Insurance Policy

These days as the price of every commodity is rising, we, as buyers, need some assurance of safeguarding the lump sum amount of money we have put on stake as well as the commodity itself.Those risks can be handled by taking up an insurance.Economists and lawyers agree that the purpose of insurance is to get over an uncertain loss by the practice of appraising and controlling risk, also known as risk management.It is a sort of a give and take system where while the beholder of the commodity to be insured pays money to the company giving insurance, the company takes the risk upon itself.The risk is transferred from a policy holder known as the insured to an insurer which is the company providing insurance.The amount to be charged for a certain amount of insurance coverage, known as premium, varies from deal to deal based on a few factors and is determined by the insurance rate.

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