Insurance services and management. Ppt..

Brief insurance intro

1. INSURANCE

2. Presented by: Insurance Anjali Kajal Rani Navneet Kaur Parveen Kaur Ramandeep Kaur Presentation title 2

3. Presentation title 3 ------ CONTENT Introduction of insurance Meaning Definition Insurance Act Importance of insurance Types of insurance Life insurance General insurance Principles of insurance Disadvantages of insurance

4. We all are exposed to various risks in our daily life. Even the wisest and cleverest person cannot provide for or avoid all risks. Nobody can see foresee the calamity he may suffer in future. Everybody on the road , whether on foot or in a vehicle carries some risk of accident which may result in injury. However, it will be better if a device or system is developed to provide help to those is developed to provide help to suffer a loss, such a device is ‘insurance’. Presentation title 4 INTRO

5. Presentation title 5 Meaning Insurance is a legal agreement between two parties – the insurer and the insured, also known as insurance coverage or insurance policy. The insurer provides financial coverage for the losses of the insured that s/he may bear under certain circumstances.

6. Insurance is a legally binding contract between two parties whereby one party [insurer] agree to compensate other party [insured] against a loss [which may or may not arise against a payment of a consideration [premium]. “ Prof. DS. Hansel ”

7. Presentation title 7 INSURANCE

8. Presentation title 8

9. INSURANCE ACT Presentation title 9 The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the insurance sector. It provides the broad legal framework within which the industry operates. Insurance Act, 1938. Imperial Legislative Council. (Now the powers of the act rest with Parliament of India)

10. Presentation title 10 - Importance of Insurance Provides Safety and security Spreading of Risk Promote Economic Growth Medical Support Decrease Risk Financial Support Stability of business Increase Employment

11. Presentation title 11 Provides Safety and Security Insurance provide financial support and reduce uncertainties in business and human life. Insurance provides a cover against any sudden loss. 2. Spreading of Risk Insurance facilitates spreading of risk from the insured to the insurer. A large number of person get insurance policies and pay premium to the insurer. Whenever a loss occurs , it is compensated out of funds of the insurer.

12. Presentation title 12 3. Promote economic growth Insurance turn accumulated capital into productive investment. Insurance unable to mitigate loss , promote trade and commerce activities those result into economic growth and development. 4. Medical Support A medical insurance is essential in managing risk in health. Medical insurance is one of the insurance policies that cater for different types of health risks.

13. Presentation title 13 5. Financial Stability 6. Increase Employment Insurer promotes financial stability in economy by insuring the risks and losses of firms, individuals and organization. Prior to liberalization in India of insurance sector , the opportunities for employment were limited with the LIC of India as sole employer . Liberalization and the opening up of sector to private players has now created a vast opportunity for employment.

14. Types of Insurance  Presentation title 14

15. Presentation title 15 LIFE INSURANCE MEANING : Life insurance is a contract between the policy owner and insurer . Where the insurer agrees to pay the amount of claim on occurrence of any ( individual death ) event such as terminal illness or critical illness. The insured agreed to pay the cost in the term of insurance premium for the services DEFINITION: Life insurance is a legally binding contract that is death benefit to the policy owner that when the insured person dies.

16. Presentation title 16 GENERAL INSURANCE MEANING: General insurance is the non-life insurance . General insurance is a agreement between a policyholder and insurance wherein the insurance company protects your valuable asset from fire , theft ,burglary or any other unfortunate accident. General insurance covers the loss or damages caused to all the assets or liabilities. Example: Health insurance , Fire insurance , Accidental insurance , Home insurance , Marine insurance

17. Presentation title 17 7 Principles of Insurance

18. Presentation title 18 Principle of Utmost Good Faith Principle of insurance is based on the principle of utmost good faith on the part of all parties concerned. The contracts of insurance are contracts of good faith and absence of good faith may result in the invalidation of insurance . By good faith ,we mean absence of fraud or deceit on the part of parties to contract . Principle of insurable interest An insurance contract will be valid only if the person getting a policy must possess an insurable interest in the subject matter. In the absence of insurable interest contract is invalid. A person is said to have an insurable interest in the property if he is financially benefitted by its existence . Principle of Indemnity Indemnity in simple words means to compensate the loss. Under insurance contract, the insurer undertakes to indemnify the insured against loss suffered. The insurer will compensate the insured for the actual loss and nothing more.

19. Presentation title 19 Principle of Subrogation Principle of Contribution In simple words subrogation means stepping into the shoes of other. Once the insurer compensates the insured for the loss suffered by him, he will inherit all the rights available to the insured against the third parties with regard to the subject matter of the insurance. When the insured has taken more than one policy for the same subject matter against the same risk during the same period , the liability of insurers will be determined in pro-rata basis. The insured cannot have the benefit of claiming same claim from more than one insurer.

20. Presentation title 20 Principle of Cause proxim Mitigation of Loss The principle of proximate cause lays down that proximate cause (nearest cause) is to be basis of determining the liability of the insurer. While determining the liability of the insurer the nearest cause to be taken into account . The insurance company shall be liable to indemnify only those losses which have been caused by proximate or nearest cause covered under the policy. Mitigation of loss means minimizing the security of loss. Under this doctrine whenever the insured event occurs, it shall be the duty of the insured to take all such steps to minimize the loss as would have been taken by any person who is not insured. As such, it is the duty of the insured to act to minimize the loss.

21. Presentation title 21 conclusion In conclusion , taking insurance is an essential part of managing one’s financial risk’s. It provide protection against unexpected events promotes economic growth and provides peace of mind to individuals and business.

22. Thank you