Business Studies

State the following statement is True or False:
The amount payable by the insured to the insurer in installments for protection against risk is premium.


Answer & Solution

True


SOLUTION
Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured. Premium is paid in installments to the insurer at regular intervals.
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TRUE/FALSE Medium Published on 18th 08, 2020
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