Insurance is a tool for managing risks by pooling risks faced by individuals together. Members of the pool share losses suffered by a few. It provides risk transfer, acts as a social tool against losses, and is a commercial activity. Insurance involves individuals contributing to a pool from which covered events suffered by participants are paid. It is a contingent claim contract on the pool's assets. There are various types of insurance like life insurance and general insurance, with life insurance covering human life and general insurance providing indemnity against financial loss from covered events.
The document discusses key concepts related to insurance. It defines insurance as a cooperative method of spreading risk among a group of individuals. It also defines key principles of insurance such as utmost good faith, indemnity, subrogation, and causation. Additionally, it outlines different types of insurance like life, non-life, marine, fire, motor and engineering insurance.
1-The Basics Parts of an Insurance Contract
Declarations
Definitions
Insuring Agreement
Exclusions
Conditions
Deductibles
Miscellaneous Provisions
Insured
Rider And Endorsement
2-COINSURANCE
A coinsurance formula is used to determine the
amount paid for a covered loss. The coinsurance for-
mula is as follows:
(Amount of insurance carried/Amount of insurance required) * Loss = Amount of recovery
The document discusses the principle of utmost good faith in insurance contracts. It imposes a high degree of honesty on both parties. It is supported by the legal doctrines of representations, concealment, and warranty. Representations are statements made by the applicant, while concealment is the intentional failure to disclose material facts. A warranty is a statement or promise that must be true for the insurer to be liable. The principle of proximate cause examines which cause among multiple causes was the most direct and decisive in causing a loss covered under the policy.
The document discusses various topics related to risk in the insurance industry including types of risk like investment, investor, and insurance risks. It outlines regulatory bodies like IRDA that govern the industry and ensure compliance. It also covers fraud risk management, advertising standards, and guidelines around corporate governance in insurance companies.
The document discusses key concepts related to insurance. It defines insurance as a cooperative method of spreading risk among a group of individuals. It also defines key principles of insurance such as utmost good faith, indemnity, subrogation, and causation. Additionally, it outlines different types of insurance like life, non-life, marine, fire, motor and engineering insurance.
1-The Basics Parts of an Insurance Contract
Declarations
Definitions
Insuring Agreement
Exclusions
Conditions
Deductibles
Miscellaneous Provisions
Insured
Rider And Endorsement
2-COINSURANCE
A coinsurance formula is used to determine the
amount paid for a covered loss. The coinsurance for-
mula is as follows:
(Amount of insurance carried/Amount of insurance required) * Loss = Amount of recovery
The document discusses the principle of utmost good faith in insurance contracts. It imposes a high degree of honesty on both parties. It is supported by the legal doctrines of representations, concealment, and warranty. Representations are statements made by the applicant, while concealment is the intentional failure to disclose material facts. A warranty is a statement or promise that must be true for the insurer to be liable. The principle of proximate cause examines which cause among multiple causes was the most direct and decisive in causing a loss covered under the policy.
The document discusses various topics related to risk in the insurance industry including types of risk like investment, investor, and insurance risks. It outlines regulatory bodies like IRDA that govern the industry and ensure compliance. It also covers fraud risk management, advertising standards, and guidelines around corporate governance in insurance companies.
The document discusses the National Flood Insurance Program (NFIP) and new FEMA guidelines. It provides background on the NFIP, including that it was established in 1968 and requires flood mapping and makes flood insurance available to communities that meet requirements. It also summarizes Rhode Island's participation in the NFIP, new flood maps, insurance rates, reforms, and ways for homeowners to reduce costs, such as through the Community Rating System program.
This module discusses risk management and insurance. It covers topics such as risks and risk management, different types of risks, methods of handling risks including avoiding, controlling, accepting and transferring risks. It also discusses the basic concepts of insurance including risk pooling, law of large numbers, requirements of insurable risks, advantages and disadvantages of insurance. Additionally, it covers personal risk management process, objectives of risk management pre-loss and post-loss, insurance market dynamics and underwriting cycle. Finally, it discusses some key legal principles of insurance contracts such as offer and acceptance, consideration, insurable interest, subrogation and utmost good faith.
Risk management in Life Insurance by Dr. Amitabh MishraAmitabh Mishra
The document discusses various concepts related to risk and risk management in insurance. It defines risk as the possibility of a loss occurring and explains that risk management involves processes to reduce risks to a minimum level. It also discusses how insurance companies pool risks from many policyholders to spread costs and how life insurance specifically provides a tool for risk management by allowing people to share unexpected losses. The document also covers topics like how insurance underwriters evaluate risks, classify policyholders, and determine appropriate premiums based on risk factors like age, health, occupation, and family history.
The document provides an overview of the history and types of life insurance. It discusses that life insurance originated in India from the Vedas. The first Indian life assurance society was formed in 1870. There are various types of life insurance policies including term life insurance, permanent/whole life insurance, and unit linked insurance plans. The document also outlines the claims process, exclusions in accident benefits, top insurance companies in India, and current news in the life insurance sector.
There are four main parties that make up the insurance market: buyers, sellers, intermediaries, and regulators. The buyers are individuals, businesses, organizations, and governments seeking insurance coverage. The sellers are insurance companies and reinsurance companies that provide insurance policies. Intermediaries such as agents and brokers facilitate business between buyers and sellers. Regulators like the Nigeria Insurance Association and Nigerian Council of Registered Insurance Brokers oversee the industry.
The outcome of this session is to understand the fundamentals of insurance, the risk management techniques ,Principles of Insurance contracts & Key Insurance terminologies
Lecture slide chapter 2 insurance and risk managementDashing Shithil
The document provides an overview of key concepts in insurance contracts and principles. It discusses:
1. The nature of insurance as an aleatory contract between an insurer and insured based on principles of utmost good faith and indemnity.
2. Key principles of insurance contracts including insurable interest, utmost good faith, indemnity, subrogation, warranties, proximate cause, return of premium, and assignment.
3. Elements of a valid contract including offer/acceptance, consideration, competency, and lawful object.
4. Distinct characteristics of insurance contracts and methods of providing indemnity for losses.
This document discusses the history and concepts of insurance and reinsurance. It provides details on the origins of different types of insurance like marine insurance, life insurance, and fire insurance. Key concepts covered include the elements of an insurance contract, types of insurance policies, principles of insurance, and the purpose and types of reinsurance agreements.
The document discusses changes to the National Flood Insurance Program (NFIP) resulting from the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) and the Homeowner Flood Insurance Affordability Act of 2014. Key points include: BW-12 reauthorized NFIP for 5 years and focused on fiscal solvency; the 2014 act rolled back some BW-12 provisions and set longer timelines for phasing out subsidies; subsidies will not be extended to new policies or lapsed policies; existing subsidized policies will be grandfathered in but new policies will be on a glide path to full rates.
This document provides an introduction to insurance, including key concepts related to risk. It discusses the nature of risk and how it can be measured using probability. It also defines related concepts like peril, hazard, and loss. The document outlines different categories of risk and various methods for handling risk, including risk avoidance, loss control, risk retention, and risk transfer. It then explains the process of risk management and important characteristics of insurable risk.
Insurance law is the practice of law surrounding insurance, including insurance policies and claims. It can be broadly broken into three categories - regulation of the business of insurance; regulation of the content of insurance policies, especially with regard to consumer policies; and regulation of claim handling.
The document discusses the meaning and characteristics of insurance. It outlines some key points:
1. Insurance involves pooling losses from many individuals so average losses can be substituted for actual losses of a few. It provides payment for unexpected, accidental losses.
2. Risk is transferred from the insured to the insurer, who is in a stronger position to pay losses. Indemnification means restoring the insured to their pre-loss position.
3. For a risk to be insurable, losses must be measurable, large numbers must be exposed, losses cannot be catastrophic, and the chance of loss must be calculable so premiums can be affordable.
This document provides an overview of key concepts in insurance policies, including:
1. Policies are contracts between the insured and insurer that outline the agreement including coverage details, premium, and exceptions.
2. Cover notes and certificates provide interim proof of insurance until the full policy is issued.
3. Policies consist of definitions, conditions, clauses/warranties, exclusions, and schedules which make the coverage specific to each insured.
4. Warranties are promises by the insured that must be fulfilled, while breaches allow insurers to deny claims from the date of the breach. Exclusions specify risks the insurer will not cover.
This document provides an overview of life insurance underwriting. It defines life insurance and explains that underwriters assess risks, decide whether to accept risks, determine coverage terms and calculate premiums. Underwriters consider factors like medical history, occupation, habits and family history. They make decisions to accept risks at standard or substandard rates, call for more information or decline coverage. Risks are evaluated based on criteria like age, sex, weight and medical impairments. Extra risks may be rated using methods like fixed monetary extras, age additions or temporary/permanent rating combinations.
The document defines an insurance contract as a legal agreement between two parties where an insurer agrees to indemnify or reimburse an insured for financial losses from covered risks. It lists the key parties and requirements for a valid insurance contract, including insurable interest, offer/acceptance, consideration, and utmost good faith. The summary also outlines some common documents involved in the insurance process from proposal to policy and some standard clauses included in insurance contracts.
Chapter 6: FINANCIAL OPERATIONS OF I NSURERSMarya Sholevar
1-Liabilities: Loss Reserves
A loss reserve is the estimated cost of settling claims for losses that have already occurred but that have not been paid as of the valuation date . More specifically, the loss reserve is an estimated amount for (1) claims reported and adjusted but not yet paid, (2) claims reported and filed, but not yet adjusted, and (3) claims for losses incurred but not yet reported to the company .
Loss reserves in property and casualty insurance can be classified as case reserves, reserves based on the loss ratio method, and reserves for incurred but not reported claims.
2-Policyholders’ Surplus
Policyholders’ surplus is the difference between an insurance company’s assets and liabilities . It is not calculated directly—it is the “balancing” item on the balance sheet.
If the insurer were to pay all of its liabilities using its assets, the amount remaining would be policyholders’ surplus.
Surplus can be thought of as a cushion that can be drawn upon if liabilities are higher than expected.
Surplus represents the paid-in capital of investors plus retained income from insurance operations and investments over time.
The level of surplus is also an important determinant of the amount of new business that an insurance company can write.
3-Income and Expense Statement
The income and expense statement summarizes revenues received and expenses paid during a specified period of time .
Revenues are cash inflows that the company can claim as income. The two principal sources of revenues for an insurance company are premiums and investment income.
Earned premiums represent the portion of the premiums for which insurance protection has been provided .
Expenses Partially offsetting the company’s revenues were the company’s expenses, which are cash outflows from the business.
The major expenses for an Insurance Company:
Adjusting claims
Paying the insured losses
Underwriting
4-Measuring Profit or Loss
A simple measure that can be used is the insurance company’s loss ratio and expense ratio.
The loss ratio is the ratio of incurred losses and loss adjustment expenses to premiums earned .
Loss ratio= (Incurred losses+Loss adjustment expenses)/Premiums earned
The expense ratio is equal to the company’s underwriting expenses divided by written premiums .
Expense ratio=Underwriting expenses/Premiums written
5-Rate-Making Methods
Insurance involves the equitable transfer of risk, where an insurer agrees to compensate an insured for a potential loss in exchange for a premium payment. The key parties are the insurer (the company), the insured (the policyholder), and the premium (the amount charged). Insurance is governed by acts and involves a contract between the insurer and insured regarding a specific insurable risk, with defined terms and conditions. For a risk to be insurable, it must be measurable, accidental in nature, and not catastrophic. Common types of insurance include life, property, liability, and guarantee policies.
Rampart Insurance is a full service insurance brokerage headquartered in Lake Success, New York with over 160 employees. It was founded in 1965 and has grown to be one of the largest brokerages, serving clients across the US and worldwide. The document discusses various types of specialized insurance coverage that Rampart provides for high risk clients in sports, entertainment, and other industries, including high limit disability, event cancellation, life insurance, and commercial policies.
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.
Critical illness insurance pros and consKelly Shultis
Critical illness insurance provides a tax-free lump sum payment if the policyholder is diagnosed with a specified critical illness. This can help cover costs and provide financial stability. While premiums may be higher than for life insurance, the payout is guaranteed and can give peace of mind. However, not all illnesses are covered, pre-existing conditions may impact premiums, and ongoing premium costs are incurred. On balance, for those with dependents, the benefits of critical illness insurance in planning for family needs are seen as outweighing the disadvantages.
Helps customer find the best policy according to their suitable needs
Features,pros,cons and suitability of various policies are given :-
1. Term Policy
2. Whole Life Policy
3. Unit Linked Insurance Policy (ULIP)
4. Money Back Policy
5. Endowment Policy
The document discusses the National Flood Insurance Program (NFIP) and new FEMA guidelines. It provides background on the NFIP, including that it was established in 1968 and requires flood mapping and makes flood insurance available to communities that meet requirements. It also summarizes Rhode Island's participation in the NFIP, new flood maps, insurance rates, reforms, and ways for homeowners to reduce costs, such as through the Community Rating System program.
This module discusses risk management and insurance. It covers topics such as risks and risk management, different types of risks, methods of handling risks including avoiding, controlling, accepting and transferring risks. It also discusses the basic concepts of insurance including risk pooling, law of large numbers, requirements of insurable risks, advantages and disadvantages of insurance. Additionally, it covers personal risk management process, objectives of risk management pre-loss and post-loss, insurance market dynamics and underwriting cycle. Finally, it discusses some key legal principles of insurance contracts such as offer and acceptance, consideration, insurable interest, subrogation and utmost good faith.
Risk management in Life Insurance by Dr. Amitabh MishraAmitabh Mishra
The document discusses various concepts related to risk and risk management in insurance. It defines risk as the possibility of a loss occurring and explains that risk management involves processes to reduce risks to a minimum level. It also discusses how insurance companies pool risks from many policyholders to spread costs and how life insurance specifically provides a tool for risk management by allowing people to share unexpected losses. The document also covers topics like how insurance underwriters evaluate risks, classify policyholders, and determine appropriate premiums based on risk factors like age, health, occupation, and family history.
The document provides an overview of the history and types of life insurance. It discusses that life insurance originated in India from the Vedas. The first Indian life assurance society was formed in 1870. There are various types of life insurance policies including term life insurance, permanent/whole life insurance, and unit linked insurance plans. The document also outlines the claims process, exclusions in accident benefits, top insurance companies in India, and current news in the life insurance sector.
There are four main parties that make up the insurance market: buyers, sellers, intermediaries, and regulators. The buyers are individuals, businesses, organizations, and governments seeking insurance coverage. The sellers are insurance companies and reinsurance companies that provide insurance policies. Intermediaries such as agents and brokers facilitate business between buyers and sellers. Regulators like the Nigeria Insurance Association and Nigerian Council of Registered Insurance Brokers oversee the industry.
The outcome of this session is to understand the fundamentals of insurance, the risk management techniques ,Principles of Insurance contracts & Key Insurance terminologies
Lecture slide chapter 2 insurance and risk managementDashing Shithil
The document provides an overview of key concepts in insurance contracts and principles. It discusses:
1. The nature of insurance as an aleatory contract between an insurer and insured based on principles of utmost good faith and indemnity.
2. Key principles of insurance contracts including insurable interest, utmost good faith, indemnity, subrogation, warranties, proximate cause, return of premium, and assignment.
3. Elements of a valid contract including offer/acceptance, consideration, competency, and lawful object.
4. Distinct characteristics of insurance contracts and methods of providing indemnity for losses.
This document discusses the history and concepts of insurance and reinsurance. It provides details on the origins of different types of insurance like marine insurance, life insurance, and fire insurance. Key concepts covered include the elements of an insurance contract, types of insurance policies, principles of insurance, and the purpose and types of reinsurance agreements.
The document discusses changes to the National Flood Insurance Program (NFIP) resulting from the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) and the Homeowner Flood Insurance Affordability Act of 2014. Key points include: BW-12 reauthorized NFIP for 5 years and focused on fiscal solvency; the 2014 act rolled back some BW-12 provisions and set longer timelines for phasing out subsidies; subsidies will not be extended to new policies or lapsed policies; existing subsidized policies will be grandfathered in but new policies will be on a glide path to full rates.
This document provides an introduction to insurance, including key concepts related to risk. It discusses the nature of risk and how it can be measured using probability. It also defines related concepts like peril, hazard, and loss. The document outlines different categories of risk and various methods for handling risk, including risk avoidance, loss control, risk retention, and risk transfer. It then explains the process of risk management and important characteristics of insurable risk.
Insurance law is the practice of law surrounding insurance, including insurance policies and claims. It can be broadly broken into three categories - regulation of the business of insurance; regulation of the content of insurance policies, especially with regard to consumer policies; and regulation of claim handling.
The document discusses the meaning and characteristics of insurance. It outlines some key points:
1. Insurance involves pooling losses from many individuals so average losses can be substituted for actual losses of a few. It provides payment for unexpected, accidental losses.
2. Risk is transferred from the insured to the insurer, who is in a stronger position to pay losses. Indemnification means restoring the insured to their pre-loss position.
3. For a risk to be insurable, losses must be measurable, large numbers must be exposed, losses cannot be catastrophic, and the chance of loss must be calculable so premiums can be affordable.
This document provides an overview of key concepts in insurance policies, including:
1. Policies are contracts between the insured and insurer that outline the agreement including coverage details, premium, and exceptions.
2. Cover notes and certificates provide interim proof of insurance until the full policy is issued.
3. Policies consist of definitions, conditions, clauses/warranties, exclusions, and schedules which make the coverage specific to each insured.
4. Warranties are promises by the insured that must be fulfilled, while breaches allow insurers to deny claims from the date of the breach. Exclusions specify risks the insurer will not cover.
This document provides an overview of life insurance underwriting. It defines life insurance and explains that underwriters assess risks, decide whether to accept risks, determine coverage terms and calculate premiums. Underwriters consider factors like medical history, occupation, habits and family history. They make decisions to accept risks at standard or substandard rates, call for more information or decline coverage. Risks are evaluated based on criteria like age, sex, weight and medical impairments. Extra risks may be rated using methods like fixed monetary extras, age additions or temporary/permanent rating combinations.
The document defines an insurance contract as a legal agreement between two parties where an insurer agrees to indemnify or reimburse an insured for financial losses from covered risks. It lists the key parties and requirements for a valid insurance contract, including insurable interest, offer/acceptance, consideration, and utmost good faith. The summary also outlines some common documents involved in the insurance process from proposal to policy and some standard clauses included in insurance contracts.
Chapter 6: FINANCIAL OPERATIONS OF I NSURERSMarya Sholevar
1-Liabilities: Loss Reserves
A loss reserve is the estimated cost of settling claims for losses that have already occurred but that have not been paid as of the valuation date . More specifically, the loss reserve is an estimated amount for (1) claims reported and adjusted but not yet paid, (2) claims reported and filed, but not yet adjusted, and (3) claims for losses incurred but not yet reported to the company .
Loss reserves in property and casualty insurance can be classified as case reserves, reserves based on the loss ratio method, and reserves for incurred but not reported claims.
2-Policyholders’ Surplus
Policyholders’ surplus is the difference between an insurance company’s assets and liabilities . It is not calculated directly—it is the “balancing” item on the balance sheet.
If the insurer were to pay all of its liabilities using its assets, the amount remaining would be policyholders’ surplus.
Surplus can be thought of as a cushion that can be drawn upon if liabilities are higher than expected.
Surplus represents the paid-in capital of investors plus retained income from insurance operations and investments over time.
The level of surplus is also an important determinant of the amount of new business that an insurance company can write.
3-Income and Expense Statement
The income and expense statement summarizes revenues received and expenses paid during a specified period of time .
Revenues are cash inflows that the company can claim as income. The two principal sources of revenues for an insurance company are premiums and investment income.
Earned premiums represent the portion of the premiums for which insurance protection has been provided .
Expenses Partially offsetting the company’s revenues were the company’s expenses, which are cash outflows from the business.
The major expenses for an Insurance Company:
Adjusting claims
Paying the insured losses
Underwriting
4-Measuring Profit or Loss
A simple measure that can be used is the insurance company’s loss ratio and expense ratio.
The loss ratio is the ratio of incurred losses and loss adjustment expenses to premiums earned .
Loss ratio= (Incurred losses+Loss adjustment expenses)/Premiums earned
The expense ratio is equal to the company’s underwriting expenses divided by written premiums .
Expense ratio=Underwriting expenses/Premiums written
5-Rate-Making Methods
Insurance involves the equitable transfer of risk, where an insurer agrees to compensate an insured for a potential loss in exchange for a premium payment. The key parties are the insurer (the company), the insured (the policyholder), and the premium (the amount charged). Insurance is governed by acts and involves a contract between the insurer and insured regarding a specific insurable risk, with defined terms and conditions. For a risk to be insurable, it must be measurable, accidental in nature, and not catastrophic. Common types of insurance include life, property, liability, and guarantee policies.
Rampart Insurance is a full service insurance brokerage headquartered in Lake Success, New York with over 160 employees. It was founded in 1965 and has grown to be one of the largest brokerages, serving clients across the US and worldwide. The document discusses various types of specialized insurance coverage that Rampart provides for high risk clients in sports, entertainment, and other industries, including high limit disability, event cancellation, life insurance, and commercial policies.
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.
Critical illness insurance pros and consKelly Shultis
Critical illness insurance provides a tax-free lump sum payment if the policyholder is diagnosed with a specified critical illness. This can help cover costs and provide financial stability. While premiums may be higher than for life insurance, the payout is guaranteed and can give peace of mind. However, not all illnesses are covered, pre-existing conditions may impact premiums, and ongoing premium costs are incurred. On balance, for those with dependents, the benefits of critical illness insurance in planning for family needs are seen as outweighing the disadvantages.
Helps customer find the best policy according to their suitable needs
Features,pros,cons and suitability of various policies are given :-
1. Term Policy
2. Whole Life Policy
3. Unit Linked Insurance Policy (ULIP)
4. Money Back Policy
5. Endowment Policy
banking and insurance hgjhgjhgjhgjhghjgjhg.pptxsgtuniversity
This document discusses types of risks and risk management, as well as definitions and principles of insurance. It covers topics like pure and speculative risks, risk management objectives, methods of handling risks, functional and legal definitions of insurance, principles of insurance, classification of insurance, differences between insurance and assurance, functions and characteristics of insurance, life insurance definitions and features, and types of life insurance policies like term plans, endowment plans, and whole life policies.
The document discusses various aspects of life insurance policy servicing, including the rights and duties of the insured party. It covers topics like premium payments, grace periods, non-forfeiture provisions, surrender value, loans, foreclosure, revival of lapsed policies, nomination of beneficiaries, and assignment of policies. Key points mentioned include contractual obligations to keep policies active, options for unpaid premiums, requirements for reviving lapsed policies, rules around nominating and assigning beneficiary rights.
Insurance is a method of sharing and distributing risks among a large number of individuals through a system of pooling of risks. It provides protection from financial losses by allowing individuals to pay a small, regular premium in exchange for the insurer's guarantee to pay a large sum in the event of a specified loss. The key principles of insurance include utmost good faith, indemnity, subrogation, contribution, proximate cause, and mitigation of loss.
The document discusses planning to insure a business. It explains that all business insurance policies cover property, liability, people, or income. It emphasizes the importance of adequately insuring a home-based business as the owner's personal assets like their home could be at risk if a liability claim exceeds their insurance. The document also promotes taking a Married Women's Property Act (MWP) life insurance policy to protect one's wife and children and avoid having the policy proceeds fall under the insured's estate.
This document discusses key legal principles related to insurance contracts. It covers the distribution of insurance contracts, characteristics of insurance contracts as legally binding agreements, and fundamental principles including indemnity, insurable interest, utmost good faith, and subrogation. The principles of indemnity and insurable interest help ensure the insured does not receive more compensation than their actual loss.
This document provides an overview of the insurance domain, including key statistics about the size of the global insurance market. It defines insurance as a risk transfer contract between two parties, and outlines several principles that govern insurance, such as utmost good faith, insurable interest, and indemnity. The document also describes the business model of insurance companies and common types of insurance. It concludes by listing several key performance indicators used in the insurance industry to measure profitability, sales growth, claims processing efficiency, and customer satisfaction.
This session discusses risk management and insurance. It defines risk and different types of risks. It covers the basic characteristics of insurance including risk pooling and the law of large numbers. It discusses the requirements for an insurable risk and different methods of handling risks including avoiding, controlling, accepting, and transferring risk through insurance. Key principles of insurance contracts are explained including indemnity, insurable interest, subrogation, and utmost good faith. The objectives of risk management before and after a loss are also summarized.
The document discusses general insurance concepts including basic terminology, requirements for insurable risk, and principles of insurance. It defines key terms like insurance, insurer, insured, premium, policy, risk, peril, and hazard. The six requirements for a risk to be insurable are outlined. The seven principles of insurance are explained in detail, including indemnity, insurable interest, utmost good faith, contribution, average, subrogation, and proximate cause. Finally, the document categorizes insurance into life, general, fire, health, motor, and marine types.
Life insurance: What PFMP Staff and Military Families Need to Knowmilfamln
Given the hazards of military service, especially deployment to a combat zone, life insurance is an important financial risk reduction tool for many military families. Yet, studies have found that life insurance is not well understood by consumers in general. Many people do not purchase an appropriate amount or type of coverage. This webinar will begin with a basic overview of life insurance including its purpose, types of policies, how to calculate a family's life insurance need, and life insurance resources. It will conclude with a discussion of military life insurance programs such as SGLI and VGLI. Join this session 12/10 at 11 a.m. ET. More information: https://learn.extension.org/events/1304
Spencer Lodge Fund Advisers Dubai Life Insurance. Spencer Lodge MD of Fund Advisers Dubai Universal life insurance offers you the freedom to increase or decrease your policy’s death benefit to fit your individual needs. Policies have minimum and maximum premium amounts that you must meet to maintain your coverage, but the timing of payments can be flexible. Access to cash values Universal life insurance policies have a cash value that has the potential to increase over time. If financial needs arise, you can tap into your policy by taking tax-advantaged policy loans and making partial withdrawals without income taxes.
The document provides an introduction to various concepts in insurance including the life insurance contract, principles of insurance, utmost good faith, insurable interest, and different types of insurance policies like term insurance, whole life insurance, endowment policies, and annuities. It explains that a life insurance contract is a valid legal agreement between the insurer and insured where the insurer agrees to pay claims on the happening of an insured event in exchange for premiums paid by the insured.
This document provides an overview of key concepts in life insurance. It discusses:
- The main types of life insurance policies, including protection policies that provide lump sum payments for specified events, and investment policies that facilitate capital growth.
- Key principles of life insurance, including insurable interest, indemnity, subrogation, contribution, and loss minimization.
- Approaches to assessing insurance needs, such as rule-of-thumb based on income, income replacement to fund lost future earnings, and needs-based to cover expenses.
Assure is a comprehensive health insurance coverage plan from Religare Health Insurance. It covers Critical Illness, Surgical Procedures, Medical Events as well as give Personal accident cover.
A Simple Guide to Understanding Whole Life and Term Life InsuranceRobert Taurosa
Deciding which life insurance policy you should choose can be nerve racking when you are given multiple options. This is a simple guide to understanding the differences between whole life and term life insurance.
This document provides information about life insurance policies in India. It discusses different types of life insurance policies like term insurance, whole life insurance, endowment policies, money back plans, children's policies, annuity plans, and unit linked insurance plans. It also answers frequently asked questions about life insurance policies, including how premiums, surrender values, and claims are calculated for conventional and unit linked policies. The document aims to educate policyholders about various aspects of life insurance.
Insurance involves pooling and transferring risks from individuals to insurers. It has key characteristics like pooling losses, paying fortuitous losses, risk transfer, and indemnification. Insurance requires an insurable risk to have a large number of exposure units and losses must be accidental, determinable, and not catastrophic. Common insurance products include life, health, property, vehicle, and travel insurance. Life insurance provides protection for dependents and has various types like term, whole, universal, and variable policies.
The cash flow statement discloses the movement of cash within a business over an accounting period. It shows how changes in balance sheet accounts affect cash and breaks the analysis down into three sections - operating, investing and financing activities. The cash flow statement provides important information about a company's liquidity, solvency and financial flexibility.
The document discusses ratio analysis, which is used by businesses to analyze their financial position and performance. It defines ratios as divisions of two numbers and explains that ratio analysis allows businesses to discuss their profitability, liquidity, solvency, and turnover with stakeholders. The document then categorizes ratios into five types - liquidity ratios, turnover ratios, solvency ratios, profitability ratios, and miscellaneous ratios. It provides examples of common ratios within each category and discusses the importance and limitations of ratio analysis.
Chapter 1- Environment of Business Finance.pptxVishal Tidake
The document discusses the classification of finance into public finance, institutional finance, private finance, and international finance. It also defines market capitalization as the number of outstanding shares of a company multiplied by the share price.
1.6 key strategies of financial managementVishal Tidake
This document discusses the key strategies of financial management. It is presented by Dr. V. M. Tidake and is part of a unit on financial management for students. The key strategies of financial management that will be explained include capital budgeting, working capital management, and cash flow management. Contact information is provided for Dr. Tidake to get more details.
This document discusses the A's of Financial Management which are the key aspects covered in a financial management course. It was presented by Dr. V. M. Tidake from Sanjivani College of Engineering and discusses understanding the A's of financial management as the objective of the session. Contact information is provided for Dr. Tidake for any additional details.
This document discusses the functions of financial management and is presented by Dr. V. M. Tidake from Sanjivani College of Engineering. It lists understanding the functions of financial management as a learning objective and poses an exercise for students to state and explain the functions of financial management. It concludes by thanking the audience and providing contact information for Dr. Tidake.
This document discusses approaches to financial management and is a presentation by Dr. V. M. Tidake on the topic. It outlines that students will understand the different approaches to financial management by the end of the session. It prompts an exercise question for students to state and explain the various approaches to finance and provides contact information for Dr. Tidake for any additional details.
1.2 introduction to financial managementVishal Tidake
This document is a presentation on an introduction to financial management given by Dr. V. M. Tidake at Sanjivani College of Engineering. The presentation covers the objectives of financial management which include maximizing shareholder wealth and firm value. It also contains sample problems and exercises for students to understand financial management concepts. Contact information is provided for Dr. Tidake for any additional questions.
This document is a presentation about financial management that was given by Dr. V. M. Tidake. The presentation introduces finance and discusses its classification into public, institutional, private, and international finance. It aims to help students understand the introduction to finance and business finance in particular. Contact information is provided for Dr. Tidake to get more details.
Accounting standards notes Dr. V M TidakeVishal Tidake
The document discusses Indian Accounting Standards (AS) as issued by the Institute of Chartered Accountants of India (ICAI). It provides definitions and explanations of key terms like accounting standards, accounting policies, revenue recognition, accounting for fixed assets, and depreciation accounting. Some of the main points covered include that accounting standards aim to standardize accounting policies and practices, the Accounting Standards Board of ICAI prepares the standards, and there are currently 32 accounting standards in India. The document also provides details on the objectives, disclosure requirements, and treatment of certain items under some major accounting standards like AS 1 on accounting policies, AS 6 on depreciation, AS 9 on revenue recognition, and AS 10 on fixed assets.
This document discusses a case study on probability distributions. It presents the dividend amounts and probabilities of a company's share. It shows how to calculate the expected gain by taking the sum of each dividend amount multiplied by its probability. For a share with a face value of Rs. 100, the expected gain is calculated as Rs. 17. Since this 17% expected return is higher than the minimum expected return of 15%, the document concludes that the shares should be purchased.
5.2.8 case 2 normal probability distributionVishal Tidake
This document discusses solving probability problems using the normal distribution. It provides an example of test scores that are normally distributed with a mean of 14 and standard deviation of 2.5. It then calculates:
1) The number of students who scored between 12 and 15, which is 444.
2) The number of students who scored above 18, which is 55.
3) The number of students who scored below 8, which is 8.
The calculations are shown by converting the data values to standard normal variables and looking them up in a z-table.
5.2.7 case 1 normal probability distributionVishal Tidake
This document discusses a case study on the normal probability distribution. It examines the weekly wages of 1000 workers which are normally distributed with a mean of Rs. 70 and standard deviation of Rs. 5. It estimates the number of workers whose weekly wages are: (i) Between Rs. 70 and Rs. 72 (155 workers) (ii) Between Rs. 69 and Rs. 72 (235 workers) (iii) More than Rs. 75 (159 workers) (iv) Less than Rs. 63 (81 workers). The document explains how to solve each case using the normal distribution and z-table. It concludes by asking students to explain the case study on normal probability distribution.
5.2.6 case 1 poisson probability distributionVishal Tidake
This document discusses using the Poisson distribution to calculate probabilities related to defective electric bulbs. It provides an example where the probability of a bulb being defective is 5%. It then calculates: (1) the probability that none of the 100 bulbs in a box are defective is 0.007, (2) the probability that 3 bulbs are defective is 0.146, and (3) the probability that more than 3 bulbs are defective is 0.725. The document was presented by Dr. V. M. Tidake and discusses using the Poisson distribution to solve probability problems related to rare events.
5.2.5 case 2 binomial probability distributionVishal Tidake
This document discusses a binomial probability distribution case study presented by Dr. V. M. Tidake. It provides the probabilities of a variate taking specific values based on given mean and variance parameters of a binomial distribution. The number of trials is calculated to be 9, and the probabilities of the variate taking the value of exactly 2 or at most 2 are calculated to be 0.235 and 0.378 respectively using the binomial probability formula. At the end, students are asked to explain the case study on binomial probability distribution.
5.2.4 case 1 binomial probability distributionVishal Tidake
This document discusses the binomial probability distribution and provides examples of calculating probabilities of coin toss outcomes. Specifically, it addresses:
1) Calculating the probability of getting exactly 5 heads, at least 8 heads, not more than 3 heads, and at least one head when tossing 10 coins.
2) If the 10 coin toss is repeated 50 times, calculating the expected number of times exactly 5 heads will occur.
3) Explaining the case of the binomial probability distribution and providing contact information for the presenter.
This document discusses a probability case study presented by Dr. V. M. Tidake. The case study asks the reader to calculate the probability that: (1) both a man and his wife will be alive 25 years in the future, given the man has a 30% probability of being alive and the wife a 40% probability; (2) only the man will be alive; (3) only the woman will be alive; and (4) at least one of them will be alive. The document provides the calculations to find each of these probabilities.
This document presents a probability case study involving two friends, A and B, applying for two vacancies with different probabilities of selection. The probabilities of A and B being selected are 1/4 and 1/5, respectively. The document calculates the probabilities of: (1) one of them being selected; (2) both being selected; (3) neither being selected; and (4) at least one being selected. It concludes by asking students to solve the case study on probability.
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
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إضغ بين إيديكم من أقوى الملازم التي صممتها
ملزمة تشريح الجهاز الهيكلي (نظري 3)
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تتميز هذهِ الملزمة بعِدة مُميزات :
1- مُترجمة ترجمة تُناسب جميع المستويات
2- تحتوي على 78 رسم توضيحي لكل كلمة موجودة بالملزمة (لكل كلمة !!!!)
#فهم_ماكو_درخ
3- دقة الكتابة والصور عالية جداً جداً جداً
4- هُنالك بعض المعلومات تم توضيحها بشكل تفصيلي جداً (تُعتبر لدى الطالب أو الطالبة بإنها معلومات مُبهمة ومع ذلك تم توضيح هذهِ المعلومات المُبهمة بشكل تفصيلي جداً
5- الملزمة تشرح نفسها ب نفسها بس تكلك تعال اقراني
6- تحتوي الملزمة في اول سلايد على خارطة تتضمن جميع تفرُعات معلومات الجهاز الهيكلي المذكورة في هذهِ الملزمة
واخيراً هذهِ الملزمة حلالٌ عليكم وإتمنى منكم إن تدعولي بالخير والصحة والعافية فقط
كل التوفيق زملائي وزميلاتي ، زميلكم محمد الذهبي 💊💊
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Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
THE SACRIFICE HOW PRO-PALESTINE PROTESTS STUDENTS ARE SACRIFICING TO CHANGE T...indexPub
The recent surge in pro-Palestine student activism has prompted significant responses from universities, ranging from negotiations and divestment commitments to increased transparency about investments in companies supporting the war on Gaza. This activism has led to the cessation of student encampments but also highlighted the substantial sacrifices made by students, including academic disruptions and personal risks. The primary drivers of these protests are poor university administration, lack of transparency, and inadequate communication between officials and students. This study examines the profound emotional, psychological, and professional impacts on students engaged in pro-Palestine protests, focusing on Generation Z's (Gen-Z) activism dynamics. This paper explores the significant sacrifices made by these students and even the professors supporting the pro-Palestine movement, with a focus on recent global movements. Through an in-depth analysis of printed and electronic media, the study examines the impacts of these sacrifices on the academic and personal lives of those involved. The paper highlights examples from various universities, demonstrating student activism's long-term and short-term effects, including disciplinary actions, social backlash, and career implications. The researchers also explore the broader implications of student sacrifices. The findings reveal that these sacrifices are driven by a profound commitment to justice and human rights, and are influenced by the increasing availability of information, peer interactions, and personal convictions. The study also discusses the broader implications of this activism, comparing it to historical precedents and assessing its potential to influence policy and public opinion. The emotional and psychological toll on student activists is significant, but their sense of purpose and community support mitigates some of these challenges. However, the researchers call for acknowledging the broader Impact of these sacrifices on the future global movement of FreePalestine.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
2. WHAT IS INSURANCE ?
• IT IS A TOOL IN THE MANAGEMENT
OF RISKS – A DEVICE THROUGH
WHICH THE RISKS FACED BY THE
INDIVIDUALS ARE POOLED
TOGETHER AND THEREBY ALL THE
MEMBERS OF POOL WILL SHARE
THE LOSSES SUFFERED BY A FEW
Principles of Insurance- Dr. V. M. Tidake 2
3. 03 CONSIDERATIONS
• RISK TRANSFER TOOL- TRANSFERRING THE RISKS FROM THE
INDIVIDUALS TO THE POOL – REDUCTION OF THE OVERALL RISK
FACED BY THE POOL.
• SOCIAL TOOL- AS A SOCIAL SAFEGUARD AGAINST THE LOSSES
EXPECTED TO BE SUFFERED DUE TO UNEXPECTED EVENTS BY A
FEW MEMBERS OF THE SOCIETY.
• COMMERCIAL OR LEGAL TOOL- WHERE A THIRD PARTY DOES
THIS ACTIVITY OF POOLING OF RISKS AND SHARING OF LOSSES
WITH A COMMERCIAL INTEREST
Principles of Insurance- Dr. V. M. Tidake 3
4. INSURANCE DEFINITION:
ECONOMIC PERSPECTIVE –
INSURANCE IS A FINANCIAL INTERMEDIATION
FUNCTION BY WHICH INDIVIDUALS EXPOSED TO A
SPECIFIED CONTINGENCY EACH CONTRIBUTE TO A
POOL FROM WHICH COVERED EVENTS SUFFERED BY
PARTICIPATING INDIVIDUALS ARE PAID. INDIVIDUALS
PURCHASE THE RIGHT TO COLLECT FROM THE POOL
IF THE INSURED CONTINGENCY OCCURS.
INSURANCE THEN IS A CONTINGENT CLAIM
CONTRACT ON THE POOL’S ASSETS.
- KENNETH BLACK (JR.) AND HAROLD SKIPPER (JR.)
Principles of Insurance- Dr. V. M. Tidake 4
5. INSURANCE DEFINITION:
LEGAL PERSPECTIVE:
INSURANCE IS AN AGREEMENT (THE INSURANCE
POLICY OR INSURANCE CONTRACTS), BY WHICH ONE
PARTY, CALLED THE POLICY OWNER, PAYS A
STIPULATED CONSIDERATION, CALLED PREMIUM, TO
THE OTHER PARTY CALLED INSURER IN RETURN FOR
WHICH THE INSURER AGREES TO PAY A DEFINED
AMOUNT OF MONEY OR PROVIDE A DEFINED
SERVICE IF A COVERED EVENT OCCURS DURING THE
POLICY TERM.Principles of Insurance- Dr. V. M. Tidake
5
6. INSURANCE TYPES:
A. LIFE INSURANCE
B. GENERAL INSURANCE
Principles of Insurance- Dr. V. M. Tidake 6
7. LIFE INSURANCE
• IT IS A CONTRACT IN WHICH THE
INSURER, IN CONSIDERATION OF A
CERTAIN PREMIUM, EITHER IN A LUMP
SUM OR IN ANY OTHER PERIODICAL
PAYMENTS, IN RETURN AGREES TO PAY
TO THE ASSURED, OR TO THE PERSON
FOR WHOSE BENEFIT THE POLICY IS
TAKEN, A STATED SUM OF MONEY ON
Principles of Insurance- Dr. V. M. Tidake 7
8. LIFE INSURANCE FEATURES
• CONTRACT RELATING TO HUMAN LIFE,
• CONTRACT PROVIDES FOR PAYMENT OF
LUMP SUM MONEY,
• THE AMOUNT IS PAID AT THE EXPIRATION OF
A CERTAIN PERIOD OR ON DEATH OF A
PERSON.Principles of Insurance- Dr. V. M. Tidake 8
9. INCIDENTS UNDER LI
• DISABILITY AND DOUBLE OR TRIPLE
INDEMNITY ACCIDENT BENEFITS (IF PROVIDED
IN THE CONTRACT);
• ANNUITIES UPON HUMAN LIFE;
• SUPERANNUATION ALLOWANCES AND
ANNUITIES PAYABLE OUT OF ANY FUND
APPLICABLE SOLELY TO THE RELIEF AND
MAINTENANCE OF PERSONS ENGAGED OR
WHO HAVE BEEN ENGAGED IN ANY
Principles of Insurance- Dr. V. M. Tidake 9
10. ESSENTIALS OF A VALID CONTRACT
• OFFER AND ACCEPTANCE
• CONSENSUS AD IDEM
(“MEETING OF THE MINDS”)
• PARTIES COMPETENT TO CONTRACT
• CONSIDERATIONPrinciples of Insurance- Dr. V. M. Tidake 10
11. PRINCIPLES OF LIFE INSURANCE
SPECIAL FEATURES OF LIFE INSURANCE CONTRACTS
• INSURABLE INTEREST :
• THE OBJECT OF INSURANCE SHOULD BE LAWFUL.
THE PERSON PROPOSING FOR INSURANCE MUST
HAVE INTEREST IN THE CONTINUED LIFE OF THE
INSURED AND WOULD SUFFER PECUNIARY LOSS
THE INSURED PERSON DIES. THIS IS KNOWN AS
INSURABLE INTEREST.
Principles of Insurance- Dr. V. M. Tidake 11
12. INSURABLE INTEREST
• IN LIFE INSURANCE THE PRESENCE OF INSURABLE INTEREST IS ESSENTIAL AT
THE TIME OF EFFECTING THE CONTRACT OF INSURANCE.
• IF THERE IS NO INSURABLE INTEREST, THE CONTRACT BECOMES WAGERING
AND HENCE ILLEGAL.
• EVERY INDIVIDUAL HAS UNLIMITED INSURABLE INTEREST ON HIS/HER LIFE.
• HUSBAND HAS INSURABLE INTEREST ON THE LIFE OF HIS WIFE AND VICE
VERSA.
• THE CREDITORS HAVE INSURABLE INTEREST ON THE LIVES OF DEBTORS TO
THE EXTENT OF INDEBTEDNESS.
• BUSINESS PARTNERS HAVE INSURABLE INTEREST IN THE LIVES OF OTHER
PARTNERS TO THE EXTENT OF THEIR FINANCIAL INTEREST IN THE
PARTNERSHIP.
• EMPLOYERS HAVE INSURABLE INTEREST IN THE LIVES OF EMPLOYEES WHO
Principles of Insurance- Dr. V. M. Tidake
12
13. DOCTRINE OF UTMOST GOOD
FAITH
• IN LIFE INSURANCE CONTRACTS, A VERY HIGH DEGREE OF GOOD
FAITH IS REQUIRED TO EXIST BETWEEN THE PARTIES TO THE
CONTRACT, VIZ., THE INSURER AND THE INSURED. THIS IS CALLED
THE PRINCIPLE OF UTMOST GOOD FAITH (UBERRIMA FIDES)
• IT IS THE DUTY OF THE PROPOSER TO DISCLOSE THE MATERIAL
INFORMATION FOR PROPER ASSESSMENT OF RISK BY THE
INSURER
• ALL THE REQUIRED INFORMATION FOR THE ASSESSMENT OF RISK
IS KNOWN ONLY TO THE PROPOSER AND THE INSURER HAS NO
KNOWLEDGE OF THE RISK
• THE PROPOSER MAY NOT BE HAVING TECHNICAL KNOWLEDGE
ABOUT THE INSURANCE PRODUCTS, THE BENEFITS, PRICING
ASPECTS ETC. AND HENCE WILL HAVE TO RELY UPON THE
INSURER TO ENSURE THAT THE TERMS OF THE CONTRACT ARE
FAIR AND EQUITABLE.
Principles of Insurance- Dr. V. M. Tidake 13
14. DOCTRINE OF ADHESION
•THE TERMS OF THE CONTRACT
ARE MOST OF THE TIMES FIXED
BY ONE PARTY (THE INSURER)
AND WITH MINOR EXCEPTIONS,
MUST BE ACCEPTED OR
REJECTED IN TOTAL BY THEPrinciples of Insurance- Dr. V. M. Tidake 14
15. PRINCIPLE OF INDEMNITY
• INSURANCE CONTRACTS OTHER THAN LIFE INSURANCE
CONTRACT ARE CONTRACTS OF INDEMNITY IN THE
SENSE THAT THE AMOUNT PAYABLE BY THE INSURER IN
CASE OF THE CONTINGENCY STATED IN THE POLICY
OCCURRING IS LIMITED TO THE LOSS THAT THE
INSURED WILL SUFFER.
• THE INSURANCE CONTRACT PROMISES TO KEEP THE
INSURED INDEMNIFIED AGAINST THE FINANCIAL LOSS
THAT HE WOULD SUFFER ON ACCOUNT OF THE
HAPPENING OF THE EVENT.
Principles of Insurance- Dr. V. M. Tidake 15
16. MAIN TYPES OF LIFE INSURANCE
• WHOLE LIFE INSURANCE
• INTENDED TO PROVIDE LIFE
INSURANCE PROTECTION OVER
ONE’S LIFETIME – PROVIDES FOR
PAYMENT OF THE ASSURED
AMOUNT UPON THE INSURED’S
DEATH REGARDLESS OF WHEN
IT OCCURS.
Principles of Insurance- Dr. V. M. Tidake 16
17. WHOLE LIFE INSURANCE
• THE PAYMENT OF ASSURED SUM IS A
CERTAINTY; ONLY THE TIME OF THE PAYMENT
OF THE ASSURED SUM IS AN UNCERTAINTY
• ORDINARY WHOLE LIFE INSURANCE
• LIMITED PAYMENT WHOLE LIFE
INSURANCE
• CONVERTIBLE WHOLE LIFE INSURANCEPrinciples of Insurance- Dr. V. M. Tidake 17
18. ENDOWMENT INSURANCE
• BENEFITS UNDER THE POLICY PAID ON
THE DEATH OF THE LIFE INSURED DURING
THE SELECTED TERM OR ON HIS
SURVIVAL TO THE END OF THE TERM.
• NORMAL DURATIONS RANGING
FROM 10 TO 30 YEARS OR MORE;
SHORTER TERM POLICIES RANGING
FROM 3 TO 10 YEARS
• SINGLE PREMIUM ENDOWMENT
INSURANCE POLICIES
• MONEY BACK OR CASH BACK OR
ANTICIPATED ENDOWMENT
Principles of Insurance- Dr. V. M. Tidake 18
19. TERM INSURANCE
• INSURANCE PROTECTION FOR SELECTED TERM
ONLY – IN CASE THE INSURED PERSON DIES
DURING THE TERM, THE BENEFITS ARE PAYABLE.
• IN CASE OF HIS SURVIVAL TILL THE END OF
SELECTED TERM, THE POLICY NORMALLY EXPIRES
WITHOUT ANY BENEFIT BECOMING PAYABLE
• MAY BE REGARDED AS TEMPORARY INSURANCE –
PREMIUM FOR TERM INSURANCE IS RELATIVELY
LOW.
Principles of Insurance- Dr. V. M. Tidake 19
20. ANNUITIES
• SERIES OF PERIODIC PAYMENTS
• ANNUITY PROVIDER (INSURER) AGREES
TO PAY THE PURCHASER OF ANNUITY
(ANNUITANT) A SERIES OF REGULAR
PERIODICAL PAYMENTS FOR A FIXED
PERIOD OR DURING SOMEONE’S LIFE
TIME.Principles of Insurance- Dr. V. M. Tidake 20
21. GROUP LIFE INSURANCE
• THERE ARE GROUPS OF PEOPLE
WHO SHARE SOMETHING IN
COMMON AND ARE CONNECTED
BY SOME UNDERLYING
SIMILARITY LIKE OCCUPATION,
PROFESSION, EMPLOYMENT,
SOCIAL PURPOSES OR EVEN
ENTERTAINMENT CAN HAVE A
SIMILAR NEED FOR LIFE
INSURANCE WHICH CAN BE MET
BY A SINGLE INSURANCE
Principles of Insurance- Dr. V. M. Tidake 21
22. GROUP LIFE INSURANCE
• THESE CATEGORIES OF
PRODUCTS THAT COVER THE
RISK OF A CONTINGENCY
DEPENDENT ON THE LIFE OF
A GROUP OF PERSONS, COME
UNDER THE GROUP LIFE
INSURANCE.
Principles of Insurance- Dr. V. M. Tidake 22
23. CONVENTIONAL GROUPS
• EMPLOYER – EMPLOYEE GROUPS
• CREDITOR – DEBTOR GROUPS
• ASSOCIATIONS OF SELF-EMPLOYED
PROFESSIONALSPrinciples of Insurance- Dr. V. M. Tidake 23
24. NON-CONVENTIONAL GROUPS
• CO-OPERATIVE SOCIETIES
• TRADE UNIONS
• WELFARE ASSOCIATIONS
• NON-GOVERNMENT ORGANISATIONS
• VOLUNTARY ASSOCIATIONS
• CHARITABLE TRUSTS, ETC.
Principles of Insurance- Dr. V. M. Tidake 24
25. LIFE INSURANCE PRODUCTS IN
INDIA
• TERM INSURANCE
• TWO-YEAR TEMPORARY INSURANCE
• CONVERTIBLE TERM INSURANCE FOR 5-7 YEARS –
OPTION TO CONVERT INTO LIMITED PAYMENT
WHOLE LIFE OR ENDOWMENT ASSURANCE
• BIMA SANDESH – RETURN OF PREMIUM ON
SURVIVAL
• BIMA KIRAN – TERM INSURANCE; RETURN OF
PREMIUM ON SURVIVAL – FREE INSURANCE COVER
FOR 10 YEARS TO THE EXTENT OF 30% - 60% OF
THE FACE VALUE OF POLICY
• MORTGAGE REDEMPTION ASSURANCE – TO COVER
OUTSTANDING LOAN UNDER HOUSE MORTGAGE.Principles of Insurance- Dr. V. M. Tidake 25
26. • WHOLE LIFE PLANS
• WHOLE LIFE POLICY – PREMIUMS
PAYABLE FOR 35 YEARS OR AGE 80
YEARS, WHICHEVER IS LATER;
INSURANCE MONEY PAYABLE ON
DEATH
• LIMITED PAYMENT WHOLE LIFE
POLICY
• CONVERTIBLE WHOLE LIFE POLICY –
PREMIUMS PAYABLE UPTO AGE 70 OF
THE INSURED – LIMITED PAYMENT –
OPTION TO COVERT AT THE END OF
5 YEARS INTO ENDOWMENT PLAN
Principles of Insurance- Dr. V. M. Tidake 26
27. ENDOWMENT PLANS
• ENDOWMENT ASSURANCE (WITH OR
WITHOUT PROFITS)
• BHAVISHYA JEEVAN POLICY (WITH PROFITS) –
FIRST 5 YEARS PREMIUM ARE QUITE HIGH
FROM 6TH YEAR SCALED DOWN TO ALMOST
1/3RD.
• JEEVAN MITRA (DOUBLE COVER OR TRIPLE
COVER)
• JEEVAN GRIHA (DOUBLE COVER OR TRIPLE
COVER) – LOW COST WITHOUT PROFIT
ENDOWMENT ASSURANCE – FACE VALUE PAID
ON MATURITY
• NEW JAN RAKSHA (WITH PROFITS)
• JEEVAN SHREE (WITHOUT PROFITS BUT WITH
GUARANTEED ADDITION) – LIMITED PREMIUM
PAYING PERIOD – KEYMAN INSURANCE
Principles of Insurance- Dr. V. M. Tidake 27
28. • JEEVAN PRAMUKH
• ASHA DEEP II (WITH PROFITS) – ENDOWMENT PLAN WITH
RIDERS TO COVER FOUR SERIOUS ILLNESSES VIZ. CANCER,
PARALYTIC STROKE LEADING TO PERMANENT DISABILITY,
KIDNEY FAILURE (BOTH KIDNEYS), AND CARDIAC BYE-PASS
SURGERY – EXCEPT 1ST YEAR – 50% OF S.A. PREMIUM
WAIVER – ANNUITY OF 10% OF S.A. TILL MATURITY
• BALANCE 50% OF S.A. ON DEATH OR MATURITY WITH
BONUS
• MARRIAGE ENDOWMENT OR EDUCATION ANNUITY (WITH
PROFITS) – NO IMMEDIATE PAYMENT ON DEATH – PAYMENT
IN LUMPSUM IN CASE OF MARRIAGE – PAYMENT IN HALF
YEARLY INSTALMENTS OVER 5 YEARS IN EDUCATION
ANNUITY FROM DATE OF MATURITY ONLY.
• MONEY BACK PLANS
Principles of Insurance- Dr. V. M. Tidake 28
29. SPECIAL PLANS
• FOR CHILDREN –
• CHILDREN DEFERRED ASSURANCE PLANS
• NEW CHILDREN DEFERRED ASSURANCE PLAN
• JEEVAN BALYA
• JEEVAN KISHORE
• CHILDREN’S MONEY BACK PLAN
• JEEVAN ANURAG
• FOR DISABLED CHILDREN
• JEEVAN ADHAR
• JEEVAN VISHWAS
• IT EXEMPTION UPTO RS. 20,000/- ON PREMIUM
Principles of Insurance- Dr. V. M. Tidake 29
30. • JEEVAN ASHA II
• ENDOWMENT ASSURANCE WITH MEDICAL BENEFIT RIDER
• 2% OF FACE VALUE PAID EVERY 2 YEAR FOR MEDICAL CHECKUP
• REIMBURSEMENT OF EXPENSES UPTO 20% TO 50% OF FACE VALUE
OF POLICY FOR MINOR / MAJOR SURGERIES
• ON DEATH FULL S.A.
• JOINT LIFE POLICIES
• JEEVAN SAATHI
• JEEVAN SARITHA – BENEFIT OF JOINT LIFE AND LAST SURVIVORSHIP
ANNUITY APART FROM LUMP SUM PAYMENT ON DEATH OR
MATURITY
Principles of Insurance- Dr. V. M. Tidake 30
31. UNIT LINKED INSURANCE PLAN
• BIMA PLUS – CAPITAL MARKET LINKED INSURANCE PLAN
• PREMIUM HAS TWO PARTS
• RISK PREMIUM
• INVESTMENT PREMIUM
• INVESTMENT AT THE CHOICE OF POLICYHOLDER – FROM
THREE COMBINATIONS VIZ.
• SECURED FUND (COMPLETE SECURITY)
• BALANCED FUND (MODERATE RISK)
• RISK FUND (HIGH RISK INVESTMENTS)
Principles of Insurance- Dr. V. M. Tidake 31
32. • INVESTMENT PATTERN
Principles of Insurance- Dr. V. M. Tidake 32
Equity Debt Liquid
Secured Not less than 10% 80 % 20 %
Balanced Not less than 30% 80 % 20 %
Risk Not less than 50% 75 % 25 %
33. •POLICY HOLDER TO SELECT
A FUND
•SWITCH OVER TWICE DURING
THE TERM SUBJECT TO
MINIMUM GAP OF 2 YEARS
•COST OF SWITCHING OVER
2% OF THE CURRENT BID
VALUE OF THE FUND
Principles of Insurance- Dr. V. M. Tidake 33
34. LIFE INSURANCE PRODUCTS OF
PRIVATE COMPANIES
• HDFC STANDARD LIFE
• ENDOWMENT ASSURANCE PLAN
• MONEY BACK PLAN – PAYMENT OF CASH LUMP SUM AT 5
YEARLY INTERVALS
• GROUP INSURANCE POLICY – SPECIFIED GROUP FOR A TERM
OF ONE YEAR
• ENDOWMENT ASSURANCE PLANS
• ICICI PRU SINGLE PREMIUM BOND – SAVINGS WITH LIFE COVER
– FIXED TERM PLAN OF 5 OR 10 YEARS
Principles of Insurance- Dr. V. M. Tidake 34
35. • ICICI PRU SAVE N’ PROTECT
• FIXED TERM POLICY
• POLICYHOLDER CAN ACCUMULATE FUNDS FOR FUTURE
REQUIREMENTS ON A REGULAR BASIS I.E. CHILDREN’S
EDUCATION, MARRIAGE ETC.
• EXTENDED TERM ASSURANCE COVER FOR 5 YEARS FOR
50% OF S.A. WITHOUT PAYMENT OF PREMIUM
• ADD-ON’S OR RIDERS
• OPTION FOR ADDITIONAL BENEFITS
• ACCIDENT AND DISABILITY BENEFIT
• CRITICAL ILLNESS BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM ASSURANCE
• DURING TENURE OF EXTENDED LIFE COVER, NO RIDER
BENEFIT AVAILABLE
Principles of Insurance- Dr. V. M. Tidake 35
36. ICICI PRU FOREVER LIFE
• REGULAR INCOME FOR LIFE AFTER PRESCRIBED DATE
• LIFE COVER DURING THE DEFERMENT PERIOD
• OPTIONS
• LIFE TIME ANNUITY
• LIFE ANNUITY CERTAIN FOR 5, 10, 15 YEARS
• LIFE ANNUITY WITH RETURN OF PURCHASE PRICE
• JOINT LIFE, LAST SURVIVOR ANNUITY
• ADD-ON’S OR RIDERS – ONE CAN BE CHOSEN
• ACCIDENT AND DISABILITY BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM INSURANCE
Principles of Insurance- Dr. V. M. Tidake 36
37. • ICICI PRU CASH BANK
• THREE-IN-ONE COMBINING SAVINGS, LIQUIDITY AND
PROTECTION
• TERM OF 15 OR 20 YEARS
• SURVIVAL BENEFIT AT REGULAR INTERVALS
ADD-ON’S OR RIDERS
• ACCIDENT AND DISABILITY BENEFIT
• CRITICAL ILLNESS BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM INSURANCE
Principles of Insurance- Dr. V. M. Tidake 37
38. • PROTECTION PLANS
• THE PRU LIFE GUARD OR TERM LEVEL ASSURANCE
• DEATH RISK COVERAGE
• NO MATURITY BENEFITS IN CASE OF SINGLE PREMIUM LEVEL
TERM POLICY
ADD-ON’S OR RIDERS
• ACCIDENT AND DISABILITY BENEFIT
• CRITICAL ILLNESS BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM INSURANCE
Principles of Insurance- Dr. V. M. Tidake 38
39. BIRLA SUN LIFE INSURANCE
COMPANY LTD.
• FLEXI SAVE PLUS ENDOWMENT PLAN:
• PREMIUM FOR A FIXED DURATION OR IN A SINGLE LUMP SUM
• BENEFIT OF INSURANCE COVER AS ALSO INVESTMENT TO
HELP SAVINGS GROW – BONDS / SECURITIES
• LOAN FACILITY UPTO 90% OF THE TOTAL POLICY VALUE ON
PAYMENT OF INTEREST AT FIXED RATE
• FACILITY OF WITHDRAWAL FROM 3RD POLICY ANNIVERSARY –
CAN CLOSE THE PLAN EARLIER – NO SURRENDER CHARGES
AFTER 4TH YEAR.
Principles of Insurance- Dr. V. M. Tidake 39
40. • FLEXI CASH FLOW MONEY BACK
PLAN:
• FIXED TERM POLICY WITH PERIODIC
PAYBACK AT FIXED INTERVALS
• OFFERS FLEXIBILITY TO CHOOSE
BETWEEN THE INVESTMENT OPTION,
AUTOMATIC PREMIUM PAYMENT,
DURATION OF THE PLAN ETC.
• OTHER BENEFITS AS IN FLEXI SAVE PLUS
ENDOWMENT PLAN
Principles of Insurance- Dr. V. M. Tidake 40
41. • FLEXI LIFE LINE-WHOLE LIFE PLAN
• HIGHER RETURN AND SECURITY TO
FAMILY
• MEMBERS TO KEEP PAYING PREMIUM
AND ENJOY THE BENEFIT OF SAVINGS
AND LIFE INSURANCE
• OFFERS THE FLEXIBILITY TO CHOOSE
THE PREMIUM PAYMENT INVESTMENT
OPTION, DURATION ETC.Principles of Insurance- Dr. V. M. Tidake 41
42. BAJAJ ALLIANZ LIFE INSURANCE CO.
LTD.
• GROUP CREDIT CARE PLAN (EMPLOYER – EMPLOYEE):
• GROUP TERM INSURANCE SCHEME PROVIDING BASIC LIFE
INSURANCE PROTECTION TO EMPLOYEES WHO HAVE TAKEN
LOAN FROM EMPLOYER
• COVERING RISK OF OUTSTANDING LOAN IN CASE OF
PREMATURE DEATH
• ONE POLICY DOCUMENT – TO THE EMPLOYER
• ACCIDENTAL DEATH BENEFIT – ADDITIONAL AMOUNT
EQUAL TO LIFE COVER GRANTED – TOTAL ACCIDENT COVER
LIMIT 10 LACS
• ACCIDENTAL PERMANENT TOTAL DISABILITY BENEFIT –
PAYMENT OF AN AMOUNT EQUAL TO LIFE COVER GRANTED
TOTAL ACCIDENTAL DISABILITY COVER LIMIT – 10 LACSPrinciples of Insurance- Dr. V. M. Tidake 42
43. GROUP RISK CARE PLAN
(EMPLOYER – EMPLOYEE)
• RISK COVERAGE
• LIFE INSURANCE BENEFIT FOR ALL
MEMBERS
• ONE POLICY DOCUMENT TO THE
EMPLOYER
• ACCIDENTAL DEATH BENEFIT
• ACCIDENTAL PERMANENT TOTAL
DISABILITY BENEFITSPrinciples of Insurance- Dr. V. M. Tidake 43
44. • GROUP CREDIT CARE PLAN (NON
EMPLOYER – EMPLOYEE)
• GROUP TERM INSURANCE SCHEME TO PEOPLE HAVING
AVAILED A LOAN FROM AN INSTITUTION OR CO-OPERATIVE
• COVERS RISK OF OUTSTANDING LOAN
• ONE POLICY DOCUMENT TO THE INSTITUTION OR CO-
OPERATIVE
• FACILITY OF ENHANCEMENT OF COVER BY ADDING
ACCIDENTAL DEATH BENEFIT / ACCIDENTAL PERMANENT
TOTAL DISABILITY BENEFIT.
Principles of Insurance- Dr. V. M. Tidake 44
45. • GROUP RISK CARE PLAN (NON
EMPLOYER – EMPLOYEE)
• BASIC LIFE INSURANCE PROTECTION
TO GROUP MEMBERS
• COVERS RISK OF DEATH – ALL
MEMBERS OF THE SCHEME
• ONE POLICY DOCUMENT TO THE
GROUP POLICYHOLDER
• FACILITY OF ENHANCEMENT OF
COVER – ACCIDENTAL DEATH
BENEFIT / ACCIDENTAL PERMANENT
– TOTAL DISABILITY BENEFIT.Principles of Insurance- Dr. V. M. Tidake 45
46. •TERM CARE PLAN –
• TERM INSURANCE PLAN – LIFE
COVER WITH RETURN OF
PREMIUM ON MATURITY
• LIFE INSURANCE COVER AT LOW
COST
• TWO PREMIUM PAYMENT
OPTIONS-
A. REGULAR PREMIUM PAYMENT
THROUGHOUT THE SELECTED
TERM
B. SINGLE PREMIUM PAYMENT
Principles of Insurance- Dr. V. M. Tidake 46
47. • OPTION TO CHOOSE UPTO 5
ADDITIONAL BENEFITS
• ECONOMY
• PROTECT – 3 IN-BUILT ADDITIONAL BENEFITS
• ACCIDENTAL DEATH BENEFIT
• ACCIDENTAL PERMANENT TOTAL / PARTIAL DISABILITY BENEFIT
• WAIVER OF PREMIUM BENEFIT
• HEALTH
• CRITICAL ILLNESS BENEFIT
• HOSPITAL CASH BENEFIT
• TOTAL – PROVIDING 5 IN-BUILT BENEFITS OF ‘PROTECT’ &
‘HEALTH’.
Principles of Insurance- Dr. V. M. Tidake 47
48. • RISK CARE PLAN:
• A PURE TERM INSURANCE PLAN – VERY ECONOMICAL
• OFFERS COVER AT THE LOWEST POSSIBLE COST
• NO SURVIVAL BENEFIT
• LIFE TIME CARE PLAN:
• A LIFE TIME ENDOWMENT PLAN WITH PROFITS
• 4 DIFFERENT PLAN TYPE – ECONOMY, PROTECT HEALTH
AND TOTAL PLAN
Principles of Insurance- Dr. V. M. Tidake 48
49. •SAVE CARE PLAN
• ENDOWMENT PLAN WITH PROFITS FOR
A SPECIFIED PERIOD TO MEET PLANNED
EXPENDITURES LIKE EDUCATION /
WEDDING OF CHILDREN
• COMES IN 4 TYPES – ECONOMY SINGLE
PREMIUM PLAN, ECONOMY PLAN,
PROTECT PLAN, HEALTH PLAN
Principles of Insurance- Dr. V. M. Tidake 49
50. PRODUCTS IN OVERSEAS MARKET
• TERM INSURANCE - FOR DIFFERENT SPECIFIED PERIOD-
• RENEWABLE AND NON-RENEWABLE
• CONVERTIBLE AND NON-CONVERTIBLE
• TWO OTHER FORMS-
• LEVEL TERM INSURANCE – PROVIDES SPECIFIED AMOUNT OF
COVERAGE FOR THE ENTIRE PERIOD OF POLICY
• DECREASING TERM LIFE INSURANCE
Principles of Insurance- Dr. V. M. Tidake 50
51. UNIVERSAL LIFE INSURANCE
• VARIATION OF WHOLE LIFE, THE PURE INSURANCE PART
(THE TERM PORTION) IS SEPARATED FROM THE
INVESTMENT (CASH PORTION)
• INVESTMENT PORTION INVESTED IN MONEY MARKET
FUNDS
• CASH VALUE PORTION IS SET UP AS AN ACCUMULATION
FUND TO WHICH INVESTMENT INCOME IS CREDITEDPrinciples of Insurance- Dr. V. M. Tidake 51
52. • DEATH BENEFIT (TERM INSURANCE) IS PAID OUT OF
ACCUMULATION FUND
• THE CASH VALUE OF UNIVERSAL LIFE INSURANCE GROWS
AT VARIABLE RATE
• THE INSURED CAN VARY HIS ANNUAL DEATH BENEFIT AND
THE ANNUAL PREMIUM
• PROVISION FOR MAKING PARTIAL SURRENDER AND TAKE
POLICY LOAN AGAINST CASH VALUE
• WHEN EARNINGS ARE GOOD, POLICY OWNER CAN PUT
MORE MONEY IN THE CASH PORTION OF THE POLICY
• NORMALLY THERE IS GUARANTEED MINIMUM INTEREST
RATE
• A FEW OTHER OPTIONSPrinciples of Insurance- Dr. V. M. Tidake 52
53. • VARIABLE LIFE INSURANCE
• A FORM OF WHOLE LIFE INSURANCE – TERM PORTION; PREMIUM
TOWARDS ADMINISTRATIVE EXPENSES; PART TOWARDS
INVESTMENT OR CASH VALUE PORTION
• THE INSURED MAY SELECT TO INVEST THE FUNDS IN VARIOUS
INVESTMENTS : STOCKS, BONDS, MF’S. HE MAY ONLY CHOOSE
FROM INVESTMENT VEHICLES FROM THE INSURANCE COMPANIES
PORTFOLIO.
• OPTION TO SWITCH INVESTMENT VEHICLES A FEW TIMES
• IT IS EXPENSIVE – COMMISSION AND SERVICE FEE IS HIGH.
• VALUE OF DEATH BENEFIT MAY FLUCTUATE UP OR DOWN
DEPENDING ON THE PERFORMANCE OF THE INVESTMENT
PORTION. HOWEVER, DEATH BENEFIT CAN NEVER FALL BELOW A
DEFINED LEVEL.Principles of Insurance- Dr. V. M. Tidake 53
54. • WHOLE LIFE INSURANCE PRODUCTS IN FOREIGN MARKETS
• PART PREMIUM FOR INSURANCE; SMALL PART TOWARDS ADMIN.
EXPENSES; BALANCE FOR INVESTMENT
• INSURANCE COVERAGE FOR ENTIRE LIFE
• PREMIUM THROUGHOUT LIFE OR SELECTED TERM (10, 20, 30 YEARS)
• PROVISION FOR SINGLE PREMIUM
• CASH VALUE PORTION BELONGS TO INSURED; CAN TAKE LOAN OR CASH;
INTEREST ON ACCUMULATION FUND IS TAX FREE
• PREMIUMS ARE FIXED REGARDLESS OF THE AGE OR HEALTH OF THE
POLICY OWNER.
• INVESTMENT VEHICLES ARE GENERALLY BONDS AND MORTGAGES
Principles of Insurance- Dr. V. M. Tidake 54
55. • PROGRESSIVE PROTECTION POLICY
• DESIGNED TO ADAPT TO CHANGING CIRCUMSTANCES
• LUMP SUM IN THE EVENT OF DEATH / TERMINAL ILLNESS
• NO CASH-IN-VALUE; PURELY FOR PROTECTION; NO
INVESTMENT
• PROVISION FOR INCREASE / DECREASE IN COVER AT ANY TIME
OTHER THAN THE FIRST YEAR
• OPTION TO HAVE THE POLICY INCREASE AUTOMATICALLY
EVERY YEAR
• OPTION FOR MODE OF PAYMENT OF PREMIUM
Principles of Insurance- Dr. V. M. Tidake 55