ECONOMICS
INSURANCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
It is economic institution.
|
|
|
It is based on the principle of mutuality or co-operation.
|
|
|
Its objective is to accumulate funds to pay for claims that arise as a result of the operation of specific risks.
|
|
|
Only certain risks can be insured against, namely those, whose occurrence can be confidently estimated with a certain degree of accuracy.
|
|
|
All of the above.
|
Detailed explanation-1: -It is economic institution. It is based on the principle of mutuality or co-operation. Its objective is to accumulate funds to pay for claims that arise as a result of the operation of specific risks.
Detailed explanation-2: -It is a form of risk management primarily hedged against any uncertain future loss. The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance.
Detailed explanation-3: -Provides Protection. Provides Certainty. Risk Sharing. Value of Risk. Capital Generation. Economic Growth. Saving Habits. 09-Nov-2022
Detailed explanation-4: -Pooling of losses. Payment of fortuitous losses. Risk transfer. Indemnification.
Detailed explanation-5: -Insurable Interest. Utmost good faith. proximate cause. Indemnity. Subrogation. Contribution.