Discuss (b) Rastriya Beema Sansthan

Insurance is the risk-transfer contract: many facing the same peril pool their contributions (the premiums), and the few who suffer the loss receive the indemnity (the claim). The insurer promises, for the premium, to pay on the occurrence of the uncertain event. The idea's parts: the risk (the uncertainty — the event may or may not happen, and when is unknown); the pool (the law of large numbers — the many losses shared); the premium (the price of the transfer); the promise (the policy — the contract's document).