Page 140 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Mahesh Kumar Sarva, Lovely Professional University
Unit 8: Insurance Planning

Unit 8: Insurance Planning Notes

CONTENTS
Objectives
Introduction

8.1 Characteristics of Insurance
8.2 Risk and Insurance
8.3 Role of Insurance

8.4 Rights of the Insurer
8.5 Rights of the Insured
8.6 Classification of Insurance
8.7 Insurance Products
8.7.1 Life Insurance

8.7.2 General Insurance
8.7.3 Fire Insurance
8.7.4 Motor Insurance

8.7.5 Marine Insurance
8.7.6 Medical and Health Insurance
8.8 Personal Risk Management
8.9 Summary
8.10 Keywords

8.11 Review Questions
8.12 Further Readings

Objectives

After studying this unit, you will be able to:

Understand the nature and functions of Insurance;
Learn about the various types of insurance products and their need;
Understand the purpose of various types of insurance schemes;
Know about the need and importance of personal risk management.

Introduction

Insurance is a contract by which the insurer (Insurer Company) in consideration of the payment
of a sum (premium) agrees to pay a specified sum to the insured (the person or party insuring
against the risk) in the event of some untoward happening taking place. The insurer undertakes
to indemnify the assured for the loss on the happening of an event.

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