ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Insurance coverage can be defined as a contract in the form of a financial protection policy. This policy covers the monetary risks of an individual due to unpredictable contingencies. The insured is the policyholder whereas the insurer is the insurance-providing company/the insurance carrier/the underwriter.

Detailed explanation-2: -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-3: -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-4: -Most insurance policies are unilateral contracts in that only the insurer makes a legally enforceable promise to pay covered claims.

Detailed explanation-5: -An insurance policy is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured).