Description:

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of acontingent or uncertain loss. An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.

Features of Insurance:

Sharing of Risk.

Co-operative Device.
Value of Risk.
Payment at Contingency.
Payment of Fortuitous Losses.
Amount of Payment.
A large Number of Insured Persons.

 

Advantages:

Economic Protection
Grant Loans
Eliminates dependency
Encourages Savings
Promotes Foreign trades
Develop Economy