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Mahesh Kumar Sarva, Lovely Professional University Unit 12: Insurance

Unit 12: Insurance Notes

CONTENTS
Objectives
Introduction
12.1 History and Meaning of Insurance
12.2 Indian Insurance Industry

12.3 Basic Terminology related to Contract of Insurance
12.4 Legal Definitions
12.5 How Insurance Works
12.6 Rights and Responsibilities of the Insurer and Insured
12.6.1 Rights and Responsibilities of the Insurer
12.6.2 Rights and Responsibilities of Insured
12.7 Nature of Insurance Contract

12.8 Differences between Insurance Contract and Wagering Contract
12.9 Role of Insurance in Financial System
12.10 Functions and Characteristics of Insurance
12.11 Salient features of IRDA Act
12.12 Meaning of Life Insurance
12.13 Salient Features of Life Insurance
12.14 The Use of This Theory to Forecast Future Events
12.15 Mortality rate
12.16 Application of the Theory of Probabilities to the Mortality Table

12.17 Summary
12.18 Keywords
12.19 Review Questions
12.20 Further Readings

Objectives

After studying this unit, you should be able to:

Define Methods of handling risks and how insurance works.
Describe Rights and responsibilities of the insurer and insured and nature of insurance
contract.

Differentiate the difference between insurance contract and wagering contract; insurance
and assurance.

Differentiate the functions, characteristics and marketing of insurance and the classes of
risk and their insurability.
Define how risks affect well-being.

LOVELY PROFESSIONAL UNIVERSITY 237