Tuesday, March 21, 2017

Affiliate Marketing and Scams

Affiliate marketing is a legitimate industry. There are no two ways about that. Don't let anyone tell you the whole industry is a scam!
However, there definitely are some affiliate marketing scams that we've seen people fall prey to. This often happens to newbies and leaves them with a bad taste in their mouths.
We don't want you to become disillusioned with affiliate marketing, so keep reading and stay safe. 

Affiliate Marketing Scam Examples

Like any other online industry, there are plenty of scams doing the rounds in the world of affiliate marketing. Scammers (unfortunately) are always trying to find new ways to make money off innocent affiliates. 
These are some of the most common affiliate marketing scams we've come across.

1. Fake Affiliate Marketing Training

Most newbie affiliates like to do a training course to get started in the industry. There will be hundreds of people trying to sell you a course, an e-book, a webinar and various other kinds of information. Do your research before you pick your training program.
Many of these training programs are often nothing more than a rip-off. You don't actually learn anything useful and you're out whatever money you spent, as well. At the most, you might get an e-book that is full of fluff and no real, actionable lessons. So make sure do your training with a well known name. 
Check out AffiloBlueprint - a step-by-step system for newbies that shows you how to build an income from your website. 

2. Get-Rich-Quick Offers

The reason affiliate marketing gets such a bad rap is because of the proliferation of get-rich-quick offers everywhere. They promise you will make thousands of dollars overnight, or that you can just work 2 hours a day and have $5,000 in your bank account at the end of the week. 
Don't fall for it. 
get rich quick offer
If anyone tries to sell you a "secret system that works," don't believe them. Legitimate affiliate marketing takes a bit of time to learn and while you will make money from it, it doesn't happen overnight. You need a strategy and you need to implement it well before you make any income.

3. No Product/Service to Sell

Affiliate marketers make their money by promoting someone else's product or services. If a company is promising you thousands of dollars in income, look closer. What is it that you're actually selling? If there is no actual product or service, it's nothing more than a scam.
These affiliate marketing "opportunities" are designed like pyramid schemes where no one is actually making any money. You make an investment to join the program and after that, money is just passed around from one person to the next. These schemes are totally illegal! You will lose your investment, and you're not going to make any affiliate income from it, either. 

4. Pay-To-Join Programs

Real, legitimate affiliate programs are free to join. An authentic affiliate program should be risk-free for affiliates. You should never have to pay a fee to sign up to a program. If you are asked to pay a fee to join, steer clear. It is most likely an illegal multi-level marketing scheme. 
Be sure to check out our forum post on how to tell the legitimacy of an affiliate program

5. Domain Name Scams

This was a popular scam doing the rounds a couple of years ago. Say you owned the domain abc.com. You would receive an email (usually from China) telling you that someone is trying to register the domain name abc.cn in China. They are emailing you out of concern as they have noticed you own the .com domain. They want to make sure your trademark is protected in China.
If you fall for the blatant lie, they will tell you as the original owner of the particular business name, they will give you preference. So you have the right to register the abc.cn domain name with them, first. You will be sent a price list and they will make money off you by making you purchase a domain name that you didn't ever need.
There are a few other variations of this type of scam, so beware of any random emails concerning your domain names. 

How to Avoid Internet Affiliate Marketing Scams

The rule of thumb before signing up for any affiliate program or affiliate training course is to do your due diligence. There are some well known and reputable programs and courses in the industry (including ours!) but when you're new, it's hard to tell.
Follow these tips to make sure you don't get caught up in an affiliate marketing scam.

Ask Google

The easiest way to find out the legitimacy of any affiliate program or training course is to Google it. If it's a well known scam, you will more than likely see reports about it online. If you can't tell just by searching for the name, try searching for variations, such as "[affiliate program name] scam" or "[affiliate program name] ripoff." You can also search for "[affiliate program name] reviews," etc. 

The Company Website

If Google isn't yielding much information, head straight to the company website. Legitimate companies in the affiliate marketing industry always have professional websites. If this is not the case, it should raise a red flag for you.

Genuine Commission Percentage

As an affiliate, you will make money off commissions. If a company is offering a ridiculously high commission percentage, don't believe it straight away. It's not impossible (some programs really are quite generous), but it's better to do your research and see if they really pay out their affiliates. Also, make sure the products and services they offer are genuine and of good quality.

If It's Too Good To Be True

Image credit: Farces of Nature
The bottom line is, if something is too good to be true, you are better off being suspicious about it. Be wary of unrealistic offers, easy money schemes and any businesses (especially foreign) offering to help you with something out of the blue.
Use your common sense and you have nothing to worry about. There are hundreds of genuine and completely legitimate ways to make money as an affiliate. Be aware of the affiliate marketing scams, but don't let them keep you up at night!

Wednesday, March 2, 2016

Why Go Solar?

Why do we want to go in the direction of Solar Energy? Is it just because Leo said in his Oscar speech? Everyone knows what it does. 


Everything has its advantages and disadvantages, its pluses and minuses. So, naturally, there must be a number of solar power advantages and solar power disadvantages too, right? It’s been awhile since I ran down a list of solar power advantages and disadvantages, so I figured this topic was ripe for a refresher.

Solar Power Advantages


There are many solar power advantages worth noting. In no particular order (well, perhaps simply the order in which they come to mind), here are some of the top advantages:
clean energy sources
Solar power helps to slow/stop global warming. Global warming threatens the survival of human society, as well as the survival of countless species. Luckily, decades (or evencenturies) of research have led to efficient solar panel systems that create electricity without producing global warming pollution. Solar power is now very clearly one of the most important solutions to the global warming crisis.
Solar power saves society billions or trillions of dollars. Even long before society’s very existence is threatened by global warming, within the coming decades, global warming is projected to cost society trillions of dollars if left unabated. So, even ignoring the very long-term threat of societal suicide, fighting global warming with solar power will likely save society billions or even trillions of dollars.
Solar power saves you moneyPutting solar PV panels on your roof is likely to save youtens of thousands of dollars. The average 20-year savings for Americans who went solar in 2011 were projected to be a little over $20,000. In the populous states of New York, California, and Florida, the projected savings were over $30,000. In the sunny but expensive paradise known as Hawaii, the projected savings were nearly $65,000!
Beyond solar PV panels, it’s worth noting that solar energy can actually save you money in about a dozen other ways as well — with proper planning and household design choices.
Solar power provides energy reliability. The rising and setting of the sun is extremely consistent. All across the world, we know exactly when it will rise and set every day of the year. While clouds may be a bit less predictable, we do also have fairly good seasonal and daily projections for the amount of sunlight that will be received in different locations. All in all, this makes solar power an extremely reliable source of energy.
Solar power provides energy security. On top of the above reliability benefit, no one can go and buy the sun or turn sunlight into a monopoly. Combined with the simplicity of solar panels, this also provides the notable solar power advantage of energy security, something the US military has pointed out for years, and a major reason why it is also putting a lot of its money into the development and installation of solar power systems.

Solar power provides energy independence. Similar to the energy security boost, solar power provides the great benefit of energy independence. Again, the “fuel” for solar panels cannot be bought or monopolized. It is free for all to use. Once you have solar panels on your roof, you have an essentially independent source of electricity that is all yours. This is important for individuals, but also for cities, counties, states, countries, and even companies. I was recently in Ukraine touring various cleantech initiatives and projects. While there, I discovered that Ukraine in recent years has saved approximately $3 billion in reduced oil and gas imports from Russia thanks to the solar power plants developed by a single developer. Impressive.

If this isn't good enough a reason to look into this, I don't know what is!

Tuesday, March 1, 2016

Highlights: Budget 2016-17

Tax
Infrastructure and agriculture cess to be levied.
Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
1 per cent service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.
SUVs, Luxury cars to be more expensive. 4% high capacity tax for SUVs.
Companies with revenue less than Rs 5 crore to be taxed at 29% plus surcharge
Limited tax compliance window from Jun 1 - Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties
Excise 1 per cent imposed on articles of jewellery, excluding silver.
0.5 per cent Krishi Kalyan Cess to be levied on all services.
Pollution cess of 1 per cent on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher-end models.
Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.
Personal Finance
No changes have been made to existing income tax slabs
Rs 1,000 crore allocated for new EPF (Employees' Provident Fund) scheme
Govt. will pay EPF contribution of 8.33% for all new employees for first three years
Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.
Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
Service tax exempted for housing construction of houses less than 60 sq. m
15 per cent surcharge on income above Rs. 1 crore
Social
Rs. 38,500 crore for Mahtma Gandhi MGNREGA for 2016-17
Swacch Bharat Abhiyan allocated Rs.9,500 crores.
Hub to support SC/ST entrpreneurs
Government is launching a new initiative to provide cooking gas to BPL families with state support.
LPG connections to be provided under the name of women members of family: Rs 2000 crore allocated for 5 years for BPL families.
2.87 lakh crore grants to gram panchayats and municipalities - a quantum jump of 228%.
300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
Four schemes for animal welfare.
Health
2.2 lakh renal patients added every year in India. Basic dialysis equipment gets some relief.
A new health protection scheme for health cover upto 1 lakh per family.
National Dialysis Service Prog with funds thru PPP mode to provide dialysis at all district hospitals.
Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened
Education
Scheme to get Rs.500 cr for promoting entrepreneurship among SC/ST
10 public and 10 private educational institutions to be made world-class.
Digital repository for all school leaving certificates and diplomas. Rs. 1,000 crore for higher education financing.
Rs. 1,700 crore for 1500 multi-skill development centres.
62 new navodaya vidyalayas to provide quality education
Digital literacy scheme to be launched to cover 6 crore additional rural households
Entrepreneurship training to be provided across schools, colleges and massive online courses.
Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojna-FM Jaitley
National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi-skill training institutes to be set up.
Energy
Rs. 3000 crore earmarked for nuclear power generation
Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
Govt to provide incentive for deepwater gas exploration
Deepwater gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.
Investments and infrastructure
Rs. 27,000 crore to be spent on roadways
65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms/day
Shops to be given option to remain open all seven days in a week across markets.
Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY, - Rs 97,000 crore
India's highest-ever production of motor vehicles was recorded in 2015
Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore
New greenfield ports to be developed on east and west coasts
Revival of underserved airports. Centre to Partner with States to revive small airports for regional connectivity
100 per cent FDI in marketing of food products produced and marketed in India
Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation.
MAT will be applicable for startups that qualify for 100 per cent tax exemption
Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax proposals result in gain of Rs.20,670 crore
Agriculture
Total allocation for agriculture and farmer welfare at Rs 35984 crores
28.5 lakh heactares of land wil be brought under irrigation.
5 lakh acres to be brought under organic farming over a three year period
Rs 60,000 crore for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation.
Dedicated irrigation fund in NABARD of Rs.20.000 cr
Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.
Banking
Banks get a big boost: Rs 25,000 crore towards recapitalisation of public sector banks. Jaitley says: Banking Board Bureau will be operationalised, we stand solidly behind public sector banks.
Target of disbursement under MUDRA increased to 1,80,000 crore
Process of transfer of government stake in IDBI Bank below 50% started
General Insurance companies will be listed in the stock exchange
Govt to increase ATMs, micro-ATMs in post offices in next three years

Thursday, February 18, 2016

Online Loans? Is it a scam?

Although unsecured personal loans are quick and easy to apply for online, they are some of the most expensive and riskiest loans available. Excessively high annual percentage rates (APRs) make them extremely expensive, and short-term due dates make them a challenge to pay back on time. Each state has different laws and regulations regarding personal loans. Currently only 43 states allow online personal loans or payday loans, so be sure to check your state laws even if a service advertises in your area.
Here’s how these loans work: a lender loans you funds until your next paycheck, at which point a single payment for the principal plus interest and fees is due. Because of their high interest rates and short payback terms, these loans should be the loan type of last resort, after the less expensive and less risky options—as in just about every other legal money source-- have been exhausted.
If you feel you must in fact resort to one of these loans, choose the lender with care. As our reviews show, interest rates and other provisions vary widely. In addition, a number of companies that offer these loans have been fined or otherwise disciplined for running afoul of state regulations. We continue to monitor these investigations to ensure that the companies included in our lineup have a clean track record.
If you want to compare them at one place, do remember to visit this site.

Tuesday, February 16, 2016

The Who's and the What's

The process of insurance has been evolved to safeguard the interests of people from uncertainty by providing certainty of payment at a given contingency. The insurance principle comes to be more and more used and useful in modern affairs.
Not only does it serve the ends of individuals, or of special groups of individuals, it tends to pervade and to transform our modern social order, too. The role and importance of insurance, here, has been discussed in three phases: (i) uses to individual, (ii) uses to a special group of individuals, viz., to business or industry, and (iii) uses to the society.
Uses to an individual :
1. Insurance provides Security and Safety:
The insurance provides safety and security against the loss on a particular event. In case of life insurance payment is made when death occurs or the term of insurance is expired. The loss to the family at a premature death and payment in old age are adequately provided by insurance. In other words, security against premature death and old age sufferings are provided by life insurance.
Similarly, the property of insured is secured against loss on a fire in fire insurance. In other insurance, too, this security is provided against the loss at a given contingency.
The insurance provides safety and security against the loss of earning at death or in golden age, against the loss at fire, against the loss at damage, destruction or disappearance of property, goods, furniture and machines, etc.
2. Insurance affords Peace of Mind:
The security wish is the prime motivating factor. This is the wish which tends to stimulate to more work, if this wish is unsatisfied, it will create a tension which manifests itself to the individual in the form of an unpleasant reaction causing reduction in work.
The security banishes fear and uncertainty, fire, windstorm, auto-mobile accident, damage and death are almost beyond the control human agency and in occurrence of any of these events may frustrate or weaken the human mind. By means of insurance, however, much of the uncertainty that centers about the wish for security and its attainment may be eliminated.
3. Insurance protects Mortgaged Property:
At the death of the owner of the mortgaged property, the property is taken over by the lender of money and the family will be deprived of the uses of the property. On the other hand, the mortgagee wishes to get the property insured because at the damage or destruction of the property he will lose his right to get the loan replayed.
The insurance will provide adequate amount to the dependents at the early death of the property-owner to pay off the unpaid loans. Similarly, the mortgagee gets adequate amount at the destruction of the property.
4. Insurance eliminates dependency:
At the death of the husband or father, the destruction of family needs no elaboration. Similarly, at destruction of, property and goods, the family would suffer a lot. It brings reduced standards of living and the suffering may go to any extent of begging from the relatives, neighbors or friends.
The economic independence of the family is reduced or, sometimes, lost totally. What can be more pitiable condition than this that the wife and children are looking others more benevolent than the husband and father, in absence of protection against such dependency? The insurance is here to assist them and provides adequate amount at the time of sufferings.
5. Life Insurance encourages saving:
The elements of protection and investment are present only in case of life insurance. In property insurance, only protection element exists. In most of the life policies elements of saving predominates. These policies combine the programs of insurance and savings.
The saving with insurance has certain extra advantages
(i) Systematic saving am possible because regular premiums are required to be compulsorily paid. The saving with a bank is voluntary and one can easily omit a month or two and then abandon the program entirely.
(ii) In insurance the deposited premium cannot be withdrawn easily before the expiry of the term of the policy. As contrast to this, the saving which can be withdrawn at any moment will finish within no time.
(iii) The insurance will pay the policy money irrespective of the premium deposited while in case of bank-deposit; only the deposited amount along with the interest is paid. The insurance, thus, provides the wished amount of insurance and the bank provides only the deposited amount,
(iv) The compulsion or force to premium in insurance is so high that if the policy-holder fails to pay premiums within the days of grace, he subjects his policy to causation and may get back only a very nominal portion of the total premiums paid on the policy.
For the preservation of the policy, he has to try his level best to pay the premium. After a certain period, it would be a part of necessary expenditure of the insured. In absence of such forceful compulsion elsewhere life insurance is the best media of saving.
6. Life Insurance provides profitable Investment:
Individuals unwilling or unable to handle their own funds have been pleased to find an outlet for their investment in life insurance policies. Endowment policies, multipurpose policies, deferred annuities are certain better form of investment.
The elements of investment i.e., regular saving, capital formation, and return of the capital along with certain additional return are perfectly observed, in life insurance.
In India the insurance policies carry a special exemption from income-tax, wealth tax, and gift tax and estate duty. An individual from his own capacity cannot invest regularly with enough of security and profitability. The life insurance fulfils all these requirements with a lower cost. The beneficiary of the policy-holder can get a regular income from the life-insurer; if the insured amount is left with him.
7. Life Insurance fulfils the needs of a person:
The needs of a person are divided into (A) Family needs, (B) Old-age needs, (C) Re-adjustment needs, (D) Special needs, (E) The clean-up needs.
(A) Family Needs:
Death is certain, but the time is uncertain. So, there is uncertainty of the time when the sufferings and financial stringencies may be fall on the family. Moreover, every person is responsible to provide for the family.
It would be a more pathetic sight in the world to see the wife and children of a man looking for someone more considerate arid benevolent than the husband or the father, who left them unprovoked.
Therefore, the provision for children up to their reaching earning period and for widow up to long life should he made. Any other provision except life insurance will not adequately meet this financial requirement of the family. Whole life policies are the better means of meeting such requirements.
(B) Old-age heeds:
The provision for old-age is required where the person is surviving more than his earning period. The reduction of income in old-age is serious to the person and his family.
If no other family member starts earning, they will be left with nothing and if there is no property, it would be more piteous state. The life insurance provides old age funds along with the protection of the family by issuing various policies.
(C) Re-adjustment Needs:
At the time of reduction in income whether by loss of unemployment, disability, or death, adjustment in the standard of living of family is required. The family members will have to be satisfied with meager income and they have to settle down to lower income and social obligations.
Before coming down to the lower standard and to be satisfied with that, they require certain adjustment income so that the primary obstacles may be reduced to minimum. The life insurance helps to accumulate adequate funds. Endowment policy anticipated endowment policy and guaranteed triple benefit policies are seemed to be a good substitute for old age needs.
(D) Special Needs:
There is certain special requirement of the family which is fulfilled by the earning member of the family. If the member becomes disable to earn the income due to old age or death, those needs may remain unfulfilled and the family will suffer.
(i) Need for Education. There are certain insurance policies, and annuities which are useful for education of the children irrespective of the death or survival of the father or guardian.
(ii) Marriage. The daughter may remain unmarried in case of father's death or in case of inadequate provision for meeting the expenses of marriage. The insurance can provide funds for the marriage if policy is taken for the purpose.
(iii) Insurance needs for settlement of children. After education, settlement of children takes time and in absence of adequate funds, the children cannot be well placed and all the education go to waste.
(E) Clean-up funds:
After death, ritual ceremonies, payment of wealth taxes and income taxes are certain requirements which decrease the amount of funds of the family member. Insurance comes to help for meeting these requirements. Multipurpose policy, education and marriage policies, capital redemption policies are the better policies for the special needs.
Uses to business :
The insurance has been useful to the business society also. Some of the uses are discussed below:
1. Uncertainty of business losses is reduced:
In world of business, commerce and industry a huge number of properties are employed. With a slight slackness or negligence, the property may be turned into ashes. The accident may be fatal not only to the individual or property but to the third party also. New construction and new establishment are possible only with the help of insurance.
In absence of it, uncertainty will be to the maximum level and nobody would like to invest a huge amount in the business or industry. A person may not be sure of his life and health and cannot continue the business up to longer period to support his dependents. By purchasing policy, he can be sure of his earning because the insurer will pay a fed amount at the time of death.
Again, the owner of a business might foresee contingencies that would bring great loss. To meet such situations they might decide to set aside annually a reserve, but it could not be accumulated due to death. However, by making an annual payment, to secure immediately, insure policy can be taken.
2. Business-efficiency is increased with insurance:
When the owner of a business is free from the botheration of losses, he will certainly devote much time to the business. The care free owner can work better for the maximisation of the profit. The new as well as old businessmen are guaranteed payment of certain amount with the insurance policies at the death of the person; at the damage, destruction or disappearance of the property or goods.
The uncertainty of loss may affect the mind of the businessmen adversely. The insurance, removing the uncertainty, stimulates the businessmen to work hard.
3. Key Man Indemnification:
Key man is that particular man whose capital, expertise, experience, energy, ability to control, goodwill and dutifulness make him the most valuable asset in the business and whose absence will reduce the income of the employer tremendously and up to that time when such employee is not substituted.
The death or disability of such valuable lives will, in many instances, prove a more serious loss than that by fire or any hazard. The potential loss to be suffered and the compensation to the dependents of such employee require an adequate provision which is met by purchasing adequate life-policies.
The amount of loss may be up to the amount of reduced profit, expenses involved in appointing and training, of such persons and payment to the dependents of the key man. The Term Insurance Policy or Convertible Term Insurance Policy is more suitable in this case.
4. Enhancement of Credit:
The business can obtain loan by pledging the policy as collateral for the loan. The insured persons are getting more loans due to certainty of payment at their deaths. The amount of loan that can be obtained with such pledging of policy, with interest thereon will not exceed the cash value of the policy. In case of death, this value can be utilised for setting of the loan along with the interest.
If the borrower is unwilling to repay the loan and interest, the lender can surrender the policy and get the amount of loan and interest thereon repaid. The redeemable debentures can be issued on the collateral of capital redemption policies. The' insurance properties are the best collateral and adequate loans are granted by the lenders.
5. Business Continuation:
In any business particularly partnership business may discontinue at the death of any partner although the surviving partners can restart the business, but in both the cases the business and the partners will suffer economically.
The insurance policies provide adequate funds at the time of death. Each partner may be insured for the amount of his interest in the partnership and his dependents may get that amount at the death of the partner.
With the help of property insurance, the property of the business is protected against disasters and the chance of disclosure of the business due to the tremendous waste or loss.
6. Welfare of Employees:
The welfare of employees is the responsibility of the employer. The former are working for the latter. Therefore, the latter has to look after the welfare of the former which can be provision for early death, provision for disability and provision for old age.
These requirements are easily met by the life insurance, accident and sickness benefit, and pensions which are generally provided by group insurance. The premium for group insurance is generally paid by the employer. This plan is the cheapest form of insurance for employers to fulfill their responsibilities.
The employees will devote their maximum capacities to complete their jobs when they are assured of the above benefits. The struggle and strife between employees and employer can be minimised easily with the help of such schemes.
Uses of society :
Some of the uses of insurance to society are discussed in the following sections.
1. Wealth of the society is protected :
The loss of a particular wealth can be protected with the insurance. Life insurance provides loss of human wealth. The human material, if it is strong, educated and care-free, will generate more income.
Similarly, the loss of damage of property at fire, accident, etc., can be well indemnified by the property insurance; cattle, crop, profit and machines are also protected against their accidental and economic losses.
With the advancement of the society, the wealth or the property of the society attracts more hazardous and, so new types of insurance are also invented to protect them against the possible losses.
Each and every member will have financial security against old age, death, damage, destruction and disappearance of his wealth including the life wealth. Through prevention of economic losses, instance protects the society against degradation.
Through stabilization and expansion of business and industry, the economic security is maximised. The present, future and potential human and property resources are well-protected. The children are getting expertise education, working classes are free from botherations and older people are guiding at ease. The happiness and prosperity are observed everywhere with the help of insurance.
2. Economic Growth of the Country:
For the economic growth of the country, insurance provides strong hand and mind, protection against loss of property and adequate capital to produce more wealth. The agriculture will experience protection against losses of cattle, machines, tools and crop.
This sort of protection stimulates more production hi agriculture, in industry, the factory premises, machines, boilers and profit insurances provide more confidence to start and operate the industry welfare of employees create a conducive atmosphere to work: Adequate capital from insurers accelerate the production cycle.
Similarly in business, too, the property and human material are protected against certain losses; capital and credit are expanded with the help of insurance. Thus, the insurance meets all the requirements of the economic growth of a country.
3. Reduction in Inflation:
The insurance reduces the inflationary resource in two ways. First, by extracting money in supply to the amount of premium collected and secondly, by providing sufficient funds for production narrow down the inflationary gap.
With reference to Indian context it has been observed that about 5.0 per cent of the money in supply was collected in form of premium.
The share of premium contributed to the total investment of the country was about 10.0 per cent. The two main causes of inflation, namely, increased money in supply and decreased production are properly controlled by insurance business, Insurance Need and Selling.