Page 19 - Ebook IC S01
P. 19
Survey And Loss Assessment IC-S01
Life insurance Corporation of India was formed by the merger of 170 companies
and 75 Provident fund societies transacting life insurance business in India
The nonlife insurance was nationalised in the year 1973 with the formation of
General Insurance Corporation and its four subsidiaries.
GIC and its subsidiary were formed with merger of 106 companies transacting
nonlife insurance business in India
Perils and risks
The accidental occurrences that may endanger the life of assets are known as
peril.
Examples of perils are fire, floods, breakdowns, lightning, earthquake
Perils can defer in frequency and intensity depending upon the situations
Different kinds of people are exposed to different perils in different places
Perils are the events. The likely consequence losses or damage from perils are
known as risks
Insurance cannot prevent peril but it can help to prevent the likely damage that
the peril may cause
The objective of insurance is to compensate losses to the persons taking the
insurance policy
Insurance policy cannot be freely transferred without the consent of the insurer
The concept of insurance does not comes into play when the peril occurs. It
comes into action when the peril causes some financial damage
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