Which of the following statements is true?

A. Insurance is a method of sharing the losses of a ‘few’ by ‘many’

B. Insurance is a method of transferring the risk of an individual to another individual

C. Insurance is a method of sharing the losses of a ‘many’ by a few

D. Insurance is a method of transferring the gains of a few to the many

Answer: Option A

Solution(By Examveda Team)

Insurance pays when there is loss of asset. Insurance is a method of sharing the losses of a 'few' by 'many'. property to assess the risk for rating purposes.