Insurance can simply be defined as a contract or agreement between two parties where one party makes payment to the other party with the undertaken that the other party will compensate him when he suffers loss relating to the subject matter of the contract. Insurance entails an individual making payment to an insurance company and the insurance company, in turn, pays him when he suffers loss, it is simply a means whereby people are indemnified against loss.
Commonly used terms in an insurance contract.
Premium; This is the money paid by the party taking the insurance policy, it is usually calculated based on the loss to be protected against and the nature of the risk involved. For example, a party taking insurance cover against loss or destruction of his bicycle will pay lesser than a party taking insurance cover against the destruction of his Lamborghini.
Insured: This is the party that pays a premium to the insurance and is entitled to be reimbursed if he suffers loss
Insurer: This is the insurance company that undertakes to indemnify the client against loss.
Beneficiary: The beneficiary is not a party to the insurance contract but is entitled to payment from the insurance company if the client that took the insurance cover passes away. The beneficiary usually derives their right to be paid by the company through a will left by the client or a letter of administration if the client does without making a will.
Kinds of insurance.
Health Insurance as the name implies caters for the medical bills of the insured, its scope spans from simple illness to complex medical conditions that need surgery. The insurance company can either pay the health care provider directly or reimburse the insured any time he falls sick or require medical attention. Health Insurance is commonly included by employers as one of the benefits a potential employee can derive from being an employee.
Auto Insurance :
Auto Insurance covers cars insurance and bike insurance. Auto Insurance indemnifies vehicle owners that have insured their vehicles against vehicle theft, loss or accident. Car insurance is the most commonly taken insurance in the auto insurance category. This should not come as a surprise since cars are mostly more expensive than bikes. If you haven’t taken any car insurance against accident or loss on that your Ferrari safely packed in your garage the time to take it is now.
This is an agreement between the insured and the insurer that upon the death of the insured a sum of money will be paid to named persons usually the spouse or families of the insured. Life Insurance could also last for an agreed period whether the insured dies or not.
These British insurance companies cover all kinds of insurance ranging from car insurance, bike insurance, life Insurance and health. Their services have so far been reviewed and rated by clients that have dealt with them. The scope of their bike insurance, car insurance, and health insurance is one of the most comprehensive you can find anywhere in the world.