Many eminent insurance scholars have defined insurance in different ways which are too numerous, though there is no consensus definition to date
One interesting definition however, is the one which states that Insurance is the business which exists for the survival of other businesses. Insurance therefore is defined as a contract whereby one person, called the insurer, undertakes, in return for the agreed consideration, called the premium to pay another person, the insured, a sum of money or its equivalent, on the happening of a specified event.