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among the people. Thus, it becomes a kind of

compulsory saving for the percentage of population who

pays taxes.

e) Promote foreign trade

It is compulsory to take marine insurance policy in

foreign trade transactions in India. Overseas companies/

individuals 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

relief to entrepreneurs from the uncertainty of foreign

trade and cargo shipment whether through sea or air.

f) Liquidity: Loans can be raised on the sole security of a

policy which has acquired some loan value (based on

premiums paid till date). Besides, a life insurance policy

is also generally accepted as security for even a

commercial loan.

g) Tax Relief: Country wise specific tax relief in Income Tax

and Wealth Tax is available for amounts paid by way of

premium for life insurance / health insurance subject to

Income Tax rates in force. Assesses can avail themselves

of provisions in the law for tax relief. In such cases the

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