INSURANCE : AN INTRODUCTION. PRESENTED BY AJAY K. JAIN B.E.(Mechanical), M.B.A.(Finance) Website: www.sukhnidhey.com Mobile: 98280 11115, 98291 11115. WHAT IS INSURANCE ?. The business of insurance is related to the protection of the economic value of assets Every asset has a value
AJAY K. JAIN
Mobile: 98280 11115, 98291 11115
The term ‘Risk’ refers to the subject matter of insurance.
1. People who are exposed to same risk come together and agree to share the loss and make good to the person who lost.
2. By this method the risk is spread among them and likely big impact on one is reduced to smaller manageable impacts on all.
3. The manner in which the loss is to be shared can be determined before hand.
4. Insurance companies collect in advance and create a fund from which the losses are paid.