DEPARTMENT OF TECHNICAL

EDUCATION ANDHRA PRADESH

Name : Syed Mohammed Akram
Designation : Head of CCP section
Branch : D.C.C.P
Institute : G.P.W (M) L.B Nagar
Year/Semester : I year
Subject : Business Organisation
Subject Code : CCP-104
Topic : Importance of Insurance
Duration : 50 Mts
Teaching Aids : PPT, ANIMATIONS
CCP104.127 TO 128 1
Recap
Importance of insurance
 To individual
 To business
 To society

CCP104.127 TO 128 2
Objectives

On completion of this period you would

be able to
Explain The kinds of insurance

CCP104.127 TO 128 3
Kinds of Insurance

The following are the kinds of insurance

 Life Insurance
 Marine Insurance
 Fire Insurance
 General Insurance

CCP104.127 TO 128 4
Kinds of Insurance

 Insurance may be defined as a contract

between two parties
 One party is called Insurer (LIC,GIC.OIC)
 Other party is called Insured (Policy Holder)

CCP104.127 TO 128 5
Kinds of Insurance

 Premium is the fixed amount paid by the

Insured (Policy holder) to the Insurer
(Insurance Companies)

CCP104.127 TO 128 6
Definition of Life Insurance
Defined As:
 A Contract , Where by the insurer
undertakes to pay a certain sum of money
either on the death of the Insured
or on expiry of certain number of years

CCP104.127 TO 128 7
Meaning of Life Insurance

 Life has risk of death and death may

happen at any time
 If the policy holder dies his/her
representatives get the Policy Amount

CCP104.127 TO 128 8
Life Insurance

 A contract between Insurance Company

and Insured
 On death of Insured or expiry of policy,
amount paid to representatives or policy
holder if alive on expiry of policy,
whichever is earlier
 In India Life Insurance Policies are given
by Life Insurance Corporation of India
CCP104.127 TO 128 9
Benefits
 Protection of Representatives
 Compulsory Saving

CCP104.127 TO 128 10
Companies of Life Insurance are

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CCP104.127 TO 128 12
L.I.C

CCP104.127 TO 128 13
Kinds of Life Insurance Policies
There are different kinds of life insurance
polices :-
 Whole life policy
 Endowment policy
 Annuity policy
 Joint life policy
 Janatha policy
 Group Insurance Policy
 Sinking Fund Policy
 Double Accident Indemnity Policy

CCP104.127 TO 128 14
Whole life policy

 The policy holder pays the premium

through out his life.
 The policy amount paid to his nominees
after his death

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Endowment policy

 The premium is paid for a fixed number of years

 The insurance amount is paid upon the death of
policy holder or expiry of the policy time
whichever is earlier

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Joint life policy

Taken on lives of two or more people jointly.

 The policy amount is paid on the first
death among the group of people

CCP104.127 TO 128 17
Annuity policy

 Policy holder pays a lump-sum amount in advance.

 The insurance company will pay the policy amount
in installments for the number fixed number of
years or till the death of the policy holder.

CCP104.127 TO 128 18
Janatha policy
 This is a special type of endowment policy issued
 to the lower income group of people
 The amount of premium is very low

Group insurance policies

 This policy covers the life's of a group of people

CCP104.127 TO 128 19
Surrender Value

 If policy holder decides to surrender his policy

before maturity, Insurance Company pays
Surrender Value
 It is a fraction of total premium paid

CCP104.127 TO 128 20
Paid Up Value

 If policy holder discontinues payment of

premium
 Gets paid up value from Insurance Company,
but only on Maturity of Policy

CCP104.127 TO 128 21
Nomination
 Policy holder mentions name of person, who
should get policy amount, after his death
 This is called nomination
 Such persons are called Nominees
 If policy holder is alive till maturity of policy,
 amount is paid to policy holder - not nominee

CCP104.127 TO 128 22
Summary

 Insurance is a contract between two parties

 Insurance is classified into Life, Fire, Marine
and General
 Premium is paid by the Policyholder
 Life insurance is an intangible asset
 There are different kinds of insurance policies

CCP104.127 TO 128 23
Quiz

1. Risk of Death is Covered by

a) Life Insurance
b) Marine Insurance
c) Death Insurance
d) None

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Quiz

1. Life Insurance premium paid by the

(a) Policyholder
(b) shareholder
(c) debenture holder

CCP104.127 TO 128 25
Quiz

1. Which policy is taken on Lives of 2 or

More Persons
a) Janata Policy
b) Joint Life Policy
c) Whole Life Policy
d) None

CCP104.127 TO 128 26
Frequently Asked Questions

2. Mention any four Life insurance Policies

3. What is life Insurance

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Frequently Asked Questions

1. What is life insurance ?

2. Give various types of life insurance polices

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Assignment

1. List the latest Policies Introduced

in Life Insurance

CCP104.127 TO 128 29