Question

How insurance is important as an aid to trade and industry? Explain.

Answer 1

Answer:

The main role played by insurance as an aid in trade and industry is of extreme significance.

• The main reason that insurance policies are taken out that they provide protection against the risk loss.
• With this sense of privilege and security, businessmen can shrug off anxiety and imbibe a spirit of confidence with which to carry on their work.
• Ensured against loss and risk, businessmen are emboldened to do their work. Thus, insurance is stimulation for the expansion of commerce, trade, and industry.

Aid to foreign trade: Insurance is an important aid to foreign trade because it off-sets the risks  complicated in transporting products from one country to another.