Question

Analyse the various functions of insurance.​

Answer 1

Answer:

Hello

Explanation:

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The most important function of insurance is to spread the risk over a number of persons who are insured against the risk, share the loss of each member of the society on the basis of the probability of loss to their risk and provide security against losses to the insured.

So, insurance functions are;

The system to spread the risk over several persons who are insured against the risk;

The principle to share the loss of each member of the society based on the probability of loss to their risk; and

The method to provide security against losses to the insured.

The functions of insurance can be studied into two parts;

Primary Functions, and,

Secondary Functions.

7 functions of insurance are;

1. Insurance provides certainty,
2. Insurance provides protection,
3. Risk-Sharing,
4. Prevention of loss,
5. It Provides Capital,
6. It Improves Efficiency,
7. It helps Economic Progress.

Hope it's help uh...!!!