Answer / Aditya Kumar Vishwakarma

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The main purpose of insurance is to spread risk among a large group of individuals or entities, thus reducing the financial impact of potential losses for each party involved.nnIn simpler terms, when we make insurance, we pool our resources together with others in order to cover potential financial losses that may occur due to unforeseen events.

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