Question

12. According to D. S. Hamsel, insurance is

a) a social device

b) A financial risk management tool

c) Insurance is a contract

d) Form of risk management



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Answer 1

According to D. S. Hamsel, insurance is a) a social device

Definition:

"Insurance is a contract, represented via a policy, wherein an person or entity gets monetary safety or compensation in opposition to losses from an coverage company".

Features of Insurance:

1. Consideration
2. Contract
3. Protection of economic risks
4. Value of Risk
5. Regulated by law

Insurance according to D.S.Hasmesl

“A social device imparting financial reimbursement for the consequences of misfortune, the payments being made from the amassed contributions of all activities taking component withinside the scheme”.

Thus,according to D. S. Hamsel, insurance is a) a social device