INSURANCE-PEDIA.COM |Insurance or coverage is an agreement between two or more parties, whereby the insurer binds himself to the insured, by receiving insurance premiums that aim to provide, including:
1. Replacement to the insured due to loss, damage, or loss of expected profit.
2.Legal liability to third parties who may be subject to the insured, arising from an uncertain event.
3. Payment of money based on the death or life of an insured person.
While the insurance business is one form of non-bank financial institution that promises protection to the insured party (the insured party) so that if something happens to the insured in the future, the insured party will get money to replace (reduce) the losses that occur from the parties insurers (insurance institutions).
The definition of insurance according to the web The Financial Services Authority is an agreement between an insurer and an insured person who is required to pay a premium in order to provide reimbursement for the risk of loss, damage, death, and loss of expected profit , which may occur over an unexpected event.