MRS Title 24-A, §3. "INSURANCE" DEFINEDInsurance Definition • March 20th, 2018
DEFINITION OF INSURANCEInsurance Definition • August 15th, 2021
Insurance is a contractual agreement in which the insurance company indemnifies to compensate for the damage caused or losses suffered by the insured due to man-made/natural calamities or any other uncertain event, for consideration (premium). For example, term insurance policy promises to pay a certain sum of money in case the policyholder dies during the specific term (policy period). In case, policyholder survives the policy term, the insurance contract will become void and the insurance company is not obligated to pay any amount to the policyholder. In this, there is uncertainty surrounding the happening of the insured event. All the general insurance plans are insurance policies that provide protection against an anticipated event. For example, health insurance, fire insurance, marine insurance and motor insurance etc
