The word insurance, on a broader sense means Promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments in the form of premium to an insurance company.
In principles, insurance dwells on assumptions such as
1.The losses and consequences are uncertain
2.Rates of losses are fairly quantifiable and predictable
3.Losses are not calamitous
4.Losses are substantial
This unambiguously infers that s…