WHAT IS INSURANCE
Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets.All of us are interested in the creation of assets because:1.
All assets have values.2.
They yield income to the owner.3.
They meet some other needs of the owner.4.
They may provide satisfaction of some needs and also yields income tothe owner.The benefit may be an income or in some other form.
A house has a value.
A car is useful for providing traveling comfort to the owner and other members of hisfamily .There is no direct income.
An owner of a factory receives income by sale of its products.
A farmer may rear a cow with the expectation of getting milk for his family and makingsome money from the sale of excess milk.