Scribd
Upload
44 views37 pages

FD&I

The document defines insurance and describes the main types of insurance: 1. Life insurance provides protection for individuals and pays out a fixed amount upon death or at a certain age. 2. Property insurance covers property losses from risks like fire, theft, or accidents. 3. General insurance includes property insurance, liability insurance, and other forms and covers a wide range of risks to property, legal liabilities, and accidents.

Uploaded by

s shetty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
44 views37 pages

FD&I

The document defines insurance and describes the main types of insurance: 1. Life insurance provides protection for individuals and pays out a fixed amount upon death or at a certain age. 2. Property insurance covers property losses from risks like fire, theft, or accidents. 3. General insurance includes property insurance, liability insurance, and other forms and covers a wide range of risks to property, legal liabilities, and accidents.

Uploaded by

s shetty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 37

Unit 4

Definition
• Insurance is a means of protection from financial loss. It is a form of risk
management, primarily used to hedge against the risk of a contingent or
uncertain loss. An entity which provides insurance is known as an
insurer, insurance company, insurance carrier or underwriter.
Premium
• A policy's premium is its price, typically expressed as a monthly cost. The
premium is determined by the insurer based on your or your business's risk
profile, which may include creditworthiness.
Types of Insurance
7 Types of Insurance are; Life Insurance or Personal Insurance, Property Insurance, Marine
Insurance, Fire Insurance, Liability Insurance, Guarantee Insurance. Insurance is
categorized based on risk, type, and hazards

Life Insurance
• Life Insurance is different from other insurance in the sense that, here, the subject matter of insurance is the life of a
human being.
• The insurer will pay the fixed amount of insurance at the time of death or at the expiry of a certain period.
• At present, life insurance enjoys maximum scope because life is the most important property of an individual.
• Each and every person requires insurance.
• This insurance provides protection to the family at the premature death or gives an adequate amount at the old age
when earning capacities are reduced.
• Under personal insurance, a payment is made at the accident.
• The insurance is not only a protection but is a sort of investment because a certain sum is returnable to the insured at the
death or the expiry of a period.
General Insurance

• General insurance includes Property Insurance, Liability Insurance, and


Other Forms of Insurance.
• Fire and Marine Insurances are strictly called Property Insurance. Motor,
Theft, Fidelity and Machine Insurances include the extent of liability
insurance to a certain extent.
• The strictest form of liability insurance is fidelity insurance, whereby the
insurer compensates the loss to the insured when he is under the liability of
payment to the third party.
Property Insurance

• Under the property insurance property of person/persons are insured


against a certain specified risk. The risk may be fire or marine perils, theft
of property or goods damage to property at the accident.
Marine Insurance

• Marine insurance provides protection against the loss of marine perils.


• The marine perils are; collision with a rock or ship, attacks by enemies, fire, and captured by
pirates, etc. these perils cause damage, destruction or disappearance of the ship and cargo and non-
payment of freight.
• So, marine insurance insures ship (Hull), cargo and freight.
• Previously only certain nominal risks were insured but now the scope of marine insurance had been
divided into two parts; Ocean Marine Insurance and Inland Marine Insurance.
• The former insures only the marine perils while the latter covers inland perils which may arise with
the delivery of cargo (gods) from the go-down of the insured and may extend up to the receipt of
the cargo by the buyer (importer) at his go down.
Fire Insurance
• Fire Insurance covers the risk of fire.
• In the absence of fire insurance, the fire waste will increase not only to the individual but
to the society as well.
• With the help of fire insurance, the losses arising due to fire are compensated and the
society is not losing much.
• The individual is preferred from such losses and his property or business or industry will
remain approximately in the same position in which it was before the loss.
• The fire insurance does not protect only losses but it provides certain consequential losses
also war risk, turmoil, riots, etc. can be insured under this insurance, too.
Liability Insurance

• The general Insurance also includes liability insurance whereby the


insured is liable to pay the damage of property or to compensate for the
loss of persona; injury or death.
• This insurance is seen in the form of fidelity insurance, automobile
insurance, and machine insurance, etc.
Social Insurance

• The social insurance is to provide protection to the weaker sections of the


society who are unable to pay the premium for adequate insurance.
• Pension plans, disability benefits, unemployment benefits, sickness
insurance, and industrial insurance are the various forms of social
insurance.
• Insurance can be classified into 4 categories from the risk point of view.
Personal Insurance

• The personal insurance includes insurance of human life which may suffer
a loss due to death, accident, and disease
• Therefore, personal insurance is further sub-classified into life insurance,
personal accident insurance, and health insurance.
Property Insurance

• The property of an individual and of the society is insured against loss of


fire and marine perils, the crop is insured against an unexpected decline in
deduction, unexpected death of the animals engaged in business, break-
down of machines and theft of the property and goods.
Guarantee Insurance

• The guarantee insurance covers the loss arising due to dishonesty,


disappearance, and disloyalty of the employees or second party. The party
must be a party to the contract.
• His failure causes loss to the first party.
• For example, in export insurance, the insurer will compensate the loss at
the failure of the importers to pay the amount of debt.
Other Forms of Insurance

• Besides the property and liability insurances, there are other insurances
that are included in general insurance.
• Examples of such insurances are export-credit insurances, State
employees’ insurance, etc. whereby the insurer guarantees to pay a certain
amount at certain events.
• This insurance is extending rapidly these days.
Miscellaneous Insurance

• The property, goods, machine, Furniture, automobiles, valuable articles,


etc. can be insured against the damage or destruction due to accident or
disappearance due to theft.
Functions of Insurance

Primary Function
• Provision of certainty of payment at the time of loss
• Provision of protection Risk sharing
Secondary Function
• Prevention of loss
• Provision of Capital
• Improvement of efficiency
• Ensuring welfare of the Society
Principles of Insurance
Life Insurance Vs Non Life Insurance
Essentials of Insurance contract
Limitations Of Insurance
Insurance Reforms in India
IRDA
Features of Life Insurance
Insurance Act 1938

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy