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Types of services

Business services-

Refer to those

services which help the

business

organisation in

conducting their a c t i v i t i e s . E . g transportation.

Social services- services provided voluntarily for achieving certain social goals. E.g health care services.

Personal services- services which are experienced differently by different customers. E.g entertainment services.

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Types of business services

banking

The banking regulation act, 1949, defines the term banking as ‘ the acceptance of deposits, for the purpose of lending or investment of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise’.

it means, the essential elements of banking are:

Acceptance of deposits
Deposits should be received from the public.
Deposits should be repayable on demand or on the expiry of a term or after a specified period.
Purpose of deposits should be lending or investment.

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Benefits of e-banking

To the customers

E-banking provides 24 hrs, 365 days a year service to the customers of the bank.
It develops sense of financial discipline by keeping a record of each and every transaction.
It provides greater security to the customers as they can avoid travelling with cash.
Provides satisfaction to the customers by offering unlimited access to the bank.
It helps the customers to make some of the permitted

transactions from house or office or while travelling even through mobile telephone.

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Insurance

Insurance is a form of contract under which one party (Insurer or Insurance Company) agrees in return of a consideration (Insurance premium) to pay an agreed sum of money to another party (Insured) to make good for a loss, damage or injury to something of value in which the insured has financial interest as a result of some uncertain event.

The party which promises to indemnify the loss is called insurer (insurance company)
The person or a property subjected to risk is called insured.
The agreement for providing an insurance is called insurance policy.
The consideration paid for the insurance is called premium.

It can be quarterly, half yearly or yearly.

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Fire Insurance :

It provides safety against loss from fire. If property of insured gets damaged due to fire the insured will receive the value of damaged property as compensation from insurance company. It no such event happens, insured will not receive anything. For such service insurance company charges premium depending upon the amount of loss insured.

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Marine Insurance :

Marine insurance provides protection against loss during sea voyage. The businessmen can get their goods insured whereas the ship owner can get his ship insured by paying the premium fixed by the insurance company. The fundamental

principles of marine insurance are the

same as the general principles insurance.

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Comparison b/w life, fire and marine insurance.

BASIS	LIFE INSURANCE	FIRE INSURANCE	MARINE INSURANCE
SUBJECT MATTER	The subject matter of insurance is humanlife.	The subject matter is any physical property or assets.	The subject matter is a ship, cargo or freight.
ELEMENT	It has the element of protection and investment or both.	It has the element of protection and notthe element of investment.	It has only the element of protection.
INSURABLE	This must be present at	This must be present	It must be present
INTEREST	the time of effecting the	both at the time of	at the time when
	policy, but need not	effecting policy as well	claim fall due orat
	necessarily be present at	as when claim falls	the time of loss
	the time when claim falls due.	due.	only.
DURATION	Policy usually exceeds a year and is taken for longer periods ranging 5 to 30 yrs of whole life.	Usually does not exceed one year.	Is for one year or period of voyageor mixed.

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CONTINGENCY OF RISK	It has an element of certainty. The maturity of policyor death of the insured is sure to happen, therefore surety of getting claim.	It has an elementof uncertainty. The insured is to get the claim only on the happening of an event i.e. destruction by fire.	It has an elementof uncertainty. The insured is to get the claim only on the happening of an event i.e. loss at sea.

Postal Services

Every business sends to outsiders and receives from outsiders several letters, market reports, parcel, money order etc. every day. All these services are provided by the post and telegraph offices scattered throughout the country. The postal department performs the following services.

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