Question

describe functions of insurance

Answer 1

Answer:

The main function of the insurance is to provide protection against the probable chances of loss. ... The insurance guarantees the payment of loss and thus protects the assured from sufferings. The insurance cannot check the happening of risk but can provide for losses at the happening of the risk.

Answer 2

Answer:

Functions of Insurance :

1.primary functions

. Insurance distributes risks

. Insurance provides certainty

. Insurance provides security

2.Secondary functions

. It increases efficiency

. It provides capital

. It helps in loss reduction

. It helps in judgingbthe viability of major projects

3.Other functions

. Encourages savings

. Credit facility

. Expansion of foreign trade

. Increases goodwill and self confidence

. It checks inflation

. Social security