Faisal

INSURANCE:
"an arrangement by which a company or the state

undertakes to provide a guarantee of compensation for
specified loss , damage illness or death in return for payment of
a specified premium".
OR
"A thing provided protection against a possible
eventuallity".
MEANING:
protection, defence, safeguard, safety measures, shelter,
security, precaution, provision, preventive measures,
immunity .
INSURANCE MANAGEMENT:
insurance management is a non technical term used to
describe the insurance brokers and providers and the insurance
products , they offers to buyers .insurance provides sells
various insurances solutions to business and consumer buyers.
IMPORTANCE OF INSURANCE :
the life and property of an individual are surrounded by the
risk of death , disability and destruction . these risks may results
in financial losses. insurance is a prudent way to transfer such
risk to an insurance company.
WHAT IS INSURANCE ?
insurance is a legal agreement between two parties i.e the
insurance company (insurer) and the individual (insured).
1. in this, the insurance company promises to make good the
losses of the insured on happening of the insured contigency.
2. the contigency is an event which causes loss .
3. it can be the death of policy holder or damage /destruction
of the property , it is called a contigency because there is an
uncertainity regarding happening of the event.
4. The insured pays a premium in return for the promise made
by the insurer.
HOW DOES INSURANCE WORK:

the insurer and the insured get the legal contract for the
insurance ,which is called the insurance policy . the insurance
policy has details about the conditions and circumstances
under which the insurance company will pay out the insurance
amount to either the insured person or the nominees .
IMPORTANT POINTS:
1. insurance is a way of protecting youself and your family from
a financial loss .Generally premium for a big insurance cover is
much lesser in terms of money paid.
2. The insurance company take risk of providing high cover for a
smaal premium because very few insured people actually
endup claiming the insurance .
3. This is why you get insurance for a big amount at a low price.
4. Any individual or company can seek insurance from any
insurance company but decision to provide the insurance is at
discretion of the insurance company.
5. The insurance company will evaluate the claim application to
make a decision .Generally insurance company refuse to
provide insurance to high risk applicant.
TYPES OF INSURANCE:
1. LIFE INSURANCE
A) Group insurance
B) Health insurance
C) Marriage/Endowment plan
D)Education plan
2.GENERAL INSURANCE
A) Fire insurance
B)Vehicle insurance
C) Marine insurance
LIFE INSURANCE:
1. life insurance iinsurance on your life .You buy the
insurance to make sure your dependents are financially secured
in the event of your un timely demise.
2. life insurance is particularly important if you are soul bread
winner for your family or if your family is heavily relying on your
income.
3. Under life insurance the policy holder , family is financially
compensated in case the policy holder expires during the term
of the policy.
(i) Group insurance:

Group insurance is death coverage during service usually the
premium of this type of insurance is paid by the employer and
employ both .
(ii) Health insurance :
Health insurance is bought to cover the medical cost of

expensive treatment .
(iii) Marriage insurance:
Marriage plan are provided by general insurance companies

for long term to the parents for meeting their children's
marriage expenses.
(iv) Education plan:
Education plans are also provided by life insurance

companies to the parents for covering the children's
educational expenses(higher education expenses).
GENERAL INSURANCE:
(i) Fire insurance:
this is a type of insurance which cover the risk of
loss by fire of all tangible assets .Like (insurance of
stocks ,fixed assets) etc. Insurance companies cover this
risk against reciepit of premium for a fixed period of time
(1 year).This type of insurance is covered by the general
insurance companies.
(ii) Vehicle insurance :
Vehicle insurance is provided by the general
insurance companies against reciept of premium for
fixed period of time.
(iii) Marine insurance:
marine insurance covers the risk of transportation of
goods from one place to another through by sea, by air,
by road, by rail, or by courier .

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INSURANCE:

"an arrangement by which a company or the state

HOW DOES INSURANCE WORK:

(i) Group insurance:

(ii) Health insurance :

Health insurance is bought to cover the medical cost of

Marriage plan are provided by general insurance companies

(iv) Education plan:

Education plans are also provided by life insurance

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