Principles of Insurance Exam Study Notes

Evolution of insurance - Insurance evolved in India in the 18th century, In 1818, The Oriental Life Insurance Company was the first life insurance company to start insurance operations in Kolkata.
Insurance industry - Concept of pooling - People exposed to similar risk are brought together, Insurance company acts an intermediary, Mutual consent among group members to share the loss and compensate the person who suffered the loss, Compensation is expected to put the person in the same place, financially, as before suffering the loss.
Importance of Insurance - Provides steadiness and stability to trade and industry, Increases risk taking ability for trade and industry, Provides protection against losses due to vagaries of nature
Export Credit and Guarantee Corporation (ECGC) provides protection to exporters against risks related to international trade like - Importer payment default, Currency appreciation risk, Changes in economic policy etc.
Liability insurance can protect professionals like Doctors, Lawyers, Accountants and Engineers who run the risk of being charged with negligence and subsequent liability for damages. The amounts claimed in damages can be fairly large and beyond the capacity of the individual to bear

Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points