CH 6: INSURANCE – IRDAI

Insurance

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.

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INSURANCE

Insurance Policy Components

  • A policy’s premium is its price, typically expressed as a monthly cost.
  • The policy limit is the maximum amount an insurer will pay under a policy for a covered loss.
  • The deductible is a specific amount the policy-holder must pay out-of-pocket before the insurer pays a claim.

Types of Insurance

  • Life Insurance or Personal Insurance.
  • Property Insurance.
  • Marine Insurance.
  • Fire Insurance.
  • Liability Insurance.
  • Guarantee Insurance.
  • Social Insurance.

Insurance Regulatory and Development Authority (IRDAI)

The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous, statutory body tasked with regulating and promoting the insurance and re-insurance industries in India. Head quarters at Hyderabad.

References:

  • “Principles & Practices of Banking”, Tata McGraw-Hill, New Delhi.
  • wikipedia, investopedia

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