INSURANCE COMPANIES

Written By

Shoaib Shah Al Asadi

Its

          A well known word around the Globe  and in each society we do have these companies around us to facilitate in different fields.

                                        

          To understand in a better way first of all we need to know what exactly Insurance is ?

           Insurance is a contract, which is presented by a simple policy and in which an individual or a entity receives the best financial protection  against in his losses from an insurance company.

Now having an idea in mind about insurance we can understand now in a better way about the  insurance companies.

           Around the Globe every company who is doing business have a mechanism to operate so here we will try to understand how insurance work .

           There are many types of Insurance policies  available, and practically any individual or a business can find an Insurance company anywhere easily. 

The most common types of personal policies are ,

* Health

* AUTO

* Homeowners 

* Life insurance

As a example :

                        In United States of America and in some other countries they have at least one type of Insurance, and car insurance is required by the law .

 

Businesses need some special kind of insurance policies that can insure against certain types of risks.

 As in example :

* An auto dealer is not subject to this type of  insurancr but requires only coverage of his damages during the test drive or drive.

*Restaurants also requires a policy that can cover the damage time to time .

There are two more types of insurance polices available by the insurance companies for the specific needs such as kidnaping & ransom and the  medical malpractices.

In every Insurance company they have three main components. 

• Premium
• Policy Limit
• Deductible

components are briefed below

•  Premium :

                  A policy's premium is its price , generally expressed as a monthly cost and this is Insurer's responsibility to determine the premium based on your business' risk profile ,which may include credit worthiness.

• Policy limit :

                      Policy limit is the maximum amount an insurer will pay under a policy for a covered loss. Maximum may be set per period, Per loss or injury or over the life known as life time policy.

•  Deductible :

                    The deductible is a specific amount policy holder must pay out of pocket before the Insurer pays a claim. 

             

                     In order to choose the best policy for you or for your family pay attention to these three major components so you do not have to worry about any thing. 

 

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