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In India, insurance has a deep-rooted history.

It
finds mention in the
Writings of Manu ( Manusmrithi ),
Yagnavalkya ( Dharmasastra ) and
Kautilya ( Arthasastra ).
The writings talk in terms of pooling of resources
that could be re-distributed in times of calamities
such as fire, floods, epidemics and famine. This was
probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest
traces of insurance in the form of marine trade
loans and carriers’ contracts. Insurance in India has
evolved over time heavily drawing from other
countries, England in particular.
Purpose and Need for Insurance
Reduction in worries
Reimbursement of losses
Opportunity for investment
Credit enhancement
Opportunity for employment
Useful tool for Temporary needs/threats,
Regular savings, Investment & Retirement
Benefits of Insurance
Shifting of risks
Providing pecuniary security (sense of
security in case of death or otherwise)
Assuring expected profits
Safeguarding interest of consumers
Improving Credit standing
Providing investment opportunity
Encouraging savings & Capital formation
Generating employment & social welfare
Helping controlling inflation
Classification of
Insurance
Life Insurance
Non-Life Insurance – Marine, Fire, Personal
accident, Motor vehicle; Misc – Fidelity
guarantee, Crop, Burglary, Cattle & Cash in
Transit Insurance
Life Insurance
A contingent contract insuring human life
against consideration of a certain premium
Insurable interest in the life of insured
Utmost good faith – to disclose material facts
Warranties as a part of insurance contract
Assignment and nomination
Certainty of the event
Premium & Terms of policy
Advantages of Life
Assurance
Protection
Aids thrift
Enhances creditworthiness
Tax relief
Provides liquidity
Types of Life insurance
plans
Whole Life Plans – Limited payment, Single
premium (Jeevan Anand, Jeevan Tarang)
Endowment Assurance Plans (Double/Triple
cover)
Term Assurance Plans, Money Back Plans
Pension Plans, Unit Linked Plans
Children Plans
Plans for Handicapped Dependents
Group Insurance – Term insurance, Gratuity,
Superannuation, Social security schemes for
krishi, shiksha etc
Health Insurance
Individual mediclaim or hospitalization benefit
policy
Hospital cash daily allowance policy
Critical illness policy, Health guard, Shield
Overseas mediclaim policy
Others Fidelity Guarante, Property, Building,
Earthquake, Flood, Burglary, Cattle,
Engineering (machinery, plant breakdown),
Third Party liability and Crop Insurance
Non-Life Insurance
Fire Insurance – Principles of Indemnity,
insurable interest, good faith, causa proxmia,
subrogation and contribution
Types –Specific, Valued, Average, Floating,
Reinstatement, Comprehensive,
Consequential, Declaration and Adjustable
policy
Assignment of policy and settlement of claims
Non-Life Insurance
Marine Insurance – Hull Insurance, Cargo,
Freight and Third party liability insurance
Principles – Non-life contract, insurable
interest, Utmost good faith, contract of
indemnity, principles of subrogation and
contribution, principle of Warranty
Types of Policies – Voyage, Times (mixed),
Valued, Unvalued, Floating, Construction risk,
Port Risk and duty Policy.
Non-Life Insurance
Motor Vehicle Insurance – Need for
Insurance against third party risks, Insurance
of motor vehicles carrying hazardous goods,
Consequences of driving uninsured vehicle
Taxonomy of Motor Vehicles –
Private cars, Motorcycles, scooters,
Commercial vehicles carrying goods,
passengers and other misc vehicles like
ambulances, fire tenders etc