Business Studies

Explain the importance of insurance.


SOLUTION
The following is the importance of insurance:
1) Provides certainty of payment for the risk of loss;
2) Protection from the probable chance of loss;
3) The risk of loss is shared among persons exposed to it;
4) The insurance premium paid, are invested by the insurer in various income generating assets which assists in capital formation.
View Answers

You're just one step away


Subjective Medium Published on 18th 08, 2020
Next Question
Questions 244558
Subjects 8
Chapters 125
Enrolled Students 373
Enroll Now For FREE

Realted Questions

Q1 Subjective Medium
Essay type questions:
What are minutes ? Explain the contents of minutes. 

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 Single Correct Medium
'Salvage Charges' is related to ________________.
  • A. Life Insurance
  • B. Marine Insurance
  • C. Fire Insurance
  • D. None of the above

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 TRUE/FALSE Medium
State the following statement is True or False:
Fire Insurance is a contract to cover risk of loss due to fire.
  • A. True
  • B. False

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Subjective Medium
Write a short notes on the following:
Essentials of a good business letter.

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Subjective Medium
What do you mean by Business Correspondence?

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer