Insurence

In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.

An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy.

 Premium: he insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. The amount of insurance premium that is required for insurance coverage depends on a variety of factors. Insurance companies examine the type of coverage, the likelihood of a claim being made, the area where the policyholder lives or operates a business, the behavior of the person or business being covered, and the amount of competition that the insurer faces.

Actuaries employed by an insurance company can determine, for example, the likelihood of a claim being made against a teenage driver living in an urban area compared to one in a suburban area. In general, the greater the risk associated with a policy the more expensive the insurance policy will be.

A Cover note is an interim receipt issued by the insurer. It is temporary in nature. in practice on making the proposal, the insured company on payment of premium gives a deposit receipt called Cover note. It is also called an Interim Protection Note. It contains the same terms and conditions as that of the future policy to be issued in favour of the insured. Object of Cover note is to give interim protection to the assured pending decision of the Board of Directors of the Insurance Company. Insurers of non-life policies normally empower their agents to grant cover notes valid

at the most for a short period of 15 or 30 days, after satisfying themselves about the the acceptability of the proposal. Cover note comes to an end on the issue of "Certificate of Insurance/policy". It also comes to an end when the insured receives a cancellation notice of cover note from the insurer.

Open Cover: An open cover is an agreement (not a policy) whereby the insurer will accept insurance of all shipments made by the assured, within the terms of the cover for a fixed period, usually for 12 months.

Detail in bangla: Insurence in Bangla