| ADVERSE SELECTION |
The tendency of insured , who know that they have a greater than average chance of loss , to seek to purchase more than an average amount of insurance |
| AGENT |
AGENT is a person employed to represent or act for another in dealing with third persons. |
| BANC ASSURANCE |
The term bancassurance was coined in 1980s in France. It is defined as the distribution of the insurance products through Banks. In addition to the branches of banks, this medium of distribution also includes new distribution systems such as Electronic Banking or Net Banking, Credit Card Operations , ATM etc. Bancassurance contributes 60% of Insurance business in France , 45% in Europe and 5% in US. |
| BROKER |
An Insurance broker acts as an intermediary between customer and the insurer and his role is wider than that of an agent. An agent represents the insurer while a broker represents the insured. The broker interacts with the insurers and reinsures to procure a competitive rate and the most appropriate risk cover suited to the needs of the client. An agent works for a single insurance company but a broker works for several insurance companies at the same time. |
| CAPTIVE INSURANCE COMPANY |
These are the organizations created and controlled by a non-insurance organization and their main purpose is to provide insurance to the parent and affiliate insurance companies. Generally it provides the insurance to corporate owners or a group of companies engaged in the same trade or business. |
| LOSS ASSESSORS AND SURVEYORS |
Every individual or corporate body having experience of practice in loss assessment of assets are eligible to be registered as loss assessors and surveyors of insurance, as per the Regulations of Insurance Surveyors and assessors( licensing professional requirements and code of conducts) 2000. The loss suffered due to the risk is assessed and certified by these officers, the insurer is dependent upon the report of these professionally qualified and authorized persons in taking decisions of payment of loss to the policy holders. |
| SELF INSURANCE |
It is the process of arrangement of a company in which the company itself plans and makes arrangements to face the risks of loss or damages due to happening of uncertain events. They generate the capacity to absorb the losses by creating a fund and transferring the losses to the fund. In this class of insurance the basic principle of insurance that of spreading of risk , is defaeted and the contribution nade to the fund do not qualify as a charge against the corporation tax, where as premium payments are allowable. |
