ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A financial product (called an insurance contract or policy) purchased by many people facing a similar risk to protect against the risk of larger losses. Provides payment to the insured person if his or her property is damaged or destroyed by an accident covered by the insurance policy.

Detailed explanation-2: -Represented in a form of policy, Insurance is a contract in which the individual or an entity gets the financial protection, in other words, reimbursement from the insurance company for the damage (big or small) caused to their property.

Detailed explanation-3: -When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.

Detailed explanation-4: -Description: Insurance policies, a contract between the policyholder and the insurance company, are of different types depending on the risk they mitigate. Broad categories include life, health, motor, travel, home, rural, commercial and business insurance.