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6) Net Banking and Mobile Banking:
With the introduction of net banking, the client is able to transact banking operations with the
help of computers, laptop and other gadgets. The internet banking services enable a client to
check various transactions, facilitates payments of various things, transferring funds etc.
Mobile banking refers to the use of banking services with the help of mobile phones. The client
registers with the bank for this facility and gets a unique code for transactions. The client can
perform various transactions such as request for balances, transfer of funds, stop payment,
issue of cheque book etc.
7) IMPS Facility:
IMPS stands for immediate payment services. This facility allows customers to instantly trans-
fer funds to any other bank account.

4.6 INSURANCE

4.6.1 Meaning:
Insurance is a means of protection from financial loss. It is a form of risk management, primar-
ily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between
the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The
insured has to pay a certain fixed sum of money on timely basis to the insurer.

Some basic terms in insurance are as follows:
Insurered : The person who is protected against certain losses. Insured is known as assured in
case of life insurance contracts. He is the policy holder.

Insurer : The firm or person who agrees to compensate the insured against losses for
a consideration. Insurer is known as assurer in case of life insurance contracts,
because he is bound to get the sum assured on the maturity of the policy or the
nominee will get the sum assured on the death of the policy holder.

Premium : The consideration for which the insurer agrees to insure the insured. It is paid by the
insured to the insurer.

Policy : The statement of contract between the insured and insurer. It contains the terms and
conditions of the insurance contract.
Claim : It is demand made by the insured to the insurer to compensate for loss occurred due
to mishap.

Proposal : It is a written request by the insured to the insurance company to issue an insurance
policy.

Subject Matter : It refers to the subject or entity i.e life, property, cargo or ship etc. which is insured
against which the policy is taken.

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