We may have our life, body or property insured. The insurance company makes good our loses as we pay the insurance premium regularly. Insurance is clearly of great advantage and importance. Firstly, insurance, like banking, promotes savings. When we are insured we have to pay premium.
Secondly, insurance promotes investment. The insurance company can easily invest its funds in industry, agriculture and commerce. When we insured a person or his heirs get the insurance back, they can invest it in some business or industry. All this helps national economy to grow.
Thirdly, the insured person can get loans against the security of insurance policy from insurance company or from banks.
Fourthly, insurance as we all know, protect against dangers to life and property. If a person has got his life insured, his family will get enough money on his death. If he had an insurance policy for a shop, he can get compensation for fire, theft etc. He can get his goods insured while dispatching them by train, by truck, by air or by ship.
Insurance guarantees a happy family life in future. In advance countries we have education, health and employment insurance. The government mostly arranges insurance for education of needy students, health care for sick and allowances for unemployed. This is called social insurance. With rapid economic development of education, we shall have a rise in income of people. Then they will be able to contribute to social insurance easily.
Insurance gives financial security to us, even if want to help our family and dear ones after th e death, insurance is the best idea to do that. In present days, one must insure his own life an family, s life.
Insurance, in rule and economics, is a form of menace management primarily used to hedge adjacent to the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of an impending loss, from one person to another, in exchange for a first-rate. Insurer, in economics, is the company that sells the insurance. Insurance speed is a matter used to determine the amount, called the premium, to be emotional for a certain amount of insurance coverage. Risk organization, the put into practice of appraises and scheming risk, has evolved as a discrete field of learn and practice.
An insurance policy should not contain provisions that allow one side or the other to unilaterally null and void the contract in exchange for promote. Provisions that void the contract for failure to act upon or for racket or material misrepresentation are normal and satisfactory.
Insurance gives confidence to individuals as well as to the organizations to invest their capital wIthout the fear for possible dangers
Insurance promotes entrepreneurship because people do not fear the risk of losses.
Insurance is compensation to the risks which occurs in our life in near future, it is also help full in the development of the country economy by the lumpsum investment in the different projects on which the insurer company earn a huge amount of interest .
Marine insurance is necessary for firms involved in sea business.