What is insurance?

It can be called a risk transfer mechanism as simply. Here two parties are involved;


proposer (Proposer): The party that faces the risk or the party that expects to transfer the risk as the insurance.

Insurer : The party willing to accept the risk.

The insurer is called the Insured after entering into the insurance contract,


Only risks with uncertain and financial loss can be insured and insurance companies do not issue insurance policies for specific risks. Investment risks are also not insurable. Since insurance is a contract, contract law applies to it. Accordingly, in order to enter into an insurance contract, the age of the insurer must have completed 18 years.


At present the insurance business operates under two divisions namely


  1. “Life Insurance”
  2. “General Insurance”.


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