What Insurance is:
Insurance is a contract b/w the insurer & the insured wherein against receipt of assured amount, called premium, the insurer agrees to create good any financial loss that may be suffered by the insured, due to the operation of an insured peril on the topic matter of insurance.
People Opt for Insurance why?
The Life is entire of uncertainties. People opt for insurance purely / strictly for the reasons of uncertainties in their life. Insurance gives the guaranteed / insured a kind of peace of mind as he is assured to making up the loss within the event of such uncertainties in life.
How does Insurance work?
Insurance is a technique wherein a number of individuals / people, who are exposed to same risk, participate in the scheme & contribute in the shape / form of periodic premiums. These 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 people who’ve participated within the scheme.
Thus it’s wonderful technique of dissemination and transfer or risks.
What reasonably / kind of Insurance are Available in India?
Insurance business is detached / divided into 4 classes which are:
1) Life Insurance:
Popular Products in Life insurance are Endowment Assurance, and Money Back. Over than (80%) of the life insurance business is from these products
2) Fire Insurance
3) Marine Insurance
4) Miscellaneous Insurance:
Primary Legislations for Insurance in India are?
In India Insurance is a (federal) subject. The legislations that deals with insurance business in India are:
Insurance Act (1938), and Insurance Regulatory or Development Authority Act (1999).
What are Consumer Protections available in India?
Insurance Industry has Ombudsmen in twelve cities. Each Ombudsman is authorized 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 / theme. Addresses can be obtained from the offices of (LIC) and other different insurers.