Generalized insurance
No matter what form of insurance, in terms of its natural attributes, it can be summarized as follows: insurance is an act of gathering many units and individuals with similar risks to provide insurance economic security to a few members who suffer economic losses due to risk accidents in the form of reasonable risk sharing.
Narrow insurance?
Usually what we call insurance is insurance in a narrow sense, that is, commercial insurance. The Insurance Law of People's Republic of China (PRC) clearly states that the term "insurance" as mentioned in this Law means that the applicant pays the insurance premium to the insurer in accordance with the contract.
The insurer shall be liable for compensation for property losses caused by possible accidents agreed in the contract, or for payment of insurance money when the insured dies, is disabled, falls ill or reaches the age and time limit agreed in the contract.
Extended data:
Insurance is an economic form to establish the economic relationship between the two parties in the form of a contract, and to compensate or pay the losses caused by disasters and accidents by paying insurance premiums within the scope stipulated in the insurance contract, thus establishing an insurance fund.
Insurance is one of the oldest risk management methods. In an insurance contract, the insured pays a fixed amount (premium) to the insurer. The former is guaranteed: within a specified period, the latter will compensate for any loss caused by a specific event or a group of events.
Insurance belongs to the economic category, which reveals the essence and essence of insurance. In essence, insurance embodies an economic relationship.
References:
Insurance (Contract Economic Relationship) _ Baidu Encyclopedia