1.

Introduction
The term "insurance" refers to a method of risk management. Primary insurance is
described as an arrangement in which a sum of money is paid as a premium in
exchange for the insurance company's risk of having to pay a substantial sum in the
event of a specified occurrence. The following is a more detailed definition of the
term: "Insurance is defined as a contract in which one party (the insurer) promises to
pay a certain sum to the other party (the insured) or his beneficiary in the event of a
specified occurrence (the risk) for which insurance is sought." As a result, it is
evident that every risk entails a loss of some sort. The purpose of insurance is to
share the risk of a loss among a large number of people through a cooperative
process. People who are exposed to a certain danger work together to minimize the
damage produced by that risk whenever it occurs. As a result, the risk is not avoided,
but the members share the financial loss if it occurs. The following example will
demonstrate the significance of this fact.
Concept and Application
1. Sharing of Risk
Insurance is a tool for sharing financial losses that may befall an individual or his
family as a result of the occurrence of a certain catastrophe.
The death of a family breadwinner, marine-perils in maritime insurance, fire in fire
insurance, and other particular events in general insurance, such as theft in burglary
insurance, accident in car insurance, and so on, are all examples of events covered
by life insurance. If these disasters are insured, the loss is shared in the form of a
premium by all the insured.
2. Co-operative Device
The most crucial characteristic of any insurance plan is the participation of a large
number of people who, in effect, agree to share the financial loss resulting from an
insured risk.
A gathering of people like this can be gathered willingly or through the agents'
publicity or solicitation.
An insurer's own capital would not be sufficient to cover all losses. As a result, he
can pay the damage by insuring or underwriting a huge number of people.
There is no obligation for anyone to buy the insurance policy, as there is with all
cooperative devices.
3. Value of Risk
Before insuring to charge the portion of an insured, referred to as consideration or
premium, the risk is assessed. Risk assessment can be done in a variety of ways.
A higher premium may be levied if there is a higher risk of loss. As a result, at the
time of insurance, the likelihood of loss is determined.
4. Payment at Contingency
The pay-out is made in the event of a specific covered contingency. Payment is
made if the contingency arises.
Because the life insurance contract is a certainty contract, the payment is
guaranteed in the event of a contingency, such as death or the term's expiration. Fire
or maritime dangers, for example, are contingencies that may or may not occur in
other insurance contracts.
As a result, payment is made if the contingency happens. Otherwise, the
policyholder receives no compensation. Similarly, due to the unpredictability of a
certain contingency within a specific term, payment is not guaranteed under many
policies.
In term insurance, for example, payment is made only if the insured dies within the
stipulated time, which could be one or two years.
Similarly, in Pure Endowment, payment is made only at the survival of the insured at
the expiry of the period.
5. Payment of Fortuitous Losses
The pay-out of fortuitous losses is another feature of insurance. Unforeseen and
unexpected, a serendipitous loss occurs as a result of chance. To put it another way,
the loss had to be unintentional.
According to the law of large numbers, losses are unintentional and occur at random.
A person may, for example, slide on an icy sidewalk and break their leg. It would be
a fortunate loss. Intentional concerns are not covered by insurance coverage.
6. Amount of Payment
The amount of pay-out is determined by the amount of loss caused by the specific
insured risk, assuming insurance coverage is available up to that amount. The goal
of life insurance isn't to compensate for a financial loss. When an event occurs, the
insurer offers to pay a set amount.
If the event or contingency occurs, and the policy is valid and in force at the time of
the event, such as property insurance, the dependents will not be required to
establish the loss occurred and the amount of damage.
It is immaterial in life insurance what was the amount of loss was at the time of
contingency. But in the property and general insurances, the amount of loss and the
happening of loss is required to be proved.
Conclusion
Pure risk, speculative risk, and fundamental risk all have financial consequences that
can be insured against. Pure risk is defined as a loss or no loss with no potential of
gams, such as a fire, the death of a key employee, a customer's insolvency, and so
on. The speculative risk can result in profit or loss, such as when buying land on the
assumption that its value would rise owing to specific factors. Fundamental risk
emerges as a result of societal economic, political, social, or natural causes. Floods
and earthquakes, inflation, and conflict are all examples of basic risk. Property
insurance covers losses that may arise in already-owned commercial property. This
includes real estate, machinery, office supplies, furnishings and fixtures, and
computers; personal property, which includes machines, office supplies, furniture
and fixtures, and computers; inventories; and so on.

2.
Introduction
General insurance is a contract between a policyholder and a general insurance firm
in which non-life assets are insured. A person can protect himself or herself from
loss due to damages to his or her possessions by purchasing general insurance.
Crops, residences, motor vehicles, equipment, stores, offices, and trips can all be
covered by general insurance. Health insurance is included in the category of
general insurance. In this sense, general insurance refers to any insurance that isn't
life insurance. In the United States, it's known as property and casualty insurance,
while in Continental Europe, it's known as non-life insurance. A general insurance
firm provides risk coverage in exchange for a premium from the policyholder.
National Insurance Company, for example, is a public sector organization, whereas
Bajaj Allianz General Insurance is a private sector organization that offers general
insurance in India.

Concept and Application

 Crop insurance: This sort of general insurance protects farmers' crops from
damage caused by poor weather, pests, fire, and other factors. Crop
insurance plans are handled by the government on a national and state level
to protect farmers' financial interests.

 The Motor Vehicles Act of 1988 in India makes it essential for vehicle owners
to have motor insurance. When purchasing a new vehicle, one must get
insurance in order to register the vehicle with the Regional Transport Office.
After that, the person must renew his or her automobile insurance every year
to cover risks. There are also fines if a car owner fails to renew his or her
insurance. In the event of an accident, motor insurance may also cover losses
to a third party.

 Home insurance: Just like any other tangible asset, a person can insure his or
her home against fire, theft, terrorist acts, riots, and natural disasters like
floods, hurricanes, and thunderstorms. In India, the home insurance industry
is still in its infancy, and the percentage of people who choose to insure their
homes is far lower than that of home owners. However, as the house loan
industry in India expands, so does the demand for home insurance. This is
due to the fact that banks and housing finance institutions require
homeowners to have home insurance before giving loans.
  Travel insurance: Because travel entails some risk, travel insurance is one of
India's fastest-growing sectors. More and more visitors, particularly those
travelling internationally, are choosing for travel insurance to protect their
belongings from loss, theft, robbery, and other risks.

 Health insurance: The relevance of health insurance is highlighted by inflation

and the ever-increasing expenses of high-quality health care. A substantial
number of people in India's urban areas are now aware of the advantages of
health insurance. Due to successive reforms in India's insurance market, a
wide choice of health insurance plans covering everything from accidents to
serious illnesses are available for people of all ages. The Insurance
Regulatory and Development Authority (IRDA) has released particular
recommendations for insurance companies to offer specific health insurance
plans for senior individuals, based on their high-risk profile and special needs.
Previously, insurance firms avoided senior citizens because of the increased
risk of health problems and associated costs. Section 80D of the Income-tax
Act of 1961 allows for a tax exemption on health insurance premiums up to a
ceiling of $15,000 per year. Furthermore, under this clause, senior citizens
can claim a monetary exemption of up to 20,000 per year.

 Fire insurance: Fire insurance is a type of insurance that protects people's

properties against damage caused by fire. When any type of infrastructure or
property is protected by fire insurance, the policy will reimburse the loss if the
property is damaged or destroyed by fire.

 Marine insurance protects ships, cargo, and ports in the event of a loss or
damage. Damage to any trans port through which property is transferred,
acquired, or kept between the place of origin and the point of final destination
is likewise covered.

 Inland marine insurance is a type of coverage that covers shipments that do

not go by sea. This type of insurance protects items while they are being
transported by land or air. It also covers bailees' and floaters' property, which
includes high-value personal things like fine art and jewellery.

Conclusion
You must choose the correct general insurance plan for the finest coverage from the
numerous types of general insurance plans available on the market. To choose the
best general insurance policy, you need first evaluate the financial risks you face,
and then select the appropriate plans to cover those risks. Medical emergencies, for
example, are fairly prevalent and universally applicable to everyone. As a result,
health insurance becomes a need. Similarly, if you possess a car, you must
purchase a third-party automobile insurance policy, which is required by law. Other
insurance products can be purchased based on your need. For instance, if you're
travelling abroad and want to protect yourself financially, an international travel
insurance policy can help. If you run a business, you should look into the many
commercial insurance products available to protect your finances from unanticipated
disasters.
3a.
Introduction
Risk management is the evaluation and quantification of the likelihood and financial
impact of events that may occur in the customer's environment that require the
insurer's payment, as well as the capacity to spread the risk of these events
occurring across other insurance underwriters in the market. The application of
mathematical and statistical modelling to establish suitable premium cover and the
value of insurance risk to 'keep' vs. 'distribute' is typical of Risk Management work.
Risk management encompasses a wide range of issues. Loss control is a notion that
entails taking actions to reduce the likelihood of things going wrong. It also entails
obtaining insurance to mitigate the financial effect of adverse occurrences on a firm
when bad things happen despite your best efforts.
Concept and Application
Some of the characteristics of risk management are as follows:
 Risk management is an ongoing procedure.
 It is carried out mostly in the event of a complete loss.
 It must be followed in a step-by-step manner.
 The possible loss must be quantifiable.
 Data on past events should be available.
 The proposer must have a vested interest in the event.

Conclusion
Risk management has never been more critical than it is right now. The hazards that
modern businesses face have become more complicated as the speed of
globalisation has accelerated. On a daily basis, new dangers emerge, many of which
are linked to and exacerbated by the now-ubiquitous use of digital technology.
Climate change has been dubbed a "danger multiplier" by risk experts. The
coronavirus pandemic, which started out as a supply chain issue for many
companies, quickly escalated into an existential threat, harming employees' health
and safety, company processes, consumer interactions, and brand reputations.

3b.
Introduction
A loss exposure is a possibility of loss, it is more specifically, the possibility of
financial loss that a particular entity or organization faces as a result of a particular
peril striking a particular thing that you have assigned value to. Probably the most
important step in the risk management process is the identification or finding of risks
that need to be treated. If you are not aware of the existence of a risk, you certainly
cannot make plans for handling it or mitigating its potential loss. In order to even
consider the identification of your risks, it is necessary for you to classify them in
some sort of orderly manner
Concept and Application
The different type of loss exposure includes:
 Property loss exposures: This includes any condition or situation that creates
some kind of damage or loss to a property. Property loss exposures include
the following buildings, furniture, compuers etc.
 Liability loss exposure: It is an event that creates the possibility of a claim by a
person or business for injury or damage suffered by another person or party.
 Business income loss exposure: Organisations that depend on specific type
of buildings or specialised equipment are typically subject to income loss
exposure. The business income loss exposures relate to loss of income from
a covered loss etc.
 Human resource loss exposures: These include losses related to worker
injuries, disabilities, death, retirement and employee turn-over, etc
 Crime loss exposure: This loss exposure results from criminal acts. These
include robberies, theft, fraud, internet crimes etc.
 Employee-benefit loss exposure: This involves loss of an employee when the
employer mistakenly or deliberately makes an error or omission in the
administration of an employee benefit programmed.
Conclusion
Risk exposure is the measure of potential future loss resulting from a specific activity
or event. Risks are frequently ranked in an examination of a company's risk
exposure according to their likelihood of occurring multiplied by the potential loss if
they do. By ranking the probability of potential losses, a business can determine
which losses are minor and which are significant enough to warrant investment.