The features of insurance are contract, consideration, co-operative device, protection from financial risks, certainty and contingency, insurance is not gambling, insurance is not a charity, based upon certain principles, regulated by law, value of risk, large number of insured persons, investments. Let us discuss about some of those in detail as follows. Contract is a written agreement between the insurer and the insured wherein the insured makes an offer and the insurer accepts his offer. Consideration is a contract under which the insurer, in a consideration called premium, agrees to take over a particular risk of the other party and promises to pay the insured or his nominee, a certain sum of money on the happening of an uncertain event. Protection from financial risks offers protection to those risks which can be measured in terms of money that is financial risks.
Monday, March 9, 2009
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