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Tuesday, July 07, 2009

insurance : security to risky life

Human Life is full of risk . We can't aboid the risk completely, but they can be reduced . Risk comes from uncertainity . Every invidual and organaization want to be protected from the risk . They want to save the life and property from accidental losses. The only way for minimizing the loss caused from such uncertainiy events or accident is throught insurance. Insurance heresi a contract between two parties one assures compensation for the loss where the other wants to be assured of compensation for loss. For this puepose the owner of the property has to pay a certain amount at regural intervals in the form a premium. Thus , insurance is the contract between the parties for compensation of the loss caused by uncertainity against the prepaymentof premium.It si just way of sharingthe risk among peorson who are ex posed themselves against that risk and risk can't be avoided. Edwin W. Payyerson says " Insurance is a contracts by whcih one party for a compensation called premium , assumes particular risk , while the other party promises to pay to him nominees a certain sum of many for aspecified contingency. " so be secured by knowing insuracne .

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