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- The Importance of Fire Insurance
- The Effect of Fire Insurance in Modern Economy
Fire insurance is essential for business because, it helps to protect from the damages which is occurred by the fire.
For industrial development of a country, fire insurance plays vital role by giving the certainty of paying financially against losses of an entrepreneur, businessman or industry-owner for such insurance policy taken by them.
The main importance of fire insurance are given below.
01. Role in Trade and Commerce:
For increasing business and trade fire insurance make vital rules. Business man may be fall in loss because of the fire. To maintain or fulfill that losses businessman have to do the fire insurance.
Because of the fire insurance businessman can continue his business after any losses are occurred for the reason of fire by collecting the money of fire insurance.
02. Role in the Field of Industry:
By the fire small or big industry can be fallen. This kind of industry can be protecting by the fire insurance by taking the damage from the insurance company.
Fire insurance is also important in industrial sector. If any losses occurred by the reason of fire the insurance company fulfill the losses.
03. Distribution of Risk and Remedies:
Insurance Company takes many insurance contracts from various businessmen for fire insurance but they have to give the demurrage only few businesses where the fire damages the organization.
The losses which are occurred by fire are distributed among all the contract of the insurance company. The risk is distributed among all.
04. Rehabilitation:
Fire insurance rehabilitates the person or businessman who are hampered by the fire. They fulfill their damages by get the money from the insurer. That is why they get the change to carry their business.
05. Protection of National resources and reconstruction:
For protection of national resources and reconstruction fire insurance take an important rule. The assets which are damage by the fire can be restored or rebuild by taking the money from the insurance company.
06. Investment:
By collecting the premium of fire insurance the insurance company can invest the premium in profitable sector as an investor for their profits.
They can invest in any sector of business of the country. Because of that investment country’s production and business sector’s speed are increased.
07. Official security:
Now a day’s office is so much important for any profitable or nonprofit able organization. In the office the organizations keep their important files, document and assets. If there any fire happens they will be fall in great hamper.
So they contract the insurance company against the fire damages. They can fulfill their damages if they fall the losses because of the fire.
That is why the office is secured against the fire and the loss can collect and keep the office running.
08. Role in personal life:
Fire insurance is also necessary for the personal life. It provides demurrage against damages for the building. If any home furnishings are damaged due to the fire like furniture, carpets, clothes, fire insurance cover it .
Fire insurance also provides the maintenance price for the electronic items, which is hampered due to fireplace, like television, computer, air coolers.
09. Role in Share Business:
When a company fall in the fire then the share value of that company may be fall down. Fire insurance can protect that fallen by giving the damage that are occurred by the fire. It covers the price of share broken due to the fire.
From the above discussion, we see that there are a lot of importance of fire insurance for the economy and daily life. Fire insurance gives the financial security for home, home furniture, share, although the hole business sectors.
There are different fire insurance policies. Fire insurance provides the price of properties and assets, which gets damaged due to the fireplace incident. Fire insurance is important in personal, social and also the national sectors.
For increasing business and trade fire insurance has a strong positive activities. That is why Fire insurance is called “A handmaid of commerce.”
