Explain the importance of insurance.

1.	Explain the importance of insurance.
Answer» The importance of insurance are: 1. It is a contract for compensation losses. 2. Payment is made to the insured, as per the terms of the agreement, in the event of loss. 3. It is contract of utmost good faith. 4. The occurrence of the loss is accidental. 5. It helps in shifting and sharing risk.

Answer»

The importance of insurance are:

1. It is a contract for compensation losses.

2. Payment is made to the insured, as per the terms of the agreement, in the event of loss.

3. It is contract of utmost good faith.

4. The occurrence of the loss is accidental.

5. It helps in shifting and sharing risk.

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