Ch 4Life Insurance and Other Insurances — Class 11 Banking and Insurance, concept-first.

Life insurance is a contract in which an insurer, in return for a stated payment called the premium, agrees to pay a fixed sum of money — the sum assured — either on the death of the person whose life…

Life insurance occupies a central place among the financial arrangements of an individual, a family and the nation because it converts an uncertain, uncontrollable risk — the risk of dying too soon or…

A life insurance contract, like any other contract, is created only when a definite offer is accepted. In insurance the intending policyholder makes the offer and the insurer accepts it.

The premium is the price the policyholder pays for the cover. Fixing it fairly is the central problem of life insurance: it must be high enough to let the insurer pay all the claims that will arise an…

Every life policy bond carries a set of conditions that govern the rights and duties of the two parties during the life of the contract.

A claim is the demand made on the insurer to pay the policy money when the event covered by the contract occurs.

Life policies can be classified on several bases. The syllabus requires two: classification by duration/nature of benefit and by the number of lives covered.

Insurance other than life insurance is called general (or non-life) insurance. Here the loss insured against may or may not happen, and the aim is only to indemnify — to place the insured, so far as m…

Besides life, fire and marine insurance, several other useful branches of general insurance meet particular needs of business and society. The syllabus expects a basic understanding of four of them.