Skip to main content

Insurance - An Introduction

v What is Insurance:
Insurance is a contract between the insurer and the insured wherein against receipt of certain amount, called  premium,  the insurer agrees to make good any  financial loss that may be suffered by the insured,  due to the operation of an insured peril on the subject matter of insurance.


v Why People Opt for Insurance?
The Life is full of uncertainties..   People opt for insurance purely for the reasons of uncertainties in life.  Insurance gives the insured a kind of  peace of mind as he is assured to making up the loss in the event of such uncertainities in life happen.

v How does Insurance work?
Insurance is a technique wherein a number of people, who are exposed to similar risk, participate in the scheme and contribute in the shape of periodic premiums.  Such premiums are received by the insurer who is able to pay out of the premiums received by him, for the losses of some of those who have participated in the scheme.
Thus it is wonderful technique of spreading and transfer or risks.

v What kind of Insurance Are Available in India:
Insurance business is divided into four classes , namely :
  • Life Insurance. Popular Products in Life insurance are  Endowment Assurance (Participating), and Money Back (Participating). More than 80% of the life insurance business is from these products
  • Fire Insurance 
  • Marine Insurance 
  • Miscellaneous Insurance. Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory. Life Insurers transact  life insurance business; General Insurers transact the rest i.e. Fire Insurance, Marine Insurance and Miscellaneous Insurance.

v What are the Primary Legislations for Insurance in India:
In India Insurance is a federal subject.    The primary legislations that deals with insurance business in India are:
Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.

v What are Consumer Protections Available in India:
Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers.

TYPES OF INSURANCE:

(A) LIFE INSURANCE:
  • Term Life Insurance
  • Permanent Life Insurance

(B) GENERAL INSURANCE:
  • Fire Insurance
  • Marine Insurance
  • Accident Insurance

NOTE: This is Chapter 1 in a 5 Chapter Series Based  on Insurance.  Keep Visiting..!!

Labels:

Popular posts from this blog

Easy way to understand Direct and Indirect speech rules

Introduction. There two ways to convey a message of a person, or the words spoken by a person to other person. 1.       Direct speech 2.       Indirect speech Suppose your friend whose name is Vipul tells you in College , “I will give you a pen”. You come to home and you want to tell your brother what your friend told you. There are two ways to tell him. Direct speech:   Vipul said, “I will give you a pen”. Indirect Speech:  Vipul said that he would give me a pen. In direct speech   the original words of person are narrated (no change is made) and are enclosed in quotation mark. While in indirect speech some changes are made in original words of the person because these words have been spoken in past so the tense will change accordingly and pronoun may also be changed accordingly. In indirect speech  the statement of the person is not enclosed in quotation marks, the word “ that ” may be used before the statement to show that it is indirect sp
3 comments
Read more

English Error Spotting - Previous Year Questions of SSC CGL

Competition Zenith brings you a post on Error Spotting to boost your English for competitive exams. We are providing you the specifically chosen questions from previous year papers of SSC CGL with the best possible explanation in simplest of the language. Below are some questions with explanation: Questions 1. Have trust on(a)/God and everything(b) /will be right.(c) /(d) No error 2. The cattles (a) /are grazing (b) /in the fields.(c) /(d) No error 3. He is one of (a)/ the best novelists (b) /that has ever lived. Do you agree? (c)/no error (d) 4. On a rainy day (a) /I enjoy to watch TV (b) / with a hot cup of tea.(c ) /no error(d) 5. No sooner did (a)/I reach (b)/ Patna railway station than the train departed(c)/no error (d) 6. There is no agreement (a) / between you and I (b) /so we are free to go our way(c) /no error (d) 7. A variety of books (a) / is available in the market (b) / to help the students qualify the competitive examinations.(c) /no error 8.
4 comments
Read more

Spotting Error Quiz IV - With Explanation For SSC Exam 2015

  Hello Readers, As you know that Spotting Error types question is an important part of competitive examinations and seldom any book provide you the detailed solution. So we have decided to provide you the previous year questions of  spotting error along with the Explanation . If you like it let us know, you can also ask for detailed solutions of questions that are bothering you. 1.     I found (a)/ the two first chapters of the book (b)/ particularly interesting. (c)/ No error (d) Answer    (b) Explanation : It should be   ‘the first two chapters’ . 2.     Bacon, the father of the English easy (a) / had a thirst (b) / of knowledge (c) / No error (d) Answer    (a) Explanation : The English means the citizen of England.   Article is not used before language
4 comments
Read more