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An insurance contract where one party (insurer) undertakes to compensate the other party (insured) for a loss relating to a particular subject as a result of the occurrence of designated hazards and in return charged premium.
Is a contract to equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management between the insurer and the insured.
Contract under which the insurer is committed to lead to the insured or the beneficiary who spoke on condition of insurance in favor of a sum of money or revenue salary or any other financial View
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From the Accounting point of view:Insurance contracts are:-
1.Life InsuranceA life insurance contract is a long term contract in which the assured must pay thepremium at stated intervals and the insurer guarantee to pay a certain sum of money to theassured on the happening of the event which is certain (either death or expiry of the fixed period).“life insurance business is the business of effecting contracts upon human life”.2. General InsuranceAll insurance other than life insurance is general insurance. Under this type of insurance,the insurer undertakes to indemnify the loss suffered by the insured on happening of a certainevent in consideration for a fixed premium. Usually all these are short term agreements for a year.Fire insurance, marine insurance, accident insurance, burglary insurance, third party insuranceetc. are the examples for general insurance
An insurance contract is an agreement between insurance company & insured which specifies the risks that are covered , limitations & terms of the policy. In exchange for an premium amount the insurer promises to pay for loss caused as per coverage of the policy
