Human life is surrounded by various risks and uncertainties. There is a risk at various step of human life. Insurance is the way of minimizing the financial loses arising from such risks and uncertainties.
Insurance is the way, which provides financial security to the man and his properties from such threats and risks. Insurance cannot reduce the uncertainties. It also cannot protect our life and properties but it can give financial protection against such risks.
The primary function of insurance is to provide financial safety against the loss due to uncertain events. It also performs various function and facilitate people which are the secondary function of Insurance company.
Importance of Insurance
- It helps to minimize uncertainties and risks.
- It helps to develop economy.
- It helps to create employment opportunities.
- It helps to encourage saving for the future.
- It helps to do business promotions.
- It helps to provide loans to the needy people.
Non-life insurance
Non-life insurance is contract between insurer and the insured of short term. It refers to the insurance of goods and properties. It provides economic safety for machines, equipment, furniture, vehicles and building.
The types of non life insurance are
- Fire Insurance
- Marine Insurance
- Motor Insurance
- Aviation Insurance
- Fidelity Guarantee Insurance
- Employer’s Liability Insurance
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