INSURANCE

INSURANCE

INTRODUCTION

Insurance means to transfer risk to someone who is capable of handling it generally to insurance company.

The origin of insurance business started from London's Lloyd coffee house.

1st insurance company in the world was Amicable society for Perpetual Assurance.

1st insurance company to be set up in India was The Oriental Life Insurance company Ltd. in 1818.

1st non-life insurance company was Trinton Insurance company Ltd. in India.

1st Indian insurance company was Bombay Mutual Assurance society ltd. in 1870.

National Insurance company ltd. is the oldest insurance company founded in 1906.

In 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act 1912, made it compulsory that premium rate tables and periodical valuation of companies can be certified by an actuary.

The Insurance Act 1938 was the first legislation enacted to regulate the conduct of insurance companies in India. Life insurance business was nationalized on 1st September 1956 by merging 170 insurance companies and 75 provident funds societies and Life Insurance Corporation was formed. Non-life insurance business was nationalized in 1972 by amalgamating 106 insurers, General Insurance Corporation of India (GIC) and its 4 subsidiaries were formed. Insurance Regulatory Development Authority of India (IRDAI) was setup by an IRDA act 1999 as a statutory regulatory body for both life and non-life insurance.

HOW INSURANCE WORK

There must be an asset which has economic value. These assets may lose value due to uncertain event. This chance of loss is called as risk. The cause of risk is known as peril. Persons having similar risk pool (contribute) money (premium) together.

There are 2 types of risk burdens

Primary burden of risk - losses actuary suffered. Example - Factory getting fire.

Secondary burden of risk - losses that might happen. Example - Physical/mental stress strain.

RISK MANAGEMENT TECHNIQUES

Risk avoidance - Controlling risk by avoiding a loss situation.

Risk retention - One tries to manage the impact to risk and divides to bear the risk and its effect by oneself.

ROLE OF INSURANCE IN SOCIETY

Insurance reduces the risk on individual.

Insurance creates employments.

Insurance provide security to an individual and his/her family.

Insurance help economically and socially in difficult situation.

The money raised from premium is invested in the development of infrastructure needs.

GOVT. SPONSORED INSURANCE SCHEME

Employees state insurance corporation

Crop insurance scheme

Rural insurance scheme

CUSTOMER SERVICE

Insurance is intangible goods and service.

Communication can take place in several forms - Orals, written, Non-verbal, Body language.

Elements of effective listening - paying attention, providing feedback, responding appropriately, empathetic listening, and not being judgmental.

NON-VERBAL COMMUNICATION

Making a great impression

Be on time

Present yourself appropriately

A warm and confident winning smile

Be open, confident, and positive

Interest in other person

Body language - It refer to movement of body. The way we walk, sit, stand.

Aneeta M.

Mathematics Lecturer with expertise in Pure and Applied Mathematics. ? Education. ? Creative Content Writing. ? Communication. ? Linkedin Top Voice for Personal Branding. ?

2 个月

Insightful ?????? Vikram Harshwardhan ????

ROMOKE OLISA ADEYEMI ??

Health and wellness Writer| Food For Wellness Advocate and Coach | Nutritionist| Public speaker| Author | Certified First Aid Rescuer| I help busy individuals plan their meal to achieve optimal health with natural foods

2 个月

Very informative piece Vikram Harshwardhan Creating the future we desire is not only with our mind, we need to make it happen. Thank you

Dr. Pratima Gurung

Helping Edupreneur Inspire and Lead Through Words | Best Selling Author | Educational Specialist

2 个月

This is an impressive write-up,?Vikram. Keep writing more articles.

Habibur Rahman

LinkedIn Expert | Digital Marketer | Brand Management | Business Development | Social Media Marketing | Social Media Manager | SMM | Social Media Post Designer

2 个月

Very informative

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