Q.Explain the importance of insurance to the individual, business and the economy.

A voyage policy is a marine insurance policy covering a specific journey from one port to another. This is a short TS Intermediate 2nd-year Commerce 2-mark term.

Explanation

A voyage policy is a type of marine insurance policy under which the subject matter (usually the cargo or goods in transit, and sometimes the ship) is insured for a particular voyage or journey, that is, from one named port to another named port, regardless of how long the journey takes. The insurance cover begins when the voyage commences and ends when the ship reaches the destination port and the voyage is completed. It is contrasted with a time policy, which covers the risk for a fixed period of time rather than for a particular journey. Voyage policies are most commonly used to insure goods being exported or imported by sea. This is TS Intermediate 2nd-y …

Fire insurance is a general-insurance contract that compensates the insured for loss or damage to property caused by fire, up to the agreed sum, in return for a premium. A TS Inter 2nd-year Commerce / NCERT-aligned insurance term.

Fire Insurance

Fire insurance is a type of general insurance in which the insurer undertakes to compensate the insured for financial loss caused by damage to or destruction of property by fire. The insured pays a premium, and in return, if the insured property (such as a building, factory, stock or machinery) is damaged or destroyed by fire during the policy period, the insurer makes good the actual loss suffered, subject to the sum insured. Being a contract of indemnity, it pays only the actual loss and not more, so the insured cannot make a profit out of it. This is a co …

An endowment policy pays the sum assured on maturity if the insured survives the fixed term, or to the nominee on earlier death; it combines life cover with a savings/investment element.

Meaning

An endowment policy is a type of life-insurance policy taken for a fixed period (the endowment term). If the policyholder survives till the end of the term, the sum assured together with any bonus is paid to him on maturity. If he dies during the term, the sum assured is paid to his nominee. Because it returns money even on survival, it serves the dual purpose of protection and savings, and is popular for goals such as children's educati …

A time policy is a marine insurance policy that covers the subject matter (ship or cargo) for a fixed period of time, usually not exceeding one year, rather than for a specific voyage.

Meaning

In marine insurance, policies are classified by period into voyage policy, time policy and mixed policy. A time policy is one under which the insurer provides cover for a definite period of time - commonly for one year - whatever voyages may be undertaken during that period. It is generally used to insure a ship (hull insurance) for a season or a year. If a voyage is still in progress when the period ends, the cover is u …

An endowment policy pays the sum assured on maturity of a fixed term if the insured survives, or to the nominee on earlier death — combining life protection with saving.

Endowment Policy

In the TS Intermediate 2nd-year Commerce insurance unit, an endowment policy is a type of life-insurance contract taken for a fixed number of years (the term or endowment period). Under it:

• If the insured person survives till the end of the term, the full sum assured (with bonus, if any) is paid to him or her on maturity.
• If the insured person dies during the term, the sum assured is paid to the nominee/family at once. …

An endowment policy is a life insurance policy that pays the sum assured to the policyholder on maturity (after a fixed term) if he survives, or to his nominee on his earlier death. It combines insurance protection with compulsory saving and is popular for meeting future financial needs.

An endowment policy is a type of life insurance policy taken for a fixed number of years (the endowment period). If the insured person survives up to the end of that period, the sum assured along with any bonus is paid to him on the maturity date. If he dies during the term of the policy, the sum assured is paid at once to his nominee or legal heirs. Because the money is received either way — on survival or on death — the policy serves both as protection for the family and as a means of saving for future goals such as a child's education or marriage, buying a house, or one's own retirement. The premium is somewhat higher than a pure term policy …

An endowment policy is a life-insurance policy under which the sum assured is paid to the policyholder on survival up to the maturity date, or to the nominee on his earlier death. It serves both as protection and as a savings/investment plan.

Endowment Policy

Under life insurance (TS Inter 2nd-year Commerce; aligned with the NCERT/CBSE commerce treatment of insurance), an endowment policy is taken for a fixed term. The sum assured, together with any bonus, is paid:

• to the policyholder on maturity, if he survives the full term of the policy; or
• to the nominee, if the policyholder dies before the policy matures. …