Page 25 - M1_Insurance Introduction Notes
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The process of Insurance thus involves three aspects:
1. Firstly there is an asset which yields value to its
owner.
2. Secondly there is a chance (risk) that the asset
may lose its value if a certain event happens.
3. Thirdly there is a mechanism known as Insurance
by which the loss can be mitigated.
How is Insurance carried out?
Insurance is one of the tools of social security for both
individuals as well as formal and informal
corporate/industrial sectors and is largely carried out
in two ways.
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