What is insurance? How many types? Do we need insurance?

 Although the insurance sector started in Bangladesh with the establishment of General Insurance and Life Insurance Corporation in 1973, today, March 1, is being observed as National Insurance Day for the first time.

A quarter of a crore people in the country are covered under various types of insurance, though many do not have a positive idea about insurance.

However, economic analysts say that insurance can ensure the future security of an investor, while at the same time his risk is institutionally shared.

What is insurance?

Professor Hasina Sheikh, Director, Department of Banking and Insurance, Dhaka University, said that insurance is the transfer of the risk of possible loss of life, property or property to an institution in exchange for a certain amount of money.

This allows the individual or insurance company to take partial or all possible risks from the client in exchange for money.

Hasina Sheikh said, "Insurance is a kind of investment. It means that you are depositing a certain amount of money now considering the uncertainty of the future, after a certain period of time you will get your money in hand. It is like sharing your risk with another person."

Suppose, health insurance or health insurance, where you are depositing a certain amount of money against your own health situation, the purpose is that if you have an accident, the insurance company will pay a part or a large part of your health expenses.

This is the amount of money you are depositing, it is called premium.

In case of illness or accident, the health insurance listed hospitals are usually required to pay the insurance to the customer after receiving the 'cashless' service or service.

Professor Hasina Sheikh said, "Simply put, it is like paying to protect yourself from possible future losses."

What kind of insurance is introduced in Bangladesh?

There are usually two types of insurance in Bangladesh - life insurance and general insurance.

In life insurance a person can insure the life of himself or any member of the family.

In this case, after the death of the insured person, the entire sum insured will be paid to the family or the nominee.