Complete Insurance Awareness for NIACL AO Mains 2021 | Chapter - 1 @OliveboardApp

Summary

This video provides a comprehensive overview of insurance concepts, focusing on the importance of insurance knowledge for the upcoming NICL AO exams. The video covers essential topics like the definition of insurance, types of insurance (life and general), and key elements such as premiums and coverage. Additionally, it delves into the history of insurance in India, the role of key companies like LIC, and important amendments in insurance laws. The presenter ensures a detailed and clear explanation, aiming to enhance the viewer's understanding and awareness of insurance for both exam preparation and practical knowledge.

Takeaways

• 😀 Insurance is essential for financial protection against risks, damages, or losses. It works by transferring the financial burden from one person to another through a contract with an insurance company.
• 😀 Premium is the amount of money paid periodically to an insurance company for coverage, similar to a loan repayment. The premium amount depends on the type and terms of the policy.
• 😀 There are two main types of insurance: Life Insurance and General Insurance. Life insurance covers risks associated with death, while general insurance covers health, property, travel, and other non-life-related risks.
• 😀 Life Insurance provides financial support to the nominee or beneficiary in case of the policyholder's death, ensuring that a specific amount is paid as a benefit.
• 😀 The first life insurance company in India was the Oriental Life Insurance Company, established in 1818, while the first Indian life insurance company was the Life Insurance Corporation of India (LIC) formed in 1956.
• 😀 Health insurance is considered part of general insurance, which also includes property, travel, and vehicle insurance, all of which provide protection against specific risks.
• 😀 Insurance policies can be categorized into various types, with different premium amounts and coverage depending on the nature and duration of the policy.
• 😀 The Indian insurance sector was initially controlled by the government, with notable milestones such as the nationalization of the life insurance industry in 1956 and the formation of the Insurance Regulatory and Development Authority (IRDA) in 1999.
• 😀 Key developments in the insurance sector include the formation of various committees, such as the Malhotra Committee (1993), which aimed at reforming the industry and improving its efficiency.
• 😀 Public sector insurance companies, such as LIC, provide life insurance policies, while the general insurance market includes both public and private companies, offering a range of services.

Q & A

What is the basic definition of insurance mentioned in the video?

Insurance is an agreement or contract by which the risk or loss or damage on one person is shifted to another party. In return, the individual pays a premium to the company providing the insurance policy.

Why is insurance necessary, as explained in the video?

Insurance provides protection against financial loss, covering risks that may occur in the future, allowing individuals to manage uncertainties like health issues, accidents, or damages to property.

What is the difference between life insurance and general insurance?

Life insurance provides a financial benefit to the beneficiary in case of the policyholder’s death, whereas general insurance covers other risks like health, property, and travel insurance.

What is a premium in insurance?

A premium is the amount of money that an individual or entity must pay to an insurance company in return for coverage against specific risks. The premium amount is paid periodically, depending on the terms of the policy.

What does the video say about the history of insurance in India?

The history of life insurance in India dates back to the 1800s. The first life insurance company in India was Oriental Life Insurance, established by the British in 1818. The first Indian life insurance company was the Bombay Mutual Life Assurance Society in 1870.

How did the insurance sector in India evolve after the 1950s?

In 1956, life insurance in India was nationalized, leading to the establishment of the Life Insurance Corporation of India (LIC). The sector saw further reforms after the introduction of the Insurance Regulatory and Development Authority (IRDA) in 1999.

What are some major life insurance companies in India?

Some major life insurance companies in India include the Life Insurance Corporation of India (LIC), HDFC Life, ICICI Prudential Life, and SBI Life Insurance.

What is the significance of the Malhotra Committee of 1993 in the insurance industry?

The Malhotra Committee of 1993 recommended reforms for the insurance sector, leading to the establishment of the Insurance Regulatory and Development Authority (IRDA) and opening the industry to private and foreign investments.

What is general insurance and what does it cover?

General insurance covers risks that are not related to life, such as health insurance, property insurance, vehicle insurance, and travel insurance. It is a broad category of non-life insurance.

How are the terms and premiums of insurance policies decided?

The terms and premiums of an insurance policy are decided based on the type of insurance, the coverage required, the duration of the policy, and the individual or company’s profile. Each insurance company may have its own criteria for determining premiums.