Insurance Sector

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Basics
of
Insurance

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Contents:-
* Life insurance * General insurance * Insurance market scenario * Emerging trends in insurance
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Learning Insurance * What Is Insurance Insurance is concerned with protection of economic value of assets.Tangible assets are human beings, house, furniture, motor cycle etc.Intangible assets are liabilities

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History of Insurance * It started from Lloyd’s coffee house London * First policy issued in England in 1583 * In India first policy issued in 1870 5
History of Insurance * LIC of India formed in 1956 after nationalization of life insurance Business of 245 private insurance companies * General insurance business of 107 insurance companies was nationalized in 1972 & four public sector General Insurance Companies were formed
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Classes of Insurance
A. Life insurance
B. General insurance General insurance is further classified:-
1.Fire insurance
2.Marine insurance
3.Miscellaneous insurance
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Miscellaneous Insurances:-
1.Motor insurance
2.Mediclaim insurance
3.Householders insurance
4.Shopkeepers insurance
5.Engineering insurances etc.
Fundamental Principles of Insurance

1.Insurable interest- Means financial interest 2.Utmost good faith- Greater duties of faith on proposer & insurer 3.Indemnity- Actual compensation of loss. not applicable in life policies

9 Fundamental Principles of Insurance 4.Subrogation-Transfer of rights of insured to insurer.Not applicable in life policies. 5.Contribution-Sharing of loss by all insurers.Not applicable in life policies.
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Market Scenario before Irda Act
1999
Life insurance company 1. LIC of India General