1273581 Munish Kumar Sharda {F1}

Q1)  1273581 -{Munish Kumar Sharda –MBA F1 – Pushpinder Kaur – MBA F2}
Ans) https://www.youtube.com/watch?v=WjGCgwh5ZHI&feature=youtu.be

Q51.  The stakeholders should work toward maintaining a favourable environment for stable growth, increasing the penetration of insurance to rural and underpenetrated areas and increasing the contribution to the economy. Comment?

Ans}

Insurance

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

An insurer, or insurance carrier, is a company selling the insurance the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Rural and Underpenetrated areas.

In general, a rural area is a geographic area that is located outside cities and towns. The Health Resources and Services Administration of the Department of Health and Human Services defines the word "rural" as encompassing "all population, housing, and territory not included within an urban area. Whatever is not urban is considered rural.  

Typical rural areas have a low population density and small settlements. Agricultural areas are commonly rural, though so are others such as forests. Different countries have varying definitions of "rural" for statistical and administrative purposes.

Insurance in Rural and Underpenetrated areas.

In India high number of population is situated in Rural and Underpenetrated areas. So we can say that it is helpful for economy to have a high numbers of persons investment into insurance sector from Rural and Underpenetrated areas.

 It is helpful in increasing the contribution to the economy because when any person invest into insurance then companies invest that money into different areas in the country so that companies earn so many type of returns from different sectors which is helpful to increase the national income of the country.

On another hand we can say that when the money collected by companies are invested into different areas then than different areas takes a great role in creating the employment for the country & this employment is also directly related with the growth of the economy because when the persons get employed then they earn some money, due to this earning the demand of that people will automatically increased & when the demand increases then the producer also take initiative to fulfil that demand and with this action the national product is increased which is helpful for growth of the economy.