Meaning, importance and principles of insurance - class-XI

Under Section 80C of the Income Tax Act, the deduction for life insurance premium is limited to 10% of the capital sum assured for policies issued after April 1, 2012. Given the premium is 25,000 and the sum assured is 1,00,000, the deduction is capped at 10% of 1,00,000, which is 10,000; however, the option provided suggests 20%, which reflects older tax rules or specific policy conditions.

Salvage charges refer to the compensation paid to a third party who saves a ship or its cargo from peril at sea. This is a fundamental concept in marine insurance.

Reinsurance is the practice where an insurer transfers a portion of their risk to another insurance company to mitigate the potential impact of large claims.

Uncertainties have led to the formation of the concept of insurance. Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. The principle of indemnity in an insurance contract safeguards the insured to put him in the same position that he/she would have been in if the loss had not occurred. However, the principle of indemnity does not apply to life insurance contracts.

Uncertainties have led to the formation of the concept of insurance. Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. The principle of indemnity in an insurance contract safeguards the insured to put him in the same position that he/she would have been in if the loss had not occurred. However, the principle of indemnity does not apply to life insurance contracts. Thus insurance is a protection against possible risk of loss.

Insurance is a form of risk management. It is a substitution of the premium for a risk of large possible loss. Such loss is spread over a large number of policyholders exposed to the same risk.

Uncertainties have led to the formation of the concept of insurance. Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured.

Contract of insurance is represented by the Policy document. A policy document includes details of premium, policy limit, and other particulars of the policy. In other words, a policy issued by the insurance company contains details of the terms and conditions of the contract.

Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured. Premium is paid to the insurer at regular intervals.

Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured. Premium is paid in installments to the insurer at regular intervals.

Insurance is a form of risk management. It is a substitution of the premium for a risk of large possible loss. Such loss is spread over a large number of policyholders exposed to the same risk.

Insurance policy is a formal and legal document issued by the insurance company to the insured. It describes the terms and conditions relating to the particular policy. 

One who calculate insurance and annuity
premium is known as actuary. Actuary basically deals with management and
measurement of risks and uncertainty. An actuary is often described as
an business professional.

An agent is not a connecting link, sub agent or partner between his principal and the third party. An agent can be referred as a person who acts on behalf of some other person. Agent always take an active role in order to create a specific effect on an activity.

The abbreviation "AAR' stands for Against
All Risk. AAR is related with insurance companies. AAR insurance is
primarily referred to a health insurance company of Kenya which started
its operations in the year of 1984.

In principle of subrogation the insurer, after having paid the loss to the insured, steps into the shoes of the insured and acquires all rights and remedies as the insured would have enjoyed regarding the said loss.