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What Is Insurance?

The literal meaning: Insurance is called ‘Bima’ in Urdu, while is called ‘Tamin’ in Arabic. All words related to a topic in its native language mean “assurance”.

Terminological meaning: This is actually the name of an agreement between the two parties, in which one party (the company) is obliged to pay a fixed amount in the event of an unknown loss to the other party (insurer), and in return, the other party pays a fixed amount. Money promises to be paid in installments (premium) until an unknown loss occurs. It is an agreement, which the insurance company pays the contracting person in the event of an accident so that he can cover the loss as a result of the accident.

When did the insurance business start in the world?

It was introduced by Italian merchants in 1400. In the seventeenth century, insurance was introduced in England to help the sick. In the eighteenth century, merchants formed their own associations, and any member of the business community who was involved in an accident was assisted by a joint fund. However, the oldest maritime insurance in England dates back to 1547.

What are the benefits?

  • In this way, a person’s wealth is preserved and it continues to increase.
  • In the event of accidents and sudden disasters in the world, any kind of damage can be easily compensated.
  • In case of loss, it becomes difficult for a poor man to manage money at once or he cannot save money for the future but in the case of insurance, a small amount of money is used for the poor or widows.
  • When a man dies, he dies leaving behind his wife and children. In the case of getting insurance, his wife and children get money. Which they use for their own need and purpose.
  • Anybody’s accumulated wealth is in safe hands and is found in the event of an accident in the future. He does not worry that someone will be robbed or stolen or disappeared by deception.

Why do we need insurance?

The question that comes to mind. Is do I really need protection? Life is full of occasional accidents. We must always be prepared for it. Because of an accident or disaster, the worst time of life begins, if the insurance was taken out, the money received from the insurance company will not only help you to safe and secure. It will also restore your lost reputation. There can be many reasons in our lives where we need help, such as serious illness, natural disasters, unexpected death of loved ones. In such situations is an important help in your financial situation.

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