Insurance has now-a-days become a flourishing business and occupies an important place in every country. The system of insurance provides safeguard against uncertainties and risks. Insurance has now become the most important risk-bearing method.
Today, we cannot imagine the smooth operation of economic activities without insurance.
Today, we cannot imagine the smooth operation of economic activities without insurance.
Need and importance of insurance to the different sectors of society are as follows:
1. Importance of insurance to individual and family:
- Insurance provides economic protection
- Insurance increases self-respect
- Insurance may become a profitable investment
- Insurance improves standard of living
- Insurance encourages saving
- Insurance helps for education and marriage of children
- Insurance eliminates dependency
-Insurance provides income tax holiday
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2. Importance of insurance to business
- Insurance provides financial protection
- Insurance provides collateral for loan
- Insurance promotes employees' welfare
- Insurance promotes foreign trade
- Insurance contributes smooth operation of business
- Insurance increases efficiency
3. Importance of insurance to community
- Insurance safeguards properties
- Insurance creates employment opportunities
- Insurance reduces inflation
- Insurance helps to minimize social problems
4. Importance of insurance to government
- Insurance helps to maintain law and order
- Insurance increases revenue
- Insurance earns foreign currency
- Insurance minimizes financial burden
