Insurance Scope in Industrial Sector

Insurance is the path which makes everyone life better and smooth because insurance refers to minimise the loss of others by taking premium from the insured. Premium is the amount which takes insurance company from the person of which loss is share by company. Insurance is amount or something which the person takes for sharing his risk with others. Insurance having two parties such as insurer who share risk and insured whose risk is share. Insurance is contract of guarantee because insurance company gives guarantee for compensate the loss.

Contract of insurance is started in 1347 and it is increasing by increasing the risk of company .In modern era many company provides contract of insurance such as ICICI, HDFC, AXA, METLIFE etc. Firstly in London, A company provided property insurance policy and protect 10000 houses at a time by giving him the insurance policy.

Industry is the groups of firms which produce and sell similar type of products. It happens in monopolistic market where large number of seller and buyer available for different products. Firms make large investment but they have more risk where the large investment will give high return or high loss. For protection of High risk loss they prefer to buy insurance policy and gives premium to insurance company for protection of loss. Industry takes insurance on every purchase like purchase of any asset such as furniture, machinery because they required large investment.

Insurance company provides much policy on the demand and requirements of industry such as:-

  1. Safety Policy: – Insurance Company provides policy for protection of risk of loss from fire. Industry have largest scale of factories, warehouses, offices, garages in which largest amount of financial investment is done, so industries takes fire policy from insurance company.
  2. Burglary Insurance Policy: – its policy design for giving protection to industry for coring the risk of business premises such as godown, factories, warehouses.
  3. Machinery breakdown policy: – Insurance gives the policy for covering the risk of machinery. Industry spent large amount on purchasing of assets so they also spent expenses on wear tear expenses .insurance covers the wear tear expenses by taking premium.
  4. Electronic insurance policy: – this policy covers the risk of loss of electronic equipments such electronic wires, electronic boards, fans, office equipments etc.
  5. Contact Insurance: – Its main policy which the industry takes for protection of contract. If anybody make default in payments then insurance company pay all amount and takes all rights of industry for taking money from other party.
  6. Marine insurance policy: – this policy design for cover the risk of seaways when the products are transport from one country to other country through the seaways.
  7. Storage policy: – Storage policy is the policy which uses to protect the risk of loss of warehouses where industry stores its products.
  8. Plant insurance policy: – plant insurance policy covers the risk of building, factory sites etc.

 

Insurance plays important role in the growth of industry. Insurance provides safety guard to industry, gives financial investment, economic growth, medical support to the industry. Every industry must purchase insurance for growth and minimize the loss of industry .because insurance cover the risk and always increase the economy of the country. For more articles visit again to website.

Insurance company provides much policy on the demand and requirements of industry such as:-

  1. Safety Policy: – Insurance Company provides policy for protection of risk of loss from fire. Industry have largest scale of factories, warehouses, offices, garages in which largest amount of financial investment is done, so industries takes fire policy from insurance company.
  2. Burglary Insurance Policy: – its policy design for giving protection to industry for coring the risk of business premises such as godown, factories, warehouses.
  3. Machinery breakdown policy: – Insurance gives the policy for covering the risk of machinery. Industry spent large amount on purchasing of assets so they also spent expenses on wear tear expenses .insurance covers the wear tear expenses by taking premium.
  4. Electronic insurance policy: – this policy covers the risk of loss of electronic equipments such electronic wires, electronic boards, fans, office equipments etc.
  5. Contact Insurance: – Its main policy which the industry takes for protection of contract. If anybody make default in payments then insurance company pay all amount and takes all rights of industry for taking money from other party.
  6. Marine insurance policy: – this policy design for cover the risk of seaways when the products are transport from one country to other country through the seaways.
  7. Storage policy: – Storage policy is the policy which uses to protect the risk of loss of warehouses where industry stores its products.
  8. Plant insurance policy: – plant insurance policy covers the risk of building, factory sites etc.