General Knowledge (Insurance)

A system by which the original insurer enters into a contract with another insurer for sharing a part or all the risks taken by him is called reinsurance.

IRDA stands for Insurance Regulatory and Development Authority of India. It is an autonomous apex statutory body, which regulates and develops the insurance industry in India.

Principle of subrogation is an extension and another corollary of the principle of indemnity. It also applies to all contracts of indemnity.

General insurance is typically defined as any insurance that is not determined to be life insurance. Life Insurance is not a general insurance since it is an insurance that pays out a sum of money either on the death of the insured person or after a fixed period.
General insurance is typically defined as any insurance that is not determined to be life insurance. Fire insurance is a general insurance.

Fault tree analysis is a top down, deductive failure analysis in which an undesired state of a system is analyzed using Boolean logic to combine a series of lower-level events. This tool of risk identification highlights situations, which may present no risk on themselves but which could endanger the organisation, if they were to exist together.

The right of an insured to abandon lost or damaged property and still claim full settlement from an insurer subject to certain restrictions is called abandonment.

Tobin tax is an excise tax assessed on currency conversions. It is used in taxation and economics and not in insurance sector.

Actuary is a professional person appointed by an insurance company to give advice about premium rates, insurance product development, investments, maintenance of accounts, etc.

In the field of insurance, the division of loss among insurers, when two or more cover the same loss is called apportionment.

A compensation paid by the insurer to the insured for a particular loss suffered by the latter is called indemnity.