2. Chapter 2 Essence of Insurance

3. Contents The meaning of insurance The meaning of insurance The function of insurance The function of insurance The classification of insurance The classification of insurance

4. Insurance refers to a commercial insurance transaction whereby an insurance applicant pays insurance premiums to the insurer, and the insurer bears an Obligation to indemnify for property loss or damage caused by an occurrence of a possible event that is agreed upon in the contract, or to pay the insurance benefits when the insured person dies, is injured or disabled, suffers diseases or reaches the age or term agreed upon in the contract. 1. The meaning of insurance

5. In simple words, an applicant or insured In simple words, an applicant or insured pays the premiums to the insurance pays the premiums to the insurance company, the insurer bears the liability company, the insurer bears the liability to pay the claims or give the benefit under to pay the claims or give the benefit under the terms of the insurance policy. the terms of the insurance policy.

6. features Risk transfer Risk transfer Creation of the common pool Creation of the common pool 2. The feature of insurance Equitable premiums Equitable premiums

7. Functions Financial indemnity and insurance benefit Financial indemnity and insurance benefit Financing capital and preventing disasters and losses Financing capital and preventing disasters and losses 3. The Function of Insurance

8. 4. The Role of Insurance Insurance can guarantee the societys reproduction. The risk can be transferred, the social reproduction can be ensured. Insurance can guarantee the societys reproduction. The risk can be transferred, the social reproduction can be ensured. Insurance can ensure the insureds financial interest. As long as the insured buys insurance, he can get financial indemnity or insurance benefits Insurance can ensure the insureds financial interest. As long as the insured buys insurance, he can get financial indemnity or insurance benefits Insurance can bring the stability to the society. Insurance can bring the stability to the society.

9. classification 5.1 Ordinary life assurance 5.2 Property insurance 5. The classification of insurance 5.3 Liability insurances

10. Term assurance Term assurance Personal accident insurance Personal accident insurance Endowment assurance Endowment assurance Group life assurance Group life assurance 5.1 Ordinary life assurance

11. 5.2 Property insurance 5.2 Property insurance Motor vehicle insurance Motor vehicle insurance Marine transport insurance Marine transport insurance Property insurance Property insurance

12. 5.3 Liability insurances Employers liability insurance Public liability insurance Product liability insurance Professional indemnity liability insurance Personal public liability insurance