ICICI Lombard General Insurance Company Limited

Sonal Kumar 18 months ago

1. Meaning of Insurance:

Risk and uncertainty are incidental to life. These risks and uncertainties are increasing day by day due to increase in fastness of life. Man may meet an untimely death. He may suffer from accident, destruction of property from fire, sea, floods, earthquakes and many other causes. Whenever there is uncertainty, there is risk as well as insecurity.

It is to provide against risk and insecurity that insurance came into being. The main principle underlying insurance is the pooling of risks. It is a co-operative device to spread the loss caused by a risk (which is covered by insurance) over a large number of persons who are also exposed to the same risk and insure themselves against that risk.

According to W.A. Dinsale, “Insurance is a device for the transfer of risks of individual entities to an insurer, who agrees, for a consideration (called the premium), to assume, to a specified extent, losses suffered by the insured.

According the Mehr and Cammack, “Insurance is a social device for reducing risk by combining a sufficient number of exposure units to make their individual losses collectively predictable. The predictable loss is then shared proportionately by all those in the combination.”

Fundamental Principles or Features of an Insurance Contract:

Insurance contract is based on certain fundamental principles.

These principles are:

(i) Essentials of a Valid Contract:

The contract of insurance must have all the essentials of a valid contract.

Pramod Rai 42 months ago

Nothing wrong with this place except the Insurance name attached to it, get ready for halal if you happen to buy products from them

Atoz Service 8 months ago

contact number not true.