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Presented By Malavika Mitta

KINDS OF INSURANCES

INTRODUCTION (LAW OF INSURANCE)

Universally accepted Phenomenon what is created will be destroyed. In our-day-to-day life we all anticipate various kinds of risks. Like losses due to natural calamities. Every risk may result in loss of one or any other kind. A person exposed to risk may incur a loss. If it is small he may bear it but if it is large he may not be in a position to bear it at its own risk. Hence it would be wise to adopt a device or plan to provide help to those who suffer a loss. Such a plan is known as INSURANCE which safeguards the person from various risks.

The aim of all kinds of insurances is to provide help to those who happen to suffer a loss. Most of the losses can be indemnified in terms of money. Parties:

who seeks protection against risk - INSURED or ASSURED Who undertakes to protect such person from financial loss INSURER or ASSURER Consideration collected by the insurer companies PREMIUM Document containing terms and conditions POLICY

DEFINITION:

Insurance may be defined as a contract by which one party(insurer), for a consideration (premium) assumes a particular risk of the other party(insured) and promises to pay to the other party or his beneficiary, a certain or ascertainable sum of amount on the happening of specific contingency against which the insurance is asked for. ESSENTIALS:

Contract Certain sum charged in consideration from the Insured By the insurer and he assumes the risk insured That on happening of a specific event He shall pay a specified amount

DEVELOPMENT

Over last 200 yrs massive change undergone by insurance industry. During 1900 1912 tremendous growth of inc. comp. led to Life Assurance Act came into force. After establishment of this Act, many small companies wound up and few which survived faced tough competition with foreign companies After world War I ,in 1928 the Indian Insurance Comp.s Act was enacted, to enable the Government to collect statistical information on both life and non-life inc. In 1972 General Insurance Business (Nationalization) Act nationalized the general insurance business in India.

In the yr 1993 Malhotra Committee, was setup, to propose recommendations for reforms in insurance sector. By their recommendations liberalized the Insurance sector in the yr. 2000 with the enactment of IRDA Act, 1999.

KINDS
1. 2. 3. 4. 5.

6.
7. 8. 9. 10.

Life Insurance Health Insurance Liability Insurance Property Insurance Auto Insurance Disability Insurance Home Insurance Casualty Insurance Rural Insurance Credit Insurance

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