Glossary

Indemnity
Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss.

Insurable Interest
A condition in which the person applying for insurance and the person who is to receive the policy benefit will suffer an emotional or financial loss, if any untouched event occurs. Without insurable interest, an insurance contract is invalid.

Insurance
Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss.

Insurer
Insurer is a company or organisation or entity offering Insurance coverage

Insurance Act, 1938
The Act applies to the General Insurance Corporation of India and the four Subsidiary Companies Subject to exceptions, restrictions and limitations as specified by the Central Government under powers conferred by section 35 of the General Insurance business Nationalisation Act. The important provisions of the Act relate, among other things, to registrations, accounts and returns investments, limitations in expenses of Management prohidition of redates, power of investigation. Licensing of agents, licensing of surveyors, advance payment of premium and tariff advisory Committee.

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