Insurance is a contract where an individual or entity receives financial protection from losses in exchange for paying premiums. Companies pool risks to make premiums affordable. There are two main types of insurance - life insurance which pays out a sum when a person dies, and non-life insurance which covers other losses or liabilities. Within these are various products like health, property, vehicle and travel insurance. Regulations ensure customer protection and industry growth.

1. INSURANCE

2. DEFINITION
Insurance is a contract, represented by a policy, in which an
individual or entity receives financial protection or reimbursement
against losses from an insurance company. The company pools
clients' risks to make payments more affordable for the insured.
Insurance policies are used to hedge against the risk of financial
losses, both big and small, that may result from damage to the
insured or her property, or from liability for damage or injury
caused to a third party.

3. KINDS OF INSURANCE
Life insurance
Non- life insurance

4. LIFE INSURANCE
Life insurance is a contract between an insurer and a policy owner. A life
insurance policy guarantees the insurer pays a sum of money to named
beneficiaries when the insured dies in exchange for the premiums paid by the
policyholder during their lifetime.
Types
•Term life insurance
•Permanent life insurance

5. NON – LIFE INSURANCE
The definition of non-life insurance is, the losses that are incurred from a specific financial
event are compensated to the insured this is called non-life insurance. General insurance,
property insurance and casualty insurance are other names of non-life insurance. It can be
defined as any insurance that is not related to life insurance. People, legal liabilities and
properties are covered under a non-life insurance policy.
Types
•Marine insurance
•Home insurance
•Travel insurance
•Health insurance
•Motor insurance
•Commercial insurance

6. TYPES OF INSURANCE
life insurance
Health insurance
Marine insurance
Fire insurance
Travel insurance
Property insurance
Mobile insurance

7. LIFE INSURANCE
Life insurance is a contract between an insurer and a policy owner. A life
insurance policy guarantees the insurer pays a sum of money to named
beneficiaries when the insured dies in exchange for the premiums paid by the
policyholder during their lifetime.
Types:
•Term life insurance
•Permanent life insurance
•Child’s Plan
•Retirement Plan

8. HEALTH INSURANCE
Health insurance policies cover the cost of medical treatments. Dental insurance, like medical
insurance, protects policyholders for dental costs. In most developed countries, all citizens
receive some health coverage from their governments, paid through taxation. In most
countries, health insurance is often part of an employer's benefits.
•Individual Health Insurance
•Family Floater Insurance
•Critical Illness Cover
•Senior Citizen Health Insurance
•Group Health Insurance

9. MARINE INSURANCE
Marine insurance and marine cargo insurance cover the loss or damage of
vessels at sea or on inland waterways, and of cargo in transit, regardless of the
method of transit. When the owner of the cargo and the carrier are separate
corporations, marine cargo insurance typically compensates the owner of
cargo for losses sustained from fire, shipwreck, etc., but excludes losses that
can be recovered from the carrier or the carrier's insurance. Many marine
insurance underwriters will include "time element" coverage in such policies,
which extends the indemnity to cover loss of profit and other business
expenses attributable to the delay caused by a covered loss.

10. FIRE INSURANCE
Marine insurance and marine cargo insurance cover the loss or damage of
vessels at sea or on inland waterways, and of cargo in transit, regardless of the
method of transit. When the owner of the cargo and the carrier are separate
corporations, marine cargo insurance typically compensates the owner of
cargo for losses sustained from fire, shipwreck, etc., but excludes losses that
can be recovered from the carrier or the carrier's insurance. Many marine
insurance underwriters will include "time element" coverage in such policies,
which extends the indemnity to cover loss of profit and other business
expenses attributable to the delay caused by a covered loss.

11. TRAVEL INSURANCE
When talking about the different types of insurance policies, one must not forget to learn
more about travel insurance plans. Such policies ensure the financial safety of a traveller
during a trip. Therefore, when compared to other insurance policies, travel insurance is a
short-term cover.
Depending on the provider you choose, travel insurance may offer financial aid at various
times, such as during loss of baggage, trip cancellation and much more. Here is a look at
some of the different types of travel insurance plans available in the country
•Domestic Travel Insurance
•International Travel Insurance
•Home Holiday Insurance

12. PROPERTY INSURANCE
Any building or immovable structure can be insured through property
insurance plans. This can be either your residence or commercial space. If any
damage befalls such a property, you can claim financial assistance from the
insurance provider. Keep in mind that such a plan also financially safeguards
the content inside the property.
•Home Insurance
•Shop Insurance
• Office Insurance
•Building Insurance

13. MOBILE INSURANCE
Owing to the rising price of mobile phones and their several applications
today, it has become imperative to insure the device. Mobile insurance allows
you to reclaim money that you spend on repairing your phone in the event of
accidental damage.
Further, you can also claim the same in case of phone theft, making it easier
to replace the handset with a new phone.

14. ADVANTAGES OF
INSURANCE
The following are the advantages of insurance:
1. Financial Protection
2. Distribution of Risk/Spreading of Risk
3. Stability of Living Standard
4. Encouragement to Savings
5. Job Opportunities
6. Promotes foreign/international trades
7. Loan Facilities
8. Stability of Business
9. Specialization

15. CONTINUATION OF
ADVANTAGES OF
INSURANCE
10. Increase in investment
11. Competitiveness
12. Society and Country Welfare
13. Preserves Confidentiality
14. Tax-free money
15. Short Term Coverage
16. Long Term Coverage
17. Easy to Apply

16. GLOBALISATION OF
INSURANCE
Insurance companies are also beginning to experience centralization
processes, thanks to partnerships with banks and reinsurance companies, and
mergers with smaller or larger competitors.
There’s a growth in the type of insurance services and products as well. For
instance, we are seeing insurance products for newer risks such as
informational risk, political risk, security risks, and even military risks.
Just as FinTech is changing the banking world, InsurTech is transforming the
industry. As the insurance industry starts embracing technological innovation
and eCommerce, we’re also looking at more insurance products being sold
via the Internet.

17. GLOBALISATION OF
INSURANCE MARKET
Insurance is an integral part of national economy and a strong pillar of
financial market. Therefore, waves of globalisation have also deeply
influenced the insurance market worldwide. Financial Market Globalisation
has also been strongly supported by Globalisation of Insurance. With the
increase in Trade, Direct Investment and Portfolio Investment, there has been
an ever growing demand for Insurance services particularly in the emerging
markets.
the ‘push factors’ and ‘Pull Factors’. The Push factors are the motives behind
the movement of foreign insurance companies while the pull factors are the
motives behind allowing the foreign companies to operate in local market.

18. THE ‘PUSH FACTORS’ AND
‘PULL FACTORS’.
I) Push factors : Insurance Companies move out to emerging markets due to
Increasing Global Trade , Growing Direct Investment , Potential Future
Growth in Emerging Markets , Saturation in industrialized countries and
Strong growth in emerging countries and expected Efficiency Gains through
Diversification , Economics of scale etc.
ii) Pull Factors : The important pull factors in emerging markets - Emerging
Markets have Strong Economic growth and Trade, and there are substantial
requirements of capital in Emerging Markets to cover major risks. There are
several benefits to the countries allowing foreign insurance companies to
operate in their countries which can be broadly classified into Economy
related, and Insurance marked related.

19. GLOBALISATION OF
INSURANCE
5 IMPACTS OF GLOBALIZATION ON INSURANCE MARKETS
1. Competition in the Insurance Markets
2. Growth in Opportunities
3. New Industry Trends in Insurance
4. Increased Consumer Demand for Insurance
5. Increased Customer Satisfaction

20. INSURANCE REFORMS IN
INDIA
The insurance industry in India was nationalised after independence. In 1956 Life
Insurance Corporation of India was formed after the nationalisation and merger of
245 insurance companies and other provident societies. In 1972, the General
Insurance Corporation and its four subsidiaries were formed by nationalising 55
Indian general insurance companies along with 52 general insurance operations of
other companies. The premiums in the Insurance sector have witnessed phenomenal
growth. However, a large segment of the population has not been provided insurance
cover. The insurance premium collection is 3 % of the GDP of India.

21. INSURANCE REGULATORY
DEVELOPMENT AUTHORITY OF
INDIA (IRDAI)
The Insurance Regulatory Development Authority of India (IRDAI) is a regulatory body
created with the aim of protecting the policyholder’s interest. It also regulates and sees to the
development of the insurance industry.
The statutory body of IRDAI was established in the year 1999, deriving its powers and
functions from the IRDAI Act, 1999 and Insurance Act, 1938. IRDAI works as an
autonomous body responsible for managing and regulating the insurance and reinsurance
industry in India along with registering and/or licensing insurance, reinsurance companies
and intermediaries according to the regulations. Some purposes of IRDAI are:
To protect the interest of the policyholders
To regulate and promote the orderly growth of the insurance and reinsurance industry
To ensure speedy claim settlement and preventing Insurance frauds and other malpractices
To better the standards of insurance markets
To take action when established regulatory standards are ineffectively enforced

22. POWERS AND FUNCTIONS OF
IRDAI IN THE INSURANCE
INDUSTRY
To protect the interests of policyholders, the IRDAI was granted significant
responsibilities. Here are some of them.
•Efficiently conducting insurance business and protection of the interests of the
policyholders in matters concerning assigning of policy, nomination by
policyholders, insurable interest, settlement of insurance claim, surrender value of
the policy and other terms and conditions of contracts of insurance
•Approving product terms and conditions offered by various insurers
•Regulating investment of funds by insurance companies and maintaining a margin of
solvency
•Specifying financial reporting norms of insurance companies
•Ensuring insurance coverage are provided in the rural areas and also to the
vulnerable sections of society