Which is correct?

A. Insurance is a kind of investment

B. Insurance is nothing but a gamble

C. Insurance is risk transfer of pooling of similar risks

D. Insurance is nothing but a savings scheme

Answer: Option C

Solution(By Examveda Team)

Insurance is risk transfer of pooling of similar risks. In insurance, the term "risk pooling" refers to the spreading of financial risks evenly among a large number of contributors to the program.