By risks we mean probability, of death and destruction caused by all kinds of perils ranging from natural forces like earthquakes, floods, storms to situations out of control like accidents and mishaps. Insurance is the greatest blessing that modern times have bestowed upon mankind. It enables man to overlap the barrier of death and destruction. It allows him to project himself into the future and in a real sense, preserve his assets, provide for his loved ones and pay for his old age. The fact that a man insures his life and assets for the protection of his widow, children and establishment, is certain evidence of a mental and spiritual development that makes man rank high in the future world.
Insurance is fundamentally about risk and sharing of losses.
The aim of all insurance is to provide compensation against losses, which beset human life and dealings. It is a kind of a social security system albeit with a choice, for reducing risk by transferring the risks of several individual entities to an insurer who assumes to a specified extent the losses that could be suffered from. He then accepts these risks for a regular considerable contribution made to him in the form of premiums. In the event of losses he assesses the damage and in turn compensates the affected individual. The benefits of insurance are invisible.