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Insurance is a legalized contract between the two parties – the insurance company and the individual. The verbal contract insurance company guarantees to repay for an indi-vidual’s financial losses due to insured incident and contingencies in return for an indi-vidual’s insurance payments. Lucidly, insurance is a risk shifter process where your handover your risk to the insurance company and get compensation for the financial loss you may have experienced due to unpredicted events.