Page 39 - M1_Insurance Introduction Notes
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d) A forced savings
Life Insurance is also a method of savings in
India. Income Tax Act gives relief in payment of
income tax because government wants to
habituate general public to save money. It
encourages the habit of thrift and savings among
the people. Thus, it becomes compulsory savings
to people of nation.
e) Promote foreign trade
It is compulsory to take marine insurance policy
in foreign trade in India. Foreigners can’t issue
the foreign trade bill unless the cargo is fully
insured. Thus foreign trade is totally depends
upon the insurance sector of the nation. It gives
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