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IMPORTANT OF INSURANCE

IMPORTANT OF INSURANCE




The Need For Income

                          Every moment, individuals, families and business units are exposed to lossess arising from their property, occupations, activities and responsibilities. who will bear these financial lossess and where will the funds be obtained from to offset such losses? Usually, in the absence of legal remedies, contract arrangements or cooperative efforts, losses will fall on the individual or business unit concerned. To solve this problem, an arrangement is introduced for coping with some of the risks and possible losses faced by individuals and business enterprise.

                       This arrangement works on the law of large numbers, i.e. by spreading the risk of loss faced by a specific person or enterprise o all parties who pool their resources to pay for individual losses. This loss sharing arrangement is called insurance







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INTRODUCTION TO INSURANCE

Human beings are exposed to various kinds of risk in their daily lives and activities and have to endure the consequences of such misfortune...