Business Studies

State the following statement is True or False:
Insurance means protection against possible risk of loss.


ANSWER

True


SOLUTION
Uncertainties have led to the formation of the concept of insurance. Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. The principle of indemnity in an insurance contract safeguards the insured to put him in the same position that he/she would have been in if the loss had not occurred. However, the principle of indemnity does not apply to life insurance contracts. Thus insurance is a protection against possible risk of loss.
View Full Answer

Its FREE, you're just one step away


TRUE/FALSE Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 146
Enroll Now For FREE

Realted Questions

Q1 TRUE/FALSE Medium
State the following statement is True or False:
Insurance means protection against possible risk of loss.
  • A. True
  • B. False

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 TRUE/FALSE Medium
State whether the following statement is True or False.
A letter without date is incomplete.
  • A. True
  • B. False

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Subjective Medium
Write short notes on the following:
Bank Overdraft.

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
Which one of the following is not a remedy available in case of default?
  • A. Sue for breach of contract and for damages.
  • B. Repossess the goods after the buyer has resold them.
  • C. Stop delivery of the goods.
  • D. Demand specific performance.

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 Subjective Medium
What are the steps to be taken at the time of taking an insurance policy?

Asked in: Business Studies - Business Services


1 Verified Answer | Published on 18th 08, 2020

View Answer