Definition of Accident Insurance – Accidents can happen in different ways related to human life, property and various interests. The emergence of accident insurance as a way to get rid of some of the unexpected financial losses in the lives of people caused by these accidents. Unexpected events happen in human life on which people have no hand.
Such an incident is called an accident. Accidents always happen. Occurs unimaginably and abruptly. Therefore, since people are completely ignorant about all these incidents, it is not possible to take immediate action against them. Accident insurance is therefore an agreement that the insured enters into with the insurer to obtain financial compensation from the loss caused by the accident. Under this agreement the insurer pays a fixed premium. Where there is a risk of accidental loss of property or people.
The Oxford Dictionary of Business states about accident insurance:
“An insurance policy that pays a specified amount of money to the policyholder in the event of the loss of one or more eyes or limbs in any types of accidents is called accident insurance. “
In other words, an insurance policy that guarantees a certain amount of money for the loss of one or more eyes and limbs of the insured in an accident is called accident insurance.”
From the above discussion and definition, accident insurance has the following features:
- Accidents are caused by unexpected or unforeseen events.
- Accident insurance is for both human life and property.
- In this case, people do not have a hand in the corner. Such insurance compensation agreement.
- Such insurance is contracted against the possibility of an accident.
- According to the insurance contract, the insured is obliged to pay compensation if the insured suffers an accident.
In conclusion, the insured is bound by the contract with the insurer to receive compensation for the damage caused by the accident. Call it accident insurance.
This type of insurance guarantees various types of risk reduction to the insured. Provides. However, even in such an insurance contract, there must be final trust between the insured interest of the insured and the executor of the power.