Meaning and Definition of Insurance

Meaning and Definition of Insurance

Insurance is a contract between the insurer and the insured under which the insurer undertakes to compensate the insured for the loss arising from the risk insured against, in consideration the insured agrees to pay premium regularly. The person whose risk insured is called the insured or assured. The person who agrees to compensate the loss arising from the risk is called the insurer or assurer (or underwriter)

Insurance is a means of providing monetary coverage against loss caused by natural or man-made factors

Definition

 “Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risk that attacks to individuals”

- According to John Merge