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PRESENTED BY:
CHAITHRA.G
CHAITRA.M.
CHANDNI.K.
DEVIKA.B.Z.
NIVEDITHA.C.
INSURANCE
Insurance is a form of risk management primarily
used to hedge against the risk of a contingent, uncertain
loss. Insurance is defined as the equitable transfer of the risk
of a loss, from one entity to another, in exchange for
payment.
An insurer is a company selling the insurance.
The insured, or policyholder, is the person or entity buying
the insurance policy.
The amount to be charged for a certain amount of
insurance coverage is called the premium.
Contract of Insurance
Is a contract whereby the insurer undertakes to
make good the loss of another called the insured by
payment of some money to him on the happening of a
specific event.
Terminologies used
Insurer
Insured
Premium
Policy
Subject matter
Insurable interest
Insurable risk
Insurable Risk
The law of large number.
The loss produced by the risk must be definite.
The loss must be fortuitous or accidental.
The loss must not be catastrophic.
Types of insurance
1) Personal or Life insurance
2) Property insurance
3) Liability insurance
4) Guarantee insurance
Contd
2) Principle of co-operation and probability.
3) Utmost good faith.
4) Indemnity.
5) Contingent contract.
6) Insurable interest.
7) Aleatory contract.
8) Term of policy.
Contd
9) Commencement of risk.
10) Premium.
11) Causa proxima.
12) Mitigation of loss.
13) Contribution.
14) Subrogation.
15) Reinsurance.
16) Double insurance.
Reinsurance
Extent of
liability of the
insurer
To whom liable
Object
It is a method of reducing of
the risk of the insurer.
Wager
The meaning of wagering is staking something of value
upon the result of some future uncertain event, such as a
horse race, or upon the ascertainment of the truth
concerning some past or present event.
An agreement under which each bettor pledges a certain
win or lose
4) Stake is the only interest between the two parties.
Return of premium
There are circumstances which make the contract of
insurance void or even voidable. The contract of
insurance is voidable when the affected party has opted
to avoid the contract. This usually happens when the
consideration has failed.