Unit 1 FI

What is the meaning of insurance?

• A way to invest money for profit.

• A legal contract for buying property.

• A method to increase financial risk.

• Insurance is a means of protection from financial loss.

Define insurance in your own words.

• Insurance is a type of investment that guarantees high returns.

• Insurance is a service that offers discounts on travel and leisure activities.

• Insurance is a government program that provides free healthcare to everyone.

• Insurance is a contract that offers financial protection against specified risks in exchange for regular premium payments.

List the general principles of insurance.

• 1. Utmost Good Faith, 2. Insurable Interest, 3. Indemnity, 4. Contribution, 5. Subrogation

• Claims Processing

• Policy Limits

• Risk Assessment

What are the main types of insurance?

• Life, health, auto, homeowners, and liability insurance

• Travel, pet, and business insurance

• Short-term, long-term, and mortgage insurance

• Flood, earthquake, and cyber insurance

Explain the difference between life insurance and other types of insurance.

• Life insurance is only for elderly people.

• Other types of insurance only cover property damage.

• Life insurance is cheaper than all other insurances.

• Life insurance focuses on death benefits for beneficiaries, while other insurances cover risks or damages during the policyholder's life.

What is life insurance?

• A type of insurance that covers medical expenses.

• A savings account that earns interest over time.

• Life insurance is a financial product that pays a sum of money to designated beneficiaries upon the death of the insured.

• A policy that pays for funeral costs only.

What is fire insurance?

• Fire insurance is a type of health insurance.

• Fire insurance only covers damages from natural disasters.

• Fire insurance is a type of property insurance that covers losses and damages caused by fire.

• Fire insurance is a government program for fire prevention.

What is marine insurance?

• Insurance for land vehicles

• Protection against cyber attacks

• Marine insurance is a type of insurance that covers loss or damage to ships, cargo, and other maritime interests.

• Coverage for personal health expenses

How has the Indian insurance industry grown over the years?

• The Indian insurance industry has declined due to increased competition.

• Growth has been primarily due to government regulations limiting private sector involvement.

• The Indian insurance industry has grown significantly since 2000, driven by liberalization, private sector entry, and increased consumer awareness.

• The industry has remained stagnant since 1990 with no significant changes.

What are the key regulations governing the insurance business in India?

• Banking Regulation Act, 1949

• Consumer Protection Act, 2019

• Key regulations include the IRDAI Act, 1999, Insurance Act, 1938, and guidelines by IRDAI.

• Companies Act, 2013