.

2. Insurance is a contract in which one party
(insurer) ,for a compensation (consideration)
called the premium, takes risks of the other
party (insured) and promises to pay him or his
nominee a certain sum of money on a specified
contingency.

3.  Insurance Policy
 Insurer
 Insured
 Premium
 Compensations
 Insured Amount
 Contingency

4. 1. Life Insurance
2. General Insurance
(a) Marine Insurance
(b) Fire insurance
(c) Liability Insurance
(d) Social Insurance
(e) Other Insurance

5.  This type of insurance provides financial
support for the people who depend on you
in the event of your untimely death.
 There are different types of life insurance
policies. Some of these are designed to just
provide insurance benefits (term), while
others (whole life, variable life, universal
life, etc…) are designed to serve as
insurance and a type of investment.

6. Marine Insurance covers the loss or damage of
ships, cargo, terminals, and any transport or
cargo by which property is transferred,
acquired, or held between the points of origin
and final destination.
Marine also includes Onshore
and offshore exposed property, (Container
terminals, Ports, Oil Platforms, Pipelines), Hull,
Marine Casualty, and Marine Liability. When
Goods are transported Shipping Insurance is
used.

7. A Fire Insurance is contract to indemnify the
insured for destruction of or damage to
property caused by fire. The insurer undertakes
to pay the amount of the Assured’s loss not in
excess of the maximum amount stated in the
policy.

8. This type of insurance covers the risk of
liability against third parties, which an insurer
might have to pay under certain circumstances
FOR EXAMPLE
- Death of a worker while
performing duty.

9. This insurance is aimed at providing social
security to the weaker section of the society.
It may take the shape of pension plans
disability or sickness benefits etc.

10. All other type of general insurance can be
placed under this category,
like theft insurance,
earthquake insurance, flood insurance, crop
insurance, personal accident insurance etc.

11.  The market where investment
instruments like bonds and equities are
traded is known as the Capital Market.
 The primal role of this market is to
make investment from investors who
have surplus funds to the ones who are
running a deficit.
 The capital market offers both long
term and overnight funds.

12.  The different types of financial instruments
that are traded in the Capital Markets are:
>Equity Instruments
>Insurance Instruments
>Foreign Exchange Instruments,
>Hybrid Instruments

13.  It has Two Segments
 It Deals in Long term Securities
 It Performs Trade-off function
 It Creates Dispersion in Business Ownership
 It helps in Capital Formation
 It helps in Creating Liquidity

14.  Primary Capital
 Secondary Capital

15.  It is that market in which shares,
debentures and other securities are
sold for the first time for collecting
long-term capital.
 This market is connected with new
issues. Therefore, the primary market
is also called NEW ISSUE MARKET

16.  In this market, the flow of funds is
from savers to borrowers (industries),
hence it helps directly in the capital
formation of the country.
 The capital collected from this market
is generaaly used by the companies
and buildings, for extending business,
and for setting up new business unit.

17.  It is related with new issues
 It has no particular place
 It has various methods of float capital:-
(i) Public Offer
(ii) Offer For Sale
(iii) Private Placement
(iv) Right Issue
(v) Electronic-initial Public Offer
 It comes before Secondary Market

18.  The secondary market is that market
in which the buying and selling of the
previously issued securities is done.
 The transactions of the secondary
market are generally done through the
medium of stock exchange.
 The chief purpose of the secondary
market to create liquidity in securities.

19.  If an individual has bought some
security and he now wants to sell it,
he can do so through the medium of
stock exchange to sell or purchase
through the medium of stock
exchange requires the services of the
broer presently.

20.  It creates liquidity
 It comes after Primary Market
 It has a particular place
 It encourages new Investment

21. TECHNIQUES OF MARKETING OF INSURANCE
POLICY
• KNOW THE MARKET
• ESTABLISH A PLAN
• MEASURE EFFECTIVENESS
• GATHER FEEDBACK