Insurance is always there to assist you in paying for the damage to the property or paying the others on your behalf once you are injured by someone or your property is damage (kniftrygghet) . Insurance is the contract which transfers the risk of the financial loss from the individual or the business to the insurance company. It helps to manage risk. When you are going on with the life, there is always the chance which you will be in the car accident, your home burns down or twist your knee.
The risk for accidents is very small, but if they happen at once, the effects can be disastrous. Without the insurance, you would be required to have your money to repair the car, the knee surgery, or to rebuild the home. Here are two major categories of insurance. • Casualty and property insurance
• Health and Life insurance.
Casualty and property insurance offer the protection to individuals and businesses for the losses which are related to the assets and belongings, both financial and physical (https://www.kniftrygghet.no/Bilforsikring) . Health and life insurance protect the people from the financial loss because of the premature death, disease or sickness.
Insurance uses the probability and laws of the large number when determining the cost of the insurance premiums. The charges are done to the clients according to the risk factors. Rates are required to be sufficient for a company to pay the claims in the future by paying its expenses, and then make the reasonable profits which is not much to the customers.
If the event is highly likely to happen for the client for example, a house near a water flooding that place has the history of flooding, the insurance companies are expected to collect more of the premiums from the anticipated claims.
The insurance companies usually market the products and the services to the consumers in various ways (https://www.kniftrygghet.no/Ansvarsforsikring) . A price which the companies charge for the insurance coverage is subjected to the government regulation. The insurance companies cannot discriminate the applicants or insurers basing on the factor which doesn’t relate directly to a chance of the loss occurring.