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Business Services-1 — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMBusiness Services-13 Marks
Question
“ Insurance does no remove risk, but it compensates for the loss resulting from the risk “ – Justify the statement.
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Answer

  • Insurance is taken to get economic protection against natural and man made risks. Insurance does nor remove risks.
  • Insurance company also can not make any arrangement to remove risk but pays financial compensation against loss due to risk, company pays within the limit of the amount of insurance.
  • Natural risks such as earthquake , tsunami: cyclone , flood and elements insurance company can not remove, But pays compensation to the insure for the economic loss suffers from such risks.

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