Is Insurance premium paid by a household included/excluded in National Income?
Is Insurance premium paid by a household included/excluded in National Income?
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Yes,
It is included in the national income as it is a part of the private final consumption expenditure
Explanation:-
The household receives the services of the insurance company in return of the insurance premium paid.
It adds to the flow of goods and services in the economy.
It is considered part of private final consumption expenditure and added to the national income through expenditure method.
Anurag Pathak Changed status to publish
