economic Insurance is a form of risk management

Law and economic Insurance is a form of risk management, primarily used opposite to the risks of contingent loss. Word insurance mean is “protection against the losses”. Insurance is a risk of potential loss from one entity to the other for the exchange of premium and duty of care for the life, vehicle and other financial goods. It can be said that the insurance occurs with the appearance of human society. Insurance is intended to help the people. For example, if the house of anybody burns the people of society, the insurance policy helps the effected person to build a new house. In 600AD, Greek and Romans introduced the origin of life and health insurance. England produced his first fire insurance company in 1680, for the people whose houses burn by fire. There are two types of insurance companies worldwide, first is life insurance and the second is general insurance company.