In India, Insurance Has a Deep-rooted History. It Finds Mention

8/14/2019 In India, Insurance Has a Deep-rooted History. It Finds Mention

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In India, insurance has a deep-rooted history. Itfinds mention in the

Writings of Manu ( Manusmrithi ),Yagnavalkya ( Dharmasastra) andKautilya (Arthasastra).

The writings talk in terms of pooling of resources

that could be re-distributed in times of calamitiessuch as fire, floods, epidemics and famine. This wasprobably a pre-cursor to modern day insurance.Ancient Indian history has preserved the earliesttraces of insurance in the form of marine trade

loans and carriers contracts. Insurance in India hasevolved over time heavily drawing from othercountries, England in particular.


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Purpose and Need for InsuranceReduction in worries

Reimbursement of losses

Opportunity for investmentCredit enhancement

Opportunity for employment

Useful tool for Temporary needs/threats,

Regular savings, Investment & Retirement


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Benefits of InsuranceShifting of risks

Providing pecuniary security (sense ofsecurity in case of death or otherwise)

Assuring expected profitsSafeguarding interest of consumers

Improving Credit standing

Providing investment opportunityEncouraging savings & Capital formation

Generating employment & social welfareHelping controlling inflation


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Classification of

InsuranceLife Insurance

Non-Life Insurance Marine, Fire, Personal

accident, Motor vehicle; Misc Fidelityguarantee, Crop, Burglary, Cattle & Cash inTransit Insurance


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Life InsuranceA contingent contract insuring human life

against consideration of a certain premium

Insurable interest in the life of insuredUtmost good faith to disclose material facts

Warranties as a part of insurance contract

Assignment and nomination

Certainty of the event

Premium & Terms of policy


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Advantages of Life

AssuranceProtection

Aids thrift

Enhances creditworthinessTax relief

Provides liquidity


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Types of Life insurance

plansWhole 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 forkrishi, shiksha etc


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Health InsuranceIndividual mediclaim or hospitalization benefit

policy

Hospital cash daily allowance policyCritical illness policy, Health guard, ShieldOverseas mediclaim policy

Others Fidelity Guarante, Property, Building,

Earthquake, Flood, Burglary, Cattle,Engineering (machinery, plant breakdown),

Third Party liability and Crop Insurance


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Non-Life InsuranceFire Insurance Principles of Indemnity,

insurable interest, good faith, causa proxmia,subrogation and contribution

Types Specific, Valued, Average, Floating,Reinstatement, Comprehensive,Consequential, Declaration and Adjustable

policyAssignment of policy and settlement of claims


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Non-Life InsuranceMarine Insurance Hull Insurance, Cargo,

Freight and Third party liability insurance

Principles Non-life contract, insurableinterest, Utmost good faith, contract ofindemnity, principles of subrogation andcontribution, principle of Warranty

Types of Policies Voyage, Times (mixed),Valued, Unvalued, Floating, Construction risk,Port Risk and duty Policy.


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Non-Life InsuranceMotor Vehicle Insurance Need for

Insurance against third party risks, Insuranceof 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 likeambulances, fire tenders etc

Documents

In India, Insurance Has a Deep-rooted History. It Finds Mention