411 Banking_and_Insurance_X

Page 1: Introduction

• Title: Banking and Insurance Standard X Study Material

• Type: Manuscript

Page 2: Table of Contents

• UNIT 1 - LAWS RELATING TO NEGOTIABLE INSTRUMENTS

  • 1.1. Introduction to Negotiable Instruments

  • 1.2. Types of Negotiable Instruments

  • 1.3. Parties to the bill of exchange

  • 1.4. Crossing of Cheques

  • 1.5. Summary

  • 1.6. Practice Questions

• UNIT 2 - LENDING FUNCTIONS OF A BANK

  • 2.1. Types of Advances- Secured & Unsecured

  • 2.2. Loans: Short, Medium and Long Term

  • 2.3. Methods of Granting Advances

  • 2.4. Summary

  • 2.5. Practice Questions

• UNIT 3 - UTILITY SERVICES OF A BANK

  • 3.1. Remittance through Bank Drafts

  • 3.2. E Banking

  • 3.3. Internet Banking

  • 3.4. Safe Deposit Lockers

  • 3.5. Summary

  • 3.6. Practice Questions

• UNIT 4 - LIFE INSURANCE PRODUCT

  • 4.1. Life Insurance - Meaning

  • 4.2. Features of Life Insurance

  • 4.3. Advantages of Life Insurance

  • 4.4. Importance of Life Insurance Policies

  • 4.5. Types of Life Insurance Policies

  • 4.6. Procedure of taking Life Insurance Policies

  • 4.7. Nomination and Assignment of Life Insurance Policies

• UNIT 5 - GENERAL INSURANCE

  • 5.1. General Insurance - Meaning

  • 5.2. Importance of General Insurance

  • 5.3. Types of General Insurance Policies

  • 5.4. Fire Insurance

  • 5.5. Marine Insurance

  • 5.6. Motor Vehicle Insurance

  • 5.7. Health Insurance

  • 5.8. Theft & Burglary Insurance

  • 5.9. Procedure for taking Fire Insurance Policy

  • 5.10. Procedure for taking Marine Insurance Policy

Page 3: Unit 1 - Introduction to Negotiable Instruments

1.1 Introduction to Negotiable Instruments

• Meaning: Instruments that are transferable by delivery.

• Key Instruments: Cheques, Promissory Notes, Bills of Exchange.

• Regulation: Governed by the Negotiable Instruments Act of 1881.

1.2 Types of Negotiable Instruments

• Bearers and Order Instruments

  • Bearer: Claim by possession.

  • Order: Claim by written endorsement.

• Inland and Foreign Instruments

  • Inland: Made in India, payable in India.

  • Foreign: Created outside of India or payable to a resident outside India.

• Demand and Time Instruments

  • Demand: Payable on demand.

  • Time: Payable after a specified period.

Page 4: Parties to Negotiable Instruments

Parties to Bills of Exchange

• Drawer: Creator of the bill.

• Drawee: Person ordered to pay.

• Payee: Person entitled to receive payment.

Crossing of Cheques

• Types: General and Special Crossing.

• Crossing Mechanism: Ensures payment only through banks.

Page 5: Life Insurance Products

Life Insurance Basics

• Purpose: Financial security for contingencies related to human life.

• Features: Contract-based assurance contingent on death or disablement.

• Premiums: Regular payments for coverage.

Types of Life Insurance Policies

• Term Insurance: Covers death within a specified term.

• Whole Life Insurance: Continuous coverage until death.

• Endowment Plans: Returns sum assured at maturity.

• Unit Linked Plans: Combine insurance and investments.

Page 6: Importance of Life Insurance

• Financial Security: Protects dependents from financial loss.

• Tax Benefits: Premiums eligible for tax exemptions.

Page 7: Fire Insurance Overview

Fire Insurance Purpose and Coverage

• Definition: Indemnifies loss from destruction/damage due to fire.

• Importance: Provides security for homes and properties.

Types of Fire Insurance Policies

• Specific Policy: Insures for a fixed amount.

• Valued Policy: Pays a predetermined amount regardless of actual loss.

Page 8: Marine Insurance Basics

Definition

• Scope: Protects against risks in maritime transport.

Types of Policies

• Hull Insurance: Covers ships.

• Cargo Insurance: Covers goods in transit.

Page 9: Health and Miscellaneous Insurance

Health Insurance

• Covers: Medical expenses.

Personal Accident Insurance

• Benefits: Compensation for injuries from accidents.

Page 10: Conclusion and Recap

• General Insurance: Includewide-ranging policies for protection against various risks.

• Life Insurance: Offer savings and financial security.

Summary of Key Terms

• Negotiable Instruments: Bills of Exchange, Cheques, Promissory Notes.

• Insurance Types: Life, Fire, Marine, Health.

Practice Questions (Sample)

1. Define Negotiable Instruments.

2. What are the types of Life Insurance Policies?

3. Explain the importance of Fire Insurance.