Principle of contribution is used when multiple insurance policies covering same loss and payment for actual loss is proportionally divided among all.
Pure risks are types of risk where no profit is possible and only full loss, partial loss or break-even situation are probable outcomes.
Insurance contract is between two parties containing some lawful contents which must be present and agreed upon by both parties.
Physical hazards indicate those dangers of the subject-matter of insurance which can be identified by mere inspection of the risk.
Proposal in insurance means a request, from the proposer to the insurer, for giving protection against a risk.
Insurance contract may be divided into two forms—first life insurance contract and second contract of indemnity.
National insurance scheme is in fact a social security scheme run by the government of a country for the required financial security of its citizens, more particularly for the persons who are employed in various organizations or self-employed or non-employed.
Classification of insurance of interest can mainly divided in three types; Fidelity Guarantee Insurance, Credit Insurance, and Performance Bond.
Insurers do issue policies with regard to all types of insurance contracts. A policy as such is not the contract in itself, it is simply an evidence to the contract which already exists.
The insurance can be classified from two angels; Business Point of View and Risk Point of View.