including health insurance, car insurance, home insurance, life insurance, travel insurance and many others.