Question

What benefits are there to society, to the country as a whole, of having insurance available for those who need or want to have it?

Answer 1

Insurance offer various advantages to the society .Some of them are listed below-

1) it protects the society's wealth by various insurance schemes like the general insurance policy protect the property of the owner against the losses due to fire and from other natural calamities ,Life Insurance protects against the loss of human loss.In this way both life insurance and general insurance offer protection to stabilize the financial position of the people as well as the business condition.

2) Remove social evils -all kinds of insurance policies tends to reduce the extent of social evils from the society which are meant to alleviate

3) Maintain standard of living- insurance helps to maintain the standard of living due to high returns and the reduce the misery and destitution

4) Social security benefits- insurance plays a vital role in fulfilling certain needs of the society such as providing the provisions for sickness ,old age and disability of persons in general People who have insurance are relieved of the financial loss if any natural calamity occurred

5) Equitable distribution of loss- in case of any accidental events insurance distributes the cost in equitable manner .Therefore we can say that this cost would have been paid in a haphazard manner if no insurance policy would have been taken