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. Ltd New India Assurance Co. Ltd Oriental Insurance Co. Ltd United 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 UTMOST GOOD FAITH INSURABLE INTEREST INDEMNITY CAUSA PROXIMA

MARINE INSURANCE POLICY Marine insurance policy contains the following information: Name of insured or his agent Subject matter insured Risks insured against Name of vessel and offices Description of Voyage Amount & term of insurance Premium

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

PAYMENT OF CLAIMS UNDER MARINE INSURANCE EVIDENCE NOTICE OF CLAIM DOCUMENTS REQUIRED EXTENT OF LIABILITY

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

ELEMENTS OF FIRE INSURANCECONTRACT proposal acceptance Commencement of Risk

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 types Legal liability for damages for bodily injuries or damage to property caused to other Damage to or loss of one’s own automobile In India first Motor Vehicle Act was passed in 1939

LIABILITIES REQUIRING COMPULSORY INSURANCE Liabilities arising in respect of damage to any property of a third party In respect of death or body injury of any passenger of a public service vehicle Any liability arising by the insured in respect of death or bodily injury of any person 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 Motor insurance is obligatory under the provisions of Motor Vehicles Act Motor risks may be divided into three categories: Risk of property damage Risk of personal accident Liability risks

Continued… c. Motor vehicles may be divided into three parts Private vehicles Commercial vehicles Motor cycles and two wheelers

MOTOR INSURANCE POLICIES ACT ONLY POLICY THIRD PARTY POLICY COMPREHENSIVE POLICY

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