Insurer and Insured

First to understand Insurance and its functions,there are two terms which you should know the meaning. These terms are the most used terms in the Insurance Sector. They are Insurer and Insured.

For your better understanding we will explain you with examples.

Mr.Charlie took auto insurance for his newly purchased car.He took auto insurance in a Insurance Company. So now here Mr.Charlie is the insured and the Insurance Company is the insurer.

This means Mr.Charlie is insured whose interests are protected by the Insurance Company.

Insurance Company is the insurer may be private or government organization who pays benefit if any damage occurred to Mr.Charlie's car. But under terms and conditons of the insurance company he will be paid for the damage of his car.

Hope you understand the meaning of the Insurer and Insured please post your valuable comment for improving insuranceminds in user friendly way.