Question

Which of the following is not true regarding insurance companies?

• A. They do not provide security to wealth.
• B. They can be private- or public-owned organisations.
• C. They are non-financial banking institutions.
• D. They provide security against losses.

Answer 1

The correct option is A They do not provide security to wealth.

Insurance companies offer financial protection to both life and wealth. Thus, they assure the social security and personal welfare of people. We have many public and private insurance companies in our country.

Non-life insurance policies focus on the protection of things such as homes, vehicles, and other properties. They also provide protection against financial losses.