The document discusses the fundamentals of insurance, including principles, types (life and non-life), benefits and disadvantages. It outlines the workings of insurance, the rights and responsibilities of both insurers and insured parties, and the functions and powers of the Insurance Regulatory Development Authority of India (IRDAI). Additionally, it highlights the benefits and limitations of insurance in providing economic protection and risk sharing.

3. WHAT IS INSURANCE ?

4. PRINCIPLES OF INSURANCE
• PRINCIPLE OF LOSS MINIMIZATION.
• PRINCIPLE OF UTMOST GOOD FAITH.
• PRINCIPLE OF INSURABLE INTEREST.
• PRINCIPLE OF INDEMNITY.
• PRINCIPLE OF CONTRIBUTION.
• PRINCIPLE OF SUBROGATION.
• PRINCIPLE OF PROXIMATE CAUSE.

5. What is Life Insurance ?

6. TYPES OF LIFE INSURANCE
TERM LIFE INSURANCE.
ENDOWMENT INSURANCE.
WHOLE LIFE INSURANCE.

7. ADVANTAGES OF LIFE
INSURANCE
• Covers risk of death.
• Encouragement of compulsory saving.
• Facilitation of liquidity.
• Provision of profitability.
• Tax relief.
• Mental Peace.

8. DISADVANTAGES OF LIFE
INSURANCE
• Arises when it is used as an investment
product.
• Buying when you have no need.
• Buying complex life insurance products
which give sub optimal results.
• Buying expensive policies.

9. What is Non-Life Insurance ?

10. TYPES OF NON-LIFE INSURANCE
FIRE INSURANCE.
MARINE INSURANCE.
PERSONAL ACCIDENT INSURANCE.
.

11. MOTOR INSURANCE.
BURGLARY INSURANCE.
RURAL INSURANCE.

12. BENEFITS OF NON-LIFE
INSURANCE
• Peace of Mind.
• Stability.
• Financial Security.
• Self – dependency.
• Savings.
• Investment.

13. HOW INSURANCE WORKS ?

14. RIGHTS AND RESPONSIBILITY
OF THE INSURER
• Right to collect premium from the
insured.
• Right to specify the rules and conditions
that govern the promise made under
the policy.
• Responsibility to pay for the losses
occurred and claimed by the insured.

15. RIGHTS AND RESPONSIBILITY
OF THE INSURED
• Obligation to pay premium to the
insurer
• Right to collect payment from the
insurer if a covered loss occurs.
• Obligation to comply with the terms and
conditions prescribed by insurer.

16. BENEFITS OF INSURANCE
• Provides Economic Protection.
• Shares Risks.
• Maintain Standard of People.
• Encourages Savings.
• Eliminates Dependency.
.

17. BENEFITS OF
INSURANCE(Contd.)
• Grants Loans.
• Creates Employment Opportunities.
• Promotes Foreign Trade.
• Helps to Operate Business Smoothly.
• Helps to Reduce Inflation.

18. LIMITATIONS OF INSURANCE
• Baisness to insured.
• Lengthy Legal Formalities.
• Does not provide all Financial Services.
• Compensate as less as possible.
• Tempt to commit Crimes.
• High Price for Low Benefit.

19. INSURANCE REGULATORY
DEVELOPMENT AUTHORITY OF
INDIA, 1999.
• Meaning
• Establishment

20. OBJECTIVES OF IRDAI
• To protect the interest and fair
treatment of the policy holder.
• To regulate fairness and ensure the
financial soundness of the industry.
• To regularly frame regulations to ensure
the industry operates without any
ambiguity.

21. FUNCTIONS OF IRDAI
• Authority responsible for registration of
Insurance Company.
• Protects the interest of the Policyholder.
• Provides assistance to Intermediaries.
• Regulates and control Insurance
Companies.

22. POWERS OF IRDAI
• All Insurance company have to register
with IRDAI compulsorily.
• Capital structure will be determined by
IRDAI.
• Amount stipulated by IRDAI must be
deposited with RBI.
• Audit Reports must be submitted to
IRDAI.

23. POWERS OF IRDAI (Contd.)
• Actuaries appointed by the company
should report to IRDAI.
• Investments must be approved by
IRDAI.
• Nature of general insurance will be
prescribed by IRDAI.
• Statements of investment of assets
should be submitted every financial
year to IRDAI.