ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Insurance is a way to manage your risk. 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-2: -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.

Detailed explanation-3: -Life Insurance-Insurance providing for payment of a specified amount on the insured’s death, either to his or her estate or to a designated beneficiary; or in certain cases to the policyholder at a specified date.

Detailed explanation-4: -It is generally accepted that it should be the seller of a property that pays the premium for the indemnity insurance. Premium prices depend on the type of risk of the problem and the value of the property.