Insurance is defined as a social system to reduce the risk to which an individual is exposed by collecting similar risks and distributing the financial burdens resulting from their realization on all participants. Securing convoys in the winter and summer trips for the Arabs .The insurance system is basically based on the principles of cooperation, interdependence and solidarity between the individuals participating in the system, which call for not leaving the unfortunate individual for whom the danger is achieved to suffer alone under the burden of loss, but everyone contributes to bear it and accordingly the insurance system achieves a great benefit that is not limited to the participants But it extends to the whole community. Life insurance is concerned with covering those types of risks that befall the same person, such as death, permanent total disability and retirement, whose achievement results in the loss of income resulting from work in a total and permanent manner. Only for income. Life insurance is an important factor in fighting poverty that results from the material loss that a person incurs due to reaching retirement age, death, or complete or temporary disability as a result of illness or an accident. Hence the social importance of insurance arises. Life insurance also works to spread and facilitate education, as we find contracts whose purpose is to give children sufficient security to support themselves if their family dies while they are of school age, and insurance removes anxiety from souls, as it ensures security for the insured or beneficiaries of Insurance gives reassurance to himself. As for the economic aspect, life insurance works on: 1) increasing production and its efficiency, as it sends reassurance to the same worker or employee, thus increasing his ability to produce, as the feeling of anxiety would weaken the individual’s production capacity and affect the national economy As for the feeling of reassurance, it makes the individual to do his work with peace of mind and thus increase the efficiency in production. 2) Preserving the exploited wealth, for example, guaranteeing the capital to its family in the event of the death of one of the joint partners and withdrawing his share of the capital through his heirs. 3) The formation of huge capitals, and this is the great importance of life insurance for production in particular and for the national economy in general. Thus, it is possible to benefit from these huge funds accumulated from the amounts of small premiums for many purposes, including contributing to the establishment of industrial, agricultural, commercial or other companies. Directly or indirectly, until the extent of its spread and breadth in any of the countries became a criterion for its progress. Because of the importance of insurance in these areas, countries imposed their control over insurance agencies and directed the investment of those huge funds and allocated a large part of them to pay the needs of public interests. And as protecting the trustees from the abuse or deceit of companies, and protecting these companies from the fraud of the trustees and from unfair competition among them.
insurance