GENERAL INSURANCE POLICIES AN OVERVIEW. INTRODUCTION General insurance has been taken up by General insurance Corporation of India through its five subsidiaries.

GENERAL INSURANCE POLICIES

AN OVERVIEW

INTRODUCTION

• General insurance has been taken up by General insurance Corporation of India through its five subsidiaries.

• The GIC was formed in 1972 as a holding company and general insurance is done by four subsidiary companies namely-

National Insurance Co. LtdNew India Assurance Co. LtdOriental Insurance Co. LtdUnited India Insurance Co. Ltd

CLASSIFICATION OF GENERAL INSURANCE POLICIES

CLASSIFICATION OF GIC POLICIES

MARINE INSURANCE

POLICIES

FIRE INSURANCE

POLICIES

MOTOR INSURANCE

POLICIES

BURGLARY INSURANCE

POLICIES

PERSONAL ACCIDENT POLICIES

RURAL INSURANCE

POLICIES

I. MARINE INSURANCE

• Marine insurance may be called a contract whereby the insurer undertakes to indemnify the insured in a manner and to the extent thereby agreed upon against marine losses.

• MI is concerned with overseas trade. International trade involves transportation of goods from one country to another country by ships.

• The persons who are importing the goods will like to ensure the safe arrival of their goods. So marine insurance insures the coverage of all types of risks which occur during the transit.

BRANCHES OF MARINE INSURANCE

OCEAN MARINE INSURANCE:Ocean marine insurance covers the perils of the sea.

INLAND MARINE INSURANCE:This insurance is related to the inland risks on the land.

SUBJECT MATTERS TO BE INSURED

CARGO INSURANCE

HULL INSURANCE

FREIGHT INSURANCE

PRINCIPLES OF MARINE INSURANCE

PRINCIPLES

UTMOST GOOD FAITH

INSURABLE INTEREST

INDEMNITY

CAUSA PROXIMA

MARINE INSURANCE POLICY

• Marine insurance policy contains the following information:

Name of insured or his agentSubject matter insuredRisks insured againstName of vessel and officesDescription of Voyage Amount & term of insurancePremium

KINDS OF MARINE POLICIES

1. VOYAGE POLICY

2. TIME POLICY

3. MIXED POLICY

4. VALUED POLICY

5. UNVALUED POLICY

6. FLOATING POLICY

7. BLOCK POLICY

8. WAGER POLICY

9. COMPOSITE POLICY

10. FLEET POLICY

11. PORT POLICY

CLASSIFICATION OF MARINE LOSSEES

MARINE LOSSES

TOTAL LOSS

ACTUAL TOTAL LOSS

CONSTRUCTIVE TOTAL LOSS

PARTIAL LOSS

PARTICULAR AVERAGE LOSS

GENERAL AVERAGE LOSS

EVIDENCE

NOTICE OF CLAIM

DOCUMENTS REQUIRED

EXTENT OF LIABILITY

PAYMENT OF CLAIMS UNDER MARINE INSURANCE

FIRE INSURANCE

MEANING OF FIRE INSURANCE

• Fire insurance was started after marine insurance.• The Great fire of London in 1956 destroyed 1300

houses in four days. This Great Fire gave birth to fire insurance.

• A fire insurance is an agreement between two parties i.e. insurer and insured whereby insurer undertakes to indemnify the loss suffered by the insured in consideration for his paying of certain sum called ‘premium’.

Continued….

• A Fire Insurance contract may be defined as ‘an agreement’ whereby one party in return for a consideration undertakes to indemnify the other party against financial loss which the latter may sustain by reason of certain subject-matter being damaged or destroyed by fire or other defined perils up to an agreed amount.

• The term fire must satisfy two conditions• A) there must be actual fire or ignition• B) the fire should be accidental

•proposal

•acceptance

•Commencement of Risk

ELEMENTS OF FIRE INSURANCECONTRACT

FACTORS TO BE CONSIDERED

•Type of risk involved•Nature of property•Contents of property•Occupancy hazards•Exposure hazards•The time element

KINDS OF POLICIES

•Valued policy•Specific policy•Average policy•Floating policy•Comprehensive policy•Consequential loss policy•Replacement policy•Declaration policy•Excess policy

PAYMENT OF CLAIM

•Information about loss•Appointment of assessor•Checking of documents•Issue of claim form.

MOTOR INSURANCE

MEANING OF MOTOR INSURANCE

• Motor insurance belongs to miscellaneous class of insurance

• In motor insurance the risks are of two typesLegal liability for damages for bodily injuries or

damage to property caused to otherDamage to or loss of one’s own automobile• In India first Motor Vehicle Act was passed in

1939

LIABILITIES REQUIRING COMPULSORY INSURANCE

i. Liabilities arising in respect of damage to any property of a third party

ii. In respect of death or body injury of any passenger of a public service vehicle

iii. Any liability arising by the insured in respect of death or bodily injury of any person

iv. Liability arising under Workmen’s Compensation Act in respect of death or bodily injury of paid driver of the vehicle etc.

FEATURES OF MOTOR INSURANCE

a. Motor insurance is obligatory under the provisions of Motor Vehicles Act

b. Motor risks may be divided into three categories:

i. Risk of property damageii. Risk of personal accidentiii. Liability risks

Continued…

c. Motor vehicles may be divided into three parts

i. Private vehiclesii. Commercial vehiclesiii. Motor cycles and two wheelers

ACT ONLY POLICY

THIRD

PARTY POLICY

COMPREHENSIVE POLICY

MOTOR INSURANCE POLICIES

BURGLARY INSURANCE POLICIES

•Private Dwelling Burglary policy•Business Premises Burglary Policy•Policy for Money-in-transit

PERSONAL ACCIDENT POLICIES

•Personal Accident and specified Disease Insurance•Medical Benefits and Hospitalisation schemes.

RURAL INSURANCE POLICIES

•Janta personal accident insurance•Group personal accident insurance•Livestock insurance•Crop insurance•Hut insurance•Aviation insurance•Doctors composite package policy•Pumpset policy