Question

insurance does not remove the risk but it compansates for the loss resulting from the risk. justify.​

Answer 1

Answer:

see risk is an external factor which is caused by some unfavorable conditions and any Institution/person/firm have no control over it it may happen any time , but it can be handled upto some extent through initiative such as insurance

Explanation:

for example :- a truck carrying goods of ₹20,00,000 has taken insurance of whole goods including truck , while travelling the goods were destroyed due to fire accident but a person can compensated as per the amount of loss. here the loss of goods is a part of risk but compensation means handling risk