Here, you learn about the importance of Insurance in our life. Because, in today generation, insurance is a must. When, difficult financial loss can come in any form at any time, but with insurance, you can protect against financial loss if you have some savings.
Insurance is a contract between the insured and the insured.
Why Insurance is Necessary
There are many risks involved in various activities performed by man during his life. There are a lot of goods for sale in the shops in the market. Factories include machines, raw and manufactured goods. These goods are transported from one place to another by train, truck, ship, or other means of transport, with the risk of theft, robbery, as well as damage to natural or man-made disasters. Goods are likely to be damaged during transport or for other reasons.
Even in the life of a businessman, there is no danger of illness, accident and premature death. We cannot avoid such potential risks, but we can prepare / take care of something as a precaution. Insurance service is available for all. If there is insurance planned in advance then there are arrangements to protect against such potential calamities or risks.
What things are Cover in Insurance
The prevalence of human life activities is increasing in the present era, with the demand for insurance services also undergoing radical changes. Now almost anything has become the subject of insurance contracts. In the modern age, the increasing complexity of the economic system and the increasing risk to human skills itself are increasing the number of things that can be insured and their prevalence. As such, singers can now insure their voice and dancers can insure their feet, so the insurance company pays the insurance amount they owe when their singing or dancing skills abruptly stop. That’s why the insurance service plays an important role today.
Meaning of Insured and Insurer
The insurance service is a system whereby compensation for accidental loss or damage can be obtained. Accordingly, the insured person / organization is called insured and the company providing the insurance service is called insurer.
How to Claim an Insurance
In view of its basic characteristic of the insurance service, it will be understood that this is a process in which the insured’s estimate the severity of the risk and rewards themselves to the heirs (in some types of policies, and in some cases to their heirs). In fact, not every insurer needs to claim for every policy they buy as part of the insurance service, yet the guarantee / protection of the risk against the insurance service is called major relief. Insurance is, in fact, security, which protects against the potential financial loss caused by uncertainty.
Insurance is a contract between the insured and the insurer, in which the amount paid by the insured for a specified period of time – in the event of an age, death or risk of reserve in return for premium, can be reimbursed in return for money. Thus, the insured who regularly pays the premium has the right of security and assurance.
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Different policies provide financial assistance to the common man during accident or illness, regular income after retirement or financial security to family members after death. The businessman is relieved of the worry of loss, loss or unexpected disaster.
I hope you learn about the Importance of Insurance in our post. If you can also share your view on insurance in comment section bellow. The Team of TaxIndia is always help you to solve your problem and provides a best solution ever.