Summary of "New IC-38 | Chapter-1 | Common | Introduction to Insurance | Revised Syllabus 2023 | Er. Aman Thakur"

Summary of “New IC-38 | Chapter-1 | Common | Introduction to Insurance | Revised Syllabus 2023 | Er. Aman Thakur”

Main Ideas and Concepts

Syllabus Update for IC-38 Exam
- The syllabus for the IC-38 insurance exam has been revised slightly.
- Content remains largely the same but chapters have been rearranged.
- The syllabus is divided into four sections: General Area, Life Insurance, Health Insurance, and General Insurance.
- All candidates, regardless of specialization, must study the General Area section.
- This video covers the first chapter of the General Area: Introduction to Insurance.
Introduction to Insurance
- Insurance in India officially started in September 1956.
- The origin of modern insurance traces back to Lloyd’s Coffee House in London.
- The IRDAI (Insurance Regulatory and Development Authority of India) regulates insurance in India, ensuring customer protection and industry control.
Basic Terminology
- Insurer: The insurance company providing the insurance.
- Insured: The customer protected by insurance.
- Risk: The potential danger or uncertainty that insurance aims to manage.
- Life Insurance: A risk transfer mechanism to protect against financial risk of death, ensuring family security.
- Insurance is fundamentally about risk management through risk transfer.
Historical Context of Insurance
- Early merchants traveling by sea pooled money to compensate for losses due to shipwreck or piracy.
- This pooling of resources is the foundation of modern insurance.
- Many people pay premiums to an insurer who compensates those who suffer losses.
Core Concepts of Insurance
- Risk Transfer: Transferring financial risk from an individual to the insurer.
- Pooling: Combining premiums from many insured individuals to cover losses of a few.
- Sharing of Losses: Losses incurred by some are shared by many insured members.
- Insurance is a method of risk management.
Common Exam Questions and Concepts Explained
- Loss Prevention: Measures to reduce the chance of risk occurring.
- Risk Retention: Choosing to bear the risk oneself rather than transferring it.
- Insurance does not prevent loss but compensates for it.
- Insurance does not reduce the possibility of loss but reduces the financial impact.
- Survey and inspection of property by insurers assess value and risk before acceptance.
- First form of insurance: Marine insurance (related to shipping and sea travel).
- IRDA establishment: April 2000.
- Renaming of IRDA to IRDAI: Happened in 2014.
- First non-life insurance company in India: Triton Insurance Company Limited, established in Kolkata in 1850.
- First insurance regulatory act in India: Insurance Act 1938 (still in force with amendments).
Numerical Example
- Calculation of annual contribution per house owner to cover a total loss in a community.
- Example: For 400 houses with a total loss of ₹80,000, each house owner contributes ₹200.
Exam Preparation Tips
- Understand key definitions and concepts clearly.
- Practice numerical problems involving simple division and multiplication.
- Read questions carefully, especially those asking for true/false or correct/incorrect statements.
- Know historical facts and regulatory details.

Methodology / Instructions for Exam Preparation

Focus Areas
- Understand the syllabus divisions and focus on the General Area first.
- Memorize key dates and facts (e.g., insurance start date in India, IRDAI establishment).
- Learn definitions: insurer, insured, risk, risk transfer, risk retention.
- Grasp the concept of pooling and sharing of losses.
- Practice typical exam questions, including multiple-choice and numerical problems.
- Familiarize with regulatory framework and important insurance acts.
- Review historical origins of insurance to answer related questions.
Exam Question Approach
- Carefully read all options before answering.
- Identify keywords such as “risk transfer,” “loss prevention,” “risk retention.”
- Use elimination method for multiple-choice questions.
- For numerical questions, apply basic arithmetic operations.

Speakers / Sources Featured

Er. Aman Thakur — Presenter and instructor of the video.

This summary captures the foundational knowledge about insurance as presented in the video, emphasizing key concepts, historical facts, regulatory information, and exam preparation strategies.