BUSINES SERVICES

 

INSURANCE :

Meaning :- It is a contract where one party takes the responsibility of the risk of other party in exchange of some fixed fee.

PRINCIPLES OF INSURANCE :

1. Principle of the utmost good faith : It refers that no material or important facts should be concealed by both the parties to the insurance contract.


2. Principle of Insurable Interest : It refers that there must be such a relationship between the Insured and the subject matter of insurance that the insured stands to benefit by its safety and to loose by its loss.


3. Principle of Indemnity : It refers that the insured can get only the compensation against actual loss and he cannot make profit out of it.


4. Proximate Causes : When the loss is the result of two or more causes, the proximate cause, i.e. the direct the most dominant & most effective cause of loss should be taken into consideration. The insurance company is not liable for the remote cause.


5. Principle of Subrogation : It refers that if the insured compensate the insured then all the rights related to the subject matter of insurance get transferred to the insurer.


6. Principle of contribution : - If the same subject matter, except life is insured by more than one insurers, then the actual loss will be shared by all the insurer.


7. Principle of mitigation :- If refers that the insured should try to minimize the loss of the subject matter of the insurer even if it is insured.

TYPE OF INSURANCE :

Life Insurance :

1. Whole life policy :- Amount payable will not be paid before the death of the assured. It will be payable to legal heir (s)


2. Endowment life Insurance : Sum assured is given in full payment after completion of policy / death of insured, whichever is earlier.


3. Joint Life Policy : Policy taken up by two or more persons.


4. Annuity Policy : Policy money is payable monthly.


5. Children Endowment Policy :- for children to meet higher education or marriage expenses.

General Insurance :-

Fire Insurance - Loss due to fire
Other Insurance
Health Insurance
Vehicle Insurance
Burglary Insurance
Cattle Insurance
Crop Insurance
Fidelity Insurance

Marine Insurance (Loss by Marine Perils) :

Ship Insurance
Cargo Insurance
Freight Insurance

COMMUNICATION SERVICES :

Meaning :- Transmission of ideas and information.

Importance :-
establishing links with outside world. i.e. suppliers, customers, competitions etc.
for quick exchange of information.

Communication Services :

Financial facilities :

Monthly income Scheme
Deposits
Money order
NSC
Kisan Vikas Patra

Mail Facilities :

Parcel
Registration of transmitted articles.

Insurance :

Allied facility :

Greeting post
Media post
Speed post
e-bill post
direct post
inter national money transfer

Passport :

Mobile Services 
Radio Paging
Fixed line.
Cable
VSAT – Satellite Base Service
DTH Direct to home e.g. Tata & Sky etc.

Other service :

Fax
Internet
Extranet
e-mail
www.
Voice mail

 

CBSE Business Studies Class XI ( By Mr. Kailash Gururani )
Email Id : [email protected]