How LIC,UTI earns profits?
Dear Student,
LIC is an insurance company and insurance company takes monthly premium for the insurance policies . Crores of money is collected by the company from the monthly premiums . Insurance companies lend this money to big industries and firms and earn interests through this . what it gets from interest is much more than what is pays to people at time of accidents and in this way Insurance companies earn money.
Hope this information will clear your doubts about this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
keep smiling!!
Regards
LIC is an insurance company and insurance company takes monthly premium for the insurance policies . Crores of money is collected by the company from the monthly premiums . Insurance companies lend this money to big industries and firms and earn interests through this . what it gets from interest is much more than what is pays to people at time of accidents and in this way Insurance companies earn money.
Hope this information will clear your doubts about this topic.
If you have any more doubts just ask on the forum and our experts will try to help you out as soon as possible.
keep smiling!!
Regards