MANAGEMENT

Insurance is based on principle of cooperation even before starting of formal insurance people from certain society and group used to collect some fonds to help the needy member of their group who suffers form some kind of financial losses this concepts of cooperation prevails insurance collects premium from the incurred and compensates the loss of any of the members form the collected premium hence its based on cooperation for mutual benefits.Insurance is base on principle of probity insurance premium which is determined in advance is based on this principle premium amount is determined considering the changes of loss since the degree loss depends upon various factor the avouching factors are analyzed before determining the amount of loss for example higher the age of people higher the changes  of death higher the changes of loss higher the premium.