4. Importance of Insurance
The process of insurance has been evolved to safeguard the
interests of people from uncertainty by providing certainty of
payment at a given contingency. The insurance principle
comes to be more and more used and useful in modern
affairs
5. Importance Cont.
Uses to individual,
(ii) Uses to a special group of individuals, viz., to business or
industry, and
(iii) Uses to the society.
(i)
6. 1. Uses to an individual :
a.
b.
c.
d.
e.
f.
g.
Insurance provides Security and Safety
Insurance affords Peace of Mind
Insurance protects Mortgaged Property
Insurance eliminates dependency
Life Insurance encourages saving
Life Insurance provides profitable Investment
Life Insurance fulfils the needs of a person (Family, Old
age, Readjustment, Special)
7. 2. Uses to business
Uncertainty of business losses is reduced
Business-efficiency is increased with insurance
Key Man Indemnification
Enhancement of Credit
Business Continuation
Welfare of Employees
8. 3. Uses of society
Wealth of the society is protected
Economic Growth of the Country
Reduction in Inflation
