Insurance Meaning And Importance – Insurance is a device that distributes damage to a few of many. Insurance is a collaborative device, which is to spread the damage caused by a certain accident on many people, they will expose it and agree to insure themselves against the danger.
In other words, the insurance is an agreement between the two parties, where a party (insurance company) agrees to pay to the other party (insurance) or his beneficiary, a certain amount on the sudden sudden demand of any insurance.
Insurance Meaning And Importance
There are many principles of insurance that the two parties come together for insurance and insurance for the insurance agreement.
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The risk of insurance from insurance to the insurance company is spread. The basic principle of insurance is to spread the danger in a large number of people. A large number of individuals get insurance policies and pay the insurance company. Whenever the damage happens, it can be replaced from insurance companies.
Insurance provides financial aid and reduces uncertainty facing individuals and businesses at every stage of their life-wheel. It provides an ideal risk reduction mechanism against events that cause financial distress for individuals and businesses. For example, with medical inflation rising about 15% a year, general medical procedures can also cost enough to disrupt the well -calculated budget of the family, but ensure financial security for the health insurance family. In the case of business insurance, financial compensation will be provided against financial loss due to fire, theft, risks of sea activities, and other accidents.
Not only does insurance protect against losses and uncertainties, but also provides an investment channel. Life insurance allows regular savings to pay a normal premium. Life insurance provides investment mode. It develops a habit of saving money by paying a premium. The insurers get the whole amount at the maturity of the contract. Therefore, it promotes life insurance savings.
By mobilizing domestic savings, the insurance sector has a significant impact on the entire economy. The insurance collected capital has been converted into productive investments. Insurance losses, reducing economic stability and leading to constant economic growth and development of commercial and commercial activities. Therefore, insurance plays a key role in the constant growth of the economy.
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Large funds are collected by the premium route. These funds are used in a country’s industrial development, which accelerate economic growth. Such large investments will increase employment opportunities. Therefore, insurance has become an important source of capital formation.
The insurance sector produces funds from millions of policyholders through premiums. Due to the long -term nature of these funds, they are invested to build important chronic infrastructure assets (such as roads, ports, power plants and dams). Employment opportunities will increase through large investments that lead to capital formation in the economy.
Life insurance is an agreement that provides financial compensation in case of death or disability. Some life insurance policies also provide financial compensation after retirement or after some time. Life insurance can help you preserve your family’s financial security even when you are not. When you buy a life insurance policy or make periodic payments to the insurance company you make a lump-of-payment. These are called premiums. Instead, your insurance company has promised to assure your family at the time of death, disability, or due to the due time.
Life insurance can help you support your family even after retirement. It can be classified into different types of life insurance, depending on what it is covering:
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As a benefit of survival, a certain percentage of this term is paid to you periodically guaranteed to you.
During the policy period, your family assures the whole amount. Regardless of the survival benefit payments it made.
Normal insurance is an agreement that provides financial compensation for damage rather than death. It insects everything in contrast to life. Due to the responsibilities of your home, car, bike, health and travel, you will be compensated for financial loss. The insurance company has promised the amount assured of medical treatments, stealing or damage due to fire or even financial problems during travel to cure health problems, damages to your vehicle.
In simple words, general insurance provides financial protection against damage, loss, theft and other responsibilities for all your assets. It is different from life insurance.
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This type of simple insurance cover the cost of medical care. It pays or refuses the amount you pay for any injury or illness treatment.
Maternity cover: Your health insurance applies to you for expenses related to childbirth. This includes pre-delivered check-ups, hospitalization and postpartum care during delivery.
Cover of pre -existing diseases: Your health insurance will take care of the treatment you have before buying a health insurance policy.
Accident cover: Your health insurance can be paid for medical treatment of injuries caused by accidents and accidents.
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This is a simple insurance cover, which provides financial protection from damage to your vehicles due to accidents, damage, theft, fire or natural disasters
It is worth it – your car. You have paid millions of rupees to buy that beauty. A single scratch can also be painful, forget about big losses.
Pay the Annual Premium >> Get the car insurance cover >> Insurance company pay compensation in the entire year.
This is the guardian angel of your bike. It is similar to car insurance. You can’t ride a bike or scooter in India without insurance.
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The property of the individual/individuals is insured against a particular accident under the insurance property. May be the damage of property to theft or stealing of goods or goods in the event of an accident.
Sea accidents; Confrontation with a stone or ship, enemy attacks, such as fire and pirates, etc.
Only a few nominal risks in the past were insured, but now the range of sea insurance is divided into two parts; Ocean Marine Insurance and Inland Marine Insurance.
The previous one not only insures marine accidents, but also covering the subsequent inland accidents, which can arise with the distribution of cargo (gods) from the insured go-down and extend to the goods via by the buyer (importer).
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In the absence of fire insurance, fire waste grows not only to a person but also to society.
With the help of fire insurance, the damage caused by fire does not lose much compensation and society.
The person is preferred from such losses and is in the same position as his property or business or industry loss.
Fire insurance not only protects the losses but it can also insure certain consequences of war, confusion, riots, etc.
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There is also a liability insurance in normal insurance.
Social insurance is to protect the weak units of society that cannot pay premium for insurance insurance.
Pension plans, disability benefits, unemployment benefits, unemployment insurance and industrial insurance are different forms of social insurance.
Personal insurance involves human life insurance, which experiences damage due to death, risk and disease
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The property of a person and society is insured without losing fire and marine accidents, unexpected declining in reduction, unexpected unexpected death, unexpected death of animals engaging in business, and the stealing of property and property.
Guaranteed insurance explains the loss of employees or the honesty, disappearance and discretion of the second party. The party must be the party for the agreement.
For example, in export insurance, the insurer replaces the damage at the failure to pay the amount of debt.
Examples of such insurance are export-credited insurance, state employees insurance, etc. Thereby, the insurance company guarantees a certain amount in certain events.
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Property, goods, machine, furniture, automobiles, valuable articles, etc., are insured from damage or destruction due to risk or disappearance due to theft.
Every type of asset has a variety of insurance for insurance, not only property insurance, but also responsible insurance and personal injuries.
Related article: 1. 7 Principles of the most important principles/ insurance compensation (2020) 2. What is disability insurance | Everything you need to know about protecting your income is 3. What is insurance guarantee? The first step towards buying life insurance seems to be a big decision, especially if you are new to this. You may be surprised
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