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Insurance Notes

Insurance is a financial arrangement that provides protection against potential financial losses through a premium paid by the insured to the insurer. It involves various parties, including the insured, insurer, beneficiary, and agent/broker, and follows a specific process from proposal to claim. The document also discusses types of insurance, principles, and the current state of insurance in India, highlighting trends like digital adoption and emerging concepts such as InsurTech.

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2 views2 pages

Insurance Notes

Insurance is a financial arrangement that provides protection against potential financial losses through a premium paid by the insured to the insurer. It involves various parties, including the insured, insurer, beneficiary, and agent/broker, and follows a specific process from proposal to claim. The document also discusses types of insurance, principles, and the current state of insurance in India, highlighting trends like digital adoption and emerging concepts such as InsurTech.

Uploaded by

deveshk05112003
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Introduction to Insurance

Insurance – Basic Concept and Definition

Insurance is a financial arrangement where an individual or business (insured) pays a premium to


an insurance company (insurer) in exchange for protection against potential financial losses.

Risk and Insurance

Risk is the possibility of loss. Insurance transfers risk from an individual to an insurer.

Different Parties of Insurance

1. Insured

2. Insurer

3. Beneficiary

4. Agent/ Broker

Modus Operandi of Insurance

- Proposal → Underwriting → Policy issuance → Premium payment → Claim process

Basic Terminology

Premium, Policy, Sum Assured, Coverage, Claim, Nominee, Rider.

Principles of Insurance

1. Utmost Good Faith

2. Insurable Interest

3. Proximate Cause

4. Subrogation

5. Loss Minimisation

6. Indemnity

7. Contribution

Types of Insurance

Life Insurance & Its Types


- Term Insurance

- Unit-Linked Insurance Plan (ULIP)

- Pension Plans

- Money-Back Policy

General Insurance & Its Types

- Motor Insurance

- Home Insurance

- Fire Insurance

- Miscellaneous Insurance (health, travel, liability)

Insurance as a Part of Social Security

- Government schemes like PMJJBY, PMSBY, Ayushman Bharat.

- Role: financial protection for poor and vulnerable.

- Difference: social security = govt-supported; private = premium-based.

Current State of Insurance in India

- Growing digital adoption

- Low penetration compared to global markets

Emerging Concepts

- InsurTech

- AI-based underwriting

- Usage-based insurance

- Micro-insurance

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