People who are exposed to the same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and compensate the person who lost.
Anything of monetary value that is owned by a person is called as an ASSET.
Physical assets - Car or Building, Non-Physical Assets - Name and Goodwill, Personal Assets - Eyes, Limbs, Parts of Body etc
Assets may get damaged due to Accidental occurances. PERIL is the cause of the loss.
Hazard is a condition that increases the chances of loss. Lung Cancer is a PERIL. Smoking which increases the chances of Lung Cancer is a HAZARD
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