YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

1Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

2Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

3Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

4Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

5Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

6Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

7

Definition of Insurance

Dr. Pfeffer defined Insurance as a device for the reduction of the uncertainty of one party called the insured, through the transfer of particular risks to another party called the insurer, who offers, a restoration at least in part of economic losses suffered by the insured.

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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The party bearing the risk is known as the ‘insurer’ or ‘assurer’ and the party whose risk is covered is known as the ‘insured’ or ‘assured’.

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

9

Can Insurance insure all kinds of risks?

Speculative risks are not insurable. Pure risk is insurable.

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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It is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period (in case of life insurance) or to indemnify the other party on happening of an uncertain event (in case of general insurance).

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Insurance Act, 1938

This Act came into force on 1st July 1939. This law is applicable to all the insurance

companies and other entities participating in the insurance industry in India

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Purpose of this law is:

registration compulsory Deposit Disclosure Inspection Guidelines

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Insurance Regulatory and Development Authority (IRDA)

IRDA is the regulator of the insurance industry in India and was constituted by an Act of Parliament in 1997.

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Duties, Powers and Functions of IRDASection 14 of the IRDA Act, 1999

Issuance of certificate of registration, renewal, modification, withdraw, suspend or cancel such registration

Protection of the policyholders interest Laying down qualifications, training and

code of conduct for intermediaries Laying down code of conduct for Surveyors Control of the rates, terms etc. offered by

general insurers in respect of business not controlled by Tariff Advisory Committee

(TAC)Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Regulation of investment of funds by insurers

Supervise TAC

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Insurance can be broadly classified as:

Life Insurance Non- Life Insurance

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Principles of Insurance and Life Insurance

Utmost good faith Insurable Interest: Indemnity Subrogation Contribution

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

18Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Life Insurance

The first Life Insurance Company which came into existence in India was “The Oriental Life Insurance Company”, established in 1818. This was a British company.

The first Indian insurance company subsequently came into being in 1871 called the “Bombay Mutual Life Assurance Society”.

Life insurance in India was nationalized on January 19, 1956

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

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Non-Life Insurance

Triton Insurance Company Ltd.” (the first general insurance company) was formed in the year 1850 in Kolkata by the British.

The first Indian general insurer to commence operations was the “Indian Mercantile Insurance Company” in the year 1907.

Insurance

YOGESH NAMDEO INGLE.,MBA (FINANCE), NET (MANAGEMENT), Ph.D (WIP), G.D.C &A, NCMP.

21Insurance