Accountancy, asked by sandeep279, 1 year ago

what do understand by insurance what are the function of insurance

Answers

Answered by Vickypanjiyar
2
Insurance is a policy issued by Insurance company. It compantiate with u on your losses on the insured things.
Answered by ManakaLaala
1
Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. ... The amount of money charged by the insurer to theinsured for the coverage set forth in the insurance policy is called the premium.

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. ... The amount of money charged by the insurer to theinsured for the coverage set forth in the insurance policy is called the premium.

4. Prevention of loss

The insurance joins hands with those institutions which ate engaged in preventing the losses of the society because the reduction in loss causes lesser payment to the assured arid so more saving is possible which will assist in reducing the premium.

Lesser premium invites more business and more business cause lesser share to the assured.

So again premium is reduced to which will stimulate more business and more protection to the masses.

Therefore, the insurance assists financially to the health organization, fire brigade, educational institutions and other organizations which are engaged in preventing the losses of the masses from death or damage.

5. It Provides Capital

The insurance provides capital to the society. The accumulated funds are invested in the productive channel.

The dearth of the capital of the society is minimized to a greater extent with the help of investment of insurance. The industry, the business, and the individual are benefited by the investment and loans of the insurers.

6. It Improves Efficiency

The insurance eliminates worries and miseries of losses at death and destruction of property. The carefree person can devote his body and soul together for better achievement, it improves not only his efficiency but the efficiencies of the masses are also advanced.

7. It helps Economic Progress

The insurance by protecting the society from huge losses of damage, destruction, and death, provides an initiative to work hard for the betterment of the masses.

The next factor of economic progress, the capital, is also immensely provided by the masses. The property, the valuable assets, the man, the machine and the society cannot lose much at the disaster.

Similar questions