Insurance has become a significant economic foreign most industrialized countries. Employers buy insurance to cover their employees against work-related injuries and health problems. Businesses also insure their property, technology used in production against damage and theft. Because it makes business operations safer, insurance encourages businesses to make economic transactions, which benefits the economies of countries. Insurance companies perform a type of monetary redistribution - they collect premiums and eventually redistribute that money as payments. Depending on the type of insurance, redistribution can take anywhere from a few months to many decades. Because of this delay between collecting and paying out funds, insurance companies invest their funds to bring in extra revenues. Such investments help businesses and governments finance their operations, and profits from those investments support the operations of insurance companies.
The earliest known type of life insurance was the burial benefits that Greek and Roman religious societies provided for their members. Neither these religious societies nor any Pre-modern systems for paying death benefits employed actuarial calculations. They were frequently financed on a post assessment basis; that is, contributions were made by all surviving members following one member's death. As a result, funds were not always available to pay claims.
The first life-insurance company in North America was founded in 1759 in Philadelphia. It was sponsored by the Presbyterian Synod of Philadelphia and gave benefits to Presbyterian ministers and their dependents. After 1840, the religious perspective towards life insurance declined and life insurance began its glorious period.
now Take a look on these 6 commonly asked questions;-
The earliest known type of life insurance was the burial benefits that Greek and Roman religious societies provided for their members. Neither these religious societies nor any Pre-modern systems for paying death benefits employed actuarial calculations. They were frequently financed on a post assessment basis; that is, contributions were made by all surviving members following one member's death. As a result, funds were not always available to pay claims.
The first life-insurance company in North America was founded in 1759 in Philadelphia. It was sponsored by the Presbyterian Synod of Philadelphia and gave benefits to Presbyterian ministers and their dependents. After 1840, the religious perspective towards life insurance declined and life insurance began its glorious period.
now Take a look on these 6 commonly asked questions;-
Q1. What is Insurance ?
Insurance is a contract between the insurer and the insured wherein against receipt of certain amount, called premium, the insurer agrees to make good any financial loss that may be suffered by the insured, due to the operation of an insured peril on the subject matter of insurance.
Insurance is a contract between the insurer and the insured wherein against receipt of certain amount, called premium, the insurer agrees to make good any financial loss that may be suffered by the insured, due to the operation of an insured peril on the subject matter of insurance.
Q.2 : Why People Opt for Insurance ?
The Life is full of uncertainties.. People opt for insurance purely for the reasons of uncertainties in life. Insurance gives the insured a kind of peace of mind as he is assured to making up the loss in the event of such uncertainities in life happen.
The Life is full of uncertainties.. People opt for insurance purely for the reasons of uncertainties in life. Insurance gives the insured a kind of peace of mind as he is assured to making up the loss in the event of such uncertainities in life happen.
Q.3 How does Insurance work ?
Insurance is a technique wherein a number of people, who are exposed to similar risk, participate in the scheme and contribute in the shape of periodic premiums. Such premiums are received by the insurer who is able to pay out of the premiums received by him, for the losses of some of those who have participated in the scheme.Thus it is wonderful technique of spreading and transfer or risks.
Q.4 : What kind of Insurance Are Available in India ?Insurance business is divided into four classes , namely :-
1) Life Insurance- Popular Products in Life insurance are Endowment Assurance (Participating), and Money Back (Participating). More than 80% of the life insurance business is from these products
2) Fire Insurance.
3) Marine Insurance and
4) Miscellaneous Insurance . Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory.
Life Insurers transact life insurance business; General Insurers transact the rest i.e. Fire Insurance, Marine Insurance and Miscellaneous Insurance.
1) Life Insurance- Popular Products in Life insurance are Endowment Assurance (Participating), and Money Back (Participating). More than 80% of the life insurance business is from these products
2) Fire Insurance.
3) Marine Insurance and
4) Miscellaneous Insurance . Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is compulsory.
Life Insurers transact life insurance business; General Insurers transact the rest i.e. Fire Insurance, Marine Insurance and Miscellaneous Insurance.
Q. 5 : What are the Primary Legislation for Insurance in India ?
In India Insurance is a federal subject. The primary legislation that deals with insurance business in India are: Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.
Q. 6: What are Consumer Protections Available in India ?
Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to redress customer grievances in respect of insurance contracts on personal lines where the insured amount is less than Rs. 20 lakhs , in accordance with the Ombudsman Scheme. Addresses can be obtained from the offices of LIC and other insurers.
to know about the history of insurance in India Read my next Blog....
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