Alexander said, “Everything is sweetened by risk”. So do you know how much truth has on this phrase? However, today our topic about the legal definition of insurance and concept of insurance. Risks surrounding people’s lives and resources, people are easily accepted from the time of the law, but this situation has changed gradually by increasing consciousness due to the rise of social civilization and education. The death of someone or the loss of any property, so that the person does not face life in the dire financial disaster. For this, people develop a new system or method. And the method is called insurance.
So the process of tackling risk is insurance. The act of insurance is to risk the personal and business life of man and keep men free from uncertainty and danger. Therefore, the purpose of insurance is to provide financial remedies against all such dangers that surround people’s lives and businesses. After all, you should know the basic concept of insurance. If we need to back up our life for our family future, we have to learn the legal definition of insurance and concept of insurance.
Legal Definition of Insurance
The process of addressing the danger and uncertainty that exists at every level of human life and livelihood is the process of insurance. Human life and its resources are always surrounded by risks. Therefore, the protection against these risks or loss-damage is insurance. In the insurance contract, the insured receives the risk of his life and property on behalf of others in return for a specified premium or salary.
And the insurer provides necessary financial security in return for the risk or risk of others, in exchange for the requisite premium receipt. In fact, insurance is an agreement that is a joint humanitarian effort to allocate risks. However, on the below following these significant definitions of the best four people about insurance. They also described the primary functions of commercial banks nicely.
Prof. Morgan: Insurance is the agreement of a community to consider the good of its individual members as common.
Mr. Porter: Human life is sounded with lots of danger, Creating preventive measure against these dangers is insurance.
Prof. M. N. Mishra: Functional definition, insurance is the co-operative device to spread the loss caused by a particular risk over a member of persons, who are exposed to it and who agree to insure themselves against a risk.
M. K. Ghosh & A. N. Agarwala: Insurance is a co-operative form of distributing a certain risk over a group of persons, who are exposed to it.
Yes, you have already got the significant definitions of the best four people about insurance. It’s the legal definition of Insurance and that will help you to get the best concept of insurance. Now go ahead and try to understand the concept of the insurance successfully.
Concept of Insurance
The immortal actions of some of the great people have been doing behind each and every one of the many signs of giant success in the world. A well-known man has worked with different risks. Generally speaking, the risks associated with the activities of these cavalier and well-mannered people, and the risks associated with our daily work, are common in dealing with the risks of general insurance.
The origin of insurance from risk. The risk is the probability of parasympathetic losses, which is about the occurrence of damages, and they are at risk of compromising. And insurance is an agreement between two or more parties, through which one or more parties agree to pay the full or partial risk in exchange for the certain amount of premium or fixed amount to the insurer. And if the insurability of loss is damaged due to specific reasons mentioned in the insurance contract, the insurer guarantees the payment of compensation or payment to the insurer or its representative as per the terms of the contract. Presently there is a continuation of the life of the people in their personal lives, business, trade, and insurance.
So we can say
- Insurance is a joint venture that opens the scope for risk distribution among prospective people.
- In this system, the interest of the insured is to risk life and property on others.
- The interest of the insurer in this system is to get premium from the insured after one time or fixed period.
The whole thing is that insurance against a loss or loss of risk that exists around life and property is a kind of financial defense. It was the article for you to know the legal definition of Insurance and the Concept of Insurance. I hope you have gained. In this below, you can also learn more thing about banking, finance, insurance and more.