Quick Answer: Which Of The Following Is Not A Function Of Insurance?

Which is not a function of insurance?

Answer: Lending funds is not a function of insurance.

Among the given options option (c) lending funds is the correct answer..

What are the main functions of insurance?

Primary Functions of InsuranceInsurance provides certainty. Insurance provides certainty of payment at the uncertainty of loss. … Insurance provides protection. … Risk-Sharing. … Prevention of loss. … It Provides Capital. … It Improves Efficiency. … It helps Economic Progress.

Which one is not the principle of insurance?

Maximization of Profit is not the principle of insurance. There are seven basic principles that create an insurance contract between the insured and the insurer: Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution and Loss Minimization.

What is General Insurance and its types?

General insurance is insurance for valuables other than our life and health. General insurance covers the insurer against damage, loss and theft of your valuables. The premium and cover of general insurance depends upon the type and extent of insurance. A general insurance policy typically has a period of a few years.

What is insurance and its features?

Insurance is a form of risk management primarily used to hedge against the risk of potential financial loss. Again insurance is defined as the equitable transfers of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care.

Which of the following is a function of life insurance?

Replacement of lost income, in the event that you pass away prematurely, is the most important reason people seek a life insurance policy. … This means replacing your income, ensuring that your family retains their lifestyle, and covering expenses they might incur in your absence.

Which of the following is not a function of management?

Management briefly refers to the process of dealing with or controlling people or things. Planning, staffing, controlling are covered under this definition. Hence, co-operating is not a function as such, of management.

What are the function and benefits of insurance?

The obvious and most important benefit of insurance is the payment of losses. An insurance policy is a contract used to indemnify individuals and organizations for covered losses. The second benefit of insurance is managing cash flow uncertainty. Insurance provides payment for covered losses when they occur.

What are the characteristics of insurance?

Based on the preceding definition, an insurance plan or arrangement typically includes the following characteristics:Pooling of losses.Payment of fortuitous losses.Risk transfer.Indemnification.