The option that is not true of insurance is "A Possibility of making profit out of an event".
Insurance is a financial product designed to protect individuals and businesses from financial loss due to unexpected events such as accidents, theft, or natural disasters. When a person purchases an insurance policy, they pay a premium to an insurance company. In return, the insurance company agrees to compensate the insured in case of a covered loss.
The other statements in the list are true of insurance. For example, insurance works based on the principle of risk pooling, where a large number of people face the same risk and make a small contribution to a common pool. Only a small number of people are expected to suffer a loss in any given year, but the pool of contributions is large enough to cover their losses.
Insurance companies use actuarial science to assess the frequency of occurrence of the events they insure against, and calculate premiums based on the level of risk involved. The goal of insurance is to provide protection and financial security to individuals and businesses, rather than making a profit out of an event. Insurance companies may make a profit through their investments, but this is separate from the protection provided by insurance policies.