Seminar Report on General Insurance[1]

8/6/2019 Seminar Report on General Insurance[1]

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SEMINAR PRESENTATION

ON GENERAL INSURANCE

PRESENTED BY

RANI CHAMLATEMBA 4TH SEM.


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CONCEPT OF INSURANCE

Insurance is based on the concept of

risk pooling or risk sharing of losses.

Basically under this concept, all

individuals suffering a similar risk, placean agreed sum into a pool and the

monies collected are used to indemnify

any contributing individual against any

loss arising out of the risk.


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INSURANCE

INSURANCE IS A TYPE OF FINANCIAL ARRANGEMENT THAT HELPS

INDIVIDUALS, BUSINESS & OTHER ORGANISATION PROTECT THEMSELVES AGAINST UNEXPECTED OR UNPREDICTABLELOSSES OR EXPENSES

.EX SUCH AS PERSONAL INJURY & PROPERTY DAMAGE

a1


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Slide 3

a1 a, 3/10/2011


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SIGNIFICANCE OF INSURANCE


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INSURANCE IS NOTHING BUT AN AGREEMENT

BETWEEN THE INSURANCE COMPANY & THE

INSURED TO PAY AN AMOUNT AS A

COMPENSATION IF ANY UNPREDICTABLE EVENT

OCCURS .


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THE ONLY EARNING MEMBER IN THE FAMILY MEETS WITH AN

ACCIDENTS & IS INCAPABLE FROM GOING TO WORK FOR 6MONTHS,WHAT WOULD THE FAMILY DO FOR THEIR SURVIVAL ?

THESE ARE THE CASES WHERE INSURANCE COMES IN HAND. THE

INSURED PERSON CAN CLAIM AN AMOUNT CORRESPONDING TO

HIS DISABILITY LOSSES & USE THE MONEY TO SUSTAIN HIS FAMILY

UNTIL HE/SHE IS FIT TO RESUME HIS JOB .


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IRDA

The Insurance Regulatory and Development Authority (IRDA) is a

national agency of the Government of India, based in Hyderabad. It wasformed by an act of Indian Parliament known as IRDA Act 1999, which was

amended in 2002 to incorporate some emerging requirements. Mission of

IRDA as stated in the act is "to protect the interests of the policyholders, to

regulate, promote and ensure orderly growth of the insurance industry and

for matters connected therewith or incidental thereto."


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In 2010, the Government of India ruled that the Unit

Linked Insurance Plans (ULIPs) will be governed by

IRDA, and not the market regulatorSecurities and

Exchange Board of India.[1]


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Expectations

To protect the interest of and secure fair treatment to policyholders.

To bring about speedy and orderly growth of the insurance industry (including annuity and

superannuation payments), for the benefit of the common man, and to provide long term funds for

accelerating growth of the economy.

To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealingand competence of those it regulates

. To ensure that insurance customers receive precise, clear and correct information about

products and services and make them aware of their responsibilities and duties in this regard.

To ensure speedy settlement of genuine claims, to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery.


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Duties,Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 laysdown the duties,powers and functions of IRDA

Subject to the provisions of this Act and any other law for the time being in force,

the Authority shall have the duty to regulate, promote and ensure orderly growth of

the insurance business and re-insurance business.

supervising the functioning of the Tariff Advisory Committee;

regulating investment of funds by insurance companies;

specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector; and


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INSURANCE COMPANIES IN

INDIASome of the most trusted non-life

insurance companies in India are:


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Major Indian Life Insurance Companies


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CLASSIFICATION OF

INSURANCE


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INCLUDE TERM LIFE POLICIES WHICH GIVES A

PURE RISK COVERAGE OF ONLY THE DEATHBENEFIT WHEREAS ENDOWMENT OR MONEY

BACK POLICIES HAVE A RISK AS WELL AS

SAVINGS COMPONENT I.E DEATH AS WELL AS

MATURITY BENEFIT .


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INCLUDE PROPERTY OR CASUALITY, HEALTH

INSURANCE ,FIRE, MARINE INSURANCE ETC.

THIS INSURANCE CLASS DEALS WITH ALL THE

NON LIFE ASPECTS OF AN INSURED LIKE HIS/HER

HOUSE HEALTH, LAND, OFFICE, CARGO, ETC

WHICH MIGHT BRING FINANCIAL LOSS.


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GENERAL INSURANCE


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PRODUCT INSURANCE


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PROTECTS THE BUSINESS FROM CLAIMSRELATED TO THE MANUFAUTURE OR SALE OF

PRODUCTS, FOOD MEDICINES OR OTHER

GOODS TO THE PUBLIC.


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IT COVERS THE MANUFACTURE OR SELLERS LIABILITY FOR

LOSSES OR INJURIES TO A BUYER OR A DEFECTIVE DESIGN


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DEFECTIVE DESIGN

WHEN PRODUCT DESIGN IS UNSAFE.

EX- THE MOST MEMORABLE EXAMPLE IS THE SERIES OFPINTO CAR CASES AGAINST FORD IN THE YEAR 1970S


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DEFECTIVE WARNINGS

THE CLAIMS THAT THE PRODUCT WAS

NOT PROPERLY LABELLED OR HADINSUFFICIENT WARNINGS FOR THE

CONSUMER TO UNDERSTANDS THE

RISK .

EX- THE MCDONALD COFFEE CASE


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MANUFACTURING FLAWS

IN PRODUCTION PROCESS

EX-RECENT CLAIMS AGAINST CHIENSE

MANUFACTURING REGARDING THE

PRESENCE OF DANGEROUS CHEMICALS INTHEIR PRODUCTS


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FIRE INSURANCE


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INSURANCE AGAINST LOSS DUE TO

FIRE.

A FIRE INSURANCE POLICY INVOLVES

COMPANY AGREEING TO PAY A

CERTAIN AMOUNT EQUIVALENT TO THE

ESTIMATED LOSS CAUSED BY THE FIRE

TO THE INSURED WITHIN TIME

SPECIFIED IN THE CONTRACT


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AVERAGE POLICY OF FIRE

INSURANCE

WHERE PROPERTY IS INSURED FOR A SUM WHICH IS LESSTHAN ITS VALUE THE POLICY CONTAIN A CLAUSE THAT THE

INSURANCE CO. SHALL NOT BE LIABLE TO PAY THE FULL

LOSS BUT ONLY THAT RATIO OF THE LOSS WHICH THE

AMOUNT INSURED FOR BEARS TO THE FULL VALUE OF THE

PROPERTY.


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FIRE

LIGHTENING

EXPLOSION MALICIOUS DAMAGE

AIRCRAFT DAMAGE

MISSIBLE DAMAGE


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A VALUE OF THE PROPERTY IS RS

100000. IT IS INSURED FOR RS 60000 &

THE AMOUNT OF LOSS IS RS 60000 .THE INSURANCE CO.WILL NOT PAY RS

60000 TO THE POLICYHOLDER BUT WILL

PAY RS.36000.


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CREDIT FACILITY MINIMIZES LOSSES AS A SOURCE

BENIFICIAL FOR NEW INDUSTRIES.


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MARINE INSURANCE


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Marine insurance covers the loss or damage of ships, cargo, terminals,

and any transport or cargo by which property is transferred, acquired, or

held between the points of origin and final destination.


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MARINE INSURANCE FALLS UNDER COMMERICIALINSURANCE.

THE POLICY IS TAKEN TO REDUCE THE BUSINESS

RISKS.


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CALCULATION OF MARINE INSURANCE AMOUNT OR

PREMIUM DEPENDS ON FACTORS LIKE NATURE OF CARGO ,

DISTANCE & PAST CLAIMS EXPERIENCES. PREMIUM CAN BE

PAID ON A MONTHLY/QUARTERLY/HALF YEARLY/ YEARLY

BASIS.


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.

Cargo insurance is an insurance policy

taken up to protect against loss of ordamage to your goods while they are being

transported.


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The policy is meant to indemnify you if there is any loss

or damage to your cargo. Cargo insurance would cover

the goods while they are being transported over sea, air

and land (includes parcel post and carryings by courier

service).


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the term "marine cargo insurance" is sometimes used, it

actually includes cover for the land transit commencing

from the moment the goods leave the storage until they

arrive at the final warehouse.


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Why should I buy Ocean Cargo Insurance?

While physical damage on transit claims may not be a problem, importers

and exporters should be aware that over 50 voyages a year encounter

heavy weather where shipping containers are lost overboard. Due to the international policy of all shippers with safe-landed cargo contributing to

the loss will require that the owner of the goods either put up a cash security, post a

bond or will be unable to have the goods released from the carrier until a financial

guarantee is given to respond for the contribution.


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How much insurance do I need to buy?

While physical damage on transit claims

may not be a problem, importers and

exporters should be aware that over 50

voyages a year encounter heavy weather

where shipping containers are lostoverboard.


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Due to the international policy of all

shippers with safe-landed cargo

contributing to the loss will require

that the owner of the goods either

put up a cash security, post a bond

or will be unable to have the goods

released from the carrier until a

financial guarantee is given to

respond for the contribution.


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MARINE INSURANCE CO.


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HULL INSURANCE

IT IS A BOAT INSURANCETHAT

COVERS DAMAGES TO A BOAT ITS

MACHINERY & ITS EQUIPMENT .


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FRIEGHT INSURANCE

IT PROVIDES PROTECTION

AGAINST THE LOSS OF

FRIEGHT


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MOTOR VECHILES

INSURANCE


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THIRD PARTY INSURANCE


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In India, under the provisions of the Motor Vehicles Act, 1988, it is

mandatory that every vehicle should have a valid Insurance to drive

on the road. Any vehicle used for social, domestic and pleasure

purpose and for the insurer's business motor purpose should be

insured


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There are two quite different kinds of insurance involved

in the damages system. One is Third Party liability

insurance, which is just called liability insurance by

insurance companies and the other one is first party

insurance.


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What is Third Party Insurance of Vehicle ?

What risk is covered in this policy?

The Third Party of Insurance is the coverage that you have on people other that the people

actually on the policy.

For example, if you and a few friends go out and your designated driver drives your car but there

is still a car accident.

Third Party Insurance can cover a certain amount of the damage and medical bills depending on

the total amount of damage. Sometimes they can even cover your vehicle.

Source(s):

I personally was in a car accident in a similar situation except didn't have Third Party Insurance

and the male who was recklessly driving my vehicle had no insurance and crashed the car going

85 in a 15 and it nearly killed me. We are still trying to re-coup all of our damages, I have

permanent nerve and back problems and we also have a repo(of our totaled truck) in our credit. It

may be a little bit more but I would advise that you get third party. It is worth it!!!


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F

Beneficiary of third party insurance is the injured third party, the insured or the policy holder is

only nominally the beneficiary of the policy. In practice the money is always paid direct by theinsurance company to the third party (or his solicitor) and does not even pass through the hands

of the insured person.

Third party insurance is almost entirely fault-based.(means you have to prove the fault of the

insured first and also that injury occurred from the fault of the insured to claim damages from him)

Third party insurance involves lawyers aid


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Thus I have studied and analyzed the third party liability insurance under the motor

Vehicles Act, 1988.Third party insurance protects the interest of a third party whobecomes the victim of accident or injury caused by the fault of the insured. So any

liability arising on the insured by the third party is mitigated by the insurance

company. Third party insurance is compulsory under the motor vehicles Act,1988. As

the third party insurance is mandatory so it cannot be overridden be any clause in the

insurance policy.


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For a motorist to drive on UK roads, it is a legal requirement to

have at least third party only (TPO) car insurance. This is to ensurethat third parties involved in an incident are protected. So, for

example, if you were to crash into another car and the accident was

deemed to be your fault, then your liability to the driver of the other

car would be covered, although you would not be able to claim for

damage to your own.


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Drivers may seek out third party only motor insurance because it more often than not has the

lowest cost premiums. This is particularly the case where the driver is considered by the

insurance company to be a high risk, or the car value is low so low it is unlikely to get a pa

Therefore it is worth bearing in mind what third party only does not cover before deciding which

level of cover to take out.

Third party only will not cover a car in the event that it is stolen or burnt by fire. To protect

against such losses, a driver may choose to upgrade to third party, fire & theft. Comprehensive

cover will see your car repaired in the event of an accident (or pay you the vehicles value if it is

uneconomical to repair). y-out through an insurance claim.


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It is worth noting that some insurance companies will insist on third

party only cover in some circumstances, and not offer

comprehensive or third party, fire & theft. An example of this mightbe where a car is over thirty years old. This is because replacing car

parts which are no longer readily available would be very expensive

for the insurance company. As such, they may recommend going to

specialist or classic car insurers, or offer no more than third party

only insurance.


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Reliance General Insurance introduces Online

Motor InsurancePolicy

Reliance General Insurance, one of India's leading General

Insurance players, has now introduced he Quick Quote facility for its

Motor Insurance Policy through its website

www.relaincegeneral.co.in .


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Mumbai, Maharashtra, April 1, 2010 /India PRwire/ -- Reliance General has

introduced a new Quick Motor Insurance Quote feature wherein one can directly

calculate the premium for their vehicle insurance in a quick and easy manner and payonline for the same.

This features does not require website registration or logging and one can find out the

premium for his/her automobile insurance policy in less than 5 minutes if one has all

the information about his/her vehicle at hand.


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Some of the advantages of the Reliance Private Car Insurance

Policy Quick Quote are:

Get an Instant Quote for your travel requirement

No lengthy logins or registrations required

No paperwork is required for calculating the premium

Also allows for instant online renewal quote calculation

The facility also allows for saving the generated quotes in the

interface for later purchase.


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Reliance Private Car Insurance Policy

Feature

Cashless facility for a hassle-free claims processing Speedy claims settlement

Easy documentation


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Convenience designed for

you

We also provide an allowance of Rs. 1500 towards

towing charges if required.

If required Cashless facility across 1700 network

garages in India


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SUPER - FAST SERVICES

Instant policy issuance.

We value your time and when you call in a claim werespond immediately.

We have a dedicated help line for emergency services.

We also make sure that a survey of the vehicle is

arranged within 24 hours.


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Discounts

If you have not made a claim in the previous year, you can get a 'No

Claim Bonus' reward when you renew your policy.

You also have the option of transferring your existing 'No Claim

Bonus'.


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Vehicle Damage:

The Reliance Private Car Insurance Policy covers loss or damage to vehicle

due to:Accident, fire, lightening, self-ignition, explosion, burglary, house breaking

or theft.

Riot and strike, malicious act, terrorism, earthquake, flood, cyclone and

inundation.

Transit by rail, road, air, elevator and lift.


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Personal Accident Cover

This policy will also cover you, the policyholder, while you are driving against any

accident.

Third Party Liability

As per the Motor Vehicle Act, third part liability cover is a compulsory cover to be

taken by all vehicles. This cover provides against the liability for third party

injury/death, third party property damage and liability to paid driver.


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Add on covers

Most people customize their cars so that it suits their tastes and utilization. We offer you theoption to customize the policy with additional coverage for the following:

Electrical/electronic accessories

Non-electrical accessories

Bi-fuel kits comprising LPG/CNG systems

Legal Liability to employee, paid driver, cleaner & conductor

Racing, speed tests, dexterity trials, hill climb extension


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Reliance General Insurance is one of India's leading private general insurance

companies with over 94 customized insurance products catering to the Corporate,

SME and Individual customers. Reliance General Insurance has an extended network

of over 200 offices spread across 173 cities in 22 states, a wide distribution channel

network, 24x7 customer service assistance and a full fledged website which offers

Online Insurance policies. It is also India's first insurance company to be awarded the

ISO 9001:2000 certification across all functions, processes, products and locations

pan-India.


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EXCLUSIONS


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MEDICLAIM & HEALTH POLICIES


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WHY HEALTH INSURANCE NEED ?

MEDICAL EXPENSES HAVE

INCREASED. COMMON MAN HAS TO

STRETCH TO GET PROPER

TREATMENT FOR HIMSELF & HIS

FAMILY.


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HEALTH INSURANCE ?

COVER MEDICAL TREATMENT IN CASE OFILLNESS & ACCIDENTS.

GET GOOD TREATMENT & MEDICAL CARE

WITHOUT WORRYING ABOUT THE EXPENSIVE

TREATMENT .


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BENEFIT OF HEALTH POLICIES

CASHLESS HOSPITALIZATION ACROSS 2300

HOSPITALS

EXPERT OPINION PROVIDED FREE OF COST

SINGLE POLICY FOR ALL THE FAMILY MEMBER

DAILY ALLOWANCES FOR HOSPITAL EXPENSES

TAX BENEFITS UNDER SEC- 80 C


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ICICI LOMBARD BRINGS TO YOU A COMPREHENSIVE

HEALTH INSURANCE PLAN THAT ENSURES THESAFETY OF YOU & YOUR ENTIRE FAMILY UNDER ONE

POLICY AT OVER 3500, HOSPITALS ALONGWITH

INCURE TAX BENEFITS

COVERS HOSPITALS EXPENSES

SAVE TAX 10815 UPTO RS.

CASHLESS HOSPITALLIZATION

ONE FAMILY ONE POLICY.


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ICICI Lombard presents a completely new

look to the Med claim concept. Health

Insurance (popularly known as Med claim)

offers protection in case of unexpected

medical emergencies.

In case of a sudden illness or accident, the

health insurance policy takes care of the

hospitalization, medical and other costs

incurred.

We offer a range of innovative policies to

choose from. Each plan offers something

unique (in addition to the usual med claim

policies) to suit your specific needs.

ICICI Lombard Med - claim Products


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ICICI Lombard Med claim Products

Health Advantage Plus Insurance

Health Advantage Plus health policy covers you not only for theusual medical emergencies, but also for Out Patient Department(OPD) expenses (such as reimbursement of cost of medicines,

drugs, ambulance charges and dental expenses) andemergencies arising out of terrorism or acts of terrorism. What'smore? You can save tax up to Rs. 5099 under Section 80 D ofthe Income Tax Act.

This Plan is available for all ages between 5-65 years and seniorcitizens aged 66 and above (renewable up to 70years).Moreover, the 45 year age limit for 'no health check-up' forpolicy issuance is now extended to 55 years of age.

F il Fl t I


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Family Floater Insurance

ICICI Lombard's Family Floater policy takes care

of the medical expenses during sudden illness,

surgeries, accidents and against terrorism andacts of terrorism. The enrollment age (of the

senior most family member) should be between

19 years to 60 years and other members in the

plan can be less than 19 years of age (i.e. up to

91 days). The insured child aged between 91

days to 5 years must be accompanied by at

least 1 Adult Member.


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BURGLARY INSURANCE


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Burglary Insurance Why Burglary and or Housebreaking Insurance?

Burglary and Housebreaking Insurance policy provides financial

compensation against loss or damage to property contained in your

premises by acts of Burglary and or Housebreaking.


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The Policy pays actual loss/damage to your insured property caused

by burglary/house breaking subject to the limit of Sum Insured. IfSum Insured is not adequate, Policy pays only proportionate loss.

There is also a provision in the Policy to cover bulk items on first

loss basis wherein a percentage of total stock stored can be taken

as that exposed to the risk of burglary and housebreaking. The

premium is charged on this percentage selected only.


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What can be covered on payment of additional premium?

The Policy can be extended to cover Riot, Strike, Malicious Damage

and Theft. Further, policies can be issued on declaration basis and

on floater basis for stocks.


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What is not covered?

The Policy will not pay for loss/damage

-To goods held in trust/commission, jeweler, curios, title deeds,

business books unless specifically insured.

-Recoverable under Fire/Plate glass insurance policy


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By abstraction from a safe using a key or duplicate key,

unless it is obtained by violence or threat

-Due to shop lifting, acts involving you/your familymembers/ your employees

-Due to War perils, Riot & Strike ( covered by payment of

additional premium), Acts of God, Nuclear perils


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GROUP INSURANCE

IS AN INSURANCE THAT COVERS A GROUP OF

PEOPLE USUALLY WHO ARE THE MEMBERS OF

SOCITIES, EMPLOYEES OF A COMMON EMPLOYER

AS APROFESSIONALS.


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BENEFIT OF GROUP


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BENEFIT OF GROUP

INSURANCE

EXCELLENT COVERAGE

COST EFFECTIVE

TAX BENEFITS


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CONCLUSIONS


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Documents

Seminar Report on General Insurance[1]