Which of the following is not a function of insurance?
A
Risk sharing
B
Assist in capital formation
C
Lending of funds
D
None of the above
Medium
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Solution
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Correct option is C)
Insurance is a means of protection from financial loss. It is a form of risk management primarily hedged against any uncertain future loss. The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance. It is a function of banks.
