Late Late Sunday Journal-Insurance

Dictionaries do not explain what this word (Insurance) means. The Urdu equivalent of "beema" does not tell much either. In and "sure" does not match up to anything, so I am lost.
What I have all my life understood from this "insuring" process is that your life or property or health, whatever you insure with a company that will keep taking your money as "premiums" and will use it as it likes make money from it further etc. etc. but in case something happens to your "insured" thing the company will provide the necessary money for repair or loss etc.
The company takes money from so many people but not every one will have damage to the property (case of life and health is different so "premium" is more in those cases and age at which you get it insured matters for obvious reasons). These "premiums" are calculated on the basis of possibilities and probabilities, risk chances etc.
BUT when something does happen to, say your property, they may have some conditions nefore they provide for the repairs. Let us say they are a nice company like:
"Nationwide is on your side"
They pay their share and all is good. Then comes the time for next premium and we find that the company "turns the eyes" away (jisay urdu man "tota chashmi" hetay hain) and may tell you no more premiums (No, that does not mean your insurance is free now) what it means is no insurance
"Nationwide is NOT on your side anymore".
Why?
Sir, we cannot "recover" the funds back from you even over the next 40 years.
You what?
And what about the previous 20 years of "funds" (premiums) that have gotten into your hands from 200 other people in addition to ours and they have not had anything happen to their properties?
We could have been putting away the same "funds" in our own bank for the chance happening and use it now, so what is the "Insurance comapany" for? Just to collect "funds".
Or, I dont understand the meanings of "insurance".
Well, yes I am free to go round shopping with other comapnies.
And, of course you all know that "life" insurance is actually "death" insurance. Life is in His hands and "every soul will taste death". But that is another subject.