life nsurance
Content
INTRODUCTION TO INSURANCE
Prepared by: Dipen Khurana Hemal Dave Dharmesh Moradiya Pratik Patel
WHAT IS INSURANCE ?
The business of insurance is related to the protection of the economic values of assets. ´ Assets generates values for owner so he always try to enjoy the benefits therefrom and to protect them. ´ Insurance is the mechanism that helps to reduce the effect of uncertain events.
´
Insurance promises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs. ´ While a life insurance policy promises that the insurer will pay to the policyholder a certain sum of money if the person insured dies or any other specified contingency happens. ´ It is the contract between the insurer and the policy holder.
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PURPOSE AND NEED OF INSURANCE
Assets are insured because they are likely to be destroyed before the expected life time through accidental occurrences. Such possible occurrences are called perils. Fire, flood, earthquakes etc. are perils. ´ The person is insured because of the uncertainty about the time of his death.
´
Insurance does not prevent its loss due to the perils but tries to reduce the impact of the risk on the owner of the asset. Insurance only compensates for the lossesand that too, not fully. ´ Only economic consequences can be insured, if the loss is not financial, insurance may not be possible.
´
ROLE OF INSURANCE IN ECONOMY DEVELOPMENT
Mobilization of saving ´ As on 31-3-2006, total investment of L.I.C. exceeded 5,20,000crore of which nearly 3,00,000 were directly in govt. security, nearly 16000crore in state electricity board nearly 22,000 in housing, 19,000 in power generation sector 10,000 in water supply system. ´ The private insurer in India are new and have accumulated funds equal to one-eighth of the LIC·s.
´
A life insurance company collected fund by the way of premiums ´ Business and trade benefit through insurance
´
ADVANTAGE OF LIFE INSURANCE
Life insurance has no substitute ´ Easy settlement ´ Tax benefits ´ Marketability and Liquidity are better ´ Beneficiaries interests will remain secure ´ Insurance is way to safeguard against unpredictable risk ´ Enhance the standard of living
´
Prepared by: Dipen Khurana Hemal Dave Dharmesh Moradiya Pratik Patel
WHAT IS INSURANCE ?
The business of insurance is related to the protection of the economic values of assets. ´ Assets generates values for owner so he always try to enjoy the benefits therefrom and to protect them. ´ Insurance is the mechanism that helps to reduce the effect of uncertain events.
´
Insurance promises to pay to the owner or beneficiary of the asset, a certain sum if the loss occurs. ´ While a life insurance policy promises that the insurer will pay to the policyholder a certain sum of money if the person insured dies or any other specified contingency happens. ´ It is the contract between the insurer and the policy holder.
´
PURPOSE AND NEED OF INSURANCE
Assets are insured because they are likely to be destroyed before the expected life time through accidental occurrences. Such possible occurrences are called perils. Fire, flood, earthquakes etc. are perils. ´ The person is insured because of the uncertainty about the time of his death.
´
Insurance does not prevent its loss due to the perils but tries to reduce the impact of the risk on the owner of the asset. Insurance only compensates for the lossesand that too, not fully. ´ Only economic consequences can be insured, if the loss is not financial, insurance may not be possible.
´
ROLE OF INSURANCE IN ECONOMY DEVELOPMENT
Mobilization of saving ´ As on 31-3-2006, total investment of L.I.C. exceeded 5,20,000crore of which nearly 3,00,000 were directly in govt. security, nearly 16000crore in state electricity board nearly 22,000 in housing, 19,000 in power generation sector 10,000 in water supply system. ´ The private insurer in India are new and have accumulated funds equal to one-eighth of the LIC·s.
´
A life insurance company collected fund by the way of premiums ´ Business and trade benefit through insurance
´
ADVANTAGE OF LIFE INSURANCE
Life insurance has no substitute ´ Easy settlement ´ Tax benefits ´ Marketability and Liquidity are better ´ Beneficiaries interests will remain secure ´ Insurance is way to safeguard against unpredictable risk ´ Enhance the standard of living
´
