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Category Archives: Insurance
Invention of Insurance
Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders, travelling treacherous river rapids would distribute their goods among several vessels, so that the loss from any one vessel being lost, would be partial and shared, and not total. The Babylonian writing off the loans, in case of [...]
Working Fuctionality of Insurance
The mechanism of Insurance is very simple. People who are exposed to same risks come together and agree that, if any one of them suffers a loss, the others will share the loss and make good to the person who lost. All people who sent goods are exposed to the same risks, which are related [...]
Role Of Insurance In Economic Development
For economic development, investment are necessary. Investments are made out of savings. A life insurance company is a major instrument for the mobilization of savings of people, particularly from the middle and lower income groups. These savings are channeled into investments for economic growth. The Insurance Act has strict provisions to ensure that insurance funds [...]
Advantages Of Life Insurance
Life insurance has no competition from any other business. Many people think that life insurance is an investment or a means of saving. This is not a correct view. When a person saves, the amount of funds available at any time is equal to the amount of money set aside in the past, plus interest. [...]
Insurance is a Social Security
Under a socialistic system the responsibilities of full security would be placed upon the state to find resources for providing social security. In the capitalistic society, provisions of security is largely left to the individuals. The society provides instruments, which can be used in securing this aim. Insurance is one of them. In a capitalistic [...]
Insurance Of Intangibles
The concept of insurance has been extended beyond the coverage of tangible assets. Exporters run the risk of losses, if the importers in the other country default in payments or in collecting the goods. They will also suffer heavily due to sudden changes in currency exchange rates, economic policies or political disturbances in the other [...]
LIFE INSURANCE CONTRACTS