Insurance is
a type of risk management that is used to minimize the risk of a party and
unsure loss. Insurance might be defined as a reasonable transfer of risk of losses
from one party to another in exchange of Payment or in another way we may
describe it as a “Right” of a client to buy fortification against expected or
unexpected perils.
Two parties
are involved in insurance transaction which is also called insurance policy; one
who is selling is called Insurer and the person who is buying the policy is
called Insured or policyholder and Insurer is liable to compensate the policyholder
in case of certain losses, apart of this both of parties have to fulfill legal
requirements as per decided Policy.
Now days Insurance
has turned out to be an integral part of Financial plans around the world due
to attractive offers by hundred of insurance companies but at the same time
there are different religious constraints as per believers in Islam,
Christianity and Jewish.
