Insurance is a safety measure. It makes the future of a person secure by insuring his life. Ordinarily, it means insurance policy or the premium paid as insurance. It is a kind of compulsory saving. The policy holders have to pay a certain monthly or quarterly amount as premium. After the maturity of the policy, or in case of sudden death, the person insured or his/her dependents get a lump sum – the original amount plus the profit on maturity.
Beside life insurance there are various other forms of insurance. Such as ensuring against accident, fire, transit risks of passengers and the goods, and children’s insurance for education and marriage. Like the banking system, insurance companies render great services to the common people, businessmen, industrialists, importers and exporters, Shipping companies and Airlines. The money that they receive as deposits (savings), is further invested in business and industries. Thus Insurance companies render great social and national services.
People have different views about insurance. The conser vative people believe that insurance is useless. They say we have insured our life and property with God. Some think who is going live till maturity, for life is uncertain or like a bubble. The poor have limited and small incomes. It is hard for them to make the two ends meet. They can not even think of saving for the rainy day. The illiterate majority in the country, is rather indifferent to it.
In a consumption-oriented society like ours, people generally spend on the fulfillment of wants and on maintaining social status. It is only the educated and the rich people who are easily convinced about the benefits of insurance. They have both will and money to save and reap its advantages. That is why the agents of the insurance companies have to do great conversing and convincing with the clients.
In case of compulsory Insurance for the people in service, they get a good umbrella for old age or risk of sudden death. The owners of motor vehicles have to pay compulsory payment as insurance. In case of comprehensive insurance, they can claim full price in case of loss, accident or fire. Shopkeepers also get their shops and goods insured against such risks.
Only ten or fifteen per cent payment accounts for such unforeseen risks or deaths. Otherwise in 80 per cent cases the insurance money is both good income as well as investment. Generally, life policies and policies for education and marriages for children get matured by the time they are grown up. Quite a good percentage, say ten to fifteen, is dropout – those who can not keep up the insurance policies. They are generally losers.
Anyhow, it is a good economic measure. People can also borrow loans for houses and marriage against the insurance policies. To insurance or get things insured, is a good safety measure as well as saving.