competition compels insurers to develop differentiated products that meet various insureds’ needs and preferences. There are loads of companies who are providing such customized insurance policies. The Life Insurance Corporation of India came into being on 1st September, 1956 and nationalized on 19th January, 1956 to carry on life business in India with capital of Rs.5 crores contributed by the Central Government. Also to take the benefit of income tax exemptions, people take up insurance as a good investment option. Contractual De fin it ion In the words of Justice Tindall, "Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer's incurring the risk of paying a large sum upon a given contingency. Benefits to consumers 8. Credit to the […] ADVERTISEMENTS: After reading this article you will learn about:- 1. Economy in the use of money 2. The time and amount of loss are uncertain and at the happening of risk, the person will suffer loss in absence of insurance. Most actuaries work in the insurance industry and help insurance companies create and price insurance policies based on the … 5. insurance that is a function of realized outcomes. Travel insurance applies to different modes of transportation, to ensure a safe journey. The extra protection form a reinsurance company gives your insurer the opportunity to take the money from premiums and invest it in other markets or use profits to launch new products and services. 2] Protection The university shielded its employees from the fact that some plans were more expensive than others by paying a larger share of the more expensive health insurance plans. Specifying code of conduct for surveyors and loss assessors. Please enter the OTP sent to your mobile number: Insurance is a co-operative device to spread the loss caused by a particular risk over the number of person who are exposed to it and who agree to insure themselves against the risk. No public clipboards found for this slide. Insurance company investment functions are responsible for taking profits earned from policyholder premium payments and investing them in financial instruments such as bonds, stocks, mortgages and real estate. It is an intermediary company between an insured and insurer. Instead of this uncertainty, it provides the certainty of regular payment i.e. Winner of the Standing Ovation Award for “Best PowerPoint Templates” from Presentations Magazine. Looks like you’ve clipped this slide to already. The time and amount of loss are uncertain and at the happening of risk, the person will suffer loss in absence of insurance. SECONDARY FUNCTIONS OF INSURANCE Preventing losses – Insurance warns individuals and businessmen to embrace appropriate device to prevent unfortunate aftermaths of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Meaning of Insurance 2. Role of Insurance & IRDAI Part 1 What is Insurance for JAIIB Module B by kamal krishna 011118 - Duration: 13:23. PowerPoint slide on FUNCTIONS OF INSURANCE compiled by Juned Kazi. Meaning of Insurance: If one goes by the word meaning insurance is a contract between two parties whereby the insurer agrees to indemnify the insured […] In Brazil, Japan and Mexico, the insurances are largely nationalized. Updated: 07 Jul 2017, 06:21 AM IST Shaikh Zoaib Saleem. Insurance cannot arrest the risk from taking place, but can for sure allow for the losses arising with the risk. Related: Life Insurance Bonus: Definition, Features, Types. Collective risk bearing — Insurance is an instrument to share the financial O loss. (ii) Insurance provides protection: The main function of the insurance is to provide protection against the probable chances of loss. If you have your own PowerPoint Presentations which you think can benefit others, please upload on LearnPick. The third party administrator knows all the aspects of health insurance. Undertaking inspection, conducting enquiries etc., on insurance companies. Insurance enables to mitigate loss, financial stability and promotes trade and commerce activities those results into economic growth and development. The functions of Mutual Fund Organizations (MFO) can be described as (a) Collection of funds from public (b) Investment of funds collected from public in capital market (c) Proper management of investment portfolio as a trustee to the investor’s money. similar to the administrative functions of any other organizatio n. 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