INSURANCE SCHEME Meaning and
Definition
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An insurance scheme refers to a structured and well-organized program developed by insurance companies or government entities with the aim of offering financial protection against potential risks and uncertainties. It involves pooling individual or collective risks and spreading them among a large number of policyholders, who pay regular premiums in exchange for coverage against specified perils or events.
The primary objective of an insurance scheme is to provide policyholders with a sense of security and financial stability in case of unexpected events or losses. This could include various forms of insurance, such as life insurance, health insurance, auto insurance, property insurance, or liability insurance. Each scheme typically offers specific terms and conditions based on the type of coverage and level of risk involved.
Insurance schemes commonly involve three main entities: the insurer or insurance company responsible for underwriting policies and providing coverage, the insured individual or entity purchasing the insurance policy, and the beneficiaries or claimants who receive financial compensation or benefits in case of an insured event. The insurer assesses the risk involved based on numerous factors such as age, occupation, lifestyle, or past claims history, and charges premiums accordingly.
Insurance schemes contribute to risk management by helping individuals and businesses mitigate the financial impact of unexpected events. They are regulated by insurance laws and often require policyholders to adhere to certain obligations and conditions, such as timely premium payments and providing accurate information during policy application and claims processes.
Common Misspellings for INSURANCE SCHEME
- unsurance scheme
- jnsurance scheme
- knsurance scheme
- onsurance scheme
- 9nsurance scheme
- 8nsurance scheme
- ibsurance scheme
- imsurance scheme
- ijsurance scheme
- ihsurance scheme
- inaurance scheme
- inzurance scheme
- inxurance scheme
- indurance scheme
- ineurance scheme
- inwurance scheme
- insyrance scheme
- inshrance scheme
- insjrance scheme
- insirance scheme
Etymology of INSURANCE SCHEME
The word "insurance" derives from the French term "assurance", which originated from the Latin word "assurantia". "Assura" in Latin means "to secure" or "to make sure". Over time, the term "assurance" came to imply a guarantee or protection against potential risks or uncertainties.
The word "scheme", on the other hand, has its roots in Old English and Old Norse languages. In Old English, "sceaema" meant "a design" or "a plan". Similarly, in Old Norse, "skeima" referred to "a plan" or "a project". This Old Norse term was later adopted into Middle English as "scheam" and eventually evolved into "scheme" in modern English.
When these two words are combined, "insurance scheme" refers to a comprehensive plan or design put in place to provide protection or coverage against risks or potential financial losses.
