Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

Risk which can be insured by private companies typically share seven common characteristics: Large number of similar exposure units: Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses. Exceptions include Lloyd's of London, which is famous for insuring the life or health of actors, sports figures and other famous individuals. However, all exposures will have particular differences, which may lead to different premium rates.

Definite loss: The loss takes place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.

In Kuwait it is required by law that every car on the road is insured. UPI Brokers helps you to find the right car insurance in Kuwait matching your personal requirements. Choosing the right car insurance is about deciding how much cover you need, what you can afford and whether you desire any additional cover/s.

Vehicle insurance doesn’t need to be expensive. We are constantly updating and researching the market to bring you today’s best terms at the most competitive prices.

Under the Kuwaiti law it is required that every car on the road is insured. Car insurance provides you with security and financial protection against third party liability claims in case of an accident. With Comprehensive Insurance (see below for details) you will also be protected against loss or damage to your own vehicle

It is the most basic and cheapest form of insurance to comply with the Kuwaiti law. You will be insured against all sums you may be liable for, such as loss of life, bodily injury to any third party and damages to a third party’s vehicle or property caused by the use of your vehicle. TPL does not cover the cost of damage to your own vehicle.

Glossary of insurance related terms are those used by Lloyd's of London and market participants. The following definitions are intended for general guidance. They do not override or qualify any definition that appears in any actual insurance policy, byelaw or regulation, in any contract or in any other document.

http://www.lloyds.com/common/help/glossary