INSURANCE

WHAT IS INSURANCE?Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

WHAT IS INSURANCE?Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

Functions Of Insurance Providing Certainty Protection Risk Sharing Assist In Capital Formation

TYPES OF INSURANCE

Life Insurance General Insurance

Marine Insurance

Fire InsuranceOther

Insurance

Health Insurance

Vehicle Insurance

Sports Insurance

Crop Insurance

LIFE INSURANCELife insurance  is a contract between an insured and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of the insured person.

GENERAL INSURANCEGeneral insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event.

FIRE INSURANCEFire insurance is a form of property insurance which protects people from the costs incurred by fires. When a structure is covered by this type of insurance, the insurance policy will pay out in the event that the structure is damaged or destroyed by fire.

Features of Fire Insurance

Fire insurance is a contract of indemnity. The insurer is liable only to the extent of the actual loss suffered. If there is no loss there is no liability even if there is a fire.

Fire insurance is a contract of good faith. The policy-holder and the insurer must disclose all the material facts known to them.

Fire insurance policy is usually made for one year only. The policy can be renewed according to the terms of the policy.

WHO CAN TAKE THE POLICY?The contract of sale would determine who buys the policy. The most common contracts are : FOB (Free on Board) C & F (Cost & Freight) CIF (Cost, Insurance & Freight)In FOB and C&F contracts, the buyer is responsible for insurance. Whereas in CIF contracts the seller is responsible for insurance from his own premises to that of the purchaser.

Claim Process Intimate such loss / damage immediately so that a Competent Surveyor may be deputed to minimize the loss. Give an account of all properties damaged or destroyed with estimated amounts having regard to their values as on the date and place of loss.Cooperate with surveyors by providing all the necessary documents for assessment of loss and establishing liability.

DOCUMENTS REQUIRED FOR PROCESSING OF CLAIM

Certified True copy of the policy along with schedule and Endorsements/clauses. Claim Form. Newspaper reports on the incident Photographs. Past claims experience. Final Investigation Report.Fire Brigade Report First Information Report

Properties that are covered Building. Plant & Machinery, Equipments & Accessories.  Stocks. Other Contents such as: 1. Furniture, Fixtures and Fittings 2. Cables, Piping's 3. Spares, Tools and Stores 4. Household goods etc.

Marine InsuranceMarine 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.

Features of marine insurance This policy covers goods , freight and other interests against loss or damage to goods whilst being transported by rail , road , sea and/or air. The insurer guarantees to make good the losses due to damage to the ship arising out of risks incidental to sea voyages. This policy is freely assignable and is basically an agreed value policy.

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Who Can Take The Policy?The contract of sale would determine who buys the policy. The most common contracts are : FOB (Free on Board) C & F (Cost & Freight) CIF (Cost, Insurance & Freight)In FOB AND C&F contracts, the buyer is responsible for insurance. Whereas in CIF contracts the seller is responsible for insurance from his own premises to that of the purchaser.

How To Claim? Take immediate steps to minimise loss. Inform nearest office of the insurance company or claim settling agent mentioned on the policy. In case of damage to goods whilst on ship or port , arrange for joint ship survey or port survey. Lodge monetary claim with carrier within stipulated time period. Survey fees is to be paid to the surveyor appointed by the insurance company. This fees will be reimbursed along with the claim if the claim is otherwise admissible.

The policy covers loss/damage to the

property insured due to: Fire or explosion; stranding sinking etc. Collision Discharge of cargo at port of distress Earthquake lightning Washing overboard Sea lake river water Sea lake river water War and SRCC is specifically covered