Understanding Insurance 01

According to Republic Act No. 2 of 1992 on Insurance Business, Insurance or coverage is
agreement between two or more parties, where the insurer is binding to the insured, by accepting the insurance premium which aims to provide:

 
1. Reimbursement to the insured for loss, damage, or loss of expected profit.
2. Legal liability to third parties that may be suffered by the insured, arising from an event that is uncertain.
3. Payment of money based on death or life of an insured person.

While business insurance is a form of non-bank financial institutions which promised protection to the insured (the insured party something) so if anything happens to the insured in the future, the insured will get the money to change (reduce) the loss of the insurer (insurance agency).