Insurance is a method of risk transfer.

Insurance Regulatory and Development Authority of India is the regulator for the
insurance industry in India.

The need for setting aside reserves as a provision for potential losses in the
future is a secondary burden of risk.

The bread winner of a family might die untimely leaving the entire family to fend
for itself, such a scenario warrants purchasing of life insurance.

The Jan Arogya insurance scheme is run by an insurer and not sponsored by the
Government.

The measures to reduce chances of occurrence of risk are known as loss prevention
measures.

In the insurance context �risk retention? indicates a situation where one decides
to bear the risk and its effects.

Insurance is a method of sharing the losses of a �few? by �many?. Insurance may be

considered as a process by which the losses of a few, who are unfortunate to suffer
such losses, are shared amongst those exposed to similar uncertain events /
situations.

Sum of economic benefits that can be achieved by building a long term relationship
with the customer is referred to as customer lifetime value.

As per the Consumer Protection Act, 1986, a person who buys goods for resale
purpose cannot be classified as consumer.

One of the methods of reducing insurance cost of an insured is the deductible

clause in a policy.

District Forum has jurisdiction to entertain where value of goods or services and
the compensation claim is up to 20 lakhs.

Active Listening involves Paying attention to the speaker, giving an occasional nod
and smile and providing feedback

State Commission would handle consumer disputes amounting between Rs. 20 lakhs and
Rs. 100 lakhs.

Shopkeeper not advising the customer on the best product in a category cannot form
the basis of a valid consumer complaint.

Insurance involves a contractual agreement in which the insurer agrees to provide

financial protection against specified risks for a price or consideration known as
the premium.

The special features of insurance contracts include:

i. Uberrima fides,
ii. Insurable interest,
iii. Proximate cause

Misrepresentation relates to inaccurate statements, which are made without any

fraudulent intention.

Coercion involves pressure applied through criminal means.

Life insurance contracts are contracts between two parties (insurer and insured) as
per requirements of Indian Contract Act, 1872.