INSURANCE

Definition &What is
Insurance?
 Insurance is defined as the equitable
transfer of the risk of a loss, from one
entity to another, in exchange for a
premium.
 Insurance in broad terms may be described
as a method of sharing financial losses of
few from a common fund who are equally
exposed to the same loss.
PRINCIPLE OF INSURANCE
 Utmost Good Faith:-Both the Parties i.e. The
insured and the insurer should have a good
faith towards each other.
 Principle of Indemnity:-It means a assurance
to put the insured in the same position in which
he was prior to the happening of the uncertain
event.
 Principle of Contribution:- This principle is
often appended to the principle of indemnity.
Types of insurance
Life • Paid to insured or
beneficiaries.
Insurance • Provides monetary benefit.

Property •Protection against risk to

property.
Insurance •For ex:-Fire, theft etc.

Auto • Cover losses regarding auto damage.

• Types of auto insurance.

Insurance • For ex:- Third party, Comprehensive

cover.
Types of insurance
• Cover the cost of an
Health individual.
• Protects you from high
insurance unexpected costs.

• COVERS CERTAIN EVENTS,USALLY

HOME COVERS THE COST TO REBUILD YOUR

HOME.
• For ex:- Fire and some natural
INSURANCE disasters.
Players of the Industry
Life Insurers
 LIC
 Bajaj Allianz Life Insurance Company
Limited.
 Birla Sun Life Insurance Co. Ltd
 HDFC Standrad Life Insurance Co. Ltd
 ICICI Prudential Life Insurance Co. Ltd
 Max New York Life Insurance Co.Ltd
 Idbi federal life insurance
 Aegon life insurance company
Players of the Industry
general Insurers
 ICICI Prudential General Insurance Co. Ltd
 Bajaj Allianz General Insurance Company
Limited.
 Reliance general insurance co. Ltd
 Tata aig general insurance co. Ltd
 Hdfc chubb general insurance co. ltd
conclusion
 Insurance benefits individuals, organizations and society in more
ways than the average person realizes. Some of the benefits of
insurance are obvious while others are not.

 Payment of losses.:- An insurance policy is a contract used

to indemnify individuals and organizations for covered losses.

 Managing cash flow uncertainty :- Insurance provides payment

for covered losses when they occur. Therefore, the uncertainty of
paying for losses out-of-pocket is reduced significantly.
conclusion
 Complying with legal requirements :- Insurance meets statutory
and contractual requirements as well as provides evidence of
financial resources.
 Promoting risk control activity:- Insurance policies provide
incentives to implement a loss control program because of policy
requirements and premium savings incentives.
 Efficient use of an insured's resources :- Insurance makes it
unnecessary to set aside a large amount of money to pay for the
financial consequences of the risk exposures that can be
insured. This allows that money to be used more efficiently.
THANK YOU