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.
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Subjective Medium Published on 18th 08, 2020
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