Insurance is based on the principle of _______.

Co-operation
Democracy
Equality
Welfare

The correct answer is: Cooperation.

Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company that provides insurance.

The principle of cooperation is the idea that people can work together to achieve a common goal. In the case of insurance, people cooperate by pooling their resources to create a fund that can be used to pay for losses. This allows individuals to protect themselves from large losses that they could not afford to pay on their own.

The other options are not correct because they do not accurately describe the principle of insurance. Democracy is a form of government in which the people hold power. Equality is the state of being equal, especially in status, rights, and opportunities. Welfare is the provision of a minimum standard of living for those in need.