() The atoms of chlorine, oxygen and nitrogen accept 1, 2 and 3 electrons, respectively, in order to achieve

a stable electronic configuration of 8 electrons (octet rule) in the outermost shell. Hence, their valencies
are-1,-2 &-3.

Question 3
The diagram represents an isotope of hydrogen [H]. Answer the following:

At. no. =1
Mass no. = 1
1. Are isotopes atoms of the same element or different elements.
Isotopes are atorns of the same element.
2. Do isotopes have the same atomic number or the same mass number.
Isotopes have same atomic number.
3. If an isotope of 'H has mass no. =2, how many electrons does it have.
Number of electrons in an isotope of 'H having mass no, =2 is 1 as its atomic number is 1.
4. If an isotope of H has mass no. =3, how many neutrons does it have.
Number of neutrons in an isotope of 'H having mass no. [A] =3 is 2, because, atomic number [Z] is
1so number of protons = number of electrons=1 and number of neutrons [n] =A-Z =3-1 =2.
5. Which sub-atomic particles in the 3 isotopes of 'H are the same.
Number of electrons and protons are same in the 3 isotopes of "H as atomic number is the same.
Therefore, insurance is needed to manage risk and to
could be under the following categories provide financial compensation in the event of a loss
This risk
1. Personal: A person is only as good as his
abilities In case of threat to life or in case of a disease or
need to be insured accident, we
2. Property: Your property: be it home, jewellery or any other object,
a financial loss can be damaged or destroyed This will cause
3. Lability: In case of an accident, our actions can cause injury or
damage to others In that case, we will be held
financialy responsible.
By protecting us against these risks and losses, insurance helps protect
our business or personal lives

We know what insurance is, but there are many hypes

of
insurance

Types of Insurance
Life Insurance

Life insurance is a contract, where the insurer has to pay the insured or his beneficiary a pre-determined
amountof money in the event of death. It is protection against the loss of income that would result if the
insured passed away The nominee (named beneficiary) receives the proceeds and is thereby safeguarded
fron the financial impact of the death of the insured. Insurance is for a set amount of time and in case there
is no loss of life, the money is paid back to the insured, with interest.
We need life insurance to ensure our family's financial security. Having a suitable life insurance cover will
take care of loans, medical expenses and other sUch liabilties

Health Insurance
Health insurance is the protection from expenses incurred during illness or bodly injury. It provides coverage
for medicine expenses, visits to the doctor, medical procedures or hospital stays and other such medical
expenses, This amount can be paid directly to the care provider or the insured, depending on the policy
Nowadays, people invest in cashless health insurance, where they only need to provide a small ATM like
card to the hospital and the insurer deais with all the other paperwork.

insurance 45
 Target Chapter 3

. Meaning and Benefits

Information on Cheques
Magnetic Ink Character Recognition (MICR)
Indian Fnancial Systen Code (IFSC)

Now lets learn abeut

cheques

When I opened my bank occoun. 3 t h mhersandon athe

cheque bookI know how to use arn
cheque book

Cheque is more than a piece of paper. Ir is a highly valuable instrument. It is used to make safe and
covenient payments. Since it is not the octual money you are carrying. it reduces risk of theft,
damoge or loss A cheque has to have the following things

n cheque is a type of financial document that instructs a bank to transfer acertain amount of money from one
Aperson's account to another person's account in the name that is written on the cheque
There are three parties to a cheque:
Drawer Drawer is the person who signs and instructs the bank to pay the amount on the check.

Drawee: Drawee is the bank from which the check is drawn or the person to whom the specified amount on the
check is to be paid.
Payee: Payee is the recipient of the funds, or the beneficiary.
When the drawer writesa self-cheque, the payee and drawer would potentially be the same entity
1. Cheque is a written instrument Averbal order is not considered a cheque.
cheque
2 Cheque is drawn by a custormer on his bank No one else but the bank's customer can use his or her
3. Acheque must be signed by the customer. Unsigned cheques are not valid.

Cheques 20
 ATOMICSTRUCTURE

Question9
State how electrons are distributed in an atom. Explain in brief the rules which govern their distribution.
Electrons revolve around the nucleus in imaginary paths called orbits or shells. Different Orbits are Kshell
(first shell, n=1], Lshell [second shell, n=2] M, N.. etc.
Rules governing the distribution of electrons are summarized below:
1 The maximum number of electrons in each shell or orbit is determined by the formula 2ní, where n
is the number of shell.
Kshell,n=1, no. of electrons =2x1=2
Lshell, n=2, no. of electrons =2 x2 =8
Mshell, n=3, no. of electrons =2x3= 18
2 Electrons are not accommodated in a given shell, unless the inner shells are filled. Shells are filled
in step-wise manner.
3. The atom's outermost shell needs 2 electrons for stability (duplet rule) if it has only one shell. If it
has multiple shells, it requires 8 electrons (octet rule) in the outermost shell for stability.

Question 12

"Valency' is the number of hydrogen atoms which can combine with (or displace] one atom of the element
[or radical] forming a compound. With reference to the above definition of valency, state the valency of
chlorine in hydrogen chloride, giving reasons.
In hydrogen chloride, one atom of hydrogen combines with one atom of chlorine so valency of chlorine in
hydrogen chloride is1.
Question 13
"Valency' is also the number of electrons -donated or accepted by an atom so as to achieve stable
electronic configuration of the nearest noble gas'. With reference to this definition
(a) State what is meant by 'stable electronic configuration'.
(b) State why the valency of -
(0) sodium, magnesium &aluminium is: +1, +2 &+3 respectively.
(i) chlorine, oxygen &nitrogen is: -1,-2 &-3 respectively.
(a) Stable electronic configuration-The atom's outermost shell needs 2 electrons for stability (duplet
rule) if it has only one shell. If it has multiple shells, it requires 8 electrons (octet rule) in the outermost
shell for stability.
(b) () The atoms of sodium, magnesium and alurminium donate 1, 2 and 3 electrons, respectively, in order
to achieve a stable electronic configuration of 8 electrons (octet rule) in the outermost shell. Hence, their
valencies are +1, +2 &+3.
 Insurance has been traced back to early human civilisation. Even during times where there was a
non-monetary
eronomy, or a barter systen economy, insurance was around in some shape or form. This could mean that
communities were obliged to help each other out in events like helping rebuild homes after astorm or flod They
also had common granaries to store food and avoid farmine.
When monetary economies came about, which happened after money was invented, traders began by trying to
distribute the risk of loss or accident. In 2nd and 3rd BC, Chinese and Babylonian merchants started a loan systerm,
where if they lost the goods at sea due to natural causes, their loans would be cancelled. In case the trade was
suCcesstul, they would repay the loan with interest
In India, insurance has been mentioned in many ancient texts Manu (Manusmriti), Yagnavalkya (0harmashastra)
and Kautilya (Arthashastra), all mention the pooling of resources which were to be re-distributed in case of
calamities, fam1nes, floods or fires.

Arthasat

Modern Indian insurance started in 1818 in Calcutta

The frst
Insurance Company.
insurance company was called the Oriental Life

Indian companies to do good includ1ng The

Since we were still under Brit1sh rule, their rules made it difficult for many
of the British Insurance Act, only foreign insurance
Oriental Life Insurance Cormpany. In 1870, under the enactment
Assurance, Royal Insurance. Liverpool and London Globe
companies got all the business from IndiaAlbert Life t of pre55ure from
Oriental and Empire of India were under a lot
Insurance. Indian companies like Bombay Mutual,
the monopoly of the British.
insurance industry came under control. To control unfair
laws, the
It was only after Independence that the
Governrment of India decided to nationalise insurance. That
meant insurance would be controlled by the government
formed
this Act, the Life Insurance Corporation or LIC was
On 19 January, 1956 an ordinance was issued. Under provident societies (society for the benefit
This company took 1544 Indian insurers, 16 non-Indian insurers and 75
under its wing With a total of 245 |Indian and foreign insurers, the industry was required to be
of the community)
brought under control. The next step was the formation of the General Insurance Council in 1957
regulated and
fair conduct and sound business practices
This assOciation framed a code of conduct for ensuring 107 general insurers
In 1972, when the Government p passed the General Insurance Business (Nationalisation) Act,
companies:
were merged and grouped into four
1, National Insurance Company Ltd
2. New India Assurance Cormpany Ltd
3. Oriental Insurance Company Ltd
4, United Ind1a Insurance Company Ltd
Insurance
 Target Chapter 1
.Meaning and Need
. Important terminologies
Regulators and Types of insurance

done?
getting medical tests
Didi, why were mom and dod
Are they ok?

They are fine, Dhanesh. They are qetting medical

tests done fo get insurance

What is insurance?

Cats dont need insurance.

We have 9 livest

|nitsmost basic form, insurance is protection from loss. in financial terrns, insurance is a contract in the form
Iinsurance policy, where a person or a company is financially protected against specified losses by theinsur
company

Our parents are getting medical insurance Now if they ever need to go to the
hospital for any medical treatment, they will not have to pay any money.

The most basic terms associated with insurance are:

Insured: The person, object or organisation that is covered by insurance.
Insurer: The organisation that is under contract to pay insurance when
needed.
Policy Term: Duration of insurance policy or the specified "term
of years for which the policy is valid
Premlum: The fixed amount of money paid by the insured on a
Sum Assured: In case of damage or loss, sum regular basis to keep an insurance policy va
assured is the highest amount that the insurer has
insured. to pay ou:

But where did insurance

Come from?

12 Financial Lteracy B
 changes. With
6overnment also brought in many
changed, the private sector
But as tmes was also opened to the
sector
globalisotion, the insurance

leadership of former RBI Governor

set up a committee under the
In 1993, the Government
reforms that complimented the other initiatives
was to propose
Mr RN Malhotra The objective finance sector. Within a year, it submitted its report and
taken by the Government in the be allowed to enter by floating Indian
companies.
foreign companips
that should
recommended
preferably a joint venture with Indian partners R
was called the Insurance
established in 1999 and
The primary regulator for insurance was (RDAI). The LIC had a monopoly in the insurance
sector til the
Regulatory and Development Authority of India
insurance sector was reopened to the private sector, newer companies came in
90s, but then as the
of 15-20 As of toda .
it is growing at a massive annual rate
The insurance sector is mammoth. In India,
operating in India. On 16 September
are 28 generalinsurance companies and 24 life insurance companies
With this service, policy hold
IRDAI launched one of a kind and unigue service - the 'Insurance Repository.
easier control and access.
buy and keep insurance policies in electronic form, This enables

L
LIC
sURACE CORPORATIGH Or INDIA

With such a growing industry, a number of institutions now also provide specialised education for the insua
industry.

Insurance has come full circle, and is growing by leaps and bounds. Like
I said-Insurance is cooll

Dida't I tell you? Cats have 9 lives. I don't need

insurance, but you
humans do need and here is whyl

Insuronce qives us an important life lesson

Hope for the
best, Prepare for the worst

Loss does not announce itselt. An

acCident can
happen anytime. We can't prevent them, but we occur at anytime. Disasters. whether natural or
fnanral losses can be minimised. can certainly man
We need insurance to protect ourselves against them, With insut3:
protect our ife and ifestyle
Financal Literary 8
 You will also see a long line of
numbers on the bottom ef the cheque

MICR CODE
Recognition or MiCRISa technolog that alOWS machines to read and process chegues
Magnetic Ink Character transactions are possible in a short time
of this technology. thousands of cheque
With the help
The code has nine digits - s the cityin which the bank branch is located
represent the city code that
1. The first three digits in the MICR code code
stand for the bank
2 The next three digits
represent the bank branch code.
3. The last three digits oniine money transfers Since every bank
branch has a unigue
indispensable part for
Every MICR code is also an
process money faster
MICR code, the RBI can
IFSC CODE
alpha-numeric (numbers and
alphabets) code assigned by
IFSC is a unique 11 digit
Indian Financial System Code or in the code as far as the
specific bank branch in india. There are similarities represent
identify the four characters of the IFSC code
the Reserve Bank of India to ha a unique number. The first
each branchh has characters are used to
bank name is concerned. but as a control character. The last six
and is used worid to
fifth character is a zero account from any part of the
the bank code The can operate your
help of this code, you Fund Transter (NEFT)
identify thebank branch With the applcations like National ElectrÍnic
by electronic payment system
transfer funds It is used
Settlement (RTGS). payments
nd Real Tme Gross can be to friends, family. services or as
payments money as a cheque and
any type of payment These give vou your birthday
Cheques can be used for ask your grandmother to
thingS Vou have bought You can even
for your account directhy
then you can deposit it in
they? Maybe you can
are easy Aren't
Banks and cheques like I tought you
thing or two. just
teach your parents a

Bacap cheques, maybe you can

try a transaction at the bank
you understand
Now that ATM. Just for fun and
practice!
a cheque and not an
with

Lets hcve some

checks now
lnsurance 0
 both words and figur
ACneque must mention the exact armount to be nid. This anount is mentoned in
The party to whom payment is to be made must be clearty mentoned
heques must be duly dated Acheaue is valid onv for 3 months from date of issue.

Ine cheque must mention the drawer (the issuing customer), drawee (the bank whose cheque is issuedl a
payee (person to whom cheque is given)
Benefits of a Cheque
Rather than carrying cash, it is safer and more feasible to carry a Cheque.
It is a negotiable docurment that can have a third party's endorsement
The drawrbaclks of a Cheque
Payments made with Cheques may occasionally be turned down because they are not recognized as valic
payment
Aperson without a bank account cannot use a cheque.
To deposit a cheque into your bank actount you must make a trip to the bank, whch takes time
heques can be of many types, depending on what you write an them
Bearer Cheque: Each cheque has the words 'or bearer in its first line. If it is not cancelled, the cheque is callee
a bearer cheque This type of cheque is risky because in case the cheque is lost. the bank is obligated to pay the
money to anyone carrying the cheque as they become the "bearer of the cheque
Order Cheque: t the word "or bearer" on the cheque is cancelled the cheque becomes an order cheque Sucha
cheque is then payable to the person specified on the cheque as the payee
Open Cheque: When a cheque is not crossed, it is known as an open cheque. It can also be called an uncrosse
cheque This cheque can be presented for payment at the cash counters of a bank.
Crossed Cheque: If there are two parallel lines drawn on a cheque, it becomes a crossed cheque. Those lines
may or may not have additional words like &CO» or Account Payee" or "Not Negotiable" written betweer
them This type of cheque can only be credited to the payee's account.

. Time Categorisation of Cheques: On the top right of each cheque is an

are onty valbd for 3 months from date of issue. And there are further allotted space to write a date Cheque
categorisations of cheques according t
the date written on them
fa cheque has a date earlier than the date on which it is
presented to the bank, it is called an ante-date
cheque
if a chegue has a future date written on it it is called a
presented to a bank
post-dated cheque. This type of cheque cannot bv
#achegue is presented to a bank 3 months after its issue date, it
is considereda stale chenuse and will not b
honoured by the bank

Financa Lterary
03 Cheues

lndia

of
Bank

State

PASS BOOK

State Bank Of lndia

21112
DO M
PAY SELF
ê RUPEEs FVE THOUSAND ONLY

or R 5000/
VALID UPTO 10 LACS AT
se ACCOUNT
NON-HOME BRANCH
PREFK:
os23500e12 Account Holder's
JLTYCcrr CGHGUE Pyte t st A Branches ot SRA
Signature here
Pieass ign a°t
Home Insurance protects ou hone aganst physcal
of property nsurance It
enSurance is a type the possessions un the horme are covered
under ths poicy Ths
possessions in the
hane The
Gamages and thetts Even or to
jeweilery to the house tset,
a n d e eiectroncs dsasters floods, ett
darmage can be caLsed by atural pre
that I am inured af ter all I n the most
ON Se it hurns out housel
petsession in t h

the only ype of insurance

Motor insurance is done for our cars or two-wheelers This is required
mandatory by law as t protects the general pubic Al vehicle owners are
that is pr insurance.
to have motor insurance There are 2 tvpes of motor
has to pay compensation for death
" Third Parte In this tvpe ot insurance, the insurer
parties during a vehicular
or any bodily injures and for damage to property of third
xident
for loss to third parties, but
" Camprehansive: This includes not only campensaton
otherwise
also covers any damage to the vehicle in the accident, or
ethind perty insraca is cheaper, mory people take this kind ef policy
far their ehcles Butladvite everyone to take comprehensive isurance. I
ngy cost nore.but it protects you more as mel

Paves ine
Trael insurance is an insurance taken out for a small period of one's travel
wthin the country or outsde t covers any medical expenses or other such
epenses whie one n traveling Ths type of insurance is especially useh
for students travelling abroad for studies

Ne doys these hns con inure

nything I
pelicy far S65 year Fr ahat? Far poyngblive
for e
thet e Jopon, you can by
big portyncase vou get a hgie

ln art, ou now lnowwut

bot its evolution in inda andinsurance ls andwhere ame trom We abo
the difer
home and motor inranca, yu dtferent types of insurance With ie
d THope for the best but and your lamily
prepare for the worswill be safe and prot