Insurance Definition

Codex Hammurabi Law 238 (c. 1755–1750 BC) stipulated that a sea captain, ship-manager, or ship charterer that saved a ship from total loss was only required to pay one-half the value of the ship to the ship-owner. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Personal lines insurance includes property and casualty insurance products that protect individuals from losses they couldn’t cover on their own. The policy limit is the maximum amount an insurer will pay under a policy for a covered loss.

Frequently Asked Questions About Insurance

The earliest known policy of life insurance was made in the Royal Exchange, London, on the 18th of June 1583, for £383, 6s. Auto insurance is purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Deductibles can apply per-policy or per-claim depending on the insurer and the type of policy. Policies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims. For over 160 years, we've helped hard working people protect their futures, learning a thing or two along the way. If you're new to insurance, let's start with our interactive tool that helps find what protection could be right for you.

Income Protection Insurance

You must read and thoroughly understand all the terms and conditions of the policy contract before signing it. If there is anything you do not understand, get clarity from your insurance agent, or directly from the insurance company, and be thoroughly satisfied that you have understood all aspects of your policy. You should especially look out for what will be covered, under what circumstances, and the procedures for making claims.

We’ll help you estimate how much it’d cost to replace everything you own — then we’ll also show you just how affordable renters insurance really is. Our resources are packed with articles, guides, calculators and more to help cut back on the complicated and simplify insurance. Use our online renters tool to design your own renters policy that matches your exact needs. Get a renters policy that fits your lifestyle and protects what matters most to you. Team of highly trained advisors help you choose a plan, handle any changes & get refunds from insurers. And for the lower-income groups, we also provide PMJAY or Ayushman Bharat Yojana scheme on our platform, which is a big initiative by our PM Narendra Modi to provide insurance to the needy in both rural and urban India.

At the most basic level, initial rate-making involves looking at the frequency and severity of insured perils and the expected average payout resulting from these perils. Thereafter an insurance company will collect historical loss-data, bring the loss data to present value, and compare these prior losses to the premium collected in order to assess rate adequacy. Rating for different risk characteristics involves - at the most basic level - comparing the losses with "loss relativities"—a policy with twice as many losses would, therefore, be charged twice as much.