What is an insurance policy ?

What is an insurance policy ?
What is an insurance policy ?

Insurance policy

 An insurance policy is defined as a document that clarifies the details of an agreement between the insured person and the insured person, and it is a contract aimed at financial protection, and it also has a specific policy that is between individuals and insurance companies, through which the individual gets financial protection, or financial compensation from the insurance company, Against losses that he or his property may be exposed to, or as a result of his responsibility for damage or injury to another party, and the insurance policy is used to limit and prevent risks: small and large, knowing that the purpose of the insurance policy may be life insurance, or cars, Or health In the United States of America, for example, we find that individuals own at least one of these insurance, and car insurance is considered a legal matter that is inevitable, and it is worth noting that each insurance company has a special policy regarding the insurance policies that it issues.

The insurance policy is also considered an official document from the insurance company for the insured, so that the compensation cover for the insured becomes effective, and it serves as a legal guide for the insurance agreement, in which conditions are covered that cover compensation, such as the amounts paid by the insurance company, and it also determines the risks that It can be covered by insurance, the period of coverage, the method of payment of premiums, and their value, and the insurance policy is issued once the individuals agree on the insurance process, which contains all the conditions, in addition to that all data related to insurance is determined.
 Insurance policies differ according to the subject of insurance, that is, the thing that is insured, the purpose of the insurance, and the risks it covers, knowing that there are insurance policies issued for the benefit of the insured person himself, which are individual insurance policies, including life insurance policies, in which the husband contracts for the benefit of his wife if it takes place It has a death, in addition to that there is a type of insurance policy that is called compound insurance policies, and this type of policy covers more than one type of risk, such as comprehensive car insurance, and this type is considered more economical than individual insurance policies that cover one risk only. , As there are insurance policies that cover the collective group of people have the same conditions against hazards, such as: workers, students and peasants.

The components of an insurance policy There are three important elements that must be present in the insurance policy, namely:

insurance fee:

 What is meant by the price determined by the insurance company, and it is usually paid in the form of monthly installments, and here the insurance companies differ in terms of the prices they offer to the insured person, and this price also differs, as it depends on the risks that the insured person may be exposed to.

Maximum policy:

 Where the maximum amount paid by the insured is specified in order to cover the losses covered, and the payment period that may be lifetime or a specified period is determined.

Deductible Amount:

It is an amount that the policyholder pays from his own account, before the insurance company pays his claim.