Insurance or the insurance system or the guarantee is a means to confront the risks that a person is exposed to in his entity or his money during his life in order to mitigate their impact. The essence of this method is the cooperation that is achieved by the participation of persons exposed to the same danger in the face of the effects that result from its achievement for some of them, by paying each of them a subscription or a premium, and the amounts collected are collected and then distributed to those who are affected by the disaster. In this way, the effects of the disaster on those involved in achieving this cooperation will be achieved. Insurance is a practical reality, and it is one of the best means that enables a person to mitigate the effects of disasters, whether these disasters occurred by the person himself, through his negligence or negligence, or by the action of others. It is a means of safety that is consistent with the spirit of the modern age, in which the requirements of life abounded, the danger of the machine increased, and the dangers of development became clear.
The effectiveness of insurance, as the modern means of confronting risks and their effects, is the most prominent reason that led to its prosperity, diversification of fields, development, and extension to various fields, to insure individuals from every danger they are exposed to, whether in their money or their people. The effectiveness of insurance also led to some countries imposing some types of insurance to ensure that some groups of people receive compensation for the occurrence of a specific accident.
The insurance system presupposes the existence of a legal tool that regulates the relationship of the insured with the insured, which is the insurance contract. However, insurance is not limited to this aspect. In addition, insurance is a technical process in which insurance companies use technical means in order to be able to achieve their objectives in covering the risks. They use the technical elements necessary to manage insurance operations, such as rules derived from statistics and the clearing system between Risks and the application of the law of abundance, in addition to the rules of financial management. Thus, it will be able to achieve the goal of covering the risks that befall the insured, and at the same time the insurer - the insurance company - will be able to manage the insurance project in order to achieve its investment purposes, to reap some profit and contribute to achieving the purposes of the national economy.
