DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Syed Mohd. Akram
Designation : HCCP
Branch : DCCP
Institute : G.P.W (M), L.B. Nagar
Year/Semester : I Year
Subject : Business Organization
Subject Code : CCP104
Topic : Concept of Insurance
Duration : 50 Mts
Teaching Aids : PPTs and Animation
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Objective :

On completion of this period you would

be able to
 Explain the Meaning of Insurance
 Define Insurance

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Can you tell the Meaning of
Insurance?

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Meaning of Insurance :

 Insurance is a provision against risks

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Can you list some of the risks to:
 Humans
 Property
 Business

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 Insurance means man’s search for security
 Life is full of risks like:
 Death
 Unemployment
 Sickness
 Loss of properties arising from
 Accident
 Fire
 Earthquake
 Floods
 Perils at sea etc.,
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 Reducing risks and uncertainties by shifting
these to agencies is known as Insurance
 Insurance can reduce the financial burden
arising form a risk
 Person who wants to reduce risk takes
Insurance Policy
 Insurance Company gives Insurance Policies

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 Insurance may be defined as a contract between
two parties, to pay a certain sum of money in the
happening of an event or after a fixed period of
time.

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Insurer

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Insurer

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 Insurance is who undertakes, promise to pay
a certain sum of money
i.e., Insurance Company
Examples: LIC, GIC, SUNLIFE,
RELIANCE, METLIFE

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 Insured is
 The person who receives amount
 On the happening of the event or
 After a fixed time period of Policy

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Can you tell what is premium

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Premium :
 The amount payable periodically by the insured to the
insurer (LIC/GIC) as per insurance contract is known
as Premium
 The insured periodically pays fixed amount till fixed
number of years
 Amount depends upon the amount insured and the
duration of the policy.
 Usually half-yearly, yearly etc.,

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Summary :
 Insurance is a provision against risks
 Insurance means man’s search for security
 Insurance may be defined as a contract
between two parties

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Quiz :

1. Who is an Insurer:
a) LIC
b) Ghanshayam
c) Radhashyam

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Quiz :

2. Who is an Insured:
a) Met Life
b) G.I.C
c) OIC
d) Radha

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Quiz :

3. Who pays premium:

a) Insurer
b) United Insurance Company
c) Insured

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Frequently Asked Questions :
1. Define the concept of Insurance.
2. Define the meaning of Insurance.
3. Write on Insurer, Insured, Premium.

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Assignment :

1. What do you mean by Insurance?

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