INTRODUCTION

Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent or
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 as a 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 pre-existing relationship.
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 hedge its own risk by taking out reinsurance, whereby another
insurance company agrees to carry some of the risk, especially if the primary
insurer deems the risk too large for it to carry.

AIMS AND OBJECTIVES

The aims and objectives for which the Association was established are to bring
together insurance, reinsurance, insurance brokers and other insurance
agencies transacting insurance business in the Gambia for the purpose of:

 To promote insurance education within the country with a view to increasing

insurance awareness and enhance the public image of the industry.
 To promote the development of insurance services within the country.
 To create and maintain a closer co-operation between members for the
benefit of the insurance industry and the nation as a whole.
 To provide a forum under which mutual problems of the industry can be
discussed and firm resolutions taken.
 To encourage and facilitate exchange of information and experience amongst
the members.
 To encourage the exchange of insurance business among members to help
conserve the much needed foreign exchange and cut down on insurance costs.

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 To take all necessary steps which are in the interest of members for promoting
the objectives of the Association.
 To consult or co-operate with other Associations or similar bodies in regard to
matters of mutual interest and to obtain affiliation with such Associations
whether within or outside the Republic of The Gambia.

NEED & IMPORTANCE

The world we live in is full of uncertainties and risks. Individuals, families,

businesses, properties and assets are exposed to different types and levels of
risks. These include risk of losses of life, health, assets, property, etc. While it is
not always possible to prevent unwanted events from occurring, financial
world has developed products that protect individuals and businesses against
such losses by compensating them with financial resources. Insurance is a
financial product that reduces or eliminates the cost of loss or effect of loss
caused by different types of risks.

Let’s understand in detail how and why Insurance as a sector is key to

development of any economy.
1. Provides Safety and Security to Individuals and Businesses: Insurance
provides financial support and reduces uncertainties that individuals
and businesses face at every step of their lifecycles. It provides an
ideal risk mitigation mechanism against events that can potentially
cause financial distress to individuals and businesses.
2. Generates Long-term Financial Resources:The Insurance sector
generates funds by way of premiums from millions of policyholders.
Due to the long-term nature of these funds, these are invested in
building long-term infrastructure assets (such as roads, ports, power
plants, dams, etc.) that are significant to nation-building.
3. Promotes Economic Growth: The Insurance sector makes a significant
impact on the overall economy by mobilizing domestic savings.
Insurance turn accumulated capital into productive investments.
4. Provides Support to Families during Medical Emergencies: Well-being
of family is important for all and health of family members is the
biggest concern for most. From elderly parents to newborn children,
medication and hospitalization play important role while ensuring
well-being of families.

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 5. Spreads Risk: Insurance facilitates moving of risk of loss from the
insured to the insurer. The basic principle of insurance is to spread risk
among a large number of people.

PRESENTATION OF DATA

Early methods[edit]
Merchants have sought methods to minimize risks since early times.
Pictured, Governors of the Wine Merchant's Guild by Ferdinand Bol, c. 1680.
Methods for transferring or distributing risk were practiced
by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC,
respectively.[1] Chinese merchants travelling treacherous river rapids would
redistribute their wares across many vessels to limit the loss due to any single
vessel's capsizing. The Babylonians developed a system which was recorded in
the famous Code of Hammurabi, c. 1750 BC, and practiced by
early Mediterranean sailing merchants. If a merchant received a loan to fund
his shipment, he would pay the lender an additional sum in exchange for the
lender's guarantee to cancel the loan should the shipment be stolen, or lost at
sea.
Modern insurance[edit]
Insurance became far more sophisticated in Enlightenment era Europe, and
specialized varieties developed.
Property insurance as we know it today can be traced to the Great Fire of
London, which in 1666 devoured more than 13,000 houses. The devastating
effects of the fire converted the development of insurance "from a matter of
convenience into one of urgency, a change of opinion reflected in
Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new
plan for London in 1667."[4] A number of attempted fire insurance schemes
came to nothing, but in 1681, economist Nicholas Barbon and eleven
associates established the first fire insurance company, the "Insurance Office
for Houses," at the back of the Royal Exchange to insure brick and frame
homes. Initially, 5,000 homes were insured by his Insurance Office.

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Insurance in India can be broadly divided into three categories:

Life insurance

As the name suggests, life insurance is insurance on your life. You buy life
insurance to make sure your dependents are financially secured in the event of
your untimely demise. Life insurance is particularly important if you are the
sole breadwinner for your family or if your family is heavily reliant on your
income. Under life insurance, the policyholder’s family is financially
compensated in case the policyholder expires during the term of the policy.

Health insurance

Health insurance is bought to cover medical costs for expensive treatments.

Different types of health insurance policies cover an array of diseases and
ailments. You can buy a generic health insurance policy as well as policies for
specific diseases. The premium paid towards a health insurance policy usually
covers treatment, hospitalization and medication costs.
Car insurance
In today’s world, a car insurance is an important policy for every car owner.
This insurance protects you against any untoward incident like accidents. Some
policies also compensate for damages to your car during natural calamities like
floods or earthquakes. It also covers third-party liability where you have to pay
damages to other vehicle owners.
Education Insurance
The child education insurance is akin to a life insurance policy which has been
specially designed as a saving tool. An education insurance can be a great way
to provide a lump sum amount of money when your child reaches the age for
higher education and gains entry into college (18 years and above). This fund
can then be used to pay for your child’s higher education expenses. Under this
insurance, the child is the life assured or the recipient of the funds, while the
parent/legal guardian is the owner of the policy.
Home insurance
We all dreaming of owning our own homes. Home insurance can help
with covering loss or damage caused to your home due to accidents like fire
and other natural calamities or perils. Home insurance covers other instances
like lightning, earthquakes etc.

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SUGGESTIONS & OPINION

 It is suggested that the percentage of claims can be reduced

considerably by taking extra precautionary measures. Policy holders may
be instructed to adhere to the conditions of the policy to facilitate easy
claim settlement.
 The insurance company has to take proper steps for the reduction of
claims and maintain adequate amount of reserves in order to meet the
claims incurred and other future contingencies.
 It is suggested that the need for scientific and regular research of
customer needs is a must, more so in a changing society where
innovation and adoption are essential for growth and progress.
 It is suggested that the result of advertising campaigns need to be
evaluated and media found to cater to local taste particularly in rural
markets where press, radio and T.V advertising may have little efficacy.
 It is suggested that the general insurance Companies in the study area
should take all possible steps to increase the profit and reduce the
claims in an effective manner. In case of claims; they should not earn the
displeasure of the clients by delaying the settlement. Since sivakasi is an
industrial town with most hazardous industries, the probability of claims
is more. Claim settlement is a vital area where the general insurance
company can prove its efficiency in service by quick settlement .
 A dissatisfied client will propagate his dissatisfaction to other
policyholders and potential policyholders and prevent them to have
policies from that particular company. Thus, dissatisfaction is a double
edged weapon in the hands of the policyholder to damage the
company”s name.
 It is suggested that the development officer or the agent concerned my
approach their clients in time, so that policies may be renewed as and
when due and thus kept in force.
 It is suggested that the insurance company shall propagate the
importance of insurance to all sectors so that they may voluntarily come
forward to take policies.
 It is suggested that the New India Assurance Company have taken
measures to introduce new policies in order to attract the policy holders
and to increase their market share.
 It is suggested that National, New India and United Companies have
taken measures to prevent underwriting loss.
 It is suggested that the company shall take all efforts to quote
competitive premium rates, issue the policy in time, offer quick response

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 to client query and speedy settlement of claims, so that the customer
may be brought under the eternal net of general insurance cover.

CONCLUSION

The marketing of insurance is more burdensome than the marketing of other

financial services like banking and securities market. This happens to be so
because of lesser exposure of the public to the insurance sector. The insurance
marketer faces several serious handicaps owing to the complex buying
behavior of the prospective client. Sivakasi is having greater potential for
general insurance products.

Be it life insurance, health insurance or general insurance, you can buy an

insurance policy offline as well as online. Just like there are insurance agents
who will help you buy a policy, there are websites as well that you can buy a
policy from. Ensure that you have done your research before choosing and
investing in an insurance policy.

REFERENCE
In an insurance contract, the insurer accepts a fixed payment, or premium,
from the insured, and in return undertakes to make payments if certain events
occur. In life insurance the event insured against is the death of the insured, or
his or her survival to some agreed age. In insurance for fire and theft the event
insured against is damage by fire or theft to the insured's property. In motor
insurance the event insured against is loss by fire, theft, or damage to ‘third
parties’, that is, anybody except the insured and the insurer. In health
insurance the event insured against is medical expenses and/or loss of
earnings through ill health. In every insurance contract the insured pays to
achieve a reduction in risk. Without insurance there is a small chance of a large
loss; with insurance there is a certain small loss, that is the premium, and
possibly some further loss if the damage done by the event insured against
exceeds the sum insured.