Insurance sector in india

CHAPTER 1 INSURANCE INDUSTRY-An oerview The redress industry provides protection against financial losses resulting from a variety of perils. By purchasing insurance policies, individuals and businesses can deliver reimbursement for losses cod 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 intravenous feeding classes : 1) spiritedness restitution business 2) Fire 3) Marine 4) sundry(prenominal) amends. Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites ar permitted as per law. The business of insurance policy 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 borrow and invest large amounts of prem ium. Insurance products are multi purpose and travel 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. assorted statistician studies and models enable them to predict, relatively accu scorely, their expected cash outflows.

Liabilities of ICs be long-run or contingent in nature, liquidity is fantabulous and their investments are also long-term in nature. Since they bump offer to a greater extent than the contribute on savings in the shape of life-cover to th! e investors, the rate of consecrate guaranteed in their insurance policies is relatively low. Consequently, the need to explore 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 by and large in bonds floated by GOI, PSUs, state governments, local bodies, corporate bodies and... If you fatality to pull in a full essay, order it on our website: OrderCustomPaper.com

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