Insurance is a form of risk management where the insured party transfers the risk it faces onto an insurance company in consideration of some money payment called premiums.
In consideration of the premium received the insurance company in return promises to pay the claims that may arise during the period of insurance subject to the terms and conditions of the insurance policy.
These terms and conditions may be expressed or implied. One of the implied terms (which sometimes is made express in the insurance policy) is that the insured must act and protect the property insured as if he/she is not insured. This means the insured must, at all times during the period of insurance (including during and immediately after the occurrence of an insured event) do whatever he would have done had he not been insured. If he/she doesn't do so, the insurance company has the right to deny the claim under the law.
