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define insurance what is difference between insured and insurer

Dear Student,

Insurance is a contact between 2 Parties in which 1 Party(Insured) pays to another Party an amount that is called "Premium" & other party(Insurer) in return,compensate for any loss,damage,illness etc (depending on type of Insurance that you take)  incurred to him subject to some prescribed conditions as mentioned in the contract.

Insurance is sub categorised in 2 Parts :-
1.General Insurance (such as Marine Insurance, Health Insurance etc.) 
2.Life Insurance

Insured is the one who pays premium, to another party called the insurer.
Insurer can be a Company or State.

Normally this contract is entered via agents or Brokers.

Regards,
Gagan

 

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View Full Answer
Insurance means company which insured the persons.Like Medical insurance ,Life insurance
Insured are those who is insured by insurer.
Insurer are those who insured the persons.
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Harshit is right
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Insurance is the process of making good the losses of the insured against an amount(premium) paid by the insured to the insurer after regular intervals.
This premium makes sure that the losses of the insured would be made good by compensating it by the insurer
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