A1) Insurance is a contact between 2 parties that is the insurer and the insured wherein the insurer

agrees to pay compensation to another party ( the insured ) against payment of premium of actual
loss incurred.

The parties to insurance include Insurer – the one who promises to pay the amount in case of any
mishap and the Insured – the one is the person to whom the amount will be paid.

A2) Sum Assured is the term used for referring to the amount that the insurer promises to pay in
case of Life Insurance. This term is specifically used only in the case of Life Insurance.

Sum Insured is the term used for referring to the amount that the insurer promises to pay in case of
any insurance other than Life Insurance.

Premium is the amount that the insured pays to the insurer at regular intervals before the insurance
contract matures.

A3) Principle of Indemnity is the Principle of Insurance that applies to all other insurances other than
Life Insurance.

Principle of Indemnity sis a guarantee or assurance to put the insured in the same position in which
he was immediately prior to the happening of the uncertain event.

A4) Principle of Subrogation states that the ownership right of the insured property shifts to the
insurer immediately after the insurer is compensated for the losses due to damage.

A5) Principle of Utmost Faith states that insurance is based on revealing of all facts which are
material to the risk. The insured must disclose all relevant facts to the insurer at the very beginning
of the insurance contract.

A6) There are two types of risks:

a) Pure Risk: In this risk, there is a possibility of some degree of loss. There is no possibility of
profit.
b) Speculative Risk: In this risk, there is a possibility of either loss or profit.

Speculative Risks are not covered under insurance because of the chance of profit.

A7) Two point regarding Font to be remembered are:

a) Size: The font size should be at least 18 pt and not less than that.
b) Use standard fonts like Times New Roman or Arial

A8) Today’s video was about the Group Insurance Policy that Sun Life provides to all organizations
for its employees. Under this, all employees of the concerned organisation are insured by Sun Life.

A9) The morale of today’s story was ‘Effort and Grace walk hand-in-hand’. One should always focus
on putting in the efforts and pray simultaneously that his/her efforts show fruitful results.

A10) The following are some points to be kept in mind regarding the background of the PPT:

a) Keep the background very subtle- preferably white.

b) It should not be distractive for the audience.