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8/4/2019 General Insurance Train

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INDEX INSURER INSURED RISK PERIL SUM INSURED COVER SMI CLASS SUBCLASS DISCOUNTS LOADING DEDUCTIBLE

EXCESS RATE CUSTOMERS ISSUE DATE INCEPTION DATE CONDITIONS UNDERWRITING PROPOSAL FORM CLAIM POLICY DURATION PREMIUM

CALCULATION


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Types Of Insurance

General Insurance

Life

1.Group Medical

2.Group Life

3.Individual Life


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General Insurance

Basic Concepts


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The Insurance Transaction

The Risk

TheInsured

TheInsurer


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Insurance Company is theINSURER


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One who insures and takes a policyis the INSURED


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RISK

Risk is a condition where there is apossibility of an adverse deviation

from a desired outcome that isexpected or hoped for there is norequirement that the possibility be

unmeasurable,only that it mustexist.


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PERIL

A peril is a cause of loss,e.g.fire,windstorm,hail or theft.


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SUM INSURED(SI)

Value of the property/max amountpayable when a loss occurs.


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COVER

A group of perils put together.

Fire,Flood,Earth Quake,Theft

RSMD-Riot,Strike,Malacious Damage


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SMI

Subject Matter Insured

Eg building ,FFF


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CLASS

Classifications of General Insurance1.Fire

2.Marine

3.Miscellaneous(Motor,PersonalAccident,Money,Engineering)


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SUBCLASS

PTE Preferred Car WorkshopPrivate Car Standard

Tour Care Plus Individual

Tour Care Plus Family


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DISCOUNTS

The amount that is reduced fromthe Premium.

For

E.g., FEA,ATD,OFD,NCD


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LOADING

This is the amount added to thePremium amount.

E.g.,Katcha Construction

Flash Point,Earth Quake zone


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DEDUCTIBLE

This an amount that is reducedfrom the claim amount.

Decided by tariff advisory

committee.Discourage small claims.


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EXCESS

For a predecided claim amount.Amount is deducted fromPremium.


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CHARGES

1.Service Tax2.Educational Cess

3.Stamp Duty


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RATE

The factor upon which thepremium is based.

E.g.,%,per mil


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PREMIUM CALCULATION

1.Annual2.Pro-Rata

3.Short Period


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CUSTOMERS

A customer may be:1. Insured or policy Holder

2. Broker/Agent

3. Banks

4. Other Insurance Companies

5. Reinsurance Companies

6. Surve ors Loss Assessors


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CONDITIONS

All policies contain a list ofconditions.They appear in different

parts of the policies but conveysimilar points.

1. That the insured will comply with

all the terms of the policy.2. That the insured will notify the

insurer of any changes in the risk.


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UNDERWRITING

The process of selecting risks forinsurance and determining in whatamount and on what terms the

insurance company will accept therisk.


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PROPOSAL FORM

The information of the risk to beinsured is entered.


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ISSUE DATE

Date on which the Policy isissued.


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INCEPTION DATE

Date on which Policycommences/with effect from.


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DURATION OF POLICY

AnnualShort Term

Long Term


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COMMISSION

Commission to agents andbrokerage to brokers.

Both are a percentage of

Premium.


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CLAIM

A request for the payment of a losswhich may come under the terms of

an insurance contract.1.date of loss 2.date of intimation

3.estimate 4.surveyors 5.loss

assessors 6.claim provision7.outstanding claims 8.claims ratios


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COVER NOTE

It states that insurance is in forceand give breif details of the cover.

Temporary


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CERTIFICATE OFINSURANCE

This certificate provides evidenceof insurance to the Police andRegistration authorities.


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THE POLICY SCHEDULE

It is the place where the policy ismade personal to the insured.

It includes:-1.the insured

2.the address of the insured

3.the nature of business/profession

4.the period of insurance etc.


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ENDORSEMENTS

Alterations to the issued Policy.

Non-monetary

Monetary


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FIRE INSURANCE

The standard fire policy covers damage tothe property caused by fire,lightening orexplosion.

The other perils1.storm tempest or flood

2.burst pipes

3.earthquake4.aircraft

5.riot,civil commotion


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6.malicious damage

7.explosion

8.impact


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DECLARATION POLICY

Declare the value of the stocks atregular interval


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FLOATING POLICIES

These policies may be issued forstocks at various locations underone sum insured.


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MOTOR INSURANCE

Third party only:-covers theinsureds liability in respect of thirdparty injury,death or propertydamage.

Comprehensive :-includes accidentaldamage to the vehicle in addition tothe thirt party ,fire and theft cover.


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Such policies may also includepersonal accident benefits forinsured and spouse,medicalexpenses and loss of or damage torugs ,clothing and personal effects.


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Motor policies are described by thetype of vehicle insured.Thus thereare separate policies for privatecars,motor cycles,commercialvehicles[taxis,lorries,vans,hire carsand so on] ,and special type of


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Vehicles [like forklift trucks,mobilecranes,etc.]


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PERSONAL ACCIDENT

The policy is to providecompensation in the event of anaccident causing death or injury.

What are termed as capital sumsare paid in the event of death orcertain specified injuries,such asthe loss of limbs or sight as may be


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defined in the policy.A typicalbenefits schedule is:-

Death 100% of the SI

Loss of one handOr leg or eye 50% of the SI

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