protects us against the financial consequences of damage
or loss of our own or
other people's property.
It also provides financial compensation
for accidental injury or death. For all types of insurance,
the insurance company calculates the level
of risk and fixes a premium.
The insured person or company agrees to pay the premium. In
return, the insurance company guarantees to pay financial
compensation if what is insured against happens. The details
of each insurance are contained in the
insurance policy. This shows the risks that have
been insured against and the levels of compensation that will
be paid. When someone wishes to make a claim for compensation
he or she completes an application form and submits it to
the insurance company. The claim is then considered and then
either accepted or rejected.