What is Importance of Insurance

 INSURANCE BENEFITS
First elimination of uncertainties
The insurance company assumes the risk of large losses, but uncertain at the turn of premium small. So there is a sense of security, the real gift for the businessman. When all the uncertainties, which could be removed from business income would be safe. Sure many uncertainties, making it profitable.
Stimulating second company
Insurance easier to get the size of commercial and industrial organizations in vertical position. No large-scale enterprises could be in the modern world, the transfer function of many of their risks to insurers. It protects capital while avoiding the need by the industry. You are therefore free to use their capital as most seem.
Promoting savings Third
Saving is a unit of the preparation of the disastrous consequences of the future. Insurance is often very appropriate to provide for the future. This type of policy is found mainly in life insurance. Promotes the compulsory savings, which have a positive effect for both the individual and the nation.


Fourth Correct allocation of costs
Insurance helps maintain proper distribution of costs. Every businessman trying to convey to consumers the costs of any kind, including accidental losses as well. In various areas of insurance such damages properly assessed in terms of maintaining a variety of factors influence it. Nominal, in the absence of these losses and insurance costs, and is distributed only by conjecture.
Five Sources of credit
Modem business depends largely on credit, insurance has contributed "a lot in this regard. A life insurance company increases the creditworthiness of the insured person, as they can provide money for redemption when he dies. Of credit extension is also supported by several types of obtain property insurance. A businessman, inventory properly insured credit was easily accessible. As the transport is an essential requirement for any transaction of import and export.
Sixth Reducing the potential for loss
Insurance companies spend a lot of money to see, with the aim of the reasons for fire accidents, theft and robbery, and suggest some measures to prevent them. They also support the various medical program for public safety-minded. Without this kind of loss prevention activities of insurance companies, the chances of loss would have been greater than they have on this day.
Seventh Solving social problems
Insurance serves as a useful tool to solve complex social problems such as compensation to victims of accidents and traffic accidents, while the financial difficulties arising from the minimization of age, disability or death. It allows many families and businesses remain intact even after a loss.
Eighth Productive use of funds
Insurer includes many resources of the different health insurance companies. These resources are usually invested in the country, whether in public or private sector. This simplifies considerably throughout the development of the economy.
Ninth insurance as an investment
A life policy is a combination of protection and investment, which serves a useful purpose. The premium that the insured pays a fund, go to each year. The sum so calculated by the insurance accrued interest. Among life insurance a person can invest their capital in a pension income paid to him every year until his death. Therefore, the insurance can be seen as an investment.
10th International Trade Promotion
The growth of the country's international trade was greatly helped by the change of insurance risks. A ship at sea a few bad fortune. A fire and burned to ashes all the assets of a business man. Insurance is one of the devices by which these risks can be reduced or eliminated. Sun and export businessman all his attention to promoting the establishment, which can increase export activities to spend.
11 Remove the fear
Insurance helps to eliminate various types of anxiety in the minds of men. The insured is assured in the knowledge that protection of the insurance fund is behind him, when a sad event occurs. Therefore, it builds confidence and eliminates the concern that is difficult to judge, but the benefit is very real.
12 Budget allocation of production factors
Insurance also helps in achieving a favorable distribution of production factors. The capital is shy of a rule in the risky business. People are reluctant to invest their capital, where economic losses are large. If protection against these risks are fully provided by insurance available to more investors willing to invest their resources in these areas.
13 The growth in business volumes competition
Insurance, small businesses in more equal footing with the larger organization to compete. Not sure it would have been impossible to assume the risks. On the other hand, could include larger organization, its financial strength losses. In addition, insurance eliminates uncertainty about the financial losses resulting from certain causes. Increases knowledge, which is one of the most important conditions of perfect competition.
14th Employment Opportunity
Insurance offers employment opportunities for unemployed people, which is useful for the improvement and advancement of the social

Several advantages 15th
(I) provide the relationship between employee and employer, providing various services, ie, group life insurance, social security, planning for retirement income, the workers' compensation insurance.
(Ii) insurance provides confidence and security between the uninsured.
(Iii) the insurance company a valuable service by qualified and knowledgeable about the industry and the economy in order to eliminate the various risks.
(Iv) promotes economic growth and development. That would be impossible in the absence of insurance.
(E) contributes to the efficiency of business processes as well as industrial and commercial leaders.
(F) The safety of members is made possible by the life insurance. It gives relief to homeless families after the death of the purchasing power of the family.