MANAGEMENT

Detailed explanation-1: -INDUSTRY PROFILE 1.1 WHAT IS INSURANCE Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Insurance is a collective bearing of risk.

Detailed explanation-2: -According to the Principle of Subrogation, after paying the compensation, the insurer steps into the shoes of the insured. In other words, when the insured is compensated for the loss or damage to the property insured by him, the right of ownership of such damaged property passes on to the insurer.

Detailed explanation-3: -Insurance offers financial assistance and mitigates the risks that people and companies face throughout their existence. It’s an excellent risk-mitigation tool against incidents that could inflict financial hardship for people and businesses. 2. Insurance improves the productivity of a company.

Detailed explanation-4: -What is Risk? Definition of ‘risk’ in insurance is the “uncertainty of the occurrence of an event that can cause economic losses". What are the forms that risk? Other forms of risk among other pure risk, speculative risk, the particular risk and fundamental risk.

Detailed explanation-5: -The insured is the party who gets his life or property insured against risks. He gets his losses made good by the insurer. The insurer agrees to compensate the insured in consideration of a sum of money. This is called the ‘premium’.