What is Insurance

According to wikipedia :

 

Insurance can be said as a form of risk management primarily used to hedge against the risk of a contingent, uncertain losses. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in an exchange for payment. An insurer is a company that selling the insurance; the insured, or policyholder, is the people or entity who is buying the insurance policy. The amount that will be charged for a certain amount of the coverage is called the premium (premi). Risk management, the practice of appraising and a controlling risk, has evolved as a discrete field of study and practice in field.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

 

The lost condition may vary between other company. Depend on the condition offered by the insurer company. So in here, a person should take a good comparison before choose the best Insurer Company.