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Insurance Basics and Principles

This document provides an introduction and definitions related to insurance. It defines key terms like insurer, insured, premium, risk, warranty, claim, policy, undertaking, indemnity, and actuary. It describes the main characteristics of insurance as risk reduction, payment of accidental losses, transferred risk, and the principle of indemnity. It also outlines the fundamental principles of insurance, including utmost good faith, insurable interest, and indemnity. The document serves to introduce the basic concepts of insurance.

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rashmi123vaish
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181 views18 pages

Insurance Basics and Principles

This document provides an introduction and definitions related to insurance. It defines key terms like insurer, insured, premium, risk, warranty, claim, policy, undertaking, indemnity, and actuary. It describes the main characteristics of insurance as risk reduction, payment of accidental losses, transferred risk, and the principle of indemnity. It also outlines the fundamental principles of insurance, including utmost good faith, insurable interest, and indemnity. The document serves to introduce the basic concepts of insurance.

Uploaded by

rashmi123vaish
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

PRESENTED BY: RASHMI VAISH MBA HAHC

CONTENTS
INTRODUCTION DEFINITIONS CHARACTESTICS TYPES FUNDAMENTAL ADVANTAGES FUNDAMENTAL PRINCIPLES REFRENCES

INTRODUCTION
Insurance is the more formalized means to diminish the adverse consequences of unemployment, loss of health, death, old age , law suits and destruction of property.

DEFINITIONS
INSURANCE: it is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. INSURER: the party agreeing to pay for the losses is the insurer. OR an insurer is a company selling the insurance.

CONTD
INSURED: The party whose loss makes the insurer pay the claim is the insured. OR an insured is the person or entity buying the insurance policy. PREMIUM: The amount to be charged for a certain amount of insurance coverage is called the premium.

CONTD
RISK: can be defined as the unforeseen element which may impede your progress in achieving the objective. WARRANTY: it means the assurance by assured, that he will not do particular thing and will fulfill any condition that laid in advance.

CONTD.
CLAIM: A demand for payment in accordance with an insurance policy or other formal arrangement. POLICY: The contract of insurance is referred to as the policy.

UNDERTAKING: an agreement to do something. INDEMNITY: it can be defined as compensation for loss or injury sustained or to make good the loss Or damage . ACTUARY: A statistician who computes insurance risks and premiums.

CONTD.

CHARACTERSTICS
Risk reduction Payment of accidental and unintentional losses Transferred risk Principle of indemnity

TYPES

Fundamental advantage
Transfer of risk Sharing of losses Reduction in tension and fear Credit multiplication

FUNDAMENTAL PRICIPLES
Utmost good faith. Insurable interest. Indemnity.

UTMOST GOOD FAITH


Good faith- Let the buyer beware Declaration of all material Information about the subject mater of insurance

INSURABLE INTEREST
The legal right enjoyed by the owner of a property to insure is called Insurable Interest. The insurance will become null and void, without the insurable interest.

INDEMNITY
The principle of Indemnity states that under the policy of insurance, the insured has to be placed after the loss in the same financial position in which he was immediately before the loss.

REFRENCES
[Link] [Link] [Link]/.../ketankhakharia190771-insurance [Link]/doc/21034540/Ppt-onInsurance [Link]/[Link]

THANK YOU.

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