PRINCIPAL AND PRACTICE OF INSURANCE

TOPIC

INSURANCE ; CONCEPT, PRINCIPLE, ITS

RELEVANCE IN DEVELOPING COUNTRY LIKE

INDIA AND ATTITUDE TOWARDS THE

INSURANCE COVER.

CONTENTS

INTRODUCTION

IMPORTANT TERMS IN INSURANCE

SCOPE OF INSURANCE

FUNCTION OF INSURANCE

KINDS OF INSURANCE

PRINCIPLE OF INSURANCE

RELEVANCE OF INSURANCE

INSURANCE AND ECONOMIC DEVELOPMENT

ATTITUDE TOWARDS INSURANCE

INTRODUCTION

Defination of insurance contents the following feature;

It is a contract

Whereby an insurer assumes the risk of insured

And promises to pay a certain amount of money

On the happening of a specified event

In consideration of the premium paid by insured

IMPORTANT TERMS IN INSURANCE

o Insurance policy

o Insurer

o Insured

o Premium

o Compensation

o Insured amount

o contingency

SCOPE OF INSURANCE

Sharing of risk

Co-operative instrument

Evaluation of risk

Payment is linked to contingency

Contract

Consideration

Good faith

The amount

Functions of insurance

Primary function

Secondary function

Other function

KINDS OF INSURANCE

LIFE INSURANCE GENERAL

INSURANCE

GENERAL INSURANCE

Marine insurance

Fire insurance

Social insurance

Double insurance

Reinsurance

Over insurance

Other insurance

PRINCIPLE OF INSURANCE

Principle of insurable interest

Principle of indemnity

Principle of subrogation

Principle of causa proxima

Principle of contribution

Principle of utmost good faith

Principle of mitigation of losses

RELEVANCE OF INSURANCE

Relevance and useful for individual

Relevance and useful for business

Relevance and useful for society

RELEVANCE AND USEFULNESS FOR INDIVIDUAL

Provides saftey and security

Acts as movitor

Encourages saving

Eliminates dependency

Profitable investment

Fulfills needs of a person

RELEVANCE AND USEFUL FOR BUSINESS

Uncertainty of business losses is contained

Helpful in raising loans

Helpful in raising motivation

Helpful in partnership concerns

Welfare of employee

RELEVANCE AND USEFUL TO SOCIETY

Helpful in economic growth

Protection of wealth

INSURANCE AND ECONOMIC DEVELOPMENT

Providing fund for development

Helping international trade

Safety and security of property

Encouraging saving

Availability of capital

Better creditworthiness

Helping financial institutions

Helping the service sector

Protection against risk

ATTITUDE TOWARDS INSURANCE

GENERAL ATTITUDES

FROM SOCIAL POINT OF VIEW

COMMOM PERECEPTION

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