Question

Write a short note on Insurance.

Answer 1

Insurance is a contract where the insured pays a premium in return for the insurer undertaking to compensate specified losses on defined contingencies. It spreads and manages risk across many policyholders, protecting businesses and individuals against financial loss. Key types include life insurance and general insurance (fire, health, marine). Core principles include insurable interest, utmost good faith, indemnity, contribution and subrogation; these ensure fairness, prevent fraud and limit payouts to actual loss.