ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay.

Detailed explanation-2: -Insurance contracts are aleatory contracts because the amount exchanged by the parties is unequal and depend upon future uncertain events. Insurance agreements are also considered unilateral contracts because only the insurance company is making a legally enforceable promise.

Detailed explanation-3: -Insurance policy document is proof of insurance. It is a formal legal document that is used as a legal binding for the insurance contract. The policy document is the evidence of the insurance contract and contains all the terms and conditions.

Detailed explanation-4: -Insurance is a contract in which an insurer indemnifies another against losses from specific contingencies or perils. It helps to protect the insured person or their family against financial loss. There are many types of insurance policies. Life, health, homeowners, and auto are the most common forms of insurance.