This document discusses different types of insurance. It begins by defining insurance as a legal contract that transfers risk from a policyholder to an insurance company. It then lists several principles of insurance such as utmost good faith, indemnity, proximate cause, subrogation, contribution, and mitigation. The document goes on to describe different types of insurance like life insurance, fire insurance, and marine insurance. It provides details on various life insurance policies including whole life, endowment, joint life, annuity, and children's endowment policies. It also gives brief overviews of fire insurance and marine insurance.

2. Now Let’s revise the portion

3. Insurance

4. Activity
List 5 Insurance companies
Time : 2 mins

7. What is Insurance?
Insurance is a legal contract
that transfers risk from a
policyholder to an insurance
company.

8. Principles of Insurance
 Utmost good faith: A contract of
insurance is a contract based on
utmost good faith. Both the insurer and
the insured should display good faith
towards each other in regard to the
contract.
 Indemnity: The insurer undertakes to
compensate the insured for the loss
caused to him/her due to damage or

9.  Proximate cause: According to this
principle, an insurance policy is
designed to provide compensation
only for such losses as are caused by
the policy.
 Subrogation: It refers to the right of
the insurer to stand in the place of the
insured, after settlement of a claim,
as far as the right of insured in

10.  Contribution: As per this principle it is the
right of an insurer who paid claim under an
insurance, to call upon other liable
insurers to contribute for the loss of
payment.
 Mitigation: This principle states that it is
the duty of the insured to take reasonable
steps to minimize the loss or damage to
the insured property.

11. Types of Insurance
Life Insurance
 Life Insurance can be termed as an
agreement between the policy owner and
the insurer, where the insurer for a
consideration agrees to pay a sum of
money upon the occurrence of the insured
individual’s or individual’s death or other
event, such as terminal illness, critical
illness or maturity of the policy.

13. Types of Life Insurance
 Whole Life policy: The amount payable to
the insured will not be paid before the
death of the assured. The sum then
becomes payable only to the beneficiaries
ir their of the deceased.
 Endowment life assurance policy: The
insurer undertakes to pay a specified sum
when the insured attains a particular age
or on his death which ever is earlier. The
sum is payable to his legal heir/s or
nominee named there in case of death of

14.  Joint life policy: this policy is taken by two
more persons. The premium is paid jointly
or by either of them in installment or lump
sum. The assured sum or policy money is
payable upon the death of any one person
to the other survivor or survivors.
 Annuity policy: under this policy, the
assured sum or policy money is payable
after the assured attends a certain age in
monthly, quarterly, half yearly or annual
installments.

15.  Children’s endowment policy: This policy
is taken by a person for his/her children to
meet the expenses of their education or
marriage.
The agreement states that a certain sum will
be paid by the insurer when the children
attain a particular age.

17. Fire Insurance
Fire Insurance is a contract whereby the insure,
in consideration of the premium paid,
undertakes to make goods any loss or
damage caused by fire during a specified in
the policy. Normally, the fire insurance policy
is for a period of one year after which it is to
be renewed from time to time. The premium
may be paid either in lumps sum or
installments. A claim for loss by fire must
satisfy the two following conditions:
1. There must be actual loss; and

18. Marine InsuranceMarine Insurance

19. Meaning of marine Insurance
 Marine insurance is a contract whereby
the insurer undertakes to indemnify the
assured, in manner and to the extent
thereby by agreed, against marine losses
,i.e. the losses incident to marine
adventure.