Difference Between Insurer and Insured

 An insurer, also known as the insurance service provider, is generally a company that issues different kinds of insurance policies and takes on the risk on behalf of the insured person. On the other hand, the insured is an entity that gets the benefit of financial coverage against various perils. These are two terms that are most commonly used in health insurance. 

Insurer and insured are the two most commonly used terms in health insurance. However, they are also the ones that are often confused to be synonyms. An insurer is a person or a company which issues the insurance policy whereas the insured is an entity that gains financial coverage against perils. Let us further understand the difference between an insurer and an insured.

An insurer is a person or a company which is providing you with an insurance policy and offers financial coverage against a specific event or risk. It is also the entity that issues the insurance plan, handles the claims and provides compensation in case of loss. An insurer can be the insurance company or the underwriter.

An insured is an entity or an individual who is offered financial coverage and is entitled to avail benefits under the insurance policy. The insured can raise a claim to get compensation in case the covered event occurs during the policy term. For example, if you purchase a health insurance plan and require treatment for a covered ailment, you can file a claim to get coverage against the medical expenses incurred.

The insurer is the entity that secures the insured against a financial loss specified in the policy documents. The insurance company, or the insurer, presents a contract to the insured and agrees to compensate for a specified event or risk in exchange for a predetermined premium amount. In case the covered event takes place, the insured can raise a claim to the insurer to avail the coverage amount. So, if you were to opt for an insurance plan, you would be the insured who is covered against a peril while the insurance provider would be the insurer offering coverage.

With this, you must have understood what an insurer and an insured mean and how they are bound by a contract or an insurance policy. To secure yourself against unforeseen risks, you can also opt for an insurance plan. Some common types of insurance are health insurance, life insurance, motor insurance, travel insurance, home insurance, etc.

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