Insurance: in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.
Top 10 Definitions of Insurance
1). Insurance is a cooperative form of distributing a certain risk over a group of persons who are exposed to it. – Ghosh and Agarwal
2). Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency. – Justice Tindall
3). Insurance may be described as a social device whereby a large group of individuals, through a system of equitable contributions, may reduce or eliminate certain measurable risks of economic loss common to all members of the group. – Encyclopedia
4). Insurance is a device for the transfer to an insurer of certain risks of economic loss that would otherwise come by the insured. – Allen Z. Mayerson
5). Insurance has been defined as a plan by which large numbers of people associate themselves, to shoulders of all, risks attach to individuals. – Magee D.H.
6). Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payments being made from the accumulated contribution of all parties participating in the scheme. – D.S. Hansell
⁷). Insurance by lessening uncertainty, frees the individual from same element of risk. – Relph H. Wherry & Monroe Newman
8). Insurance is purchased to offset the risk resulting from hazardous which exposes a person to loss. – Robert I. Mehr and Emerson Cammack
9). Insurance is a contract by which one party, for a compensation called the premium assumes particular risk of the other party and promises to pay to him or his nominee a certain or ascertainable sum of money on a specified contingency. – E.W. Patterson
10). A provision which a prudent man makes against fortuitous or inevitable contingencies, loss or misfortune. – Thomas