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Overview of Insurance Services and Types

- The Insurance Act of 1938 was the first legislation governing all forms of insurance in India and provided strict state control over the insurance business. Its purpose was to safeguard policyholders' interests and establish norms for operating insurance smoothly. - Insurance is a contract where one party agrees to pay an agreed amount of money to another party in the event of a loss resulting from some uncertain event in exchange for a premium payment. - Insurance is important as it provides protection from risks, shares losses collectively, facilitates international trade, forms capital, and provides financial and medical support as well as employment.

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11 views11 pages

Overview of Insurance Services and Types

- The Insurance Act of 1938 was the first legislation governing all forms of insurance in India and provided strict state control over the insurance business. Its purpose was to safeguard policyholders' interests and establish norms for operating insurance smoothly. - Insurance is a contract where one party agrees to pay an agreed amount of money to another party in the event of a loss resulting from some uncertain event in exchange for a premium payment. - Insurance is important as it provides protection from risks, shares losses collectively, facilitates international trade, forms capital, and provides financial and medical support as well as employment.

Uploaded by

sneha nambiar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INSURANCE SERVICE

-PRESENTED BY SNEHA R
INSURANCE ACT
• The Insurance Act of 1938 was the first legislation governing all forms
of insurance to provide strict state control over insurance business.
• Purpose:- to safe guard the interest of insured, setting the norms for
carrying out the business of insurance smoothly, Minimizing disputes
MEANING
• Insurance as a form of contract agreement under which one party
agrees in return for a consideration to pay an agreed amount of
money to another party to make good a loss, damage or injury to
something of value in which the insured has a interest as a result of
some uncertain event.
IMPORTANCE OF INSURANCE
• Provides protection against occurrence of uncertain events.
• Device for eliminating risks and sharing losses.
• Co-operative method of spreading risks.
• Facilitates international trade.
• Serves as an agency of capital formation.
• Financial support.
• Medical support.
• Source of employment.
Types of insurance
• Life insurance
Life insurance is a contract between the policy owner and the insurer,
where the insurer agrees to reimburse the occurrence of the insured
individuals death or other event such as terminal illness or critical
illness. The insured agrees to pay the cost in terms of insurance
premium for the service. Specific exclusions are often written in the
contract to limit the liability of the insurer, for example claims related
to suicide, fraud, war, riot and civil commotion is not covered.
• general insurance
Insuring anything other than human life is called general insurance.
Examples are insuring property like house and belongings against fire
and theft or vehicles against accidental damage or theft. Injury due to
accident or hospitalization for illness and surgery can also be insured.
Your liabilities to others arising out of the law can also be insured and is
compulsory in some cases like motor third party insurance
• Fire insurance
Insurance that is used to cover damage to a property caused by fire.
Fire insurance is a specialized form of insurance beyond property
insurance, and is designed to cover the cost of replacement,
reconstruction or repair beyond what is covered by the property
insurance policy. Policies cover damage to the building itself, and may
also cover damage to nearby structures, personal property and
expenses associated with not being able to live in or use the property if
it is damaged.
• Health insurance
A type of insurance coverage that pays for medical and surgical
expenses that are incurred by the insured. Health insurance can either
reimburse the insured for expenses incurred from illness or injury or
pay the care provider directly. Health insurance is often included in
employer benefit packages as a means of enticing quality employees.
• Marine Insurance
Marine Insurance covers the loss or damage of ships, cargo, terminals,
and any transport or cargo by which property is transferred
PRINCIPLES OF INSURANCE
• Principle of Insurable interest.
• Principle of Utmost Good Faith.
• Principle of Indemnity.
• Principle of Subrogation.
• Principle of Contribution.
• Principle of Causa Proxima.
• Principle of Mitigation of Loss.

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