Insurance is the transfer of the equitable and specific risk of possible loss of life, property or property in exchange for money. This allows the individual or insurance company to take partial or all possible risks of the client in return for money (premium). This is part of risk management to avoid uncertain losses.
By paying premiums to the insurance companies, the insured person or organization is free from all possible losses and the insurance companies increase their capital by collecting premiums from numerous insured persons or organizations. In addition to the co-operation of the insurer, the individual can save money and avoid the risk of potential risks.
In order to be insured by a private company, seven insolvency principles have to be followed:
1 Existence of many factors that may cause similar losses: Since an insurance company pays compensation for losses, in reality there must be a large number of factors that can cause such losses. For example, Lloyds of London is famous for insuring the lives of popular artists and players and their vital organs. The material that Lloyds of London insures here exists in large quantities in real life, and although these elements are not the same, they can be categorized as such.
2 Specific Losses: This means that the insurance company will be contracted to compensate for only one or more specific losses. For example, if a car has only fire insurance, then the insurance company will not be obliged to pay any compensation if the car is lost.
3 Accidental damage: that is, the amount of damage will be out of control. If any damage is caused due to negligence then it cannot be compensated.
4 Large loss: The amount of loss must be reasonable relative to the insured person.
5 Premium must be affordable: No matter how large the potential loss, the insurance premium must be within the reach of the insured.
পরিমাণ The amount of loss must be quantifiable: Since all losses cannot be compensated and the insurance company can only compensate in money, the potential loss must be measured in money.
পরিমাণ Compensation will be limited in case of natural disasters: For example, the extensive damage caused by floods or earthquakes, the insurance companies refrain from paying this amount because such a large amount of compensation is not possible for a single insurance company.
1 The principle of ultimate good faith
2 Principles of insurable interest:
3 Principles of Compensation:
4 Substitution policy:
5 Principles of participation:
৬ Damage Prevention Policy:
৭ Service Policyঃ
ঃ The principle of fast demand fulfillmentঃ
9 Selami determination policy:
Main article: Life insurance
Life insurance is a strategy for transferring or avoiding the risk, loss, or danger of death. In the modern age, life insurance serves as an effective means of relieving the insured or his family members from financial loss in case of death or old age of the insured.
Life insurance is a contractual arrangement in which the insured company or the insurance company promises to pay a pre-determined amount of money after a certain period of time or after his death in return for paying a premium to the insured. Life insurance, therefore, is a modern contract executed between the insured and the insurer, in which the insurer promises to pay a specified amount to the insured or his heirs or his nominee after his death or at the end of a certain term.
The contract that the insurer executes with the guarantee of compensation in case of damage to the vessel, ship’s goods or freight insured by a certain danger is called naval insurance or marine insurance. According to Halsbury, a treaty that promises to compensate for maritime losses in a certain way, up to a certain limit, is called naval insurance.
R.S. According to Sharma, fire insurance is a contract where one party agrees to bear the risk of a certain amount of financial loss to the other party in return for compensation which means loss or destruction of something by fire. According to MN Mishra, fire insurance is a system that compensates for fires.
Purpose of fire insurance: 1. Compensation: One of the main purposes of fire insurance is to compensate for the damage caused or destroyed by fire. If the insured property of the insured is damaged in a fire, the insurer pays appropriate compensation. 2. Investment Creation: Insurance companies reinvest a large portion of the money they earn from fire insurance premiums in various businesses and industries. Insurers engage in insurance business for the purpose of such investment. 3. Risk sharing: Since fire insurance also distributes one’s loss among other people in the society, it protects a person from a single major loss. 4. Other Insurance Supplements: Life Insurance, Fire Insurance, Naval Insurance, Accident Insurance, etc. No insurance alone can handle the overall insurance activities.
Fire insurance classification: 1. Valuable insurance policy: A fire insurance policy that is accepted without determining the value of the insured material at the time of execution of the contract is called valuated insurance policy. The condition of valuation of the property is written after such insurance policy. 2. Unvaluated insurance policy: A fire insurance policy that is accepted without determining the value of the insured material at the time of execution of the insurance contract is called unvaluated insurance policy. The condition of valuation of the property is written after such insurance policy. 3. Specific insurance policy: A contract is executed at a fixed price on the property of such fire insurance. The insurer pays a fixed price in case of loss. Even if it is burnt, the insurer compensates the loss of three lakh rupees. 4. Comprehensive insurance policy: Such insurance policy guarantees the loss of certain assets due to the loss caused by the stolen load worker in addition to the fire. 5: Fire Extinguisher Insured: If the fire extinguisher is damaged and the insured property and property is damaged, the insurance policy taken to cover it is called Agni Nibarani Insurance. Insurance
Social and other types of insurance
Social insurance is the special insurance that has been introduced outside the conventional insurance to protect the person financially due to old age, unemployment, ill health etc.