1. INSURANCE

2. index Meaning Functions Principles Types

3. Meaning Life is full of uncertainties. there are risks of death and disabilities for human life , fire and burglary risk for shipment of goods and ; the sea for shipment of goods and ; so on .If any of this takes place one may suffer a great loss , sometimes beyond their capacity to bear it . therefore , to minimize the impact of such uncertainties there is a need of insurance .

4. Functions of insurance Providing certainty: insurance provides certainty of payment for the risk of loss. There are uncertainties of happenings of time and amount of loss .insurance removes these uncertainties and the assured receives payment of loss. The insurer charges premium for providing the certainty.

5. Protection: the second main function of insurance is to provide protection from probable chances of loss. Insurance cannot stop the happening of risk or event but can compensate for losses arising out of it. Risk sharing: on the happening of a risk event, the loss is shared by all the persons exposed to it. The share is obtained from every insured member by way of premiums.

6. Assist in capital formation: the accumulated funds of 6thre insurer received by way of premium payments made by insured are invested in various income generating schemes.

7. Principles of insurance

8. principles UTMOST GOOD FAITH: A contract of insurance is a contract of uberrimae fidei i.e. a contract found on utmost good faith. Both the insurer and the insured display good faith towards each other in regard to the contract.

9. principles Examples of material facts: FIRE: Construction of building, type of occupancy, nature of good stored etc. MARINE: method of packing,

10. principles INSURABLE INTREST The insured must have an insurable interest in the subject matter of insurance …. insurable interest means some pecuniary interest in the subject matter of insurance contract.

11. principles INDEMINITY: according to it, the insurer undertakes to put the insured, in the event of loss, in the same position that he occupied immediately before the happening of the same position that he occupied immediately before the happening of the event insured against.

12. SUBROGATION : It refers to the right of insurer to stand in the place of the insured , after the settlement of a claim ,as far as the insured in respect of recovery from an alternative source is involved . principles

13. principles PROXIMATE CAUSE When the loss is the result of the two or more causes, the proximate cause means the direct, the most dominant and most effective cause of which the loss is a natural consequence.

14. Mitigation : This principle states that it is the duty of the insured to take reasonable steps to minimize the loss or damage to the insured property . principles

15. Contribution As per this principle it is the right of an insurer who has paid claim under an insurance, to call upon other liable insurer to contribute for the loss payment. principles

16. TYPES OF INSURANCE

17. Types of insurance A chart showing the types of insurances …………………

18. Life insurance

19. Life insurance may be defined as a contract in which the insurer, in consideration of a certain premium, either in a lump sum or by other periodical payment, agrees to the assured sum of money , on the happening of a specified event contingent on the human life or at the expiry of a certain period… Life insurance

20. Life insurance may be defined as a contract in which the insurer in consideration of a certain premium , either in a lump sum or by other periodical payments, agrees to pay to the assured or to the person for whose benefit the policy is taken, the assured sum of money , the happening of a specified event contingent on the human life or at the expiry of certain period .

21. This insurance provides protection to the family at premature death individual or gives adequate amount at an old age when earning capacities are reduced. The insurance is not only a protection but a sort of investment because a certain sum is returnable to the insured at the time of death or at the expiry of a certain period.

22. The main elements of a life insurance contract are : 1. the life insurance contract must have all the essentials of a valid contract. 2. the contract of life insurance is a contract of utmost good faith. 3. in life insurance , the insured must have insured interest in the life assured. 4. life insurance contract is not a contract of indemnity.

23. TYPES OF LIFE INSURANCE POLICIES: People have different requirements and therefore they would like a policy to fulfill all their needs. The needs of people for life insurance can be family needs, children’s needs, old age and special needs. To meet the needs of people the insurer’s have developed different types of products such as whole life assurance, Endowed types plans , combinations of whole life and Endowed type plans, children’s assurance plans and annuity plans.

24. Fire insurance

25. Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by a fire during a specified period up to the amount specified in the policy .

26. The main elements of a fire insurance contract are: 1. In fire insurance, the insured must have insurable interest in the subject matter of insurance. 2. Similar to the life insurance contract, the contract of fire insurance is a contract of utmost good faith i.e. uberrimaefidei.

27. 3. The contract of fire insurance is a contract of strict indemnity. 4. The insurer is liable to compensate only when fire is the proximate cause of damage or loss.

28. Marine insurance

29. A marine insurance contract is an agreement whereby the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. Marine insurance provides against the loss by marine perils of the sea. Marine insurance is slightly different from other types. There are three things involved i.e. ship or hull, cargo or goods and freight

30. The main element of marine insurance contract are : Unlike life insurance, the contract of marine insurance is a contract of indemnity . Similarly to life and fire insurance, the contract of marine insurance is a contract of utmost good faith. Insurable insurance must exist at the time of loss The principle of causaproxima will apply to it .

31. Made by E O H N Y