i. Insurance is a very vital and crucial part of the life, which
indemnifies all the acts affecting the individuals and legal
entities. An agreement by which the company or the state
undertakes to provide a guarantee for compensation for
specified loss, damage, illness or death in return to for
payment of specified premium.
Life insurance is a contract between the policy holder and
the insurer, where the insurer agrees to pay a designated
beneficiary a sum of money upon the occurrence of the
insured individual’s or individuals’ death or other event,
such as terminal illness or critical illness.
➢ Death
➢ Terminal illness
➢ Critical illness
ii. Fire insurance means insurance against any loss caused by
fire and it entitles the policy holder to claim the damage to a
property caused by fire including the cost of replacement,
reconstruction or repair beyond what is covered by the
property insurance policy.
Policies cover damage to the building itself, and may also cover
damage to nearby structures, personal property and expenses.
