How insurance is helpful in primary and secondary sector?
Answers
Primary sector of an industry is known as the 'extractive' sector. These refer to the industries that produce raw materials. For example agriculture is classified in the primary sector. Farmers are primary sector workers producing raw materials like wheat, rice etc.
Secondary sector of an industry is known as the 'manufacturing sector'. The manufacturing industries use raw materials and produce products. For example, the steel can be used to manufacture cars and wood is used to manufacture furniture etc. Secondary sector is strongest in transitional economies.
Insurance is very helpful for these two sectors as it helps them out in case of any disasters. If the farmer has insured his machinery and land used for agriculture, in case of any disasters he will be able to get money in return for it and his total loss will be decreased. Similarly in manufacturing sector if warehouse and machinery are insured than in case of disasters e.g fire etc. the loss can be recovered with the insurance money.