Insurance helps to

Question

Question: Insurance helps to

Options:

1. Prevent adverse situations from occurring
2. Reduce the financial consequences of adverse situations
3. Negate all consequences of adverse situations
4. Make assets continuously productive
5. All of the above

Answer 1

2. Reduce the financial consequences of adverse situations

Insurance helps to reduce the financial consequences of adverse situations.

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More:

Insurance works on the principle of Sharing of losses, Probabilities, Large numbers, Randomnes.

It helps to reduce the financial consequences during adverse situations.