Insurance provides security against ________ .

Question

Question: Insurance provides security against ________ .

Options:

1.  Risk
2.  Losses
3.  Both (1) & (2)
4.  None of them

Answer 1

3. Both (1) & (2)

Insurance provides security against risk and losses.

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Explanation:

Insurance works on the principle of sharing of losses, probabilities, large numbers.

It helps to lower the risk of financial consequences and provides security against risk and losses.