Most people have some kind of insurance: for their car, their house, or even their life. Yet most of us don’t stop to think too much about what insurance is or how it works. Put simply, insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured. Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or their property, or from liability for damage or injury caused to a third party.
All State Insurance
State insurance often arises due to socio-economic and political reasons. Because the state considers this step appropriate. This is usually done with the greatest good of the people in mind. So when any insurance by the state. When administered it came to be known as state insurance.
The state insurance is defined as that insurance which is under public sector, more specifically it can be stated when the government has taken over the insurance business particularly life insurance.
A state-run insurance system benefits the public and also facilitates recovery of compensation. Usually a state takes responsibility for administering insurance similar to social insurance. As Bangladesh has taken independence in the past. About 75 insurance companies were first converted into 4 and later into 2 insurance companies and its management and management was taken over by the Government of Bangladesh.
Similarly, insurance has been nationalized in various countries of the world including India. And they are being managed in the state structure. At least in more than 25 countries of the world, insurance is regulated under state management, and most of them are socialist countries.
Life insurance is also run by the state in America, a capitalist country. In France in 1946 large insurance companies were considered state insurance. The major advantage of these nationalizations is that there is no incentive to make profits as they are state-run.
Premium rates also come down considerably. As a result, a large portion of the profits can be distributed among the policyholders. Bangladesh Post Office Life Insurance is a fully state run company. Both Life Insurance and General Insurance Corporation are managed by a Board of Directors as autonomous institutions under the State.