PRESENTED BY –

HEMALATA PATRA
GUIDED BY – DR K.K.
ACHARYA
 •Insurance is a device for transfer of risk of
individuals to an insures ,who agrees for a
consideration(called the premium)to assume ,to
a specific extend, loss suffered by the insured .
•It is a form of contract under which one party
(insure) agrees in return of a consideration to pay
an agreed sum of money to another party
(insured) to make a good for a loss , damage or
injury to something of value in which insured has
financial interest.
An arrangement by which
company or the states under
takes to provide a guarantee
of compensation for specific
loss.
•The history of insurance traces the development of the
modern business of insurance against risks , espicially
regarding cargo , property, death, automobiles accidents
and medical treatment.
•The insurance industry helps to eliminates risk (as
when fire –insurance provides demand the
implementation of safe practice and the installation of
hydrants) ,spreads risk from individuals to the larger
community and provides an important source of long
term finance for both the public and private sectors. The
insurance industry generally generates profits and
provides attractive employment opportunity for white
collar workers.
The IRDA (Insurance Regulatory and
Development Authority) bill provides for the
establishment of an authority to protect the
interest of the holders of insurance policies to
regulate , promote and insure orderly growth of
the insurance industry and amend the insurance
ACT 1938 the life insurance ACT 1956 and
the general insurance business (nationalization).
Function of insurance are to spread the loss
caused by the particular risk over a number of
persons, who are exposed to it and who agree
to insure themselves against the risk .
 The function of insurance can be studied in to
two parts.
1. PRIMARY FUNCTION
2. SECOUNDARY FUNCTION
•There are 4 types of primary function.
1) Providing protection-The element purpose of insurance is to
allow security against future risk, accident and uncertainly.
Insurance is in really a protective cover against economic loss
by apportioning the risk with others.
2) Collective risk bearing – Insurance is an instrument to share the
financial loss . All the insured add the premium towards a fund
and out of which the person facing a specific risk is paid.
3) Evaluating risk – Insurance fixes the likely volume of risk by
assessing diverse factors that give risk to risk . Risk is basis for
ascertaining the premium rate as well.
4) Providing certainly – Insurance is a device , which assists in
changing certainty to certainty.
There are 3 types of secondary function.
1. Preventing losses - Insurance warns individuals and
business men to embrace appropriate device to prevent
unfortunate after math of risk by observing safety
instruction.
2. Covering larger risk with small capital – Insurance
assuager the businessmen from security investment . This
is done by paying small amount of premium against larger
risk.
3. Helps in the development of larger industries – Insurance
provides an opportunity to develop to those larger
industries which have more risk in their setting up.
 Life
insurance
or
personal Property
Social insurance insurance
insurance

Types of
insurance
Guarantee
insurance
THANK YOU