Review of Literature:a) Insurance Defined:As we start our research with the problem and the objectives defined, now we will define and discuss all aspect of isurance in depth and eventually link it to the research’s main focus. First of all, insurance as a concept has many definitions and could puzzle you, however, each definition will have its own significanse in telling us the meaning of insurance. As Reelam C. Gulati says it’s “a cooperative device to spread the loss caused by a particular risk over a number of persons who are exposed to it but it doesn’t either reduce it nor alter its probablity, it only reduces the financial losses “. So it is a financial sharing burden beared by an individual or an institution. Now, why would some parties do such intiative? The answer may vary between social good to financial gain, but both are right answers. According to Mac Gill “Insurance is a process in which uncertanties are made certain “. This brief functional definition has made a shortcut to all functions and proccesses inbetween occurance of the risk, recognizing the loss and finally payments of insurance. While a legal definition may sound more complex and detailed, it all agree on the parties involved, the insurer and the insured. According to Chief Justice Tindal “Insurance is a contract in which a sum of money is paid by the assured in consideration of the insurer’s incurring the risk of paying a large sum upon a given contingency “. This definition has three main aspects: the insurer, the insured and the payment or premium. The insurer is “The party agreeing to pay for the losses of the insured”. The insurd is “The party who insured his/her risk with the insurer”. The premium is “The payment to the insurer received from the insured for indemnifying the loss”. Finally the contract or policy which is “The contract between the insurer and insured that sets the contractual obligation between the two”. All in all, the different definitions mentioned agreed on the basics of insurance which are: occurance of risk, mutual agreement between two or more parties to pay for and to, also the payment and the terms on which it depends. b) How To Get Insurance:The process is quite simple and may vary in small details from institution to another. Basically any group of people facing the same risks say a factory workers who may lose their money due to fire, earthquake etc, would collaborate together to bear the risks between themselves and pool the money from participating workers when in case the risk occurs to one of them, they indemnify himher through the pooled money. Of course, this is just a primitive explanation of the insurance process. Nowadays, there are various methods of getting an insurance contract, health insurance for example. First of all, a candidate must provide several required justifications and qualifications such as poor health, disability condition etc, to be accepted as an insured in an insurance institution. After the application process is done and all the required documents are filled, the insurance company will review, analyse and authinticate each profile of candidates to determine who is more eligible. The methods of applying could be either through online website of the company, a dedicated phone-line for applications, sending emails with all the required documents or arranging an interview in person with insurance personnel from the company. If you got application got approved by the company, they will make a contract that suits your financial and health condition where you as a client would wholly read the terms of the contract and make sure all parties are satisfied with the terms especially the premium payment and its consquences. c) Types of InsuranceThere are several types of insurance coverages here in Saudi Arabia, the socially well known two are the health and auto incurance. For instance, when you buy a new car, you want to keep it safe as possible, but accidents happen so making it isured is a wise choice if you can afford it. Auto insurance is vital here in Saudi Arabia due to the density number of car accidents. The most common auto insurance is third-party insurance where you also insure for other parties besides yourself when the accident mistake is done by you and harm is done to other parties ‘vehicle. The seconed common type is comprehensive insurance, where both parties are covered in case of accedints, it is suitable for newly purchased cars since it doesn’t apply on cars older than 10 years. On the other hand, health insurance in Saudi arabia is regulated by the counsil of cooperative health insurance, an independent government body created in 1999. Most of health care is for free, but recently there has been some increased privatization of hospitals. A family head would purchase a health insurance policy for his family in case if one the members got sick or in need for intsant medical treatment, the family head could handle such situation in ease knowing that the costs will be covered by the policy. In a study for Mohammad S. Alnaif, made to assess physicians? prospectives on health insurance and its implication on the health care system in Saudi Arabia. The results were that accessibility to health care services was a big concern. Emphasizing , “Yet, accessibility is an illusive termwith many aspects that go beyond the identification of need for health care to the actual delivery of health care services and the organizational structures to match the needs of society. Cooperation as a national health system should be built on collaborative efforts rather than market competition in itself. It has been suggested that markets are stronger in the role of delivery than in the financing of health care, that markets tend to promote more expenditure on technological innovation rather than producing the most desired set of social outcomes”. The reasecher believed the answer to be a cooperative health care system rather than competitive. Where providing needed services to the citizens is more important than the financial gains. d) Importance and Implications of InsuranceAs we contemplate on the benefits of being insured, we find that insurance provides the sense of being financially secured, against the various risks and incidents that could happen. Also, knowing you’re insured and supported relief society from fear and generate focused energy toward building and improving other important aspects of human life. It generally increases the well being of socities. Appling for insurance create the ability for individual to cut some expenses that would be a burden otherwise, like medical expenses. So it is financially benefecial since the risk is transferred from the insured to the insurer. Moreover, it creates investment opportunities for businesses that will eventually have a positive effect on economy. The above reasons hopefully explains the importance of insurance in our lives. As for the implications it has on individuals and society, being insured does not mean you can develop a careless attitude towards responsibilties and obligations. In fact, it makes you even more prudent when dealing with the surrondings, including objects, nature and people. Also, faking risk occurance just to get insurance money or any misleading act coming from the insureds are entirley prohibited and could result in stringent legal penalty like fines and prsion sentence or whatever punishment determined on the contract in case of fraud.