LIFE INSUREANCE

5. Late , were established the cooperative assurance in Lahore, the Bombay life (originally called the swedeshi life). The Indian mercantile, the new India and the Jupiter in mumbai and lakshmi in new delhi.these were all Indian companies started as a result of the swadeshi movement in the early 1900s. by the year 1956. when the life insurance business was nationalized and the life insurance corporation of India (lic) was formed on 1st September 1956, there were 170 companies and 75 provident fund societies transaction life insurance business in India. After the amendments to the relevant laws in 1999, the L.I.C. did not exclusive privilege of doing life insurance business in India by 31.8.2007, sixteen new life insurers had been registered and were transacting life insurance business in India.
6. assets aare insured because they are likely to be destroyed or made non- functional before the expected life time. Through accident at occurrences such possible occurrences are called perils, fire, floods, breakdowns, lifhtring, earthquakes, etc. are perils. It such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are the consequential josses or damages. The risk to a owner of a building, because of the peril of an earthquake may be a few lakhs or a few crores of rupees, depending on the cost of the building the contents in it and the extent of damage.
7. the risk only means that there is a possibility of loss or damage. The damage may or may not happen. The earthquake may occur, but the building may not have been affected at all. insurance is done against the possibility that the damage may happen. There has to be an uncertainty about the risk. The word possibility implies uncertainty. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human insured, being death is certain but the time of death is uncertain. The person is insured, because of the uncertaint. about the time of his death. In the case of a person who is terminally ill. The time of death is not uncertain, though exactly known. It would be soon. He cannot be insured.
8. insurance does not protect the asset. It does not prevent its loss due to the peril. The peril can not be avoided through insurance. The risk can sometimes be avoided through better safety and damage control measures. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on that asset. They are the ones who benefit from the asset and therefore, would lose, when the asset is damaged. Insurance only compensates for the losses and that too, not fully.
9. only exonomic consequences can be insured. It the loss is not financial insurance ma not be possible. Examples of not economic losses are love and affection of parents., ledadership of managers, sentimental attachments of family hei
rlooms, innovative and creative abilities, etc.
10. risks are classified in various ways. One classification is based on the