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Why is Non-life insurance necessary? Write its importance.

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Why is Non-life insurance necessary? Mention its importance in an agricultural country like Nepal.


1 Answer


Non-Life insurance is needed for the security of investment in industry, trade, housing, vehicles, agriculture, cattle rearing etc sectors.

Importance of Non-life insurance in an agricultural country like Nepal:

  1. Sudden wind or storm may damage the crops.
  2. Ripen food or cash crops can be destroyed by the rain or hailstones.
  3. There are many examples in which insects have destroyed crops.
  4. Long drought may also damage crops.
  5. Domestic animals may die due to different types of disease.
  6. Non life insurance policy bears the loss and provides 90% compensation.
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