Which of the following is NOT included in the definition of insurance according to the Insurance Act?

The definition of insurance, as outlined in the Insurance Act, emphasizes specific fundamental principles that govern insurance contracts. One of the key aspects is that insurance does not provide protection from all types of loss universally. Instead, insurance coverage is typically subject to specific terms and conditions that outline what is covered and what is excluded.

In many cases, there are identifiable risks that insurers choose to cover, and they can limit their liability through policy exclusions or conditions. This means that not all losses or risks are insurable and that each insurance policy is designed to provide protection against certain defined risks rather than an all-encompassing blanket of security. Understanding this selective nature of insurance helps clarify why the concept of universal protection from all types of loss does not align with the legal definition established in the Insurance Act.

The other options accurately reflect essential elements of what constitutes insurance: it is a contract between parties, the risk covered must be measurable and calculable, and indemnification typically involves a monetary sum, which are all integral components of the insurance framework.