What is insurer and insured

What is insurer and insured
  • 1 answers

Gaurav Seth 7 months, 1 week ago

An Insured is a person who is the buyer of the insurance policy. An insured is the proposer of the policy who pays premium as the consideration to the insurance company. Insured purchases the insurance policies to safeguard the assets from the financial consequences of losses or damage that occur from insured peril

An Insurer is a company who sells the insurance policies. Insurer is the one who bears the risk in return for considration which is known as premium. Insurer agrees to pay to the insured a certain sum of money if the insured peril occurs so that it is possible to continue the benefits

Insured pays the premium to the insurer

Insurer pays the claim to the insured

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For example:

A purchases insurance from Z insurance company.

So here,

A - insured

Z - insurer

A will pay premium to Z

Z will pay claim to A

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