Characteristics and nature of insurance
Characteristics and nature of insurance 1. Security from Risk - Insurance is a powerful way to deal with risks. All uncertainties prevailing in life make the person relentless. These risks can be related to life, health, rights and financial resources, property. Therefore, one way to protect against all these risks is insurance. 2. Ways to spread risks - Based on the spirit of co-operation in insurance "one is working for everyone and for all one. A corpus is collected by collecting the people surrounded by similar types of risks so that the risk of one person is divided among all the members and if any member is exposed to the risk, then that person is paid specially from that fund. 3. Transferring risk from insurers to insurers - The risks of all insureds in insurance are transferred to the insurer. An insurer gets fixed payment on the loss to the insured. 4. Insurance is a process - insurance is also a procedure that is operated by the preset method. The...