By offering certainty of payment at a 24, the procedure for insurance was evolved to protect the interests of people from negligence. The insurance principle has been useful in affairs and used. Does it serve people’s ends, or of groups of individuals, it tends to transform our social order and to pervade. The function and significance of insurance, here, has been discussed also in 3 stages: uses to person, uses to a particular group of individuals, viz., to industry or business, and uses to the society. Uses to an individual: 1. Insurance satisfactorily provides the loss to the family in a death and payment in age.
This is the wish that will excite to work, if this wish is unsatisfied, it’ll create a strain that manifests itself into the individual in the form of a response. The security banishes fear and doubt, fire, windstorm, auto accident, injury and death are beyond the control agency that is human and in occurrence of some of these events might frustrate or weaken the mind. However, a lot of the doubt that centers around the wish for its attainment and security may be eliminated. And on the other hand, the mortgage wishes into get the property insured because in the harm or destruction of the property he’ll lose his right into get the loan replayed.
The insurance will provide sufficient amount to the dependents in the early departure of the property owner into pay off the unpaid loans. Similarly, the mortgagee gets sufficient amount in the destruction of the property. Similarly, in destruction of, property and goods, the household would suffer a lot. What may be more pitiful condition than that the wife and kids are looking others more benevolent than the husband and father, also in absence of protection against such dependency? The insurance is here to help them and provides sufficient amount during the time of sufferings. Life Insurance supports saving: The components of protection and investment are present only also in the event of life insurance coverage.
These policies combine the applications of insurance and savings. The saving with insurance has certain extra advantages – Systematic savings are possible because regular premiums is mandatory to be compulsorily paid. The saving with some bank is voluntary and one may easily omit some month or two and after that abandon the program entirely. In insurance the deposited premium can’t be withdrawn easily before the expiration of the term of the policy. As contrast to this, the saving that might be withdrawn at some moment will finish within no time at all. The insurance can pay the policy money regardless of the premium deposited while in the event of bank deposit, only the amount deposited with the interest is paid.