*Insurance

Insurance is contract or agreement under which one party agrees in consideration of insurance premium to pay an agreed sum of money to the insured to make a god for lose, damage or injury caused by some uncertain event.

*Introduction

*Providing certainty

*Protection

*Risk sharing

*Assist in capital formation

*Functions of insurance

*Principles of insurance

The principles of insurance are the

rules of action or conduct adopted by

the stakeholders involved in the

insurance business. They are as follows:-

*Utmost good faith

*Insurable interest

*Indemnity

*Contribution

*Causa proxima

*Indian insurance

sectorIt is a well-known fact that the Indian economy has been amongst the fastest growing economies of the world. It is triggered by better performances of all the three sectors i.e., agriculture, industry and services. The first step taken by the government was to establish IRDA Act with the objective of streamlining the development process. The Indian insurance market is a mega market with a huge potential.

Since the opening of the insurance sector in December 1999 the insurance industry is changing rapidly. Today 13 companies operate in the life and 13 in non-life segment. LIC of India has dominated the life segment for over four decades although only25 per cent of the insurable population was insured.

*Types of insurance

Life insurance is a contract whereby the insurer, in consideration of premium, undertakes to pay certain sum of money or annuity on the death of the insured or expiry of the specified period , whichever is earlier.

*LIFE INSURANCE

*TYPES OF LIFE INSURANCE

POLICIES*WHOLE LIFE POLICY

*ENDOWMENT POLICY

*JANATA POLICY

*WITH OR WITHOUT PROFITS POLICY

*JOINT LIFE POLICY

*GROUP INSURANCE POLICY

*MONEY BACK POLICY

*ANNUITY POLICY

*LIFE INSURANCE CORPORATION OF INDIA

LIFE INSURANCE CORPORATION OF INDIA (LIC) WAS FORMED ON SEPTEMBER 1, 1956 AS FULLY OWNED CORPORATION OF GOVERNMENT OF INDIA UNDER THE LIFE INSURANCE CORPORATION ACT, 1956 TO UNDERTAKE LIFE INSURANCE BUSINESS.

Spreading of life insurance cultMobilisation of savingsProper investment of fundsConducting business economicallyActing as trusteeMeeting life insurance needsProviding efficient servicesProviding sense of participation

*Objectives of LIC

*FIRE INSURANCE

Fire insurance is a contract whereby the insurance company, in consideration of premium,

undertakes to indemnity the insured (owner of the property) for any loss

or damage caused by accidental fire.

valued policy Specific policy Average policy Floating policy Blanket policy Consequential loss policy Replacement policy Comprehensive policy

*Types of fire insurance policies

* MARINE INSURANCE

Marine insurance is a contract of indemnity whereby the

insurer undertakes to indemnify the insured for the loss or

damage to the ship, cargo or freight caused by sea perils in

consideration of a specific premium.

Hull insurance . Hull means a frame or body of a ship or boat. Hull insurance involves insuring a ship against sea perils.

Cargo insurance . Cargo means goods being transported through a ship. In this case, the goods are insured against sea perils of sea.

Freight insurance. In transportation of goods by a ship, the freight is paid either at the departure port or destination port.

*Types of marine insurance

* Types of marine

insurance policies

Voyage policy

Time policy

Mixed policy

Valued policy

Unvalued policy

Floating policy

Block policy

Fleet policy

Composite policy

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