Insurance class 11

1. Insurance Class 11
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2. 1
Introduction to Insurance
• Insurance is a contract between two parties, the insurer and the
insured, where the insurer agrees to compensate the insured for any
financial losses in return for a premium payment.
• Insurance helps individuals and businesses manage risk by
providing financial protection against future uncertainties.
• The different types of insurance include life insurance, health
insurance, property insurance, and liability insurance.

3. 2
Principles of Insurance
• The principle of utmost good faith requires both parties to disclose
all relevant information truthfully and completely.
• The principle of insurable interest ensures that the insured has an
interest in the subject matter being insured.
• The principle of indemnity states that the insured should be
compensated for the actual financial loss suffered, not more or less.

4. 3
Insurance Process
• The insurance process begins with the application, where the
insured provides information about the subject matter being insured
and the risk involved.
• The insurer assesses the risk and determines the premium to be
paid.
• If the insured accepts the premium, a policy is issued, which is a
legal contract that outlines the terms and conditions of the insurance
coverage.

5. 4
Benefits of Insurance
• Insurance provides financial protection against unforeseen events
that can cause financial hardships.
• Insurance promotes savings and investment by providing a safe and
secure way to manage risk.
• Insurance contributes to economic growth by providing stability and
confidence to businesses and individuals.