This document discusses the key concepts of insurance. It defines insurance as a legal contract between two parties where one party agrees to pay a fixed amount of money if a particular event occurs, in exchange for regular payments from the other party. The document outlines several principles of insurance, including insurable interest, utmost good faith, indemnity, and subrogation. It also explains the benefits of insurance for both individuals and businesses. Laws governing the insurance industry in India are discussed, along with some major players in the life and general insurance sectors.

1. Presented by: Anchal

3. Cont……………………
 A financial device or contract to mitigate or eliminate risk of loss to life
and property.
 Form of risk management used to hedge against the risk of a contingent or
uncertain loss.
 Insurance can be defined as- A legal contract b/w two parties whereby one
party (insurer) undertakes to pay a fixed amount of money on the
happening of a particular event, which may be certain or uncertain.
 Premium: The other party (insured/ assured) pays in exchange a fixed sum
of money.
 Policy: The document which embodies the contract.

4. Risk sharing: A device to share the financial loss which may be afflict the
individual or his/ her family members.
Risk assessment
Cooperation: among the large number of persons who come together
voluntarily to share the financial loss.
Payment at the time of contingency: For payment to be made at the time of
contingency.
Quantum of compensation: value of compensation depends on the extent of
loss suffered by the insured from a particular risk.
Larger the number, Better the care: small no. of insured- higher premium-
unaffordable- unpopular.
General characteristic's

5. Principle of Insurable interest.
 Principle of Utmost Good Faith.
 Principle of Indemnity.
 Principle of Subrogation.
 Principle of Contribution.
 Principle of Causa Proxima (Nearest Cause).
 Principle of Mitigation of Loss.
principles

6. General
insurance
Life
insurance
Type of insurance

9. Peace of mind
Protect mortgaged properties
Provide self dependency
Tool of saving
Tool of investment
Satisfies various need
Benefit of individual insurance

10. Business and social stability
Capital freed for investement
Reduction of uncertainity
Reduced cost of capital
Reduced credit risk
Benefits of insurance in business

13. HOW INSURANCE WORKS?
Insurance
Company

14. The Insurance Act, 1938 to govern all form of insurance and to provide
strict control over insurance business.
 Insurance Regulatory And Authority Act, 1999 (to provide) for the
establishment of an authority to protect the interest of the holder of insurance
policy, to regulate, promote and ensure orderly growth of insurance industry
and for matter connected therewith or incidental thereto and future to amend
the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and the
general insurance business (Nationalization) act, 1972.
The Actuaries Act, 2006: An Act to provide for regulating and developing
the profession of Actuaries and for matters connected therewith or incidental
thereto.
Act governing insurance

15. i
Insurance Regulatory & Development Authority is regulatory and
development authority under Government of India in order to protect the
interests of the policyholders and to regulate, promote and ensure orderly
growth of the insurance industry.

16. Life insurance cooperation in india
Icici prudential life insurance ltd
Tata aig life insurance cooperation ltd
Kotak Mahindra life insurance cooperation ltd
Players in the industry life insurance

17. Oriental insurance company ltd
New india assurance company ltd
National insurance company ltd
United india insurance company ltd
Bajaj allianz general insurance company ltd
Reliance general insurance company
Players in the industry general
insurance