Two Primary Functions of Insurance are :
(i) To Provide Certainty against the Probabole Risks :The primary objective of function of insurance is to provide protection against future risks , accidents and uncertainty . The Insurance cannot check the happening of risk in future , but it can surely provide for Losses at the happening of the Risk . The Insurer gives certainty of payment of loss to Assured by charging premium .
(ii) To Provide Security : The next primary function of Insurance is to provide security to the insured person . The insured person feels fully secured just after insurance with the insurer , like a moth with an infant *** in her lap to secure him / her against any probabile losses . Insurance is a Security against economic loss by sharing the risk with others and is the protection against economic loss . Thus any person can secure his property and valuables and other goods and machines and employees by doing insurance.
