INTRODUCTION, IMPORTANCE,NEED, FEATURES,CLASSIFICATION,FUNDAMETALS,PRINCIPLES OF INSURANCE

1. ELEMENTS OF INSURANCE
F. JOSEPHINE LENTA,
ASSISTANT PROFESSOR,
DEPARTMENT OF COMMERCE,
COLLEGE OF SCIENCE AND HUMANITIES,
SRM IST,RAMAPURAM

2. UNIT 1
INTRODUCTION TO INSURANCE

3. DEFINITION
Riegel R and Miller J.S.: “Insurance meaning is a
social device whereby uncertain risks of
individuals may be combined in a group and thus
made more certain; small periodic contributions
by the individuals providing a fund out of which
those who suffer losses may be reimbursed”

4. IMPORTANCE OF INSURANCE
 Distributes LargeRisks
 ProvidesFinancial Stability
 Helps Economic Growth
 GeneratesLong-TermWealth

5. CLASSIFICATION OF CONTRACTS OF
INSURANCE
 By nature of event by which the sum becomes
payable
 Nature of the interest affected
 Nature of contract of insurance
 Social insurance

6. FUNDAMENTAL PRINCIPLE OF
INSURANCE
 Utmost Good Faith
 Proximate Cause
 Insurable Interest
 Indemnity
 Subrogation
 Contribution
 Loss Minimization

7. INSURANCE REGULATORY &
DEVELOPMENT AUTHORITY
Insurance Regulatory and Development Authority of India (IRDAI),
is a statutory body formed under an Act of Parliament, i.e.,
Insurance Regulatory and Development Authority Act, 1999 (IRDAI
Act 1999)for overall supervision anddevelopment of the
Insurance sector in India