#Industrial Life Assurance Basic Characteristics: 1.

Premium is required to be collected from the homes of the policy holders by the representative of the insurers. 2.Such collection of premium has to be at more frequent intervals,usually weekly, fortnightly or at best monthly. 3.Average sum assured is very small in comparison to ordianary life business. 4.The simple system and procedure of industrial life assurance brings life cover to those who by reason of their circumstances would not normaly be interested in carrying life assurance cover. 5.Policies may be effected on the lives of parents step-parents and grand-parents. 6.Policy holder will not exercise self discipline in saving money towards payment of annual,half yearly or quarterly premium and hence frequent collection are envisage by calling at homes of the policy holders. **************** #National Insurance Basic Characteristics: 1.the scheme is administered by the government and therefore there is no entry for the private insurers. 2. there are no policies of insurance and the scheme is managed by stamping of cards. These cards are issued by the government to each individual coming under the scheme and the cards remain with the individual. 3.the premium is normally deducted by the employers at source and credited to appropriate government authority. In case of self employed or non employed persond it is their individual responsibility to get their cards stamped, the stamp being available at post offices. 4. the solvency of the scheme is guaranteed by the state. ***************

#National insurance cover: 1.Unemployment benefit payable weekly. 2.industrial inquiries or sickness leading to disabilities. 3.free medical provision under health service. 4.pension 5.maternity grant and allowance 6.family allowance payble weekly for dependent children excluding the first issue 7.death grant ************** #Annuities: Is a contract in between the insurance company and the annuitant whereby in consideration of the payment of a purchase price by the annuitant, the other party undertakes to make on yearly or annual payment to the annuitant from a certain predetermined time until the annuitants death or for a fixed period. #Type of annuity: 1. Annuity for life: Under this the yearly payment starts from a particular date and continues until the remainder period of the annuitant life. 2. Annuity Certain: Under this type of contract the annuity is given for a certain predetermined period irrespective of the annuitants life. 3.Guaranteed annuity: Here the annuity continues until the annuitant death but is guaranted for a certain minimum period. This means that if the annuitant dies before the minimum period then annuity will still continue until completion of the minimum period. 4. Reversionary Annuity: under such type of contracts, payment to the annuitant starts from the time of death of another person mentioned in the contract. Then payment continues for the remainder of annuitants life.

5.Joint & survivor Annuity: under this contract the payment start from a particular time and continues throughout the duration of the joint lives. 6.Immediate Annuity: irrespective of the type of annuity against payment of a single purchase price by the annuitant the annuity payment will start immediately. 7.Deferred Annuity: Irrespective of the type of annuity, payment to the annuitant start from a later pre determined date. ************* #Insurance Of interest: 1. Fidelity of guarantee insurance: this type of insured in respect of the loss sustained by him arising out of fraud, defalcation or dishonest caused by the employee of the insured. 2.Credit insurance: Credit insurance is provide financial protection to such exporters arising out of nonpayment, Payment of the value of the goods may not be possible for the buyers because of the out break of war. 3.Performance Bond: This type of policies basically aim at providing protection to those who are responsible under a contract to perform some obligations within a specified time or as per certain pre determined standard. ************* #Limitations on the scope of insurance: 1.Limitation of pecuniary value: Insurance cover those subject matters which can be valued monetarily or can be expressed in term of money.It must have a commercial value to be eligible for insurance.This means that sentimental value cannot be taken into consideration and therefore insurance cannot be taken on the sentimental or prize value. 2.Limitation by law: The scope of insureance is limited here by law. A lawyer cannot for example insure against being disqualified from profession for his misdeeds.

3.Limitation by Insurable Interest: There must be an insurable interst to validate an insurance policy. If no insurable interest exist then the contract become one of gaming or wagering ans as such void. Therefore a man having no insurable interest on the subject matter of insurance cannot insure that subject matter. 4. Limitation by insufficiency of knowledge: There are certain risk which even through fulfil all the necessary requirement of insurance law and practice but nevertheless shall not be insured by the insurers. 5.Limitation by public Policy: Insurer will not do anything that is likely to go against the public policy. The insurers would be most unwilling to cover any such situation tentamounting breach of foreign law,considering the same to be against public policy. ******************