Insurance provides financial protection for unexpected events. Insurance will not erase an accident that has occurred, but it will allow for the consequences to be alleviated.

An insurance contract provides that in case of an insured event the insurer shall pay the insurance indemnity. The policyholder is obliged to pay insurance premiums according to the contract.

Insurance types include:

  • voluntary insurance – the policyholder’s personal interest to protect himself from the harmful effects of unexpected events
  • compulsory insurance – insurance required by law (e.g. motor third party liability insurance)
  • mandatory insurance – commitment established by the law to pay the insurance premium, the indemnification obligation of which is borne by the state (for instance, health insurance funded by social