Business

Important Functions of Insurance |Primary and Secondary functions of Insurance

Principles and functions of Insurance

Important Functions of Insurance

The insurance company performs many functions, Important Functions of Insurance we have classified these functions into primary and secondary functions. Insurance provides protection and certainty to the assured persons and property.

  • Primary Functions of Insurance
  • Secondary Functions of Insurance

Primary Functions of Insurance

  1. Insurance provides certainty

There is always the uncertainty of happening of time and amount of loss and risks. The Insurance removes and protects insured/customer from all these uncertainties and the assured is given the certainty of payment of the losses which he ever faces in the future. The insurer charges the premium (Installment) for providing the said certainty.

  1.  Insurance provides protection

The basic and main function of insurance is to protect the customer and insured from probable chances of loss. The insurance guarantees that the company/insurer will do payment of those losses and thus protects the assured customer from sufferings . The insurance company/insurer cannot check the happening of risk but can provide for losses when it happened to insured.

  1.  Risk-Sharing

The risk is uncertain and can happen any time , therefore, the loss arising from the risk and accidents is also uncertain. When risk takes place to insured property or any insured thing , the loss is shared by all the persons, mean as we know insurance is a pool of money created by many people, they are all exposed to someone’s risk in this sense.

Secondary Functions of Insurance

  1. Prevention of loss

The insurance create links and joins hands with those institutions and companies which are engaged in preventing and protecting the losses of the society because the reduction and minimization in loss causes the lesser payment to the assured arid so the more saving is possible which can assist in reducing the premium.

  1. It Provides Capital

The insurance provides capital to society. It is because when the assets and property of the people remain insured and protected in society . The accumulated funds are invested in the productive channel. The death and removal of the capital from the society are minimized to a greater extent with the help of investment in the insurance sector . The industry, the business, and the individual are benefited and protected by the investment and loans of the insurers.

  1. It Improves Efficiency

Insurance eliminates and finishes the worries and miseries of losses at death of insured life and destruction of property due to any accident. A carefree person can devote his body and soul together for the better achievement , it improves not only his own efficiency but also the efficiencies of the masses become advanced.

  1.  It helps Economic Progress

When insurance protects the assets of people ,It is actually protecting the society from huge losses of damage , death , destruction, fire or accidents, The insurance provides an initiative to work hard for the betterment of the masses and assets . The next factor of economic progress and growth, the capital is also immensely provided by the masses and assets . The property, the valuable assets, capital , the man, the machine and the society cannot lose much at the disaster.

About the author

Shahid

25 Comments

Click here to post a comment

Calendar

May 2022
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

RSS Meks Blog

  • 10 Best Knowledge Base & Wiki WordPress Themes 2021 September 15, 2021
    Running a successful online business requires an exceptional WordPress knowledge base theme that organizes documentation and helps customers. Customization options, intuitive navigation, unique layouts, and fast responsiveness are just some of the features you need. The following 10 WordPress wiki themes represent the best options for 2021 and beyond. Explore the full range to determine […]
    Dusan Milovanovic
  • How to increase WordPress Memory Limit (quick fixes) June 16, 2021
    Here is a post about how to increase the memory limit in WordPress. Allowed memory size exhausted error message showed up in your WordPress installation? No worries – this is one of the most common errors in WordPress. You can apply an easy fix by increasing the memory limit in your PHP. Table of Contents […]
    Dusan Milovanovic
  • How to use (and why) WordPress sitemap plugin March 1, 2021
    Did you know that by knowing how to use the WordPress sitemap plugin you can significantly improve your site’s visibility and traffic? Although it isn’t mandatory to have a sitemap on your site, having one significantly improves the site’s quality, crawlability and indexing. All this is important for better optimization, which is why we wanted […]
    Ivana Cirkovic
  • 22 free and premium podcast software for your show [2021 edition] January 18, 2021
    You’re determined to start or improve your podcast but don’t know which podcast software to use to really make it stand out? We’ve got you! #podcasting Top 22 free and premium podcast software for your show #WordPressTips #podcasting The post 22 free and premium podcast software for your show [2021 edition] appeared first on Meks.
    Ivana Cirkovic
  • Digital storytelling with WordPress – an all-in-one guide to make your web stories pop! November 23, 2020
    Wondering how to improve digital storytelling with WordPress and build more awareness and exposure of your business? Let our guide lead the way. The post Digital storytelling with WordPress – an all-in-one guide to make your web stories pop! appeared first on Meks.
    Ivana Cirkovic
  • How to use WordPress autoposting plugin to improve your visibility and SEO? September 10, 2020
    Did you know you can use the WordPress autoposting plugin for your content efforts and improve not only your time management but your business and visibility as well? The post How to use WordPress autoposting plugin to improve your visibility and SEO? appeared first on Meks.
    Ivana Cirkovic
  • How to create a personal branding site? Step-by-step DIY guide August 15, 2020
    Looking for ways and means to create a personal branding site? Well, look no further ’cause we’re giving away all the how-to’s to do it yourselves! The post How to create a personal branding site? Step-by-step DIY guide appeared first on Meks.
    Ivana Cirkovic
  • Top 15 WordPress content plugins and tools to improve your visibility and rankings July 16, 2020
    Let’s take a look at some of the must-have WordPress content plugins and tools to use to improve both your UX and rankings. The post Top 15 WordPress content plugins and tools to improve your visibility and rankings appeared first on Meks.
    Ivana Cirkovic
  • WCEU 2020 recap – key takeaways from the biggest online WordPress conference June 9, 2020
    Missed WCEU 2020 and all the exciting stuff from there? Here are all the key takeaways and main points to remember so, take notes! The post WCEU 2020 recap – key takeaways from the biggest online WordPress conference appeared first on Meks.
    Ivana Cirkovic
  • How to change the WordPress username? An easy step-by-step guide May 14, 2020
    Wondering how can you change WordPress username once you set up your blog or site? Read all about it in our helpful guide! The post How to change the WordPress username? An easy step-by-step guide appeared first on Meks.
    Ivana Cirkovic

Text

Distinctively utilize long-term high-impact total linkage whereas high-payoff experiences. Appropriately communicate 24/365.
/* */
error: Content is protected !!