Insurance provides financial protection against losses in exchange for regular payments. An insurance policy is a contract outlining what risks are covered, payment amounts, and costs to the policyholder. Premiums are paid periodically for coverage. Deductibles are amounts the policyholder must pay out-of-pocket before insurance covers remaining costs. Common types of insurance include auto, home, life, health, and disability coverage.
This presentation is part of our continuing series of training modules for the Financial Services Industry. The Insurance Industry Overview module provides a quick look at products offered by insurance companies and how insurance companies are organized. We provide training in a wide range of topics targeted at the business lines of financial services companies. Contact us for a quote or a needs analysis. Please email me at: Floyd.saunders@yahoo.com.
Definition and basic characteristics of insurance. Requirements of an insurable risk. Types of insurance. Benefits and Costs of insurance to society. Fundamental legal principles of insurance. Functions of insurer. IRDA and recent trends in insurance sector in India.
Watch full video on link given below-
https://youtu.be/jPZpvgUSL2Q
Motor Vehicle Insurance is the insurance coverage of risk arising out of the use of motor vehicle such as car, truck or other vehicles causing damage and loss to oneself as well as other’s property in an accident.
Motor Insurance is mandatory as per the Motor Vehicles Act passed in the year 1938 and subsequently amended.
Motor Insurance provides coverage related to property damage, bodily injury, medical expenses and any other sort of compensation in legal proceedings.
It is also referred as Auto Insurance, Vehicle Insurance and Car Insurance.
Types of Motor Insurance are -
Private Car Insurance
Commercial Vehicle Insurance
Defense Vehicle Insurance
Two Wheeler Insurance
Motor Vehicle Insurance generally comprises of following two components –
Third party liability coverage is the part of insurance policy which protects you in case you are sued or asked compensation for any physical injury or damage to someone else’s property by your vehicle accidently.
Third party liability could be of following nature – Bodily injury liability and Property damage liability.
Factors affecting premium of Insurance Policy-
Type of vehicle
Physical condition of driver
Geographical area of use
Age of vehicle
Losses Covered under Motor Insurance -
Loss or damage by accident, fire, lightning, theft, malicious act, natural disaster
Third party liability in form of injury ,death and damage to property
Medical Expenses
Exclusions under Motor Insurance-
Normal wear and tear
Damage when person was driving without license
Damage when person was driving in influence of alcohol
Damage due to a war
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General Insurance is defined as any insurance which is not determined as life insurance. There are various types of general insurance. Know about them here.
Reinsurance is about transferring the risks of Insurance companies to third party organisations. This presentation focuses on the need, the types and the structures of reinsurance. Along with this, the paper also talks about the market in India.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters
Risks which are not capable of avoidance, prevention, reduction to a large extent or assumption may be transferred from one party to the other party. The basic objective of insurance is to transfer the risk of a person to the insurance company which has easily spread it over a large number of persons insuring similar risks. As such, for handling risks which involve large financial losses or which are dangerous, insurance is a means of shifting such risks in consideration of a nominal cost called premium.
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
This presentation is part of our continuing series of training modules for the Financial Services Industry. The Insurance Industry Overview module provides a quick look at products offered by insurance companies and how insurance companies are organized. We provide training in a wide range of topics targeted at the business lines of financial services companies. Contact us for a quote or a needs analysis. Please email me at: Floyd.saunders@yahoo.com.
Definition and basic characteristics of insurance. Requirements of an insurable risk. Types of insurance. Benefits and Costs of insurance to society. Fundamental legal principles of insurance. Functions of insurer. IRDA and recent trends in insurance sector in India.
Watch full video on link given below-
https://youtu.be/jPZpvgUSL2Q
Motor Vehicle Insurance is the insurance coverage of risk arising out of the use of motor vehicle such as car, truck or other vehicles causing damage and loss to oneself as well as other’s property in an accident.
Motor Insurance is mandatory as per the Motor Vehicles Act passed in the year 1938 and subsequently amended.
Motor Insurance provides coverage related to property damage, bodily injury, medical expenses and any other sort of compensation in legal proceedings.
It is also referred as Auto Insurance, Vehicle Insurance and Car Insurance.
Types of Motor Insurance are -
Private Car Insurance
Commercial Vehicle Insurance
Defense Vehicle Insurance
Two Wheeler Insurance
Motor Vehicle Insurance generally comprises of following two components –
Third party liability coverage is the part of insurance policy which protects you in case you are sued or asked compensation for any physical injury or damage to someone else’s property by your vehicle accidently.
Third party liability could be of following nature – Bodily injury liability and Property damage liability.
Factors affecting premium of Insurance Policy-
Type of vehicle
Physical condition of driver
Geographical area of use
Age of vehicle
Losses Covered under Motor Insurance -
Loss or damage by accident, fire, lightning, theft, malicious act, natural disaster
Third party liability in form of injury ,death and damage to property
Medical Expenses
Exclusions under Motor Insurance-
Normal wear and tear
Damage when person was driving without license
Damage when person was driving in influence of alcohol
Damage due to a war
Thank you for Watching
Subscribe to DevTech Finance
General Insurance is defined as any insurance which is not determined as life insurance. There are various types of general insurance. Know about them here.
Reinsurance is about transferring the risks of Insurance companies to third party organisations. This presentation focuses on the need, the types and the structures of reinsurance. Along with this, the paper also talks about the market in India.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters
Risks which are not capable of avoidance, prevention, reduction to a large extent or assumption may be transferred from one party to the other party. The basic objective of insurance is to transfer the risk of a person to the insurance company which has easily spread it over a large number of persons insuring similar risks. As such, for handling risks which involve large financial losses or which are dangerous, insurance is a means of shifting such risks in consideration of a nominal cost called premium.
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
hi frnd this a pdf version of my own created file containing the history of insurance in world and in India..moreover there is a brief description of LIC is given.i think it wl b veru useful for u.and kindly mail me if u have ne prob ao if u wanna me to do ne correction.....
thanx
Powerpoint, adapted from a powerpoint available on the web by the Texas Department of Insurance. Review of the basic types of insurance and their reasons.
What is Insurance ? An agreement that states something is protected if it is damaged, hurt, or stolen. Essentially, when you purchase insurance on something it can protect your investment. If anything happens that is covered by the policy you can receive funds from the insurance company to have it replaced, fixed or receive a cash settlement. www.lifethenfinance.com 2
3. What types of insurance are there? Health Insurance Automobile Insurance Renter’s Insurance Property Insurance Umbrella Policies
PRESENTATION ON “ STUDY OF SALES PROMOTION’’ AND “ANALYSIS OF INSURANCE B...Muthoot finance Ltd
Meaning of INSURANCE ,Indian Insurance Industry Overview Types of Insurance ,Examples of INSURANCE Company ,How does insurance work?, tax benefits on insurance
Successfully Reducing Insurance Costs
By Mel Feller, MPA, MHR
Mel Feller Seminars, Coaching For Success 360 Inc. /Mel Feller Coaching
Have you looked at your insurance costs lately? Chances are, your costs have gone up even if your coverage has remained the same. Insurance inflation is a hidden danger because you do not always pay those bills every month or pay them directly. In addition, when they do rise, there seems to be no practical way to control them. Let’s look at some major insurance categories to see where cost-cutting might be possible.
2. What is Insurance?What is Insurance?
Insurance is a means of guaranteeing youInsurance is a means of guaranteeing you
financial protection against various risks.financial protection against various risks.
In exchange for a relatively small payment, youIn exchange for a relatively small payment, you
gain protection against a potentially large loss.gain protection against a potentially large loss.
Some examples of a large loss would includeSome examples of a large loss would include
your house burning down or spending weeks inyour house burning down or spending weeks in
the hospital recovering from an automobilethe hospital recovering from an automobile
accident.accident.
3. Important InsuranceImportant Insurance
Related TermsRelated Terms
We are going to discuss some importantWe are going to discuss some important
terms related to insurance. These termsterms related to insurance. These terms
include: insurance policy, premium,include: insurance policy, premium,
coverage limit, and deductible.coverage limit, and deductible.
We will also examine specific types ofWe will also examine specific types of
insurance including: auto, homeowners,insurance including: auto, homeowners,
property, life, health, and disability.property, life, health, and disability.
4. What is an InsuranceWhat is an Insurance
PolicyPolicy
This is a written contract detailing whatThis is a written contract detailing what
an insurance company will cover, howan insurance company will cover, how
much it will pay, and how much you willmuch it will pay, and how much you will
pay.pay.
5. What is a premium?What is a premium?
This is the amount of money that you payThis is the amount of money that you pay
for an insurance policy.for an insurance policy.
Premiums can be paid monthly,Premiums can be paid monthly,
quarterly, semi-annually, or annually.quarterly, semi-annually, or annually.
The premium is based on the type andThe premium is based on the type and
amount of coverage you choose andamount of coverage you choose and
varies from one insurance company tovaries from one insurance company to
another.another.
6. Factors that affectFactors that affect
insurance premiumsinsurance premiums
These include:These include:
Your ageYour age
Marital statusMarital status
Whether you live in an urban or ruralWhether you live in an urban or rural
areaarea
Your credit historyYour credit history
Also, each special type of insurance isAlso, each special type of insurance is
going to consider other factors.going to consider other factors.
7. Coverage LimitCoverage Limit
This is the maximum amount the insuranceThis is the maximum amount the insurance
company will pay if you file a claim.company will pay if you file a claim.
It is important that you select an appropriateIt is important that you select an appropriate
coverage limit because any amount over yourcoverage limit because any amount over your
coverage limit becomes your responsibility.coverage limit becomes your responsibility.
An example of this would be if you wereAn example of this would be if you were
insured with a coverage limit of $50,000 and ainsured with a coverage limit of $50,000 and a
claim against you was for $60,000. You wouldclaim against you was for $60,000. You would
be responsible for the additional $10,000.be responsible for the additional $10,000.
8. DeductibleDeductible
This is the amount of a loss you must pay outThis is the amount of a loss you must pay out
of your own pocket before the insuranceof your own pocket before the insurance
company will step in and pay the rest.company will step in and pay the rest.
An example of this would be if you were in anAn example of this would be if you were in an
auto accident and it caused $1000 worth ofauto accident and it caused $1000 worth of
damage and your deductible was $500.00.damage and your deductible was $500.00.
After you paid the initial $500.00, the insuranceAfter you paid the initial $500.00, the insurance
company would then pay the remainder of thecompany would then pay the remainder of the
bill.bill.
9. Auto InsuranceAuto Insurance
This is insurance that protects your financialThis is insurance that protects your financial
interests in the event that you are involved ininterests in the event that you are involved in
an automobile accident.an automobile accident.
It is extremely important to have automobileIt is extremely important to have automobile
insurance because the damage done to your orinsurance because the damage done to your or
another’s vehicle can be extremely expensiveanother’s vehicle can be extremely expensive
to repair.to repair.
Also, if you hurt someone else while driving,Also, if you hurt someone else while driving,
there’s virtually no limit to what they can suethere’s virtually no limit to what they can sue
you for.you for.
10. Homeowners/PropertyHomeowners/Property
InsuranceInsurance
This is insurance that protects youThis is insurance that protects you
financially if your house is damaged.financially if your house is damaged.
Also, this type of insurance protects yourAlso, this type of insurance protects your
possessions that are located within yourpossessions that are located within your
home.home.
Renters insurance protects your propertyRenters insurance protects your property
within a rented home or apartment.within a rented home or apartment.
11. Life InsuranceLife Insurance
This type of insurance provides financialThis type of insurance provides financial
support for the people who depend on you insupport for the people who depend on you in
the event of your untimely death.the event of your untimely death.
There are different types of life insuranceThere are different types of life insurance
policies. Some of these are designed to justpolicies. Some of these are designed to just
provide insurance benefits (term), while othersprovide insurance benefits (term), while others
(whole life, variable life, universal life, etc…)(whole life, variable life, universal life, etc…)
are designed to serve as insurance and a typeare designed to serve as insurance and a type
of investment.of investment.
12. Health InsuranceHealth Insurance
This type of insurance pays medical billsThis type of insurance pays medical bills
when you or your family becomes sick orwhen you or your family becomes sick or
injured.injured.
You can purchase an individual healthYou can purchase an individual health
insurance policy for yourself and yourinsurance policy for yourself and your
family, but its usually much morefamily, but its usually much more
expensive than the coverage anexpensive than the coverage an
employer offers.employer offers.
13. Disability InsuranceDisability Insurance
This type of insurance pays you anThis type of insurance pays you an
income when an illness or injury preventsincome when an illness or injury prevents
you from working for several weeks oryou from working for several weeks or
even years.even years.
Disability insurance is often a type ofDisability insurance is often a type of
insurance that people don’t purchase.insurance that people don’t purchase.
However, according to the NAIC, peopleHowever, according to the NAIC, people
in their 30s are three times more likely toin their 30s are three times more likely to
suffer a disability than they are to die.suffer a disability than they are to die.