What is Insurance
Insurance is an agreement on which the contract provides for compensating the losses caused by some unpleasant event.
Two Types of Insurance
You will come across two types of insurance contracts: simple and indemnity. Under an indemnity contract,
the company offers coverage against attacks due to war and nuclear energy.
The person or insuring institution that is responsible for such loss pays a specific amount of money to the insured so that he may feel free from financial worries if something unfortunate occurs in his life and he loses certain assets.
The second variety called simple involves consideration of payment required by a supplier or manufacturer to avoid any possible danger to his product.
Insurance limits future liability in case of any damages or accidents.
