Last updated 14 June 2017
Types of Insurance
The Insurance Agreement
General Insurance Code of Practice
Elements of an Insurance Claim
Insurance Claims Procedure
Insurance Policy Benefits and Limitations
Insurance Dispute Resolution
Insurance is a contract between an insurer and the insured by which, in exchange for money (the premium), the insurer agrees to cover (indemnify) the insured to the extent of the agreement.
Insurance should be considered as risk management for any peril that may threaten the financial wellbeing of the insured. Insuring against fire damage or motor vehicle third party property liability for example may give relatively inexpensive peace of mind. One benefit of taking out appropriate liability insurance, professional indemnity insurance, or directors and officers insurance, may be to cover all or some of the cost of legal representation, should the insured be sued for damages and have to defend a claim after an insured risk occurs.
There may be an obligation to insure provided in legislation (e.g. for employers and registered health practitioners) or by contract (e.g. for tenants, a person obtaining finance to purchase a motor vehicle or a mortgagor).