Insurance is a mechanism to cover certain risk. Insurance is a tool which deals in risk management. The term insurance means protection from financial loss. Insurance covers the risk of contingent or uncertain loss. In this fast and rapid growing world getting insured must be the primary objective of every individual as contingency may arise at any point of time.

There are two parties involved in Insurance. The entity which provides the cover of risk is called- Insurer, Insurance Company or Underwriter. The individual who buys the insurance from the Insurance Company is called Insured or Policy holder. Policy holder is the person who is insured against a certain risk.

A contract is made between the insured and the insurer which is called as Insurance Policy. Insurance Policy is document which includes all the terms and conditions of the contract. Insurance Policy includes conditions and circumstance under which the insured will be compensated. If any emergency arises due to which the earning capacity of the insured is reduced, the insurance company pays the certain sum of money to the insured as per the terms of insurance policy.

In order to cover risk, the insurer has to pay a certain sum of money to the insurance company at regular intervals (monthly, quarterly, yearly, etc). The amount which the policy holder pays to the insurance company is called Premium. Premium is paid at regular intervals. In return, the amount which is paid by the insured in case of any emergency is called Claim. Claim is the actual product for which the insurer pays to the insurance company. There are mainly two type of insurance-

  1. Life Insurance
  2. General Insurance


Arthashastra Investment Managers Pvt Ltd is a well known and trusted investment Management Company who is ready to help you in selecting the right Insurance Policy for you. For details visit the website of Arthashastra Investment Managers Pvt Ltd.