Insuranc is defined as the pooling of fortuition losses by transfer of such risks to insurers,
who agree to indemnify insured for such losses,to provide other pecuniary benifits on their occurrence
or to render services connected with the risk.This definitions hilights the followings:
1. Insurance is the pooling of casual losses.
2. Insurance transfers thev risk from insured to the insurer.
3. The insurer agrees to provide pecuniary benfit on the occurrence of th lose.
concept of life insurance
life insurance is an arrangemnt by a person with a lif insurance company to cover the risk caused by
death of the person. such an arrangement takes th form of contract whre by the person pay certain
premium periodically over a started time period and in rturn th life insurance company agree to
pay back an agreed lump sum amount to the dependent open the death of prson or to the person
him/herself if the person lives at the maturity of life insurance contract.Therefore, life insurance is a
contract between insurer (the life insurance company) and insured (the person obtaining life insurance),
where by the insurer agree to pay a certain sum of money in return of premiumfrom the insured.
As per "insurnce Act (second amendment) 2058"life insurance contract is the contract about life of
person, where the person pays certain installment of money on the basic of his or her age and
in return certain sum paid to him or her, if he or she lives or to the nominee of the person on his
or her death.
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