Introduction to Insurance and Classes of Insurance
Insurance policy is a contract in the form of a policy that binds one party to cover the risks in exchange for time-bound premiums decided preemptively. The insurance companies generally pool the money collected from its customers and make profits on the probability that the claims made against premiums submitted would be always lesser. In this way, the insurance companies work on the principle of charging more premiums than the possibility of the claims made against it.
Having discussed what an insurance company is and how they make profits, we […]