INSURANCE

Meaning
Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Insurance is classified into two groups.

1. Life insurance 2. Non-life or General insurance

1.Life insurance
It is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a Designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the premium. The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.

Advantages of Life Insurance

Risk Cover. Planning for life stage needs Protection against rising health expenses

Builds the habit of thrift Safe and profitable long-term investment Tax Benefits

Life insurance companies

1. Life Insurance Corporation of India 2. Bajaj Allianz Life Insurance Company Limited

3 HDFC Standard Life Insurance Co. Ltd 4 ICICI Prudential Life Insurance Co. Ltd.

Life insurance Corporation (LIC)

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

Objective of LIC
1. Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. 2. Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. 3. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. 4. Act as trustees of the insured public in their individual and collective capacities. 5. Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

Mission
Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India.

Awards
Asian Leadership Awards ET Brand Equity's Most Truste Star News - Customer Centric Brand Award CNBC Awaz Consumer Award ET Brand Equity Award for Top Brand in Insurance Category Outlook Money Award for Best Life Insurer AIMA High Performance Award Readers Digest Trusted Brand Power Brand Award

Honour
In the year 1956, 245 Indian and foreign companies were nationalized and today, the three letters LIC, stands as a synonym for insurance, for services, for excellence in strengthening the economic fibre of this country. I dare to say that no other three letters taken together are more recognized to the length and breadth of India than LIC. The performance figures of LIC give an indication why LIC is dear to us, why LIC is a Jewel in our crown and why we will continue to nurture LIC and grow it into a great organization rendering service to the people of India. LICs footprints are now to be found in many other countries in the world. Wherever Indians go - and they go everywhere now, wherever Indians are welcome and they are welcome in every part of the world, wherever Indians settle down they have found

many new homes, wherever Indians excel and they excel in every walk of life, they want LIC they want LIC to protect them, to look after their savings, and provide for protection as well as their retirement. Shri P.chidambaram, union finance minister of India

2.General insurance
General insurance means managing risk against financial loss arising due to fire, marine or miscellaneous events as a result of contingencies, which may or may not occur.General Insurance means to Cover the risk of the financial loss from any natural calamities viz. Flood, Fire, Earthquake, Burglary, etc... i.e. the events which are beyond the control of the owner of the goods for the things having insurable interest with the utmost good faith by declaring the facts about the circumstances and the products by paying the stipulated sum , a premium and not having a motive of making profit from the insurance contract.. Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown, there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business.