General insurance Meaning and nature of insurance.

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A lot of individual only have a partial or half thinking or knowledge of what insurance is. However only those who are intellectually educated and who must have spent years and decade in higher School of education can definitely speculate for sure what the term insurance is. In this particular trade I will be mentioning and also emphasizing on the nature and meaning of insurance so that beginners can understand what insurance is all about. Insurance has to do with the managing of the unknown which itself is associated with the future. You talk to someone and enquire to know how he feels about the future, he may tell you in the conventional way that it is bright trying to be optimistic and portraying himself as a courageous person. But in his mind there is no doubt that anything can happen. The man knows that he does not have the future under his control and he cannot predict what will happen tomorrow. His house may be gutted by fire or destroyed by Windstorm, torrential rain or head tremors, a lorry loaded with his goods may get derailed while in transit does damaging the goods. His wife may die in the accident and possibly the cells girl in his or her shop may be electrocuted or the shop maybe burgled.

You can go on citing other possible misfortunes to which the man can be subjected which could turn his earlier optimism into pessimism. These misfortunes are referred to as risk. For long businessmen are known to have sought to guard against the unknown because they cannot predict the future and they devote a great deal of their time to ameliorating the losses that may result from unforeseen disturbances, one way of doing this is insurance. To ensure as it is commonly used as to guard against the unknown that is to ameliorate risk or to compensate the risk inflicted (the person who suffers risk).