SYNOPSIS

TITLE OF THE PROJECT : THE CONCEPT OF RE-INSURANCE.

A COMPARATIVE ANALYSIS.

INTRODUCTION
Background:

The origin of insurance is lost in antiquity. Insurance has been an institution

of human society for thousand years, having been practiced by Chinese and
Babylonian traders as long ago as the second millennium BC.

In India, even from the days of Indus Valley civilization, the provision of
taking care of the dependents of those dying was practiced. With the
establishment of the Oriental Life Insurance Company, a British firm in
Kolkata, the business of Indian Insurance started in the year 1818. Later on,
Bombay Mutual Insurance Society Limited was started in 1870.

According to Dictionary of Life Insurance (Pitman), insurance is an Economic

Institution based on the principle of mutuality for the purpose of raising a
fund, the need for which arises because of chance occurrences of nature,
whose occurrence can fairly be estimated.

The contribution by the insured is called premium. Payments made to

contributors are called “amounts paid to meet claims”. The contributions
paid by the insured accumulate to a fund called ‘Insurance Fund’. As per
Disnadle, “Insurance is an instrument of distributing the loss of few among
many.”

This research paper will deal with the concept of Reinsurance.

Reinsurance is an insurance that is purchased by an insurance company

from another insurance company as a mean s of risk management.
Reinsurance is an arrangement whereby an original insurer who has insured
a risk insures a part of that risk again with another insurer, that is to say,
reinsures a part of the risk in order to diminish his own liability.
 RESEARCH METHODOLOGY
This research paper will be based on doctrinal legal research methodology.
Doctrinal or library is concerned with the analysis of specific legal doctrines
and how it developed through the ages and its application in the system.
The main aim of my research methodology is finding a more specific
statement of law, and making inquiries as to address the problems.

This research paper will deal with the following:

1. Concept and scope of Reinsurance.

2. Contents and meaning of reinsurance.
3. Legal framework of Reinsurance
4. Provisions and statutes under Indian Laws
5. Comparison between Reinsurance provided in the following sectors
 Marine
 Fire
 Motor vehicle

Scope, ambit and limitations.