Banking and Insurance · Class 11 Commerce
Ch 3Introduction to Insurance — Class 11 Banking and Insurance, concept-first.
Every business, every family and every individual lives with the constant possibility that something will go wrong — a fire may destroy a shop's stock, an accident may damage a truck carrying goods, an earning member may die suddenly, or a factory owner may fall ill and be unable to work.
Key concepts
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Risk and Its Management
Risk is the possibility of an unfavourable, uncertain future event causing a financial loss; it requires both genuine uncertainty and the possibility of loss, and is distinct from a peril (the cause of loss) and a hazard…
Most relevant Q&A
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Overview
Every business, every family and every individual lives with the constant possibility that something will go wrong — a fire may destroy a shop's stock, an accident may damage a truck carrying goods, a…
Risk and Its Classification; Dealing with Risk
Meaning of risk. In the study of insurance, risk means the possibility of an unfavourable or adverse outcome — that is, the chance that some uncertain future event will happen and cause a financial lo…
Insurance — Meaning, Definition, Mechanism and Functions
Meaning of insurance. Insurance is a contract between two parties — the insurer (the insurance company) and the insured (the person or business seeking cover) — under which the insurer, in return for…
Basic Concepts — Double Insurance, Re-insurance, Co-insurance and the Insurance Market
Four technical terms recur throughout the study of insurance, and it is important to keep them clearly apart, because students frequently confuse them.
The Insurance Contract; Contingent Contract versus Wagering Agreement
Insurance as a contract. An insurance policy is, first of all, a valid contract, and so it must satisfy all the essentials of a valid contract laid down in the Indian Contract Act, 1872: - Offer and a…
Fundamental Principles of Insurance
Every valid contract of insurance is governed by a set of fundamental principles. The first three below apply to all types of insurance; the last three (indemnity, subrogation and contribution) apply…
The Insurance Act and the Role of IRDA
Because insurance involves collecting large amounts of the public's money against promises to be honoured far into the future, it is one of the most closely regulated industries.
More questions
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- Q1A risk that involves only the possibility of loss or no loss, with no chance of gain, is called a: (a) Speculative risk (b) Pure risk (c) Dy…Free
- Q2Passing on a part of a very large risk by one insurer to another insurer is known as: (a) Double insurance (b) Co-insurance (c) Re-insurance…Free
- Q3Which principle of insurance requires the insured to disclose every material fact relevant to the risk, honestly and completely, even withou…Preview
- Q4An agreement in which the parties have no interest other than the sum they stand to win or lose, and which is void under Section 30 of the I…Preview
- Q5The Insurance Regulatory and Development Authority (IRDA/IRDAI) in India was established under the: (a) Insurance Act, 1938 (b) Indian Contr…Preview
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- Q6What is meant by 'risk'? State any four ways in which a person or business can deal with a risk.Free
- Q7Explain the mechanism of insurance based on the pooling of risks and the law of large numbers.Free
- Q8Distinguish between double insurance and re-insurance.Preview
- Q9State any four functions of insurance.Preview