What is Insurance The term I nsurance can be understood as an arrangement, in which the insurer commits to provide compensation for loss, damage, death, happening caused to the insured in return for the payment of the premium. Insurance policies are designed on the principle that although we cannot stop unfortunate events occurring, we can protect ourselves financially against them. Type of Insurance Base on the contracts between the Company and Insured, There are two types of contract; a contract in which life risk is covered is called L ife I nsurance , a contract in which other than life risk, anything covered is called G eneral I nsurance . The insurance plan which covers the life-risk of the insured is called L ife I nsurance . On the other hand, the insurance plan which covers any risk other than the life-risk (Motor, Home, Travel, Property, Health, Credit Card Insurance etc) of an individual is called Ge neral I nsurance . Life Insurance और General Insu