There are many definitions of insurance, and in fact these definitions benefit insurance greatly, as by examining these definitions among themselves, they eventually reach a comprehensive and comprehensive definition of insurance.
Defining the statutory insurance:
A distinction must be made between three different legal categories when examining the definition of insurance for legal professionals. These categories are the courts, the legislator, and jurists. Courts usually avoid defining insurance depending on the legislator’s definition of it.
The previous definition focuses on the legal aspect in terms of the parties to the contract and the obligations that result from it. As for the definition of insurance, Dr. Muhammad Ali Arafa defines him in his book (Explaining the New Civil Law in Insurance and Small Contracts) as follows.
The previous definition is distinguished by focusing on the technical aspect on which the insurance is based, in addition to the legal aspect where the definition clarified that the insurance process is the aggregation of similar risks and the distribution of the resulting losses using statistical methods and determining the obligation of each of the insured (insurance premium) and the obligation of the insured (compensation).
The definition of insurance economists and actuaries:
Economists focus on defining insurance for income, wealth and the impact of dangers and accidents on them, whether by deficiency or mortality. On the other side, actuaries are interested in introducing them to methods of measurement, in particular with regard to the possibility of an accident and anticipating loss, and the following is the definition of economists and actuaries for insurance:
Definition of insurance professionals:
Many insurance professionals have defined insurance and notes on all these definitions that, even if they differ in some sub-aspects, they are consistent with the essence of the insurance process and we will present the following the most important of these definitions:
1. Insurance is a means of compensating an individual for the financial loss that is caused to him as a result of a certain risk occurring by distributing this loss to a large group of individuals who are all exposed to this risk according to a previous agreement.
2. Insurance is a system that reduces the uncertainty of the insured by transferring several specific risks to the insured and who undertakes to compensate the insured for all or part of the financial loss incurred.
3. Insurance is a method by which the risks to which a group of people and enterprises are exposed are collected by collecting the contributions that are considered as a capital from which compensation is paid and thus working to reduce the risk.
4. A social system for substituting uncertainty by grouping risks.
5. A social system that provides financial compensation for the effects resulting from the dangers, and these compensation are paid from the sum of the collected contributions from all the members participating in the system (Hansel).
From the above, a comprehensive definition of insurance can be reached:
“Which is the insured and who pays a certain amount according to it when the risk is realized, in exchange for paying the insurance premium that the insurer collects similar risks and predicts the value of Financial obligations arising from their verification. “