Insurance sector in india

CHAPTER 1 INSURANCE INDUSTRY-An oerview The insurance industry provides protection against pecuniary losses resulting from a variety of perils. By purchasing insurance policies, individuals and businesses can deliver reimbursement for losses due(p) to car accidents, stealing of property, and fire and wedge damage; medical expenses; and loss of income due to disability or death. indemnity business is divided into quatern classes : 1) sprightliness restitution business 2) Fire 3) Marine 4) sundry(prenominal) indemnity. Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites ar permitted as per law. The business of indemnification essentially means defraying risks attached to any activity everywhere time (including life) and sharing the risks between various entities, both persons and organisations. Insurance companies (ICs) are important players in financial markets as they be adrift and invest large amounts of premiu m. Insurance products are multi purpose and interference the following benefits : 1. Protection to the investors 2. Accumulate savings 3. Channelise savings into sectors needing immense long term investments. ICs receive, without much default, a potent gold stream of premium or contributions to pension plans. mixed statistician studies and models enable them to predict, relatively accu tellly, their expected cash outflows.

Liabilities of ICs existence long-run or contingent in nature, liquidity is clarified and their investments are also long-term in nature. Since they darker more than the contribute on savings in the shape of life-cover to the in! vestors, the rate of consecrate guaranteed in their insurance policies is relatively low. Consequently, the need to attempt gamey rates of returns on their investments is also low. The risk-return trade off is heavily tilted in favour of risk. As a unite result of all this, investments of insurance companies have been generally in bonds floated by GOI, PSUs, state governments, local bodies, corporate bodies and... If you command to pull in a full essay, order it on our website: BestEssayCheap.com

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