The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. Insurance is mainly of two types: life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employer's liability, and insurance of motor vehicles, livestock and crops.
A Contract of insurance is a contract by which one party undertakes to make good the loss of another, in consideration of a sum of money, on the happening of a specified event, e.g. fire, accident or death or any eventual direct or indirect losses within the limit of law. Law recognizes insurance as a system of sharing risk too great to be borne by one individual.
Insurance is a financial topic of paramount importance for every individual. Insurance is designed to protect the financial well-being of you and your dependents in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between you and the insurance company. In exchange for payments from you (called premiums), the insurance company agrees to pay you a sum of money upon the occurrence of a specific event. That event may be as mundane as a visit to the doctor or as serious as a car crash, depending on the type of insurance
Insurance was traditionally sold by agents who worked for insurers and had a vested interest in selling you their specific policies. Now, there are more consumer-friendly options for acquiring insurance coverage. Independent agents can sell policies from several different companies, allowing them to be more objective about your personal needs. These individuals may even be able to provide a complete review of your insurance needs, something you should do on a regular basis to keep your policies up to date with your current financial situation. The web has also become an excellent resource for shopping for and even purchasing insurance.
[...] Insurance sector offers a wide range of career prospects, especially in India where the industry has been opened up recently. Impact of the entry of private insurers Private insurance companies have to date written a small percentage of business in this sector during the last three years, but they have ushered in a competitive environment that has accelerated market growth. State- owned insurers still write the bulk of insurance business, and they have the net worth required to underwrite large corporate risks without depending almost entirely on reinsurance support. [...]
[...] Insurance industry was used to sophisticated mathematical models and statistics to gauge the risk factor involved in insurance. But now high technology equipments are used for measuring risk. Geospatial technology Geospatial technology is one such technology, which has proved to be a boon to insurance industry. The challenge for companies who want to look at these geospatial technologies is to set their goals as specifically as they can and focus on bringing value. With the evolution of interconnected financial services, banks are converting themselves into "one stop financial supermarkets". [...]
[...] In joint ventures where both parties hold 50:50 shares, appointment of key positions is a matter of negotiations and, normally, such a position should be filled by someone who has local knowledge and the expertise to lead. Obligations and agreements Roles, rights and duties of the parties including exit should be clearly identified and spelt in the shareholders agreement. It is important to agree the respective responsibilities and their duration in relation to the JVC. Liabilities of the parties for the action taken by them should be chalked out and unilateral decisions, which may bind the company or a partner without prior consent of the other, should be excluded. [...]
[...] Casual inquiry among acquaintances reveals a fear that the brand may collapse in the future because of the sheer volume of activities it is undertaking. OBSERVATIONS At a time when foreign companies doing business in India through joint ventures are converting their JVs into fully owned subsidiaries. In the Sixties and Seventies, the primary objective of a joint venture was to bring new products to the closed Indian market. The primary objective is to serve the large Indian market The secondary objective is to leverage on the low cost of production in India to obtain low cost product for their global [...]
[...] Equity based ventures Most of the joint ventures are equity based where the parties commonly contribute towards equity in cash. However, equity shares can also be allotted for non-cash considerations. For example, contribution made in kind may include assets or contribution in the form of technology whereby the amount due towards the payment of lump sum and royalty fee may be converted into equity by the company, who may issue shares to the foreign technology provider. Further, amount due towards repayment of loans raised from foreign institutions/companies in the form of External Commercial Borrowing (ECB) may also be converted into equity. [...]
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