Insurance is the transfer of risk of a loss from one party to another in exchange for a fixed amount of payment that in commercial language is known as insurance premium. The technique is basically used for risk management purposes and is primarily used to hedge or shield against the risk of a loss of uncertain timing and amount. The company or person that provides safety against the foreseeable loss or simply that provides insurance Is known as insurer or insurance carrier while the person that is seeking protection against the risk is known as insured or the policy holder. The contract of insurance that is formed between the two parties is called insurance policy and according to this contract, the insured person will make a certain amount of payments at regular intervals against the promise of indemnification of any losses suffered that are covered by the insurance policy with the indemnification amount being paid by the insurer. Hence it can be said that insurance premium is the payment for obtaining a guarantee from the insurer to compensate for the losses suffered by the insured.
Previously, insurance in Dubai was not so much common as it currently is. Since the basis of insurance conflict with those of Islam and since according to the teachings of Islam, the insurance is illegal and prohibited therefore previously there used to be almost no buyer of insurance policies in the city. However due to the recent developments and due to the growing immigrant population as well as due to the international businesses moving into the city of Dubai, the practice of insurance was made common. Nowadays there are a lot of different sorts of insurance companies that are operating in Dubai. Some of these companies include the top insurance companies in Dubai among the whole world.
The common forms of insurances that are common in Dubai include Life insurance. This is basically a contract of insurance between the insurer and insured according to which the insurer is accountable to pay a certain amount of money to a beneficiary selected by the insured in the event of death of the insured. This is the general form of Life insurance that requires the person to die. However other forms of life insurance may include a clause that will make it trigger in the case of terminal illness or critical illness. Funeral expenses may also form the part of benefit that will be obtained when the insurance will be triggered. This type of insurance is quite common among the people of Dubai and there are many different life insurance companies that are operating in the region of Dubai.
Other form of insurance that is quite popular among the people of Dubai is car or vehicle insurance. This is basically a type of insurance that covers the motor vehicles, cars, trucks and other similar types of road vehicles against any possible future losses such as accidents or damages. This type of insurance can also be used to shield against losses such as theft of car or any other accessories of the vehicle. There are a number of car insurance facilitator working in the city of Dubai.
Summary: Insurance is basically a risk management technique that is used to hedge or shield against future possible losses. Insurance has become a worldwide activity. It is also common among the people of the city of Dubai. The two common forms of insurances that are common in the city of Dubai are life insurance and car insurance.