Insurance Sector in India

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Insurance Digest for LIC AAO 2016 Exam
Dear readers,
This Insurance Digest is complete Information of important terms and plan & Policies and history. The
Insurance Digest is important and relevant for all Insurance exams like - LIC AAO 2016 Exam, NICL, NIACL,
Insurance and other Insurance Exams.

What is Insurance? - Insurance is defined as a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party called insured a fixed amount of money after happening of a certain event.
According to the Indian Contract Act 1872, “A Contract may be defined as an agreement between two or more parties to do or to abstain from doing an act, with an intention to create a legally binding relationship.”
Benefits of Insurance –
 It safeguards your money.
 It ensures growth of money.
Life insurance policies are broadly categorized into 2 types –
 Traditional Plans and
 Unit Linked Insurance Plans (ULIPs).
History-of-Life-Insurance-Corporation (LIC) - Life Insurance Corporation (India) (LIC) is an Indian state-owned insurance group and investment company headquartered in Mumbai. The Life Insurance Corporation of India was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalized the private insurance industry in India.
Over 245 insurance companies and provident societies were merged to create the state owned Life Insurance Corporation.
 The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.
 LIC Nationalization - The demand for nationalization of life insurance industry was made…...

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