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.
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