What is Insurance & important of Insurance helpful for BANK and SSC Exams

what is insurance

 What is Insurance:

Insurance is something people buy to protect themselves from losing money. Insurance is the protection against something going wrong. It is designed to protect the financial well-being of an individual, company or other entity in case of unexpected loss. It is an arrangement or agreement that protects someone from incurring future losses or uncertainties as from damage to home, accident, fire, illness, death and disablement etc.

People who buy insurance pay ‘premium’ (often paid every month) and promise to be careful (a duty of care).Agreeing to the terms of an insurance policy create a contract between the insured and the insurer. In exchange of this, if something bad happens to the person or thing that is insured, the company that is sold the insurance will pay money back.

A contract of insurance is based on the faith both insured and the insurer are required to show good faith toward each other in respect of contract. Here are major types of insurance:

Life insurance: The contract of life insurance is based on the principle of utmost good faith. The insured is required to disclose all the information about his health to the insurer whether asked by the insurer or not.

Automobile insurance:  Usually automobiles insurance cover damage and legal financial expenditures of the automobile drivers.

Health insurance: It provides a protection against rising medical costs. It is a contract between the insurer and an individual or a group in which the insurer, in consideration of premium, agrees to provide specified health insurance.

Property insurance: Property protection insurance provide protection from risks associated to theft, fire, flood etc.

Credit insurance: Borrowers often fail to repay debts, loans and mortage due to certain unavoidable circumstances, credit insurance can be great help during such crisis.

This type of insurance can be further classified into specialized forms as follows-

  • Fire insurance
  • Earthquake insurance
  • Flood insurance
  • Home insurance
  • Boiler insurance
  • Cattle insurance
  • Sports insurance
  • Motor vehicle insurance

Why insurance –

Human life is full of uncertainties causing loss or damage to property and lines .These uncertainties include death and disability of human life, fire, burglary, perils of the sea for shipment of goods etc. Thus there is a need of insurance to minimize the effect of such uncertainties. Consumer (people) can buy insurance to protect against financial loss due to health issue, vehicle accident, damage to home and protect against the negative financial effect of relative’s death. Mainly the tangible assets are susceptible to damage and a need to protect the economic value of the asset is needed for this purpose insurance are bought as they provide protection against damage or loss of the asset. When you buy insurance, it means that you are sharing your risk with others; simply, the insurance company is a risk management company that cans any-one to reduce risks associated in day to day activities. Man is vulnerable to dangers and by virtue of this need insurance to help him cope in an unfriendly world.

Benefits of Insurance in Our Life:

Life insurance provides the benefits of saving and security.

  • Risk cover- today’s life is full of uncertanities

 

  • History Of Insurance

The history of insurance consisted of the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile, accidents, and medical treatment.

The industry helps to eliminate risks (as when fire insurance companies demand the implementation of safe practices and the installation of hydrants), spreads risk from the individual to the larger community, and provides an important source of long term finance for both the private sectors. The insurance industry is generally profitable and provide attractive employment opportunities for white collar worker.

Ancient world

In some sense, we can say that insurance dates back to early human society. We know of two type of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and monetary economies (with markets, currency financial instruments and so on) insurance in the former case entails agreements of mutual aids. If one family’s house gets destroyed the

In India

In India insurance has a deep rated history it find mention in the writings Manu (Manusmrithi), Yagnavalkya (Dharmastra). The writing talks in terms of pooling of recourses that could be re-distributed in times of calamities such as fire, flood, epidemics and famine. This was probably pre-cursor to modern day insurance

1818 saw the advent of life insurance business in India with the establishment of oriental life insurance company in Calcutta. This company however failed in 1834. In 1839 the madras equitable has began transacting life insurance business in madras presidency. 1870 saw the enactment of British insurance act and in the last three decades of nineteenth century, the Bombay mutual (1871), oriental (1874) and empire of India (1897) were started in the Bombay residency.

This era, honurer was dominated by foreign insurance officers which did good business in India, namely Albert life Assurance, Royal insurance, Liver pool and London Globe Insurance and the Indian officers were up the hard competition from the foreign companies.

 

  • How you can change insurance into investment.
  • History of insurance of in USA and UK And Australia.
  • Top most company In insurance in INDIA, USA,UK, Au.

 

Following are the leading insurer in India:

  • Life Insurance corporation of India- The life insurance corporation of India was founded in September 1956. Life insurance corporation of India made over 100 year ago and its headquartered in Mumbai. The chairman of life insurance corporation of India is S k Roy. It is the largest and top rated insurance company In India with a huge presence in rural and urban markets, their official website is licindia.in this website helps you to easily get LIC policy details. LIC is an Indian state owned insurance group and investment company.
  • Tata AIG General insurance- It is an general insurance company founded in 22 January 2001, and it headquartered in Mumbai. In Tata AIG is a joint venture between the Tata group and the American International group (AIG). The maximum share 74% holds Tata group and balance 24% holding AIG. Tata AIG general insurance company which started their company in India before 15 years, provides insurance to individual people or corporate. It offers insurance for automobiles, home, personal, accident, travel, energy, marine, property and
  • Bajaj Allianz general insurance- Bajaj Allianz was started 15 years ago in 2 May 2001. Bajaj Allianz is headquartered in Pune and offices in 200 cities in India.  It is a private insurance general company in India. It is joint venture company between the Bajaj Finserv limited owned by Bajaj group of India and a European financial service company Allianz SE. Bajaj finserv limited holds 74% and the remaining 26% holds by Allianz SE, Provides Motor, health, travel, home and marine insurance. Its official website is bajajallian.com .
  • New India Assurance- New India Assuranceco.ltd is the largest general insurance company of India and one of the five wholly government of India owned assurance companies of India. It was founded in 1919 in Mumbai, India by Sir Dorabji Tata, and nationalized in 1973. New India assurance operates both in India and foreign countries. It provides general insurance which include health.
  • ICICI Prudential life insurance– ICICI prudential life insurance company is a joint venture company which was founded in 2 December 2000 after the approval from Insurance regulatory and development authority of India (IRDAI). The joint venture between ICICI bank and Prudential plc group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance company. It has a total asset held over Rs.100,000 cr.($15 billion).
  • IFFCO TOKIO General Insurance
  • ICICI Lombard General Insurance-
  • Oriental insurance-
  • Birla sun life Insurance-
  • HDFC standard life Insurance-

USA Insurance Companies:

  • American General
  • American national insurance company
  • Banner life
  • Foresters life insurance
  • Genworth
  • Metlife
  • North American company
  • Protective life insurance company
  • Prudential(Pruco)
  • SBLI

UK Insurance Companies:

  • Legal & general
  • Aviva plc
  • Prudential plc
  • Standard life
  • Old mutual
  • Friends life group
  • Phoenix group holdings
  • AEGON UK
  • RSA Insurance group
  • NFU Mutual

Australia Insurance Companies:

  • AIA Australia
  • AAMI Life
  • AMP Limited
  • AXA Asia pacific holdings limited
  • Asteron life (suncorp)
  • NRMA insurance
  • Allianz Australia
  • GIO Life
  • MLC
  • Macquarie li
  • Oldest company of insurance in INDIA, USA, UK, Au.
  • Oriental life insurance company
  • National insurance company
  • New India assurance
  • The united India insurance company
  • Life insurance company of India

 USA Insurance Companies:

  • Liberty mutual
  • AIA group limited
  • Allstate insurance company
  • State farm
  • AAA
  • Manulife
  • Truckers insurance HQ
  • American insurance general
  • Farmers insurance group

AUSTRALIA Insurance Companies:

  • AMP life
  • AIA
  • QBE
  • GIO
  • Allianz
  • Truckers insurance HQ
  • AAMI
  • NRMA
  • Superannuation Warehouse
  • Insurance Act In India, UK, USA, AU.

The insurance act in India originally passed in 1938 enacted by Parliament of India in British India to regulate the insurance sector. Under the Insurance Act has 120 sections and 8 schedules. India is allowed to operate only an Indian company registered under company act, 1956, It must have a licence from insurance regulatory and development  authority of India.

 

Company NameEstablishment yearTurnover

 

INDIARupees
USABillions
Met life608.35
Prudential financial551.62
TIAA-CREF272.07
New York life265.56
Lincoln financial227.55
Jackson national190.47
AXA financial170.37
Nationwide136.21
Allianz118.94
Pacific life118.14
UKBillions
Berkshire Hathaway194.67
AXA161.17
Allianz136.85
Assicurazloni generali118.67
Ping an insurance86.02
Munich re81.69

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Posted by- gk in hindi | Education Masters


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