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They are able to maintain the standard of living due to high returns. THE ECONOMIC AND IMPORTANCE OF MOTOR INSURANCE IN OUR SOCIETY. Unlike a car, jewelry or a house, you can't physically see or hold the value of an insurance policy. All forms of insurance tend to reduce the extent of social evils that are meant to alleviate. What Is Insurance and Why Is It So Important To Society As A Whole? Life insurance provides a mode of investment. INTRODUCTION. However, if these goods were lost overseas, they didn't have to pay a for the peril. As such, both general and life insurances offer protection to stabilize business condition and financial position. All Rights Reserved. The most effective argument for reduction of fire losses is that smaller losses will make smaller premiums possible. Social Security and Medicare benefits focus on retired and disabled individuals. Importance of Insurance to Society. Because it provides security to the business owner in order to save their business setup cost. 1.1 BACKGROUND OF THE STUDY Insurance can be seen from many points of view according to Hezen Ibeabuchi I. © 2020 The Sarrica Group. CHAPTER ONE. The Sarrica Group, Inc. has written this article to help answer that question. To get the money that your business needs to continue its operations, it's likely you'll need an active business insurance policy before getting a loan. Most people will agree that there is nothing more important than family. In the case of the West, Texas, plant explosion, insurance could have helped a community to recover after a crisis. Insurance is a part and parcel of society today. The following scenario is illustrative only to demonstrate the importance of insurance and is not based on an actual event. The life insurance proceeds will be used by the company to help hire and train a new employee. Moneylenders and insurance companies have been lending money to people and insuring against loss for centuries, but in the 20th century, governments around the world began to recognize the importance of financial institutions and passed legislation that made it easier for more people to obtain products and services from these entities. Insurance is clearly of great advantage and importance. Importance to Society Finally, the benefits of insurance on the largest scale are those realized by society as a whole. Many sole proprietors can also utilize the benefits of life insurance. However, medical treatment and medicine prices are continually rising. The human force, if it is strong, educated and care-free, will generate more income. Insurance companies provide the required funds for infrastructure development. It provides a sense of security. Insurance allows for a policyholder to transfer the risk of loss to insurance companies, so you can drive with a peace of mind knowing that you're covered should you ever get into an accident. Provides Support to Families during Medical Emergencies: Well-being of family is important for all and health of family members is the biggest concern for most. Hospitals are required to treat uninsured patients who come through the emergency room, writing off the cost as a loss. When we are insured we have to pay premium. They reduce the destitution and misery. With a Health Insurance policy, an insured can also get financial support in case of a medical emergency. 1.1 BACKGROUND OF THE STUDY. THE ECONOMIC AND IMPORTANCE OF MOTOR INSURANCE IN OUR SOCIETY . 5. Insurance revolves around the Principle of Indemnity which is to compensate or secure the policyholder in the same financial position prior to the event of a loss. Insurance can be seen from many points of view according to Hezen Ibeabuchi I. An example of this in today's society would be mortgage lenders that require proof of insurance prior to buying or constructing a new building. 4. there was a different kind of concept that has been seen in the past regarding the insurance. Sign up with your email address to receive news and updates. Although individuals generally get insurance for self-serving reasons, the importance of insurance for society as a whole can’t be understated. Agricultural Pump sets Insurance in India | Features | Benefits, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. Back on April 17, 2013, it was reported that a chemical explosion occurred from ammonium nitrate at the West Fertilizer Company storage and distribution facility in West, Texas. In other words, the purpose of insurance is to help make the named insured financially whole again after a peril. Insurance provides security to the insured during his life and to his dependents. In whole life insurance industry, relation essential intertwine among companies of life insurance, agent and clients. 5. 3. These types of insurance policies are designed to help protect accident victims against the costs of recovering from an accident that a driver or an employer has caused. Those who have their insurance do not become a burden on state insurance plan. This can prove to be enough to drain your savings if not well prepared. Even though in essence insurance is an intangible product it does provide a sense of financial security for both policyholders and potential investors. Insurance rescues many people in the society who are rendered destitute through misfortune. The importance of this policy can be ascertained after listing down its benefits, as follows: 1. View all posts by Society Insurance Human Resources → Post navigation ← Previous Next → One thought on “ Importance of Ergonomics ” YULI April 29, 2019 at 8:32 am. This also meant taking on a bigger mortgage on one income, as Karen is a homemaker. Read more Importance of Insurance to Business About us Commerce Mates is a free resource site that presents a collection of accounting, banking, business management, economics, finance, human resource, investment, marketing, and others. Insurance revolves around the Principle of Indemnity which is to compensate or secure the … Earthquake, etc. rendered destitute through misfortune at destruction of family needs no elaboration living and the may., wardrobes, plywood furniture, etc. some agents to help hire and train a new.., accident, earthquake, etc. wardrobes, plywood furniture, etc )! Of life insurance proceeds will be used by the company to help answer that question mortgage on one,. And useful importance of insurance to society modern affairs instrumental tool in promoting commerce and investment opportunities within OUR.. Be ascertained after listing down its benefits, as follows: 1 important. 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