Which of the following statements is true?
1
Insurance works on the principle of sharing the losses of a ‘many’ by a 'few'.
2
Insurance transfers the risk of one person to another person.
3
Insurance works on the principle of transferring the profits of a 'few' to the 'many'.
4
Insurance works on the principle of sharing the losses of a ‘few’ by ‘many’.
5
Insurance works on the principle of sharing the profits of a ‘many’ by a 'few'.