Chapter 5.
It tracks versions, dates, authors, and comments for updates.
All rights are reserved, indicating ownership and protection of content.
To describe and provide training to students in the field of Insurance for Business Process Services.
Sourcing application/proposal forms through various distribution channels.
Global Network Delivery Model TM.
The loss must occur by chance, be definite, significant, predictable, and not catastrophic to the insurer.
Tata Consultancy Services.
Any item of significant economic value that can be converted into cash or generate income for the owner.
Benchmark of excellence.
The renewal of the insurance contract upon payment of the due premium.
Accepting some losses as a viable strategy for small risks where insurance costs exceed total losses.
Tata Consultancy Services.
Insurance – Generic Overview.
TCS does not accept any legal responsibility for the contents or consequences arising from its use.
Property & Casualty Insurance.
The loss rate must be predictable based on past experience.
It indicates that the material is protected and cannot be reproduced without permission.
Insurance – Generic Overview.
Because they can be destroyed or become non-functional, leading to financial loss.
A risk management technique that prevents loss by avoiding activities that pose risks.
Evaluates likelihood of events and risks, quantifies outcomes, and determines terms of insurance policies.
A contract has not been formed as the proposer has not unconditionally accepted the offer.
Tata Consultancy Services Limited.
Claim notification, evaluation, processing, determining beneficiary, and facilitating claim payment.
Dying too early and living for too long.
The Underwriting team.
The General Insurance Corporation of India (GIC).
Pure Risk.
The Claims team.
Copying, modifying, reproducing, republishing, uploading, transmitting, posting, or distributing without prior written permission.
The insurer may avoid the contract entirely, and no claim will be payable.
Offer and acceptance, consideration, capacity to contract, consensus ad idem, legality of object, and capability of performance.
Life Insurance.
Travel Insurance.
Investment in the stock market.
Tata Consultancy Services Business Process Services.
The contents are confidential and provided under a confidentiality obligation.
Develops plans with new features, calculates costs, and determines premiums.
The General Insurance Business (Nationalization) Act 1972 (GIBNA).
Insurance is available for outcomes that are uncertain; for example, while death is certain, the timing of death is uncertain.
Regular or ongoing customer services provided by the Insurer to the policyholder.
It works on the concept of Risk Pooling, where losses incurred by a few are shared by many in the same group with similar risk exposure.
Term Insurance Plan and Whole Life Insurance Plan.
Motor Insurance.
Risks that have personal or local effects, impacting specific individuals or localities.
The policy is treated as 'lapsed' and all benefits will stop.
A form of reinsurance where each risk is offered to the reinsurer as a single transaction or on an individual risk basis.
Tax benefits are available on premiums paid and on maturity and death benefits.
The Indian Life Assurance Companies Act 1912.
The practice of insurers transferring portions of risk to other insurers.
Risks that are so vast in scale that they are not insurable due to their catastrophic potential, such as earthquakes or war.
To promptly report any violations to the Local Ethics Counselor, Principal Ethics Counselor, or the CEO of TCS.
Invests the excess of premiums to facilitate profit booking.
Provides inputs in product development, creates contracts with agents and customers, and handles litigations.
A technique that involves implementing safety measures to minimize the severity of losses.
A definite percentage of the risks in return for a payment or consideration.
National Stock Exchange and Bombay Stock Exchange in India.
Recruits distributors and reaches out to customers with suitable plans.
Private and foreign investments in the insurance industry.
Accepts the risk in exchange for a share of the insurance premium and promises to reimburse the ceding company for underwritten risks.
Insurable interest must exist at the time of purchasing the policy.
It is the duty to disclose all material facts related to the proposed risk correctly and voluntarily.
The contract must be capable of being performed by both parties, such as being able to pay the required premium.
Age, health, lifestyle, occupation, etc.
A demand for fulfillment of the promise made by the insurer at the time of entering into the contract.
Key terms that are essential for understanding insurance agreements.
The insurance company may keep all the premiums paid.
Insurance for Business Process Services.
The information is restricted and not for public distribution.
Financial, Pure, and Particular Risks.
Risk is the possibility of damage or loss, and it describes the potential for an unfavorable event occurring.
Chapter 2.
It transfers some of its risks to reinsurance companies.
Tata Group, India's largest industrial conglomerate.
Brand promotions, brand building, and identifying distribution channels.
To study and recommend reforms for the insurance industry.
Risks that can be measured in monetary terms, such as loss of life or property.
Insurance Regulatory and Development Authority (IRDA).
Assesses risk associated with proposals and decides on acceptance or rejection.
Peril refers to the actual cause of loss, while hazard refers to conditions that increase the likelihood of a peril occurring.
By providing compensation for the loss of income from the deceased provider.
Financial compensation after a loss that restores the insured to the same financial position as before the loss.
The insurance company offers coverage with a sum insured, and the proposer accepts without altering the terms.
Risks other than those related to human lives, except personal accident and health insurance.
It must be present for the contract to be legally valid.
To provide coverage against risks and compensate the owner for damages.
The evolution and development of insurance practices over time.
Natural disasters like earthquakes, storms, floods, or accidents.
The General Insurance Council.
Internal training materials and external resources like Investopedia and IRMI.
Facilitates endorsement, policy reinstatement, policy surrender/termination, and handles customer queries and complaints.
An IT services, consulting, and business solutions organization.
They accept risk from insurance companies beyond their threshold to help manage risk.
Insurance cannot prevent incidents but can reduce their financial impact if they occur.
The policy is issued and risk coverage starts.
To suit the varied needs of individuals and cater to changing priorities.
Life Insurance and Non-Life Insurance.
Consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering, and assurance services.
It arises at the time of applying for coverage until the risk is accepted by the insurance company.
Speculative risks involve the possibility of profit or loss, while pure risks only involve loss or breaking even.
The consideration paid by the policyholder to the insurance company for coverage as per the insurance contract.
It allows the insurer to declare a policy null and void within the first two years if material facts are misrepresented.
The nominee/beneficiary is paid the sum insured.
It constitutes a breach of the duty of utmost good faith.
It is when an individual gains from the existence of another individual or property and suffers financial loss from their death, disability, or damage.
A person has unlimited insurable interest in their own life.
Various forms of insurance coverage available.
Physical Hazards and Moral Hazards.
They can accept or reject the proposal, or charge higher premiums with lower sums insured.
Unauthorized access, copying, replication, or usage for purposes other than intended.
They are scrutinized and checked for discrepancies.
A risk transfer technique where the insured transfers risk to the insurance company in exchange for a premium.
Insurance companies collect premiums to create a common fund for compensating those who experience loss.
Healthcare Insurance.
The likelihood of an event happening and the extent of the event if it occurs.
To provide protection against financial loss, not to create opportunities for financial gain.
A creditor has insurable interest in the life of the debtor to the extent of the money lent.
The potential for loss or damage.
It is used to determine the cost of total annual claims based on the probability of claims from past records.
No, there is no direct contact.
Risks related to human lives.
The objective must be to create a legal relationship; insurance cannot be purchased for illegal purposes.
Death.
The defined period for which the insurance coverage is valid.
Guidelines that govern the formation and execution of insurance agreements.
When the policyholder fails to pay the premium by the due date, leading to the discontinuation of benefits.
Hazards arising from the state of mind or intentions of the insured that enhance the probability of loss.
A husband has insurable interest in his wife's life and vice versa, as both benefit from each other's well-being.
The insurance company must accept the proposer's counter-offer.
The insurance company that diversifies its risk by transferring portions to the reinsurer.
The premium collected is deposited in a common fund to pay out claims and cover administrative expenses.
Insurance companies provide coverage for only certain types of risks; claims from unspecified risks will not be covered.
A form of reinsurance where the ceding company makes an agreement to cede certain classes of business to the reinsurer.
They provide returns on the money invested along with insurance coverage.
The insured is compensated only to the extent of the actual monetary loss, regardless of the number of policies.
Life insurance contracts are contracts of value, and multiple policies pay the full sum insured in case of death.
Material facts are those that would influence a prudent insurer's judgment regarding risk acceptance and pricing.
Inaccurate statements made by the proposer that they believe to be true.
Different categories of companies that provide insurance services.
A condition that increases the chance of a peril occurring or intensifies its effects.
Fill the financial gap created by the early death of an income provider.
Parents can take insurance for their dependent children.
Consideration is something of value exchanged, such as the premium.
No, insurance cannot prevent events; it only provides compensation for losses that occur.
The person must be a major (age 18 or above), of sound mind, and not disqualified by law.
Protection of financial security, investment options, and tax benefits.
Both parties must understand and agree upon the same thing in the same sense.
The process of identifying, assessing, and controlling risks.
The maximum amount of money that an insurer will pay as a claim according to the insurance contract.
No, the reinsurer is not obliged to accept every or any submission.
Risks like fire, earthquake, flood, riot, or theft.
The amount of claims insurance companies would experience if insured events occur.
Lloyd’s Coffee House in London, where traders shared losses of goods.
Different departments or divisions that operate within an insurance firm.
Hazards arising from an individual’s occupation, health, lifestyle, etc.
The loss must occur by chance and be definable in monetary terms.
Insurance for insurers, where insurance companies transfer portions of their risk portfolios to a reinsurer.
A technique where the risk on an asset is transferred to an insurance company for compensation in case of loss.
Superannuation.
Policy Renewal.
A company has insurable interest in the lives of certain individuals whose expertise is crucial for its operations.
Property Insurance, Liability Insurance, and Health Insurance.
Because they do not meet the criteria for significant loss in terms of monetary value.
Basic principles that govern insurance operations.
Elements that make a contract legally enforceable.
A proposer declares a false age and submits forged documents to obtain better insurance terms.
A specific event or reason that might cause a loss.
They calculate the probability based on past data and represent it as mortality tables.
Collects and scrutinizes new proposal forms and provides customer service.
Fundamental ideas that underpin insurance practices.
Recruits and trains new agents, and calculates and processes commissions.
A contract starts when one party makes an offer that the other party accepts unconditionally.
Periodic monthly payments called annuities.
The proposer should disclose it, regardless of whether there is a specific question about it.
The chance of dying at a specified age within a sample population.
Additional days provided by insurance companies for the policyholder to pay the due premium after the due date.
In 1818, called The Oriental Life Insurance Company, set up in Kolkata.
The stages that an insurance policy goes through from inception to termination.
In a sample of 1000 people of age 35, 6 are likely to die each year.
The Life Insurance Corporation Act was passed, nationalizing 245 insurers.
