Insurance is a term used to refer to an action, system or business in which financial protection (or financial compensation) for the life, property, health and so on gets reimbursed from unforeseen events that can occur such as death, loss, damage or illness, which involves regular premium payments within a certain period of time in exchange for a policy that guarantees such protection.
The term “insured” usually refers to anything that gets protection.
an insurance undertaking is an agreement between two or more parties, in which the insurer binds itself to the insured, accepting the insurance premium, to provide reimbursement to the insured due to loss, damage or loss of expected profit or third party legal liability which may be subject to the insured , arising from an uncertain event, or providing a payment based on the death or life of an insured person.
The agency that channels risk is called the “insured”, and the body that accepts the risk is called the “insurer”. The agreement between the two bodies is called policy: it is a legal contract that explains each protected terms and conditions. The fees paid by the “insured” to the “insurer” for the borne risk are called “premiums”. This is usually determined by “insurers” for future claimable funds, administrative costs, and profits.