1. THIRD CLASS ON LAWS OF INSURANCE

2. Important terms Insurable Interest Policy-2(19) Premium Cover Note( IPN /certificate of insurance) Uberrimae fidei(utmost good faith) Causa proxima(nearest cause)

3. Kinds of Insurance Life and Non-life(s-5) From Risk point of view Insurance can be classified into four categories- Personal insurance(life,accident,health) Property insurance (marine,fire,automobile,crop,theft) Liability insurance(third party,employees,motor ) Fidelity insurance.(Dishonesty or nonperformance of the employee )

4. Kinds According to the nature of the event on the occurrence of which the sum insured becomes payable- There are four main classes of insurance: 1. marine insurance 2.fire insurance 3.life insurance 4.personal accident insurance

5. Kinds On the basis of indemnity there are two classes of insurance. 1.contracts of indemnity 2.contracts not of indemnity

6. Function of insurance Primary function Provision of certainty of payment at the time of loss, Provision of protection. Risk sharing Secondary function Prevention of loss Provision of capital Improvement of efficiency Ensuring welfare of the society and economic progress.

7. Importance of insurance Uses to Individuals Uses to Business Uses to Society

8. USES TO INDIVIDUALS Insurance provides Security and Safety Insurance affords peace of Mind Insurance protects mortgaged Property Insurance eliminates dependency Life insurance encourages saving Life insurance provides profitable investment Life insurance fulfills the needs of a person(family needs,old age needs,re-adjustment needs,special needs,clean-up funds)

9. Uses to business Uncertainty of business losses is reduced Business efficiency is increased with insurance Key man indemnification Enhancement of credit Business continuation Welfare of employees

10. Uses to Society Wealth of the society is protected Economic Growth of the Country Reduction in inflation