Meaning of INSURANCE ,Indian Insurance Industry Overview Types of Insurance ,Examples of INSURANCE Company ,How does insurance work?, tax benefits on insurance

1. A
PRESENTATION ON “ STUDY OF SALES PROMOTION’’
AND
“ANALYSIS OF INSURANCE BUSINESS ’’
SUBJECT: MARKETING MANAGEMENT
Submitted By ; Mr. GHANI NAIK
Mcom – 1sem
AICM,
Submitted To ; Dr. HARISH MBA Mcom M Phil P hD.
Assistant Professor
AICM
2019 – 2020

2. Contents
S.no Particulars
1. Meaning of INSURANCE
2. Indian Insurance Industry Overview
3. Types of Insurance
4. Examples of INSURANCE Company
5. How does insurance work?
6. tax benefits on insurance

3. MEANING OF INSURANCE
Insurance is a means of protection from financial loss. It is a form of risk
management, primarily used to hedge against the risk of a contingent or uncertain loss.
An entity which provides insurance is known as an insurer, insurance company,
insurance carrier or underwriter. A person or entity who buys insurance is known as an
insured or as a policyholder. The insurance transaction involves the insured assuming
a guaranteed and known relatively small loss in the form of payment to the insurer in
exchange for the insurer's promise to compensate the insured in the event of a
covered loss. The loss may or may not be financial, but it must be reducible to
financial terms, and usually involves something in which the insured has an insurable
interest established by ownership, possession, or pre-existing relationship.
The insured receives a contract, called the insurance policy, which details the
conditions and circumstances under which the insurer will compensate the insured.
The amount of money charged by the insurer to the Policyholder for the coverage set
forth in the insurance policy is called the premium. If the insured experiences a loss
which is potentially covered by the insurance policy, the insured submits a claim to the
insurer for processing by a claims adjuster. The insurer may hedge its own risk by
taking out reinsurance, whereby another insurance company agrees to carry some of
the risk, especially if the primary insurer deems the risk too large for it to carry.
Indian Insurance Industry Overview & Market Development Analysis

4. 7 Types of Insurance
Types of Insurance Business are;
• Life Insurance or Personal
Insurance.
• Property Insurance.
• Marine Insurance.
• Fire Insurance.
• Liability Insurance.
• Guarantee Insurance.
• Social Insurance.

5. These are explained below.
1.Life Insurance
Life Insurance is different from other insurance in the sense that, here, the subject
matter of insurance is the life of a human being.
The insurer will pay the fixed amount of insurance at the time of death or at the
expiry of a certain period.
At present, life insurance enjoys maximum scope because life is the most important
property of an individual.
Each and every person requires insurance.
This insurance provides protection to the family at the premature death or gives an
adequate amount at the old age when earning capacities are reduced.
Under personal insurance, a payment is made at the accident.
The insurance is not only a protection but is a sort of investment because a certain
sum is returnable to the insured at the death or the expiry of a period.
Related: Life Insurance Bonus: Definition, Features, Types
2.General Insurance
General insurance includes Property Insurance, Liability Insurance, and Other Forms
of Insurance.
Fire and Marine Insurances are strictly called Property Insurance. Motor, Theft,
Fidelity and Machine Insurances include the extent of liability insurance to a certain
extent.
Related: 4 Difference between Insurance and Assurance
The strictest form of liability insurance is fidelity insurance, whereby the insurer
compensates the loss to the insured when he is under the liability of payment to
the third party.

6. 3.Property Insurance
Under the property insurance property of person/persons are insured against a
certain specified risk. The risk may be fire or marine perils, theft of property or
goods damage to property at the accident.
4.Marine Insurance
Marine insurance provides protection against the loss of marine perils.
The marine perils are; collision with a rock or ship, attacks by enemies, fire,
and captured by pirates, etc. these perils cause damage, destruction or
disappearance of the ship and cargo and non-payment of freight.
So, marine insurance insures ship (Hull), cargo and freight.
Previously only certain nominal risks were insured but now the scope of marine
insurance had been divided into two parts; Ocean Marine Insurance and Inland
Marine Insurance.
The former insures only the marine perils while the latter covers inland perils which
may arise with the delivery of cargo (gods) from the go-down of the insured and
may extend up to the receipt of the cargo by the buyer (importer) at his go down.
5.Fire Insurance
Fire Insurance covers the risk of fire.
In the absence of fire insurance, the fire waste will increase not only to the
individual but to the society as well.
With the help of fire insurance, the losses arising due to fire are compensated and
the society is not losing much.
The individual is preferred from such losses and his property or business or industry
will remain approximately in the same position in which it was before the loss.

7. The fire insurance does not protect only losses but it provides certain consequential
losses also war risk, turmoil, riots, etc. can be insured under this insurance, too.
6.Liability Insurance
The general Insurance also includes liability insurance whereby the insured is liable
to pay the damage of property or to compensate for the loss of persona; injury or
death.
This insurance is seen in the form of fidelity insurance, automobile insurance, and
machine insurance, etc.
7.Social Insurance
The social insurance is to provide protection to the weaker sections of the society
who are unable to pay the premium for adequate insurance.
Pension plans, disability benefits, unemployment benefits, sickness insurance, and
industrial insurance are the various forms of social insurance.
Insurance can be classified into 4 categories from the risk point of view.
8. Personal Insurance
The personal insurance includes insurance of human life which may suffer a loss
due to death, accident, and disease
Therefore, personal insurance is further sub-classified into life insurance, personal
accident insurance, and health insurance.
9. Property Insurance
The property of an individual and of the society is insured against loss of fire and
marine perils, the crop is insured against an unexpected decline in deduction,

8. unexpected death of the animals engaged in business, break-down of machines
and theft of the property and goods.
10. Guarantee Insurance
The guarantee insurance covers the loss arising due to dishonesty, disappearance,
and disloyalty of the employees or second party. The party must be a party to the
contract.
His failure causes loss to the first party.
For example, in export insurance, the insurer will compensate the loss at the failure
of the importers to pay the amount of debt.
11.Other Forms of Insurance
Besides the property and liability insurances, there are other insurances that are
included in general insurance.
The examples of such insurances are export-credit insurances, State employees’
insurance, etc. whereby the insurer guarantees to pay a certain amount at certain
events.
This insurance is extending rapidly these days.
12.Miscellaneous Insurance
The property, goods, machine, Furniture, automobiles, valuable articles, etc. can be
insured against the damage or destruction due to accident or disappearance due to
theft.
There are different forms of insurances for each type of the said property whereby
not only property insurance exists but liability insurance and personal injuries are
also the insurer.

9. Examples of INSURANCE Company

10. How does insurance work?
The insurer and the insured get a legal contract for the insurance, which is
called the insurance policy. The insurance policy has details about the
conditions and circumstances under which the insurance company will pay
out the insurance amount to either the insured person or the nominees.
Insurance is a way of protecting yourself and your family from a financial
loss. Generally, the premium for a big insurance cover is much lesser in
terms of money paid. The insurance company takes this risk of providing a
high cover for a small premium because very few insured people actually
end up claiming the insurance. This is why you get insurance for a big
amount at a low price.
Any individual or company can seek insurance from an insurance company,
but the decision to provide insurance is at the discretion of the insurance
company. The insurance company will evaluate the claim application to
make a decision. Generally, insurance companies refuse to provide
insurance to high-risk applicants.

11. What are the tax benefits on insurance?
Apart from the safety and security benefits of buying insurance, there are also
the income tax benefits that you can avail.
•Life insurance premium of up to ₹1.5 lakh can be claimed as a tax-saving
deduction under Section 80C
•Medical insurance premium of up to ₹25,000 for yourself and your family
and ₹25,000 for your parents can be claimed as a tax-saving deduction
under Section 80D
These claims have to be made at the time of e-filing income tax returns.

12. THANK YOU