Insurance is always a complex product to understand like any other financial product. Understanding the true nuance what the policy means to you and how can one evaluate the cost and benefits ratio underlying is one of the toughest task. When it comes to motor insurance which covers both two wheeler and four wheeler vehicles the value is a hidden aspect and it can’t be judged monetarily.
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.