Weekly Insurance Awareness Capsule 3

Weekly Insurance Awareness Capsule 3

Dear Mockbankers

In this article you will get, information about different topics of Insurance Awareness in the form of Weekly Insurance Awareness Capsule.

Insurance Awareness section has become an essential section of majority of Insurance Sector examination conducted in India. Essentially it checks how much is the candidate keeping up with the knowledge of insurance and financial sector,with special reference to the insurance industry

In this article, we are providing the basic info about insurance and it’s objective.

“Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of a guaranteed small loss to prevent a large possibly devastating loss.”

Definition of Risks

  • A variation in the possible outcome.
  • The degree of uncertainty associated with a particular loss.
  • Greater the accuracy with which the outcome can be predicted the lower is the risk.
  • Risk is the possibility of an unfortunate occurrence.
  • Risk is the possibility of loss.
  • The combination of hazards.
  • Uncertainty of Loss
  • The tendency that actual results may differ from predicted results.

Objectives of Insurance

  • To Spread insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.
  • Bear in mind, in the investment of funds, the primary obligation to its policy holders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the community as a whole, keeping in view national priorities and obligations attractive return.
  • Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.
  • Meet the various life insurance need of the community that would arise in the changing social and economic environment.
  • Promote amongst all agents and employees of the Corporation a sense of participation, pride job satisfaction through discharge of their duties with dedication towards achievement of corporate objective.
  • Maximize mobilization of people’s savings by making insurance linked savings adequately attractive.
  • Act as trustees of the insured public in their individual and collective capacities.
  • Involve all people working in the Corporation to the best of their capabilities furthering the interests of the insured public by providing efficient service with courtesy Insurance.

Friends this is it regarding Weekly Insurance Awareness capsule. You can also download this post in pdf from below. We will update Weekly Insurance Awareness Capsule like this every week.If you have any suggestion or query, kindly post it in the comments section.

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