What is Insurance?

Kathmandu: Insurance is an important risk management tool. Insurance is the provision of compensation in case of financial loss.The future life is insecure, so the process of transferring the financial burden of the risk to the insured’s life, property or liability to the insurer is called insurance.

In the case of insurance, there is a written contract between the insured and the insurer. According to the agreement, the insurance companies have a procedure to pay compensation equal to the loss, i.e. insurance claim.

There are many possibilities of disaster and risk in personal life and society. The disaster, risk can happen now, today, tomorrow, anytime or circumstance is uncertain.

Everyone has the same risk of financial and material loss in the future. No one knows what will happen to whom. Therefore, insurance is a type of contract with an insurance company that is adopted to minimize the risk that may occur in the future and to transfer the risk that may occur in the future to others.

The appropriate means of obtaining compensation by transfer of uncertain risk can be considered as a complete definition of insurance. Individuals or organizations exposed to uncertain risks and accidents can purchase an insurance plan with the condition of receiving compensation in the event of an accident by paying a fixed insurance fee according to their risk.Insurance is also a written contract between two parties. Insurance is a contract between the insurance company and the insured person. In this process, the burden of compensation for the risk of the insured is transferred to the insurer through insurance.

Insurance is for a fixed period. During that period, the insured company pays the compensation. The insurance process starts with the insurance proposal form and personal health details. Such forms should be obtained from the respective insurance companies.

Those forms can be submitted by the insured person through the insurance agent. Thus, it is up to the insurer whether to accept the proposal of the form filled by the insured.If the proposal of the insured is accepted, the insurance process starts after the first installment of insurance fee is paid. All the documents related to the insurance, including conditions and facilities, are provided by the insurance company to the insured after the insurance is accepted. This is called insurance.

There are two types of insurance. One is life insurance and the other is non-life insurance. Insurance companies for both these services are located in different districts in Nepal. From where we can find a place to stay.

The regulatory body of insurance companies in Nepal is Nepal Insurance Authority. Which regulates the operating insurance companies and brings new policies and plans. Recently, the Insurance Authority has been conducting insurance awareness programs in various accessible to remote places of the country. Which is commendable work.

What is Life Insurance?

Life insurance can be understood as protection against risks related to human life. Life insurance provides financial protection in case of calamity.

Life insurance is also the best option to be protected from the future. After the certain period of insurance is over, they can get the bonus amount specified in their insurance policy and the additional amount received during that period.There are many types of calamities in human life. Life insurance provides the ability to cope with these calamities.

Life insurance is very important in human life. Life insurance provides important benefits such as financial security, investment and savings opportunities as well as capital building and tax exemptions.

Therefore, life insurance is the best way to arrange mandatory savings and the welfare of dependents. Life insurance especially includes whole life insurance, term insurance, term insurance and annuity insurance. What is non-life insurance? Non-life insurance is a contract for a fixed term.

There is an agreement between the insurance company and the insured person. Such an agreement is called a contract. In the case of death or dismemberment of the insured property or person within the specified period of the contract, the insurance company pays compensation to the related party based on the amount of actual loss within the scope of the insurance company.

Non-life insurance is an agreement to be freed from the risk of loss and liability of property. Although the word ‘unanimate’ refers to the subject of property and liability, it covers some part of human life. Apart from life, insurance related to movable and immovable property comes under this.

Non-life insurance includes fire insurance, marine insurance, air insurance, motor insurance and miscellaneous insurance. Recently, people’s attitude towards insurance is becoming positive. However, as much development as it should be is not found.

There are many reasons for the lack of improvement in the insurance sector with time and technology. Because of this, the insurance committee is actively promoting insurance awareness programs to increase the reach of insurance.