Insurance is a means of protection from financial loss. It is a form of risk
managementprimarily used to hedge against the risk of a contingent, uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, insurance
carrier or underwriter. A person or entity who buys insurance is known as an insured or
policyholder. The insurance transaction involves the insured assuming a guaranteed and
known relatively small loss in the form of payment to the insurer in exchange for the insurer's
promise to compensate the insured in the event of a covered loss. The loss may or may not be
financial, but it must be reducible to financial terms, and usually involves something in which
the insured has an insurable interest established by ownership, possession, or preexisting
The insured receives a contract, called the insurance policy, which details the conditions and
circumstances under which the insurer will compensate the insured. The amount of money
charged by the insurer to the insured for the coverage set forth in the insurance policy is
called the premium. If the insured experiences a loss which is potentially covered by the
insurance policy, the insured submits a claim to the insurer for processing by a claims
adjuster. The insurer may hedgeits own risk by taking out reinsurance, whereby another
insurance company agrees to carry some of the risk, especially if the risk is too large for the
primary insurer to carry.
An act of insuring, or assuring, against potential future losses in exchange for a periodic
payment called premium. In other words, one of the parties undertakes to indemnify or
guarantee another party against loss by certain specified risks.
Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that
it spreads the risk of a few people over a large group of people exposed to risks of similar
Insurance, in law and economics, is a form of risk management primarily used to hedge
against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk
of a loss, from one entity to another, in exchange for a premium, and can be thought of as a
guaranteed and known small loss to prevent a large, possibly devastating loss. An insurer is a
company selling the insurance; an insured or policyholder is the person or entity buying the
insurance. The insurance rate is a factor used to determine the amount to be charged for a
certain amount of insurance coverage, called the premium.
Benefits of Insurance
Financial Security of Life and Assets in case of an unfortunate event
Tax Relief by way of deductions from Income, which lowers tax burden
Encourages saving and helps in Financial Planning for the Future
Life Insurance Policies can be used as a security to obtain a Loan
The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly, in those days a higher premium was charged for
Indian lives than the non-Indian lives as Indian lives were considered more risky for
The Bombay Mutual Life Insurance Society started its business in 1870. It was the first
company to charge the same premium for both Indian and non-Indian lives. The Oriental
Assurance Company was established in 1880. The General insurance business in India, on the
other hand, can trace its roots to the Triton (Tital) Insurance Company Limited. The first
general insurance company was established in the year 1850 in Calcutta by the British. Till
the end of nineteenth century insurance business was almost entirely in the hands of overseas
Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and
30's sullied insurance business in India. By 1938 there were 176 insurance companies. The
first comprehensive legislation was introduced with the Insurance Act of 1938 that provided
strict State Control over insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban phenomenon.
Types of Insurance
There are many types of Insurance products available today covering both Life and Non-Life.
In Non-Life, apart from personal covers such as accident covers and health insurance, there
are products covering liabilities under a particular law and or common law. The various
products are designed to cater to different needs of an individual or industry such as fire
insurance policy on multi-storied building, policy on personal property which includes things
like jewelry, electronic equipment and even owned vehicle's.
Liability insurance protects policyholders against lawsuits related to accidents, injuries and
negligence. For example, if a customer trips and falls in a retail store because the floors were
recently cleaned, the business might be liable for the injuries the customer sustains. If the
customer sues the business, a court could force the company to pay damages to the customer.
Similarly, if a product harms a customer, he might sue the company that made the product.
Liability insurance can protect a business from having to pay for costs related to liabilities out
of their own pockets.
Professional insurance is a type of liabilities insurance that deals specifically with
professional that provide services to clients. Professional liability arises when an error or
omission causes harm to a client. For instance, if a doctor reads a patient's medical records
incorrectly and the error results in a failed operation, the doctor could potentially be sued for
negligence. Professional insurance protects professionals from such errors and omissions.
Lawyers and doctors are often required to buy professional insurance.
Property insurance compensates policyholders if physical property like buildings equipment
and inventory are lost or damaged due to perils like fire, theft and storms. Property insurance
is important for small businesses that have physical assets, because a single unexpected like a
hurricane or fire result in large financial losses.
Auto insurance describes any type of insurance related diving motor vehicles. Auto insurance
can compensate automobile owners for damage vehicles suffer during accidents, from fires
and storms as well as liabilities that arise due to operating them. Most states require vehicle
owners to purchase a minimum level of auto liability insurance, while extra types of cover
such as collision coverage and coverage for fires and other non-driving perils are optional.
Health insurance helps policyholders pay for health care costs, such as the cost of doctor's
visits, operations, disease treatment and prescription drugs. Employees often receive health
insurance through employers, but small business owners must purchase health insurance
directly from insurance providers.
Life insurance is a type of coverage that provides compensation to loved ones in the event
that the policyholder dies. Life insurance is a way that income earners like small business
owners can make sure that their families have enough money to avoid financial ruin in the
event of their death. Life insurance comes in two basic forms: term life insurance lasts for
specified period, while whole life coverage lasts forever as long as the policyholder continues
6 – govt fund & consulting –
Organizations and individuals must register in order to apply for fundingthrough Grants.gov.
Other official sources of information on government funding include the Catalog of Federal
Domestic Assistance, the Federal Register, and individual agency web sites.
A small business consultant works with clients on strategy, planning and problem solving,
and helps clients develop business skills and knowledge. These topics range from designing
a business model or marketing plan, to determining which marketing techniques to use and
how to use them.
7 – outsourcing –
Outsourcing is also known as Business Process Outsourcing (BPO). This is the process of
hiring another individual or company, either domestically or internationally, to handle
business activities for you. It has become a common business practice that allows small and
medium-sized businesses to gain services and skills they would usually find hard to develop,
because of either financial or manpower restrictions, or possibly a combination of
both. Meaning, you can grow your business as and when you need to, without any major
It also allows your business to focus on core competencies and, more importantly, cut costs
and improve efficiency, all very much hassle-free. As time has gone by over the last decade
or so, business owners now realize that there are many reasons that companies, both big and
small, outsource various jobs, but the most prominent advantage seems to be the fact that it
Lower Costs is Where it All Begins!
Many of the individuals or companies that provide outsourcing services are able to do the
work for considerably less money, as they don’t have to provide benefits to their workers,
and have fewer overhead expenses to worry about, especially if they are based in a non-
Western country, such as India, China or where I am based, here in the Philippines.
Outsourcing also allows companies to focus on other business issues while having the details
taken care of by outside experts. A perfect example would be knowing that telemarketing is
the best way to get the word out in regards to a new product or service you’re launching
(either locally, nationally or internationally), but admitting that it’s not really your forte. You
can hire an outsourcing company that provides these services, whilst you concentrate on
getting ready for the influx of inquiries as a result of the campaign.
It also means that a large amount of resources and attention that might fall on the shoulders of
management professionalscan be used for more important, broader issues within the company
– which is always a good thing! The specialized company that handles the outsourced work is
often streamlined and will normally have world-class capabilities and access to new
technology that a growing company simply couldn’t afford to invest in on their own. Plus, if
a company is looking to expand, outsourcing is a cost-effective way to start building
foundations in other countries, too.
Such tasks can be, but are not limited to roles such as accounting, bookkeeping, sales and
marketing, design and manufacturing, development, promotions, administrative and back
office assistance, customer service, web development and much more.
Different Outsourcing Categories
Nowadays, most freelancers or outsourcingproviders will fall into one of the following
categories, in regards to the services that they provide their clients. Some will even offer
several of these:
Inbound Customer Service
Web Design & Development
SEO and Online Marketing
Back Office / Admin Support
Virtual Assistant Services
Accounting and HR Management
Marketing & Sales Support
Simply put, outsourcing will give away some of your business tasks that can easily be
managed by an independent entity, making life easier for business owners. And most of the
time, as well as being able to pass on these tasks to someone more experienced than yourself
(or your company), you will also save money, against hiring someone locally to do the same
job – sometimes as much as
8 – ngo / company –
A non-governmental organization (NGO) is any non-profit, voluntary citizens' group which is
organized on a local, national or international level. Task-oriented and driven by people with
a common interest, NGOs perform a variety of service and humanitarian functions, bring
citizen concerns to Governments, advocate and monitor policies and encourage political
particpation through provision of information. Some are organized around specific issues,
such as human rights, environment or health. They provide analysis and expertise, serve as
early warning mechanisms and help monitor and implement international agreements. Their
relationship with offices and agencies of the United Nations system differs depending on
their goals, their venue and the mandate of a particular institution.
Private Limited Company is the most prevalent and popular type of corporate legal entity in
India. Private limited company registration is governed by the Ministry of Corporate Affairs,
Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private
limited company, a minimum of two shareholders and two directors are required. A natural
person can be both a director and shareholder, while a corporate legal entity can only be a
shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be
Directors and/or Shareholders of a Company with Foreign Direct Investment, making it the
preferred choice of entity for foreign promoters