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    Insurance spreads the risk of loss from a particular event over many individuals through a cooperative agreement where each pays in case the event occurs. It involves a contract where one party agrees to pay a sum of money to another party if a specified risk occurs. The general functions of insurance include equitably distributing losses, reducing losses through risk assessment, assisting businesses, providing investment opportunities, and offering inspection and research services. Insurance can be classified by branch such as marine, fire, life, accident, engineering, and aviation, or by subject matter including insurance of persons, property, liability, and interests.

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    Insurance spreads the risk of loss from a particular event over many individuals through a cooperative agreement where each pays in case the event occurs. It involves a contract where one party agrees to pay a sum of money to another party if a specified risk occurs. The general functions of insurance include equitably distributing losses, reducing losses through risk assessment, assisting businesses, providing investment opportunities, and offering inspection and research services. Insurance can be classified by branch such as marine, fire, life, accident, engineering, and aviation, or by subject matter including insurance of persons, property, liability, and interests.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    11 views7 pages

    Chapter 3

    Uploaded by

    Optimistic Eye
    Insurance spreads the risk of loss from a particular event over many individuals through a cooperative agreement where each pays in case the event occurs. It involves a contract where one party agrees to pay a sum of money to another party if a specified risk occurs. The general functions of insurance include equitably distributing losses, reducing losses through risk assessment, assisting businesses, providing investment opportunities, and offering inspection and research services. Insurance can be classified by branch such as marine, fire, life, accident, engineering, and aviation, or by subject matter including insurance of persons, property, liability, and interests.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 7

    Chapter # 03 Insurance

    Functional Definition of Insurance


    Insurance is a cooperative device to spread the loss caused by a particular risk over a number of persons, who are exposed to it and who agree to insure themselves against the risk.

    Contractual Definition of Insurance


    One party agrees to pay to the other party or his beneficiary, a certain sum upon a given contingency ( the risk) against which insurance is sought.

    General Functions
    Equitable distribution of loss Reduction of losses through rating principle Assistance to business enterprise Invisible export Investment Inspection services Research & publicity

    Classification of Insurance
    Branch-wise Classification
    Subject matter-wise Classification

    Branch-wise Classification
    Marine Fire Life Accident Engineering Aviation

    Subject matter-wise Classification


    Insurance of Person Insurance of Property

    Insurance of Liability
    Insurance of Interest

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