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Insurance)

Prof. V.K.Agarwal

Banking & Insurance

Prof: V.K.Agarwal

Visiting Faculty

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Peace of Mind

We pray to God for

Prosperity/Happiness

Peace of Mind

So that we may have a

Good Time

We wish each other

A Good Day

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How ever, life is not always

full of Happiness.

It is full of Happiness

As well asSorrow/Sadness

God gives us

Some times Happiness &Sometimes Sadness

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God gives us

Some times Khushi

& some times GumGod gives us

KABHI KHUSHI

KABI GUM

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We get Khushi

We have Certanity

Events as per expectationsGet Good News

Then, we feel happy

EncouragedMotivated

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Become active

Have positive attitude

OptimistGet peace of mind

Feel happy

Delighted

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Result is

We gain some thing

And try to continue to gain in future

Gain may be

Direct gain

As well as

Indirect gain

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Direct Gain

May be

Monetary GainMonetary Gain

Results in

Profit / Income

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Indirect Gain

Is

Notional gain

May be

Good feelings

Emotions

Happiness

Pleasure

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Goodwill

Satisfaction

Enjoy Good HealthHelp in Ageing

Can not be measured

In terms of money

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We make efforts

To continue to gin

For ProsperityPeace of mind

Happiness

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We seek

Financial

SecurityProtection

Against any

UncertaintyUnforeseen Event

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We use

Management Techniques

For managing the

Uncertainty

Unforeseen Events

By bringing some discipline

in individuals life

Family / Business

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We practice

RISK MANAGEMENT

In our LifeConsciously / Unconsciously

Knowingly / Unknowingly

OR

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Transfer the risk

To some one

By Financing the Risks(Risk Financing)

Or

Using AlternativesOf Risk Financing

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Financial PlanningBy

Buying Insuranceor ArrangingSelf Insurance

GUM

SORROWUNCERTANITY

UNEXPECTED EVENTS

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Bad News

Feelings are hurt

Discouraged

Attitudes becomesNegative

Pessimist

No GainIncurs/Suffers

Financial Loss

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Indirect Loss

Feelings are hurt

SorrowSadness

Not insurable

To stop the lossAlso Practice

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RISK MANAGEMENT

RISK TRANSFER

INSURANCE

IN PROSPERITY

AS WELL AS SORROW

IN KHUSHI AS WELL AS GUM

WE TAKE CARE OF

FORTUTIOUS EVENTS

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We manage the risks

in both the situations

And if we are not able to manage

We transfer the risks to some one else

By risk financing/buying insurance

Which is called Financial Planning

However, all the risks

can not be transferred

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All business risks

Trade risks

Risks hidden in the trade

Not necessarily transferred

Or insured

Only Pure Risks

Can be transferred

Insured for survival

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Survival Plan is Insurance

Insurance Products

May be treatedAs Financial Products

It involves

Two elements

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Transfer or

Shifting of risks

From one individual to a groupAnd

Sharing losses of a Equitable Basis

By all members of the group

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Insurance

Is a

Financial Arrangement

That re-distributes

The costs of

Unexpected losses

Among the members

Of Insurance Pool

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In Legal Terms

Insurance is a

Contractual Agreement

Whereby One PartyAgrees

For a Consideration

Called Premium

To Compensate Another Party

LOSSES