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It receives money from those who want to save in the form of deposits and it lends money to those who need it. Now-a-days. European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging A bank is a financial institution which deals with deposits and advances and other related services. The term bank is derived from the French word Banco which means a Bench or Money exchange table.BANCASSURANCE Introduction of banking Finance is the life blood of trade. In olden days. In general terms. bank money acts as the backbone of modern business. Development of any country mainly depends upon the banking system. the business activity of accepting and safeguarding money owned by other individuals and entities. commerce and industry. and then lending out this money in order to earn a profit. .
. Insurance addresses all these uncertainties on financial terms. Insure now and secure your financial future. As insurance covers risks against financial losses. So one should understand the importance of insurance in their life. This site will teach you everything you wanted to know about insurance. With us. People's spending patterns are changing and more & more resources are needed for immediate consumption. you get started the right way here. Getting the right introduction to insurance is important so as to get more familiar with the term. Our life is uncertain. It can simply be defined as an instrument used for managing the possible risks of the future. financial losses. In the last few decades we have seen numerous changes in the insurance industry since the need for insurance is more evident now than earlier.INTRODUCTION TO INSURANCE In today's world we hardly come across anyone who is not familiar with the term insurance. accidents and even fatalities. we do not have any idea what will happen in our future. Learn how to buy insurance online. Insurance is essentially a mechanism that eliminates risks primarily by transferring the risk from the insured to the insurer. Well. it should not be taken as an investment instrument. There a need of insurance in every stage of our life and risks always increases with the changing environment of our life. It s never too late to get insured. Different types of insurance companies discussed will broaden your horizon on insurance. So review your insurance portfolio from time to time. Throughout our life we may face many kinds of risks such as failing health. But insurance has become one of the great ways to secure our future. The idea of insurance is very simple. you will get to know all the types of insurance plus the benefits.
marketing campaigns and sales training. They are: - . The Bancassurance is the distribution of insurance products through the bank's distribution channels. It is a phenomenon where in insurance products are offered through the distribution channels of the banking services along with a complete range of banking & investment products & services. y In Other words. but if past gaining ground. In simple term we can say Bancassurance tries to exploit synergies between both the insurance companies & banks. also sometimes known as Bancassurance. become the point of sale/point of contact for the customer. is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products y BIM allows the insurance company to maintain smaller direct sales teams as their products are sold through the bank to bank customers by bank staff. Bank staff are advised and supported by the insurance company through product information. They are: * Banking is fully governed by RBI & * Insurance sector is by IRDA LIC: The insurance company LIC of India have tie up with the following bank for Bancassurance. In our country the banking & insurance sectors are regulated by two different entries. Bancassurance in India is a very new concept. y Bank staff and tellers.INTRODUCTION TO BANCASSURANCE The Bank Insurance Model (BIM). rather than an insurance salesperson.
(A) Corporation Bank (B) Indian Overseas Bank (C) Centurion Bank (D) Sahara District Central Co-operative bank (E) Janta Urban Co-operative bank (F) Yeotmal Mahila Sahakari Bank (G) Vijaya Bank & (H) Oriental Bank of Commerce .
credit and payment services like checking accounts. Reputed banks have introduced their sites which are strictly devoted to explaining the measures they employ to protect you and your bank account from internet hackers. BENEFITS OF INTERNET BANKING Internet banking (or E-banking) means any user with a personal computer and a browser can get connected to his bank -s website to perform any of the virtual banking functions.BENEFITS OF BANKING Bank is a financial institution whose primary activity is to act as a payment agents for customers. All the services that the bank has permitted on the internet are displayed in menu. and they are the first option that comes to mind when dealing with finances. Online banking makes things extremely convenient for people and saves their precious time. In internet banking system the bank has a centralized database that is webenabled. A large number of national and statewide banks are offering online banking services to their customers. They also provide loans. and. But due to extensive use of internet the scenario is getting changed. The banking industry is a highly regulated industry with detailed and focused regulators. Banks charge some nominal fee with the every service they provided to their customers. in all modern banking systems. and to borrow. Any service can be selected and further interaction is dictated by the nature of . Banks are widely available at each and every place. It allows you to quickly manage your bank account and see where your balance is. create money. Banks provide a valuable service above and beyond just our basic banking accounts. One can now enjoy the benefit of paying the bill online. lend. paying checks drawn by customers on the bank. and collecting checks deposited to customer's current account. Banks safeguards the money and valuables of the people. Banks also enable payments method like telegraphic transfer and ATM. Now a day's online banking is getting very popular. Most banks offer online banking free of charge. and our economy would not be able to function correctly without them.
No identification of the customer is done. web server and application systems are linked over secure infrastructure. ii) Electronic Information Transfer System: The system provides customer. branch location. It comprises technology covering computerization. Automated Teller Machine (ATM): ATM is designed to perform the most important function of bank. loan and deposit calculations are provided in the banks website.service. The plastic card is replacing cheque. In this environment. There exist facilities for downloading various types of application forms. transaction details. The information is fetched from the bank's application system either in batch mode or off-line. This system requires high degree of security and control. and statement of accounts. Identification and authentication of the customer is through password. In this system. Transactions can be submitted by the customer for online update. there would be no physical identity for any branch. banking hours restrictions and paper based verification. there is no possibility of any unauthorized person getting into production systems of the bank through internet. Once the branch offices of bank are interconnected through terrestrial or satellite links. The application systems cannot directly access through the internet. It is operated by plastic card with its special features. SWIFT is a live example of intranet application. It would a borderless entity permitting anytime. The network which connects the various locations and gives connectivity to the central office within the organization is called intranet. iii) Fully Electronic Transactional System: This system allows bi-directional capabilities. networking and security. INTERNET BANKING IN INDIA The Reserve Bank of India constituted a working group on Internet Banking. bank products and their features. These networks are limited to organizations for which they are set up. The traditional branch model of bank is now giving place to an alternative delivery channels with ATM network. There is no interaction between the customer and bank's application system.specific information in the form of account balances. The group divided the internet banking products in India into 3 types based on the levels of access granted. . They are: i) Information Only System: General purpose information like interest rates. anywhere and anyhow banking. personal attendance of the customer. inter-bank payment gateway and legal infrastructure. The information is still largely of the 'read only' format. The communication is normally done through e-mail.
In off-line the facilities are confined to that particular ATM assigned. When he makes a purchase. cash withdrawals and pay bills. The buyers account is debited with the exact amount of purchases. Credit Card is a post paid card. called Smart Cards. An ATM is an Electronic Fund Transfer terminal capable of handling cash deposits. transfer between accounts. In addition. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account. The bank never faces a default because the amount spent is debited immediately from the customers account. Debit Card. he enters his PIN on shops PIN pad. . They hold a large amount of personal information. on the other hand. Smart Card: Banks are adding chips to their current magnetic stripe cards to enhance security and offer new service. Smart Cards allow thousands of times of information storable on magnetic stripe cards. Any customer possessing ATM card issued by the Shared Payment Network System can go to any ATM linked to Shared Payment Networks and perform his transactions. balance enquiries.ATM cardholders. The on-line ATN enables the customer to avail banking facilities from anywhere.There are debit cards. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). It may be on-line or 0ff-line. ATMs used as spring board for Electronic Fund Transfer.either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. When the card is slurped through the electronic terminal. these cards are highly secure. more reliable and perform multiple functions. from medical and health history to personal banking and personal preferences. ATM itself can provide information about customers account and also receive instructions from customers . is a prepaid card with some stored value. Credit Cards/Debit Cards: The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. the Internet Banking house gets money transferred to its account from the bank of the buyer. it dials the acquiring bank system . Every time a person uses this card.
The Advantages of Insurance ? Insurance can have many advantages depending on the type that is purchased. A health insurance policy will pay for medical expenses such as hospital stays. States also have laws that require residents to have insurance on the vehicles they drive. The most common type is known as personal insurance. The most common type is permanent life insurance such as whole life or universal life. A disability income policy can provide financial support to pay credit card bills and mortgage payments. but an individual health insurance policy can be purchased as well. homeowners. Disability Income Insurance o A disability income policy provides protection for an individual if she becomes ill or gets hurt and cannot work. Homeowners Insurance o A homeowners insurance policy is designed to protect a homeowner against various types of risks that can cause damage to his home or property. Anyone who owns a home and has a mortgage is usually required to have a homeowners insurance policy by the mortgage lender. This can include funeral costs. Many health insurance policies are provided by an employer. Homeowners policies provide coverage for risks such as fire. prescription costs and doctor visits. Policy coverage includes liability or bodily injury coverage. Health Insurance o Health insurance has many advantages. which includes automobile. theft and damage from storms. depending on whether or not an individual can obtain an affordable policy. These policies provide a cash value component that term life and simplified-issue policies do not. 1. A homeowners policy will also provide liability protection if someone gets hurt on an individual's property. . The biggest advantage of insurance is the benefits that are paid when a claim needs to be filed. surgeries. Life Insurance o A life insurance policy will provide a benefit to a dependent or beneficiary when the insured person named on the policy dies. Automobile Insurance o Auto insurance has various types of coverage that pay benefits when an accident occurs to an insured vehicle. Many employers that provide health insurance coverage for their employees include short-term and long-term disability insurance coverage. There are also laws in each state that require insurance companies to provide a minimum amount of liability on an automobile policy. life. The advantage of a life insurance policy is that it will provide funds that can be used to pay bills and other costs that are left behind. Insurance companies that make this policy available price it according to the occupation class or category of an individual. house payments and car payments. property damage. disability and health. collision and comprehensive coverage. Claims can include damage to avehicle or home as well as costs for various types of medical expenses.
building your dream home or planning a relaxed retired life. Regular savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages. traditional endowment plans. Safe and profitable long-term investment . in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event. Protection against rising health expenses .e. y y y Builds the habit of thrift .Life Insurance is a long-term contract where as policyholder. Guaranteed Maturity Values. Advantages of Life Insurance y Risk Cover .BENEFITS OF LIFE INSURANCE Life Insurance provides the dual benefits of savings and security. also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short term gains. Planning for life stage needs . you have to pay a fixed amount at a defined periodicity.Life today is full of uncertainties.Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment.Life Insurance is a highly regulated sector. offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back.Life Insurance is one of the best instruments for retirement planning. their marriage. the regulatory body. You can meet your goals. The following benefits explain why this investment tool should be an integral part of your financial plans. This builds the habit of long-term savings. according to your life stage and risk appetite. IRDA. Life Insurance being a long-term savings instrument. be it your children's education. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs. Guaranteed Cash Values. through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Traditional life insurance policies i.Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. Assured income through annuities . The money saved during the earning life y y .
The investment income is distributed among the policyholders through annual announcement of dividends/bonus. these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought. Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans. y Protection plus savings over a long term .span is utilized to provide a steady source of income during the retired phase of life. the burden of repayment does not fall on the bereaved family. Growth through dividends . Mortgage Redemption.Policyholders have the option of taking loan against the policy.Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment.Insurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that. y y y y . Facility of loans without affecting the policy benefits . in case of any unforeseen event.Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk.
However. even while in its care. If.the contract between the shipper and the carrier. The cost of marine insurance is quite small compared with the cost of the goods shipped and the freight charges involved. the benefit of the marine insurance. the point that is being made is that the exporter's goods may be held in the foreign port until such a claim is settled. then the exporter may be called upon to pay part of the cost. This is known as general average.the contract between the shipper and the carrier. Therefore. plus the printed clauses in ocean bills of lading . Here. the point that is being made is that the exporter's goods may be held in the foreign port until such a claim is settled. the exporter must be able to prove want of due diligence. Such a policy relieves the exporter of the burden of proving when or where any loss actually occurred. the risk of financial loss from damage or loss occurring during inland transit in the exporting country and abroad as well as during ocean shipment. in other words. In other words. Not much help can be expected from the shipping company for the exporter. However. someone else's goods are damaged or destroyed during the voyage and in order to save the ship. the benefit of the marine insurance. In order to recover losses from the carrier. the shipping company was negligent. Various statutes. the exporter must be able to prove want of due diligence. if the goods are damaged or lost. In other words. the shipping company was negligent. limit the liability of the shipping company for such losses. is usually well worth the cost. even while in its care. someone else's goods are damaged or destroyed during the voyage and in order to save the ship. It is difficult for an exporter to prove at what point damage or loss occurred. Here. in other words. Not much help can be expected from the shipping company for the exporter.BENEFITS FOR MARINE INSURANCE The cost of marine insurance is quite small compared with the cost of the goods shipped and the freight charges involved. a marine insurancepolicy is often arranged on a warehouse-to-warehouse basis. This is known as general average. in terms of financial reimbursement if disaster strikes. plus the printed clauses in ocean bills of lading . If. . In order to recover losses from the carrier. Such a policy relieves the exporter of the burden of proving when or where any loss actually occurred. is usually well worth the cost. then the exporter may be called upon to pay part of the cost. a marine insurance policy is often arranged on a warehouse-towarehouse basis. Therefore. It is difficult for an exporter to prove at what point damage or loss occurred. the risk of financial loss from damage or loss occurring during inland transit in the exporting country and abroad as well as during ocean shipment. Various statutes. in terms of financial reimbursement if disaster strikes. if the goods are damaged or lost. limit the liability of the shipping company for such losses.
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