practical life

All you need to know about insurance and its legal definition?

Insurance, insurance or collateral systems are a means of coping with risks to a person’s entity or assets during his or her lifetime in order to mitigate them. The essence of this means is that cooperation is achieved with the participation of persons exposed to the same risk in coping with the effects that it has on some of them, by paying each of them a contribution or a premium, and the sums collected are collected and then distributed to those who have suffered the disaster. Thus, the effects of the disaster on those involved in such cooperation are realized. [1] Insurance is a practical reality and is one of the best means of enabling people to mitigate the effects of disasters, whether caused by the person himself, by omission or neglect, or by the act of others. It is a means of safety consistent with the spirit of modern times in which the demands of life have abounded and the danger of the machine has increased and the dangers of its evolution have become apparent. [1]

The effectiveness of insurance, as the modern means of responding to risks and their effects, was the most significant reason for its prosperity, diversity, evolution and extension to different fields, to secure individuals from every risk they face both in their money and in their people. The effectiveness of insurance has also led some DOLs to impose certain types of insurance to ensure that some categories of people receive compensation for a particular accident. [1]

The insurance system presupposes a legal tool regulating the insured’s relationship with the insured, 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 so that they can achieve their goals of covering risks. It uses technical elements necessary to manage insurance operations, such as rules derived from statistical science and the Risk Management System and the application of the Law of Many, This enables you to achieve the objective of covering the risks to the insured, while at the same time enabling the insurer – the insurance company – to manage the insurance project for its investment purposes, to make some profit and contribute to the achievement of the purposes of the economy.

“Faith” is a language of “security”, and security against fear, which means: the stillness, reassurance and trust of the heart. It was said: “Security reaches the reassurance of breath.

The doctrinal definitions of insurance varied. This is mainly because insurance has two aspects, the first is legal, and the other is technical. It is jurisprudence who focuses on the first side, highlighting the legal insurance tool, i.e. the insurance contract, and who focuses on the technical aspect of insurance at the expense of its legal side. The public of jurists argues that the exact definition of insurance must be exposed to its legal and technical aspects, but is not defined. The legal aspect of insurance is the relationship between the insured and the insured, which arises from the insurance contract between them. This relationship assumes that there is a risk, or accident, that is feared to have occurred to the insured. The latter seeks to secure himself from this risk, or accident, by contracting the insured. It’s usually the insurance company. Who is obliged to cover this risk when it occurs, in exchange for a particular premium that commits to its insured payment. [5] The technical aspect of the insurance goes beyond that individual relationship and is the technical basis of the insured to cover the risk. The insured when covering the insured hazard does not accept it on a speculative basis. And if insurance became a gambling or betting process, [6] it was an illegal contract And if the insurance company contracts with a large number of insured people and charges each of them a certain premium so that when the risk comes to one of them, The company reimburses him for the group of instalments he receives from the other insured. When determining the premium to be paid by the insured, the company uses the laws of statistics, so that it can be determined precisely in a manner that does not expose the insured to loss or serious danger. The insurance process is based on the insured’s cooperation to address the risks to which they are exposed, and the insured’s role is to manage and regulate such cooperation, based on technical foundations and statistical l ،Hence it is possible to observe what many doctrinal definitions of insurance are taken.

French jurist Marcel Ferdinand Planyol defined insurance as “a contract under which a person named as the insured undertakes to compensate another person named as the insured for a potential loss to which the latter would be exposed, for a sum of money.

Legal Definition of Insurance:

Insurance is a contract whereby the insured receives the insured’s pledge of a certain performance in case the risk is realized, corresponding to a particular amount called premium or subscription.

Technical definition: Insurance is a process whereby the insured organizes cooperation between a number of insured persons who are exposed to certain risks, and compensates those who achieve the risk for them through the common balance of the premiums they collect.

The latter definition was credited with highlighting both sides of the insurance process and placing it on the same level of importance, without beating one over the other. Nevertheless, the separation of the two sides of insurance is taken into account in two distinct definitions, which may suggest that it concerns two separate things, although the truth is otherwise, the intention is to define insurance as a single but multidimensional process. Therefore, the audience of jurists preferred to establish a single definition of insurance that would simultaneously surround its legal and technical aspects. In French jurisprudence, therefore, the definition of jurist Josef Hemar for insurance prevailed, defining him as: “A process in which one of the parties, the insured, receives a premium for the other, the insured. with a certain performance when the agreed risk is verified by the other party, He is a believer, a pledge under which the latter pays a certain performance, by taking on a range of risks. They are defined in accordance with the laws of statistics. ” The majority of jurists in the Latino (French) legal system are in favour of this definition.

Legislative definitions


The legislative definition of insurance refers to that definition established by legislators in a state, so it may vary in form between one state and another, without being substantially different. The distinction between the definition of Egyptian legislator and Lebanese legislator for insurance for example lies in the terminology used. The Lebanese legislator uses the term “security” instead of “insurance”, “guarantor” instead of “insured”, and “secured” instead of”insured”. In Arab laws, the term insurance is used, insured and insure Examples of legislative definitions include:

Definition of Egyptian Law: Article 747 of Egyptian Civil Legalization defines insurance as: “A contract binding upon the faithful

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