ST JOSEPHS DEGREE COLLEGE

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PRINCIPLES
OF
INSURANCE
 ST JOSEPHS DEGREE COLLEGE
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INSURANCE CONTRACT
An Insurance contract is a
document representing the
agreement between an
insurance company and the
insured
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The Fundamental Principle Is That Both

The Parties In An Insurance Contract
Should Act In Good Faith Towards Each
Other, i.e. They Must Provide Clear And
Concise Information Related To The
Terms And Conditions Of The Contract.
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WARRANTIES

NATURE OF
PRINCIPLE OF
GENRAL
CONTRIBUTION
CONTRACT

PACTICAL
ASPECTS OF
LIFE
PROXIMATE INSURANCE UTMOST GOOD
CAUSE FAITH

PRINCIPLE OF INSURABLE
INDEMNITY INTEREST
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The risk of dying early refers to the

possibility of passing away before reaching
the average life expectancy. Insurance
products, such as life insurance, are
designed to provide financial protection to
the policyholder's loved ones in the event
of their premature death.
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1.TERM PLANS
2. ENDOWMENT
PLAN
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PURE TERM
ASSURANCE

DECREASING
TERM
ASSURANCE
TERM PLANS
CONVERTIBLE
TERM
ASSURANCE

PRODUCT EXTENDED TERM

OFFERED ASSURANCE

DOUBLE
PURE ENDOWMENT
ENDOWMENT
PLANS DOUBLE COVER
ENDOWMENT
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 Whole Life Assurance

Pure Whole Life Plan

INSURANCE PRODUCTS Limited Payment Whole Life Plan

TRADITIONAL

CONVERTIBLE WHOLE LIFE PLAN

ENDOWMENT ASSURANCE

MARRIAGE ENDOWMENT OR FIXED TERM

ENDOWMENT

EDUCATINAL ANNUITY PLAN

Limited Payment Endowment Plan

Extended endowment assurance

Money Back Policy

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Linked Insurance Plans are often

referred to as an insurance-cum-
investment product. These plans are
linked to the stock market and their
returns are influenced by market
fluctuations. Therefore, bonuses come
at the insurer's discretion.
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FEATURES OF ANNUITIES
Annuities are retirement investments
and, therefore, grow tax deferred. This
means that you aren't taxed on any gains
that accumulate inside of your annuity
contract until you take a withdrawal.
Upon withdrawal, interest/gains or any
untaxed funds (e.g., IRA) will be taxable.
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Group insurance is a type of insurance

plan that covers a number of people in
the same contract. Such a plan provides
the same level of insurance coverage to
all members of a group irrespective of
their age, gender, occupation or socio-
economic status.
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GENERAL INSURANCE
I. Motor insurance.
II. Health insurance.
III. Marine insurance
IV. Travel insurance.
V. Aviation insurance
VI. Personal Accident insurance.
VII. Disability Insurance
VIII. Crime insurance
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1. DIRECT LOSS
2. INDIRECT LOSS
3. EXTRA EXPENSES
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EXPOSURE
TO
PERILS
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EXPOSURE
Exposure is an individual's inclination to
Risk in their daily life. For example, the
more a person drives their car, the higher
their Exposure to an accident. Insurance
companies use Exposure to measure the
risks of taking on certain policies and to
help determine Premiums.
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PERILS
In The World Of Insurance, A "Peril"
Is An Event Or Circumstance That
Results In Property Damage. Your
Homeowners, Condo, Or Renters Policy
Contains A List Of Covered Perils, Such
As Fire, Lightning, And Vandalism.
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Exposure Relation to perils

1.Property Peril
2.Medical Insurance Peril
3. Lawsuit Exposure
4. Loss of income
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Fire insurance
What Is Fire Insurance? Fire insurance is a form of
property insurance that covers damage and losses
caused by fire. Most policies come with some
form of fire protection, but homeowners may be
able to purchase additional coverage in case their
property is lost or damaged because of fire.
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Policy

Features Of
Products
Covering
Fire

Lawful Material
consideration facts
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Features Of Products
Covering Fire
1.Policy
2.Lawful consideration
3.Material facts
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Special
Policies

Scope of Fire insurance

General
policy
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Scope of Fire insurance

1.General policy

2.Special Policies
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Specific
policy

Replacement Floating
Policy policy

Consequentia Declaration
l Loss Policy Policy
Types Of
Fire
Insurance

Comprehensi Average
ve Policy Policy

Adjustable Valued
Policy Policy
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Types Of Fire Insurance
1.Specific policy
2.Floating policy
3.Declaration Policy
4.Average Policy
5.Valued Policy
6.Adjustable Policy
7.Comprehensive Policy
8.Consequential Loss Policy
9.Replacement Policy
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MARINE INSURANCE
Marine insurance covers the loss or damage of
ships, cargo, terminals, and any transport by which
the property is transferred, acquired, or held
between the points of origin and the final
destination.
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Valid
Contract

Features of
Marine

Insurance

Material
Facts
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Cargo
Insurance

Floating Policy Hull Insurance

Types Of
Marine
Insurance
Policies Freight
Mixed Policy
Insurance

Voyage Policy Time Policy

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MOTOR VEHICLE INSURANCE

It protects you, your vehicle and other motorists

against liability in case there is an accident. It

provides financial compensation to cover any

injuries caused to people or their property.

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Cargo
Insurance

Floating Policy Hull Insurance

Types Of
Motor
Vehicle
Mixed Policy
Insurance Freight
Insurance

Voyage Policy Time Policy

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HEALTH INSURANCE

Health insurance is a type of insurance that covers

medical expenses that arise due to an illness.
These expenses could be related to hospitalisation
costs, cost of medicines or doctor consultation
fees.
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IMPORTANCE OF HEALTH
INSURANCE
To meet the rising cost of healthcare in India, you need a
health insurance policy as a financial backup. Medical
inflation in India has been 15% over the last few years. A
health insurance policy allows people to pay for
expensive medical treatments and hospital bills in an
illness or an accident.
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Individual
Mediclaim
Policy

Raj
Overseas
Rajeshwari
Mediclaim
Mahila Kalyan
Policy
Yojana

Types Of
Health
Cancer
Insurance
Videsh Yatra
Insurance
Mitra Policy
Policy

Jan Arogya Bhavishya

Bima Policy Arogya Policy
 ST JOSEPHS DEGREE COLLEGE
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UNIT – II
Short Questions: 05 marks
Q1. Principle Of Indemnity
Q2. Life Insurance
Q3. Pure Endowment
Q4. Proximity Clause
Q5. Discuss about risk involved in ‘dying early’ and ‘living too long’
Q6. Insurable Interest
Q7. What is General Insurance? Explain the risk faced by owner of asset.
Q8. What are the basic products offered by life insurance companies?
Q9. Principle of Utmost Good Faith

Long Questions: 10 Marks

Q1. Define Insurance and explain the essentials(principles) of Insurance.
Q2. Write in detail about:
Term Plans
Endowment Plans
Q3. What is Term Plan? Explain its features, advantages and disadvantages.
Q4. What are the major types of Group Insurance schemes? Explain.
Q5. What is General Insurance? What are the types of General Insurance?
Q6. What is Fire Insurance Policy? Explain its Scope and Types.
Q7. Explain the meaning and scope of marine insurance. What are different marine insurance policies?
Q8. What is Health Insurance? Explain its importance and various health insurance policies in India.