Though insurance cannot prevent the happening of an event and the loses arising three from, yet it help in removing this uncertainly by appearing the risk over the whole society.
Answers
It is very true that though insurance cannot prevent the happening of an event and the loses arising there from, yet it help in removing this uncertainly by appearing the risk over the whole society. It reduces the economical or financial losses caused by the risks. It does not protect loss to happen, but it shares the loss with each member of the society or the risk is shared by those who are exposed to risk.It provides certainty of compensation at the uncertainty of loss.
Risk is a common factor that is interlinked with uncertainty. When you are adventurous, you can take risks but you will also have to make sure that it doesn’t result in irreparable losses- both tangible and intangible.
Insurance, in that case will always have your back because it is a key component of the insurance industry and the best risk management tool.