It is a contract between one party to compansate monetarily the other party on happening of an event for which the fee was being paid periodically. Such contract is the insurance policy and the party compansating is called the Insurer and the fee paid is called the insurance premium. Alltogether it is called Insurance which covers or compansate certain types of risks in life and property like house against fire, theft or for oneself against loss of earnings due to physical disability, loss of life etc.

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