Getting insured is the need of the day especially if you are running some business. It is because the business is not free from risk of loss. The people at risk contribute some amount as premium to a common fund. The insurance companies then use this fund in such a way that there is a reasonable return on it. They then can efficiently manage to compensate the people who suffer losses.
Insurance can help the people to earn the same rate of profit if business fails to generate income. The personal and business property is protected from natural losses. The accident and life policy provides protection for loss of income and the fire and marine policies protect loss of property and income. When you are running a business, the efficiency of it increases due to risk cover. The sense of competition induces people to shift their losses.
Here I would like to quote a personal example….. My uncle is running ‘Rent a car’ business, and has insured all his cars. A few months before, he bought a new car that was rented out and it had a very bad accident just after about a week. The insurance company estimated the total loss and paid for it. The car was serviced and just a few days after it, it was robbed. The insurance company had to compensate the loss once again.
It is not common in Pakistan but in abroad there are proper health insurance policies as well that offer to pay lesser bills to the doctor if you are insured.