A lot of people have some kind of insurance: for their house, their car, or even their life. But most of us do not think much about what insurance is or how it works.
Simply put, insurance is a deal represented by a policy where a policyholder takes financial protection or reimbursement against losses from an insurance firm. The company pools customers' risks to make payments more convenient for the insured.
Insurance policies are used to protect against the risk of major or minor financial loss that may arise from liability for damage to the insured or its property or for damage or injury caused by a third party.
What are the Components of Insurance Policy ?