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How to fund your child’s education through mutual fund SIPs When parents start investing early through SIPs, they allow more time for their corpus to grow. Also, monthly outgo in the form of SIPs is lower than those investing late for the same amount of corpus
Wed, 23 May 2018 08:41:14 +0530


Joydeep Sen For most funds, it is about fitment to one of the new categories, with or without a change in the name of the fund.
Wed, 02 May 2018 09:56:59 +0530


Markets closed, but that need not stop you from investing! Imagine a platform for investments where you do not need to worry about whether the market or the MF office is still open.
Tue, 01 May 2018 09:28:00 +0530


Juzer Gabajiwala In this article, we will explain the categorization of debt funds in brief and its features impact.
Thu, 19 Apr 2018 11:20:20 +0530


5 pointers to re-check before buying a family floater health insurance The following Article is an initiative by NIC and it is intended to create awareness among readers.
Mon, 14 May 2018 16:01:57 +0530

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Insurance

Basics of Insurance

Meaning of Insurance
Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company. 
A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.

Definition 
Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event in case of general insurance. 
The party bearing the risk is known as the ’insurer’ or ’assurer’ and the party whose risk is covered is known as the ’insured’ or ’assured’.

Concept of Insurance / How Insurance Works
The concept behind insurance is that a group of people exposed to similar risk come together and make contributions towards formation of a pool of funds. In case a person actually suffers a loss on account of such risk, he is compensated out of the same pool of funds. Contribution to the pool is made by a group of people sharing common risks and collected by the insurance companies in the form of premiums.