Insurance is a contract, represented by a policy, in which an individual or entity receives
financial protection or reimbursement against losses from an insurance company. The company
pools clients' risks to make payments more
affordable for the insured.
Insurance policies are used to hedge against the risk of financial losses, both big and
small, that may result from damage to the insured or her property, or from liability for
damage or injury caused to a third party. There are
a multitude of different types of insurance policies available, and virtually any individual
or business can find an insurance company willing to insure them, for a price. The most
common types of personal insurance policies
are auto, health, homeowners, and life. Most individuals in the India have at least one of
these types of insurance, and car insurance is required by law.