Business Studies

The fee charged by insurance companies is commonly known as 'premium'.


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. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured.
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TRUE/FALSE Medium Published on 18th 08, 2020
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