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V.M.
Patel College Of Management Studies

Ganpat University, Kherva
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Insurance is nothing but transfer of risk. In other words “Insurance is a
contract between two parties whereby one party agrees to undertake the risk of
another in exchange for consideration known as premium and promises to pay a
fixed sum of money to the other party on happening of an uncertain event”.
 The future is always uncertain.
 The entire business process has to face numerous risks and uncertainties.
 Uncertainty comes from changes in economic, social and political trends.
 Most business decision making takes place on the basis of expectation

about the future
 Risk refers to the possibility that something dangerous might happen.
 Making decision on the basis of assumptions, expectation and forecast of

future events involves taking risk.
 For all this types of risks can be reducing by the help of insurance.
 Insurance is nothing but it is only risk transfer to other’s shoulder.
 Many natural risks or losses can be avoided through insurance.
 There are many insurance companies in India which is taking life

insurance as well as also general insurance.
 There are two types of insurance life insurance & non-life insurance.
 And there are three types of general insurances.
V.M. Patel College Of Management Studies

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Classification of Insurance
Life Insurance General Insurance
General Insurance
Fire Marine Miscellaneous
E.G: Riot, Flood E.G: Cargo, Hull E.G: Crop, Cattle

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There are three types of the General Insurance. They are Fire, Marine and
Miscellaneous insurance.
Fire Insurance
Indian fire insurance, like all other insurance policies in India, is considered a
federal issue. The Tariff Advisory Committee, which is a Statutory Body, issued
the All India Fire Tariff on March 31, 2001, which governs all India fire insurance
policies. The commercial fire insurance India policy provides protection to
buildings, machinery, offices and contents. The purpose is to alleviate the risk of
loss borne by the insured due to the breakout of fire. The insured is expected to
minimize the loss as much as possible by taking all feasible steps.
Documents Required For Indian Fire Insurance Companies
The documents that the policyholder is required to produce while claiming for the
loss include a report of the fire brigade, a true copy of the policy along with the
schedule, past claims experience, a claim form and photographs.
Covered Risk:-
 Fire  Explosion
 Lighting  Storm
 Riot  Rock slide
 Flood  Aircraft Damage
Add on Coverage:-
 Earthquake
 Terrorism

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 Subterraneous Fire

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Marine Insurance
Marine insurance was the earliest well-developed kind of insurance with origins in
the Greek and Roman maritime loan. Separate marine insurance contracts were
developed in Genoa and other Italian cities in the fourteenth century and spread
to northern Europe. Premiums varied with intuitive estimates of the variable risk
from seasons and pirates.
The modern origins of marine insurance law in English law were in the law
merchant, with the establishment in England in 1601 of a specialized chamber of
assurance separate from the other Courts. Lord Mansfield, Lord Chief Justice in
the mid-eighteenth century, began the merging of law merchant and common law
principles.
The establishment of Lloyd's of London, competitor insurance companies, a

developing infrastructure of specialists (such as shipbrokers, admiralty lawyers,
and bankers), and the growth of the British Empire gave English law a
prominence in this area which it largely maintains and forms the basis of almost
all modern practice.
The growth of the London insurance market led to the standardization of policies
and judicial precedent further developed marine insurance law. In 1906 the
Marine Insurance Act was passed which codified the previous common law; it is
both an extremely thorough and concise piece of work. Although the title of the
Act refers to marine insurance, the general principles have been applied to all
non-life insurance.
In the 19th, century Lloyd's and the Institute of London Underwriters (a grouping of
London company insurers) developed between them standardized clauses for the
use of marine insurance, and these have been maintained since. These are
known as the Institute Clauses because the Institute covered the cost of their
publication.

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Within the overall guidance of the Marine Insurance Act and the Institute Clauses
parties retain a considerable freedom to contract between themselves.
Marine insurance is the oldest type of insurance. Out of it grew non-marine

insurance and reinsurance. It traditionally formed the majority of business
underwritten at Lloyd's. Nowadays, Marine insurance is often grouped with
Aviation and Transit (ie. cargo) risks, and in this form is known by the acronym.
Covered Risk:-
 Cargos
 Hull

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Miscellaneous Insurance
Miscellaneous Insurance exists to help people gain a good understanding of the

various kinds of insurance coverage's that are available to people today.
Insurance has become a very important part of many people's lives as they
realize the need to provide protection for different areas of their everyday life.
There is a wide variety of types of insurance coverage available today.
The dictionary defines insurance as "coverage by contract whereby one party

undertakes to indemnify or guarantee another against loss by a specified
contingency or peril". This means that an individual enters into an agreement with
an insurance company that will pay a set amount of money in case of a loss in a
specified area. There are a number of inclusions and exclusions involved in each
insurance policy with all kinds of variables that must be taken into consideration
before purchasing the policy.
One of the most important things to remember is that an insurance policy is a

contract between the insurance company and their customer. The insurance
company agrees to pay certain amounts of money in case of loss and the
customer agrees to pay the insurance premiums that are required to keep the
policy in place. If the customer fails to pay the premiums due, the insurance may
be revoked, leaving the customer vulnerable.
The contract specifically makes the insurance company liable to pay for any loss
that is specifically stated in the insurance policy. Most policies will accurately
describe the types of losses covered and the amount of money that the company
will pay for those losses
With the increase in public awareness and the consequent thrust of the Insurance
Industry in the areas of Health Insurance, Liability Insurance and other personal
lines of insurances, the miscellaneous portfolio of Insurance is poised to be a
sunrise portfolio of General Insurance.

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Requirements:-
Completed proposal form is giving full and accurate information. All items to be
covered should be fully described for easy identification in future. Unless value of
each item is declared separately, the claim for each item will be limited to 5% of
the total sum insured.
Risks Covered:-
 Motor
 Crop
 Electronic
 Cattle

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 Insurance is useful to business.
 Insurance helps the planning process because the planer knows a

property loss will not mean financial ruin, and the future of a business
cannot be destroyed by a fire or the death of a key person.
 Insurance facilitates credit transaction because creditors are more willing

to lend money if the debtor death does not make collection of the loan
difficult or impossible.
 One of the greatest benefit with which an insurance system reward society
is stabilities in family.
 Insurance allows families to continue their activities in a much more

normal fashion after a loss than would be the case if no insurance existed.
 Without insurance, firms would have to hold more money in relatively non-
productive near-case reserve to protect them against the rainy day.
 Insurance companies and the organization the support contribute directly

to society welfare in many ways relating to loss prevention and medical
research.

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The insurance business is based on the following important principles:
1. Insurable Interest:-
2. Principle of Indemnity:-
3. Utmost Good Faith:-
4. Proximate Cause:-
5. Subrogation:-
6. Contribution:-
We can describe those principles followingly.
1. Insurable Interest:-
In the Insurance, insurable interest must exits
 At the time of insurance
 At the time of the loss
The interest may be legal or fair or may arise under a contract of purchase or
sale.
The Following have been held to have insurable interest in the subject
matter:-
 Owner
 Trustee
 Bailee

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2. Principle of Indemnity:-
To place insured as far as possible in the same financial position after a loss as
that occupied immediately before the loss.
The insured can recover only the amount of actual loss subject to the sum
assured.
3. Utmost Good Faith:-
Insurance contract is based upon the utmost good faith. Therefore insured must
make full detailed disclosure of all material facts likely to affect the judgment of
fire officials in determining the rates of premium whether the proposal should be
accepted.
Description of the property should be given and all information that may be
required as to the class of goods & articles.
4. Proximate Cause:-
In the general insurance, when someone face claim to the company, at that time
company will not pass the claim of the client without observe the movement.
Company will check what the proximate cause of the movement is.
For Example:- If one person’s car’s fuel tank was damage, After 10 or 15 days
Because of this his car getting fire. So at that Time Company will search the
reason for fire. So at that time proximate cause is fuel tank was damage. so at
that time company will pass the claim of the client.
5. Subrogation:-
Subrogation is a principle applicable to both fire & marine insurance. Insurer

becomes entitled to:-

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 On his paying compensation to the insured.
 Claim the advantage of every right of the insured against the third parties who
may be proved to be responsible for that loss.
6. Contribution:-
Where the subject matter has been insured with more than one insurer, each
insurer has to meet the loss only rateably.
If he has paid more than his share of loss, he is entitled to recover the excess
paid from his co-insurers.
Thus, the principle of contribution applies in the case of fire insurance.

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In India, insurance has a deep-rooted history. It finds mention in the writings of
Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra).
The writings talk in terms of pooling of resources that could be re-distributed in
times of calamities such as fire, floods, epidemics and famine. This was probably
a pre-cursor to modern day insurance. Ancient Indian history has preserved the
earliest traces of insurance in the form of marine trade loans and carriers’
contracts. Insurance in India has evolved over time heavily drawing from other
countries, England in particular.
1818 saw the advent of life insurance business in India with the establishment of
the Oriental Life Insurance Company in Calcutta. This Company however failed in
1834. In 1829, the Madras Equitable had begun transacting life insurance
business in the Madras Presidency. 1870 saw the enactment of the British
Insurance Act and in the last three decades of the nineteenth century, the
Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started
in the Bombay Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely Albert Life Assurance,
Royal Insurance, Liverpool and London Globe Insurance and the Indian offices
were up for hard competition from the foreign companies.
In 1914, the Government of India started publishing returns of Insurance

Companies in India. The Indian Life Assurance Companies Act, 1912 was the
first statutory measure to regulate life business. In 1928, the Indian Insurance
Companies Act was enacted to enable the Government to collect statistical
information about both life and non-life business transacted in India by Indian and
foreign insurers including provident insurance societies. In 1938, with a view to
protecting the interest of the Insurance public, the earlier legislation was
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consolidated and amended by the Insurance Act, 1938 with comprehensive
provisions for effective control over the activities of insurers.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However,

there were a large number of insurance companies and the level of competition
was high. There were also allegations of unfair trade practices. The Government
of India, therefore, decided to nationalize insurance business.
An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance
sector and Life Insurance Corporation came into existence in the same year. The
LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—
245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s
when the Insurance sector was reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the
west and the consequent growth of sea-faring trade and commerce in the 17 th
century. It came to India as a legacy of British occupation. General Insurance in
India has its roots in the establishment of Triton Insurance Company Ltd., in
the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance
Ltd was set up. This was the first company to transact all classes of general
insurance business.
In 1968, the Insurance Act was amended to regulate investments and set
minimum solvency margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation) Act,
general insurance business was nationalized with effect from 1st
January,1973. 107 insurers were amalgamated and grouped into four companies,
namely National Insurance Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd and the United India Insurance
Company Ltd. The General Insurance Corporation of India was incorporated as a
company in 1971 and it commence business on January 1st 1973.

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This millennium has seen insurance come a full circle in a journey extending to
nearly 200 years. The process of re-opening of the sector had begun in the early
1990s and the last decade and more has seen it been opened up substantially. In
1993, the Government set up a committee under the chairmanship of RN
Malhotra, former Governor of RBI, to propose recommendations for reforms in
the insurance sector.The objective was to complement the reforms initiated in the
financial sector. The committee submitted its report in 1994 wherein, among
other things, it recommended that the private sector be permitted to enter the
insurance industry. They stated that foreign companies are allowed to enter by
floating Indian companies, preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the

Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives of the IRDA
include promotion of competition so as to enhance customer satisfaction through
increased consumer choice and lower premiums, while ensuring the financial
security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application
for registrations. Foreign companies were allowed ownership of up to 26%. The
Authority has the power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed various regulations
ranging from registration of companies for carrying on insurance business to
protection of policyholders’ interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of

India were restructured as independent companies and at the same time GIC
was converted into a national re-insurer. Parliament passed a bill de-linking the
four subsidiaries from GIC in July, 2002.
Today there are 14 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 14 life insurance companies

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operating in the country. The insurance sector is a colossal one and is growing at
a speedy rate of 15-20%. Together with banking services, insurance services add
about 7% to the country’s GDP.
 First important point in general insurance is that, if any company wants to start
a general insurance company, it must have the 100Years of experience and it
must pay 100 crores to the government.
 In the all over the world the first general insurance company is PRODENTIAL.
And it is basically from U.K.
 In the all over the world the first life insurance company is SUN LIFE
INSURANCE COMPANY. And it is basically from U.K.
 In India only one company is there who is doing the business as life
insurance, general insurance and as reinsurance and it is RELIANCE.
 General Insurance has highest number of third party claims in the world.
 General Insurance has highest number of Policies in the world.
 Rural Insurance is taken only in Indian General Insurance.
 India is only country in which the General Insurance is taken from silk to satellite
 India is only the country where the insurance of the paddle cycle is also taken
in the General Insurance.
 General Insurance has the premium less than to the premium in the suspense
a/c of the Life Insurance Corporation.
 The TRITON was the first General Insurance Company which was
established India in the year 1850.
 THE INDIAN MERCANTILE INSURANCE LTD was the first company in India
to transact all classes of general insurance business.
 ORIENTAL was the first life insurance company in India and it was
established in 1818.

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History of IRDA
In 1993, the Government set up a committee under the chairmanship of RN

Malhotra, former Governor of RBI, to propose recommendations for reforms in
the insurance sector.The objective was to complement the reforms initiated in the
financial sector. The committee submitted its report in 1994 wherein, among
other things, it recommended that the private sector be permitted to enter the
insurance industry. They stated that foreign companies are allowed to enter by
floating Indian companies, preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the

Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives of the IRDA
include promotion of competition so as to enhance customer satisfaction through
increased consumer choice and lower premiums, while ensuring the financial
security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application
for registrations. Foreign companies were allowed ownership of up to 26%. The
Authority has the power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed various regulations
ranging from registration of companies for carrying on insurance business to
protection of policyholders’ interests.

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In December, 2000, the subsidiaries of the General Insurance Corporation of
India were restructured as independent companies and at the same time GIC
was converted into a national re-insurer. Parliament passed a bill de-linking the
four subsidiaries from GIC in July, 2002.
Today there are 14 general insurance companies including the Agriculture

Insurance Corporation of India and 14 life insurance companies operating in the
country.
The insurance sector is a colossal one and is growing at a speedy rate of 15-
20%. Together with banking services, insurance services add about 7% to the
country’s GDP.
Objectives of IRDA
 IRDA takes care of policy holders’ interest.
 It also opens the insurance sector for the private insurance company.
 It ensures continued financial soundness & solvency.
 It regulates insurance & Reinsurance Company.
 It eliminates dishonesty & unhealthy competition.
 It supervises the activities of intermediaries.
 It takes action where such standards are inadequate or ineffectively enforced
 It modifies,
i) Insurance Act, 1938.
ii) Insurance Corporation Act, 1956.
iii) General Business Nationalisation Act, 1972.

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 IRDA was constituted by an act of parliament.
 Authority is a team of 10 members consisting of :
o Chairman
o 5 whole-time members (all appointed by government)
o 4 part-time members.
 Above said members to be appointed by the central government from
among person of ability & standing who have a knowledge or experience
in:
o Life insurance
o General insurance
o Finance
o Economics
o Law
o Accountancy
o Administration or
o Any other discipline
 Which would in the options of the central government, be useful to the
authority.

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 IRDA has been vested with adequate power and duties for smooth running
of insurance business.
 To regulate, promote and ensure orderly growth of insurance business.

 To exercise all power and function of controller of insurance.
 To protect the interest of the policyholders in claim settlement and terms &
conditions of policies.
 To promote & regulate professional organizations connected with
insurance business.
 To:
o Call for an information from Company.
o Undertake inspection.
o Conduct investigation including audit of insurer, intermediaries &
other connected organizations & persons.
 To control and regulate the rates and terms & conditions that may be
offered by insurers in respect of general insurance matters.
 To prescribe the manner and form in which accounts will be maintained
and submitted by insurers and intermediaries.
 To regulate investment of a funds and margins of solvency.
 To adjudicate (judge) disputes between insurers and intermediaries.

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 Name Of The Company: Oriental Insurance Co. Ltd.
 Registered Office: Oriental Insurance Co. Ltd.

New Delhi.
 Registered office address: A 25/27 Asaf Aria Road,

New Delhi 110002
 Contact No: 02762- 253665/254680
 Approval & Training given by: Divisional Manager
 E-mail Address: rsrahul@yahoo.co.in
 Website: www.orientalinsurance.org
 Corporate Office: 1st floor Umiya Shopping Centre,

Mehsana highway,
Mehsana. 384002
(Gujarat-India)
 Time keeping system: 10:00 a.m to 5:45 p.m

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The Oriental Insurance Company Ltd was incorporated at Bombay on 12 th
September 1947. The Company was a wholly owned subsidiary of the Oriental
Government Security Life Assurance Company Ltd and was formed to carry out
General Insurance business. The Company was a subsidiary of Life Insurance
Corporation of India from 1956 to 1973 (till the General Insurance Business was
nationalized in the country). In 2003 all shares of our company held by the
General Insurance Corporation of India has been transferred to Central
Government.
The Company is a pioneer in laying down systems for smooth and orderly
conduct of the business. The strength of the company lies in its highly trained and
motivated work force that covers various disciplines and has vast expertise.
Oriental specializes in devising special covers for large projects like power plants,
petrochemical, steel and chemical plants. The company has developed various
types of insurance covers to cater to the needs of both the urban and rural
population of India. The Company has a highly technically qualified and
competent team of professionals to render the best customer service.
Oriental Insurance made a modest beginning with a first year premium of Rs.99,
946 in 1950. The goal of the Company was “Service to clients” and achievement
thereof was helped by the strong traditions built up overtime. Oriental with its
head Office at New Delhi has 26 Regional Offices and nearly 900+ operating
Offices in various cities of the country. The Company has overseas operations in
Nepal, Kuwait and Dubai. The Company has a total strength of around 15,000+
employees. From less than a lakh at inception, the Gross Premium went up to
Rs.58 crores in 1973 and during 2008-09 the figure stood at a mammoth Rs.
4077.90 crores.

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CORPORATE MISSION
To contribute to the socio economic objectives of the nation by being a vibrant

and viable organization catering to the growing insurance needs of the
community. Towards this end we will strive for effective management of business
operations.
CORPORATE VISION
1. To serve better the insurance needs of the entire community, keeping

customer as the focus.
2. To strengthen our tradition of being customer – friendly, in order to provide

quality service.
3. To manage Business profitably, manage funds judiciously and deploy

investible funds for optimum yield.
4. To optimize the retention of Indian business and conduct reinsurance and

international operations in the best interest of the country.
5. To work towards minimization of losses and develop Risk Management

Technologies.

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M. Ramadoss
Chairman-cum-Managing Director
J.S.S.Sastry D.V.Shah S.K. Chanana D. Singh

Director Director Director Director

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M. Ramados
Chairman-cum-Managing Director
S.K. Chanana D. Singh S. Surenther

General Manager General Manager General Manager
Niraj Kumar Dr. A.K. Saxena N.K. Singh

General Manager General Manager General Manager

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M.K. Jindal P. Mahajan A.K. Bhandari
A.K. Das D.K. Soni Virander Kumar B.N. Pra
T.K. Chattopadhyay Mita Bhattacharjee Anil Kumar

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Chairman cum managing director
General Manager
Deputy General Manager
Chief Manager
Manager
Deputy Manager
Assistant manager
Administrative officer
Senior assistant
Record clerk

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Subordinate staff
Head office
Regional office
Divisional office
Branch office
Extension counter

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 Oriental is 67 years old non life insurance company and first non life
insurance company in India.
 Oriental is the first non life insurance company who take an insurance of
aviation like satellite in the world.
 Oriental is also the first non life insurance company who take an insurance
of energy of the Reliance Energy.
 Oriental was rated No.1 non life insurance company for customer services
with claim settlement ratio 86.24% in the year 2001-2002.
 Oriental was rated No.1 non life insurance company for grievance redresser.
 Oriental has achieved the success of highest growth in Indian market in the
year 2005-06.
 In India there are 890 offices and 105 extension counter of Oriental
insurance company.
 Oriental has also achieved award of best public relation officer in the India
and his name is Dhirendra Varma.
 When there was plane crash of Indian Airlines so at that time the insurance
of that plane was under the Oriental company so at that time oriental had
paid Rs:- 1.3 cr within the one week.
 The divisional manager Mr R.S. Rahul of the Oriental Insurance company
gets the award for getting the training in National Insurance Academy.

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 Oriental Insurance Company had the premium of Rs:-99,946 in 1947 but in
today’s time it is growing so far.

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1. Specific Policy:-
In this type of policy, the insurance company is liable to pay a sum, which may be
less than the property's real value. The insured is called to bear a part of the loss,
as the actual value of the property is not considered in deciding the amount of
indemnity. This is a case of under-insurance of property.
2. Comprehensive Policy:-
Known as "all-in-one" policy, the insurance company indemnifies the

policyholder for loss arising out of fire, burglary and theft and third party risks. In
this type of policy, the policyholder also gets paid for loss of profits incurred, due
to fire, till the time the business remains shut.
3. Valued Policy:-
In this type of policy, the value of the commodity is already set and actual loss is
not taken into consideration. The policy follows a standard contract of indemnity,
wherein the policyholder gets paid a specific amount of indemnity, without
considering the actual loss.
4. Floater Policy:-
This type of policy is subject to average clause and the extent of coverage
expands to different properties, belonging to the policyholder, under the same
contract and one premium. The floating policy also provides protection of goods
kept at two different stores.

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5. Replacement or Re-instatement Policy:-
As per replacement or re-instatement policy, the insurance company instead of

paying the policyholder the amount of indemnity in cash, replaces the damaged
property/commodity with a new one.
Documents Required for Fire Insurance Claim
• True copy of the policy along with schedule.

• Report of fire brigade.
• Claim Form
• Photographs
• Past claims experience

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1. Yacht (Hull) Insurance:
Insurance of pleasure craft is generally known as 'yacht insurance' and includes

liability coverage. Smaller vessels, such as yachts and fishing vessels are
typically underwritten on a 'binding authority' or 'line slip' basis.
2. Increased Value (IV):
Increased Value policy protects the ship-owner against any difference between
the insured value of the vessel and the market value of the vessel.
3. Overdue insurance:
This is a form of insurance now largely obsolete due to advances in

communications. It was an early form of reinsurance and was bought by an
insurer when a ship was late at arriving at its destination port and there was a risk
that it might have been lost (but, equally, might simply have been delayed). The
overdue insurance of the Titanic was famously underwritten on the doorstep of
Lloyd's.
4. Cargo insurance:
Cargo insurance is underwritten on the Institute Cargo Clauses, with coverage

on an A, B, or C basis, a having the widest cover and C the most restricted.
Valuable cargo is known as specie.

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Documents Required for Marine Insurance Claim
 Claim form  Claim bill
By Road,
1. Receipt & Other freight receipt
By Sea,
1. Bill Of lading
By Air,
1. Air Bill

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1. Electronic Equipment Insurance Policy:-
This policy offers you financial protection in case your electronic equipment
suffers accidental electrical and machinery breakdown requiring repairs and /or
replacement. This policy covers all types of computers including micro
processors, word – processors, tele – communication instruments, machine for
medical use, films and television studio equipment, electronic score boards etc
2. Nagrik Suraksha Policy:-
A novel accidental insurance covers for any citizen of India in the age group of 5
years to 70 years for family package and 18 years to 70 years for individual/group
cover. Individual policies ranging between one year to four years and group
policies 12 months minimum sum Rs one lac-maximum Rs.five lacs with an
option of enhancement of minimum limit of sum insured in multiples of rs.25,000/-
up to a maximum of rs.5,00,000/-.
3. Kissan Package Insurance:-
The Kissan Package policy is a comprehensive policy specially designed by

Oriental that seeks to cover losses arising out of a wide variety of risks and perils.
It lets a farmer concentrate on his business, free of many worries the policy is
divided into 15 sections offering protection to the farmer to his personal effects,
household goods, livestock, poultry, personal insurance and 38 hospitals

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Documents Required for Miscellaneous Insurance Claim
1. Claim form
2. Accidental injury
3. PM note
4. Death/injury certificate

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If any claim arises in health insurance policy and the same can be settled in any
of the following ways:
1. Reimbursement of expenses.
2. Cashless facility for planned hospitalization.
3. Cashless Facility for emergency hospitalization.
1. Reimbursement of expenses:
If a policyholder falls sick and hospitalized in non empanelled hospital then he

should follow the following procedure:
 Intimation to the insurer/ Third Party Administrator (TPA) along with the
name of the person who has fallen sick
 Policy number
 Name of the hospital
 Name of the Doctor
The above information should be sent within 7 days of the hospitalization.
Within 30 days Final claim form along with the following documents:
 Hospital receipts/ original bills
 Cash memos
 Various reports and tests
 Hospital admission and discharge slip
 Case History
 Any other documents desired by TPA or Hospital
Note: Kindly ensure that you have been admitted to the hospital/nursing home as
defined in the policy.

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2. Cashless facility for planned Hospitalization:
 Policy no. & card number should be should be shown to the Hospital
 On confirmation from the TPA the treatment can be taken in that hospital.
 If expenses increases during the treatment then the hospital will
sent revise estimate to the TPA for their approval.
 For any post hospitalization treatment the original bills/cash memo
can be sent to the TPA after completing the treatment for the
reimbursement.
3. Cashless Facility for emergency hospitalization
 A card issued by the insurer should be shown to the hospital

 The expected expenses may send to the TPA for their approval.
 For any post hospitalization treatment the original bills/cash memo can be
sent to the TPA after completing the treatment for the reimbursement

41
In the event of claim, the insured is required to give a notice of loss to the
insurers and submit proofs and particulars of loss. The insurers are also duty
bound to minimize the losses and to take all reasonable steps to minimize looses.
The following steps are generally followed when the fire insurance claim is
processed:
A. Verification: - that the policy was in force, the loss reported is the subject
matter of insurance and the loss occurred due to the operation of insured
peril.
B. Allotment of claim number: - the claim is entered in the claim register
and a number is allotted which inter alias contains the estimate of loss and
surveyors deputed for the purpose.
C. Issue of claim form: - a claim form is issued to the insured for due
completion and submission to the insured.
D. Appointment of surveyors: - the surveyors are appointed to estimate the
amount of loss, investigate the cause of loss and actually enquire as to the
genuineness of the claim.
E. Preliminary report: - the surveyors submit the brief report to the insured.
F. Final report: - based on facts and response to the preliminary report the
surveyor to the insurer submits a detailed report of the loss.
G. Adjustment: - the claim is adjusted for premium due etc. and the
discharge voucher is submitted by the insured to the insurer.
H. Payment of claim: - after receipt of discharge vouchers and other
documents, the claim is paid to the insured and the entries are made in the
claims register.

42
In Marine Insurance claims, all the documents of the claim are to be submitted to
the insurance company. The documents should be submitted in original.
Wherever original documents are not available second copy / printed copy may
be accepted but photocopies are not acceptable. The documents are to be
submitted preferably in one lot and within reasonable time limit of occurrence of
the claim and under all circumstances before claim becomes time barred against
carrier etc. The following is a list of claim documents, which is generally required
for any marine claim. The insurance company may ask depending upon the
nature of claim other additional documents.
For detail claim procedure and documents check list, please click at the relevant
link as indicated below.
Ocean Transit
Inland Transit (Rail)
Inland Transit (Road)
Air transit
Postal Transit

43
A. OCEAN TRANSIT:
Basic Documents Required:
 Claim Form duly filled in & signed.

 Original Policy/Certificate.
 Short Landing Certificate/Landed But Missing Cargo/Damage Certificate.
 Suppliers Invoice
 Packing List.
 Quadruplicate copy of Bill of Entry.
 Steamer Survey report in original.(if arranged)
 Copy of Claim Notice served on Carrier/Port authorities along with postal
acknowledgement card.
 Copy of correspondence with the carrier/Port authorities/Customs
authorities.
 Copies of Correspondence exchanged with the suppliers (reply from
suppliers is a must) in connection with short packing (if applicable).
 Lost Overboard Certificate from the Port Trust countersigned by the
master of the vessel or steamer agents (in respect of Loss Over Board /Sling
Losses).
 Original Repair Bills with receipt/Performa Invoice for value of items
lost/damaged.
 Copy of Application filed with Customs for refund of Duty (if applicable).
 Photographs if arranged.
 Letter of Subrogation cum special power of Attorney.

44
45
B. INLAND TRANSIT (RAIL)

 Original Policy /Certificate.
 Open delivery Certificate or copy of application for open delivery,
Reply received from the Railways refusing open delivery, Copy of the letter
of protest sent to Railways with the acknowledgement thereto and certified
extract of the remarks made in the station delivery or complaints book.
 Suppliers Invoice.
 Packing List.
 Copy of Claim Notice served on Railway along with postal
 Copy of correspondence with the Railways.
 Copies of Correspondence exchanged with the suppliers(reply from
suppliers is a must) in connection with short packing (if applicable)
 Original Railway Receipt.
 Original Repair Bills with receipt/Proforma Invoice for value of items
lost/damaged.
 Letter of Subrogation cum special power of Attorney.

46
C. INLAND TRANSIT (ROAD)

 Original Policy/Certificate.
 Original Open delivery certificate or copy of notice given to carriers
advising about survey, protest made to them (for Packages delivered
apparently in damaged condition).
 Packing list.
 Copy of Claim Notice served on carriers along with postal
Copies of correspondence exchanged with the suppliers (reply from
suppliers is a must) in connection with shortpacking (for short receipt
claims).
 Original Non Delivery Certificate (for Non Delivery Claims)
 Original Repair Bills with receipt / proforma invoice for value of items
lost/damaged.
 Letter of Subrogation cum Special Power of Attorney.

47
D. AIR TRANSIT

 Original Airway Bill.
 Quadruplicate copy of bill of Entry.
 Packing list.
 Copy of Claim Notice served on carriers along with postal
 Copy of correspondence exchanged with the carriers.
 Copies of correspondence exchanged with the suppliers (reply from
suppliers is a must) in connection with short packing (for short receipt
claims).
 Original Short Delivery Certificate (for Short Delivery Claims)
 Copy of application filed with Customs for refund of Duty.
 Original Repair Bills with receipt / proforma invoice for value of items
lost/damaged.

48
E. POSTAL TRANSITS

 Original Post Parcel Receipt.
 Copy of Claim Notice served on Postal Authorities along with postal
 Copy of correspondence exchanged with the Postal authorities.
 Original Short Delivery Certificate (for Short Delivery Claims)
 Original certificate of damage /loss issued by the postal authorities (for
Shortage/Damage Claims).

49
50
DEFINITION OF AGENT
Individual who is licensed by an IRDA to sell an insurance policy. According to

IRDA agent will sell insurance of company by which he or she applied. He cannot
work for any other company.
RESPONSIBILITY OF AN AGENT
1. The agent’s basic responsibility is to give the basic information about their
company
2. The agent must tell the basic policies of the company & he should give the fair
policy to their customer.
3. After giving the policy he must give the after sale service and take care about
their policy.
4. Now, if any customer takes policy, the agent must aware to his customer about
various terms & conditions of the policy.
5. If any consumer has around to the last date of the policy, he must aware his
customer of the renewal of the policy.
6. The agent must tell to his customer about the premium rate of the policy.
7. If any of his customers has an accident, at that time the agent must go there
and give him mental support and give him faith.
8. The agent must tell to his customer about the add on premium on the different
policies
e.g.:- earthquake

51
1. Fill up an Application Form for a Licence / Renewal of Licence to Act as
an Insurance Agent
TO
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY,
DEPARTMENT OF LICENSING,
NEW DELHI.
DEAR SIRS,
I request that ---

(a) a licence to act as an insurance agent* / a composite insurance agent*
may be granted to me.
(b) *my licence bearing number ____________________ and expiry
date_____________ may be renewed for a further period of three years.
2. I hereby declare that particulars given below are true and that the licence for
which I apply will be used only by myself for soliciting or procuring insurance
business for one life insurer* / one general insurer* / both*.
(1) Name: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
(2) Father's/Husband's Name [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
(3) Full Address:
House No. : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Street: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Town: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
District: : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
State : : [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
Pin Code: [ ][ ][ ][ ][ ][ ]
Telephone No. [ ][ ][ ][ ][ ][ ]---[ ][ ][ ][ ][ ][ ][ ][ ]
(STD Code -- Number):
(4) Date of Birth: Day- Month-Year [ ][ ]-[ ] [ ]-[ ][ ][ ][ ]
(5) Title: State 1 if are Mr., 2 Mrs., 3 Miss: [ ]
(6) If you ever held a Licence, state No. and date of expiry, otherwise say "Nil".
(a) Licence Number: [ ][ ][ ][ ] [ ][ ][ ][ ] [ ] [ ]

(b) Date of Expiry: Day- Month-Year [ ][ ]-[ ] [ ]-[ ][ ][ ][ ]
(7) If you apply for licence to work for a life insurer,

State1, for a general insurer, state 2, for both state 3 in the box. [ ]
(8) If you are an applicant from a rural place,
State1,in the box. [ ]

52
(9) Educational Qualifications.
State 1, if you passed Class X ; 2: Class XII; 3: Graduate;
4: Post-graduate; 5: if you hold a professional qualification
Such as ACA, FASI, AICWA.): [ ]
(10) Give particulars of pass in pre-recruitment test conducted by the Insurance

Institute of India or any examination body:
(a) Name of Examination Body: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]

(b) Candidate's Number: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
(c) Centre of Examination: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
[]
(d) Date of Passing: [ ][ ]-[ ][ ]-[ ][ ][ ][ ]
(Day- Month-Year)
(11) Give particulars of Practical Training completed from an approved institution.

(a) Training Hours completed: [ ][ ]
(b) Name of Training Institute: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
(c) Candidate's Number: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ]
(d) Centre (Place) of Training: [ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ][ ] ]
(e) Starting Date of Training: [ ][ ]-[ ][ ]-[ ][ ][ ][ ]
(Day- Month-Year)
3. I further declare that----
(a) I have not been found to be of unsound mind by a court of competent

jurisdiction;
(b) I have not been found guilty of criminal misappropriation or criminal breach of
trust or cheating or forgery or an abetment of or attempt to commit any such
offence by a court of competent jurisdiction;
(c) I have not been found guilty of or to have knowingly participated in or
connived at any fraud, dishonestly or mis-representation against an insurer or
an insured in the course of any judicial proceeding relating to any policy of
insurance or the winding up of an insurance company or in the course of an
investigation of the affairs of an insurer; and
(d) #I have not violated the code of conduct specified under Regulation 8 of
Iinsurance Regulatory and Development Authority (Licensing of Insurance
Agents) Regulations, 2000).
4. I have made the payment of licence fee of rupees two hundred and fifty and for
which I enclose the documentary evidence.
5. I enclose the following documents in support of the educational qualification,
pre-recruitment test, and the practical training.
(a) ______________________ (b) _________________________
Place Yours faithfully,
Date: Signature of applicant

(* Strike out portion not required.)
(# not applicable to the applicants seeking licence for the first time.)

53
2. Qualifications of the applicant:-
The applicant shall possess the minimum qualification of a 12th Standard pass or
equivalent examination conducted by any recognised Board/Institution, where the
applicant resides in a place with a population of five thousand or more as per the
last census, and a pass in 10th Standard or equivalent examination from a
recognised Board/ Institution if the applicant resides in any other place.
3. Practical Training:
The applicant shall have completed from an approved institution, at least, one
hundred hours’ practical training in life or general insurance business, as the
case may be, which may be spread over three to four weeks, where such
applicant is seeking licence for the first time to act as insurance agent. Provided
that the applicant shall have completed from an approved institution, at least, one
hundred fifty hours’ practical training in life and general insurance business,
which may be spread over six to eight weeks, where such applicant is seeking
licence for the first time to act as a composite insurance agent.
4. Examination:
The Applicant shall have passed the pre-recruitment examination in life or

general insurance business, or both, as the case may be, conducted by the
Insurance Institute of India, Mumbai, or any other examination body.
5. Fees payable:
The fees payable to the Authority for issue or renewal of licence to act as
insurance agent or a composite insurance agent shall be rupees two hundred
and fifty.

54
55
Each of the following Nine Insurance leads-Annuity leads Marketing Strategy is
based on a highly effective - but often overlooked marketing tactic. How many are
you using? How many have you overlooked?
Strategy 1: Insulate yourself against the impact of change by increasing the

number of Insurance products and services you offer... and by using a variety of
different marketing methods. For instance, you can use a postcard mailing to
Senior Citizens from age 62 to 78 and income over $40,000. Every three weeks
you would drip on them with another postcard. Also, you could do a quarterly
newsletter. I like our "World Smallest Newsletter" on a over sized postcard. Only
a small portion of your total business will be affected if the sales of one product or
marketing spoke on your marketing wheel declines or the response to one
marketing method drops.
Strategy 2: Avoid making any claim that sounds exaggerated... even if it is true.
A bold claim creates doubt in your prospect's mind and jeopardizes the sale.
Reduce any bold claims to a more believable level. Use third party articles to help
make your claims hit home.
Strategy 3: Express numerical claims as odd numbers with fractions or decimals.

For example, "Our clients save 17.7 percent" sounds more believable than "Our
clients save 20 percent"... even if 20 percent is the accurate number.
Strategy 4: Set up an Insurance leads-Annuity leads automatic mailing system

that you can use weekly that will keep you in a steady flow of leads. We have
developed a brand new "Ultimate Postcard System" that you can use that will do
all your postcard mailings that will only take about 15 minutes a week. Thing of
your business as a wagon wheel with spokes and the hub is the base. If you only
have two spokes and one breaks your in trouble. However if you have at least 10
56
spokes and one breaks it won't be a problem. That's what you want your
Insurance marketing business to have. You need to have systems in place for
building referrals, current clients, centre of influences, postcards, telemarketing,
newspaper ads, etc. I highly recommend you start out 2005 with mailing out at
least 1,000 postcards.
Strategy 5: Develop a series of 4 or 5 different special Insurance leads-Annuity

leads postcards. Use them one at a time on a quality lists. I also like to use
income levels over $50,000. Our test shows that 80% of these people have CD
money. Continuously recycle through the same series of dripping of postcards.
This enables you to keep using special postcards to generate sales without
taking time to develop new ones.
Strategy 6: If you're attracting many prospects who really don't have (or can't
get) the money to buy your product or service... you need to change your market.
Target a market where prospects have an intense desire for the benefits
produced by your product or service - AND the money to buy it.
Strategy 7: Set yourself apart from competitors by offering an exclusive benefit

your competitors cannot copy... or one they're not willing to copy. One agent I
know has positioned himself in the following way. He specialists in showing
people how to have retirement money available from the 11 to the 20 year.
People are out living their money.
Strategy 8: Advertising Insurance leads-Annuity leads copy produces the biggest

response when each reader can believe the message was written specifically for
him or her. As you write any sales message, visualize you're writing to one
person instead of to a large group of people. This will help you write in a less
formal and more personal style. Personalize envelopes with head addressed and
a real live stamp.
Strategy 9: Most insurance sales are not made on the first contact. Develop a
method to capture and save the names and contact information of prospects who
don't buy from you. Follow up periodically. A little gentle coaching will eventually
57
convert many of them into buyers. Develop a newsletter that you can send out on
a monthly basis.
Life Insurers (Public Sector)

• Life Insurance Corporation of India - www.licindia.com
Life Insurers (Private Sector)

• Allianz Bajaj Life Insurance Company Limited - www.allianzbajaj.co.in
• Birla Sun-Life Insurance Company Limited - www.birlasunlife.com
• HDFC Standard Life Insurance Co. Limited - www.hdfcinsurance.com
• ICICI Prudential Life Insurance Co. Limited - www.iciciprulife.com
• ING Vysya Life Insurance Company Limited - www.ingvysayalife.com
• Max New York Life Insurance Co. Limited - www.maxnewyorklife.com
• MetLife Insurance Company Limited - www.metlife.com
• Reliance Life Insurance Co. Ltd - www.ril.com
• Om Kotak Mahindra Life Insurance Co. Ltd.
• www.omkotakmahnidra.com
• SBI Life Insurance Company Limited - www.sbilife.co.in
• TATA AIG Life Insurance Company Limited - www.tata-aig.com
• AMP Sanmar Assurance Company Limited - www.ampsanmar.com
• Dabur CGU Life Insurance Co. Pvt. Limited - www.avivaindia.com
• Bharti Axa Life Insurance Company Limited-www.bharti.axaig.com
General Insurers (Public Sector)

• National Insurance Company Limited - www.nationalinsuranceindia.com
• New India Assurance Company Limited - www.niacl.com
 United India Insurance Company Limited - www.uiic.co.in

58
General Insurers (Private Sector)
• Bajaj Allianz General Insurance Co. Limited - www.bajajallianz.co.in
• ICICI Lombard General Insurance Co. Ltd. - www.icicilombard.com
• IFFCO-Tokio General Insurance Co. Ltd. - www.itgi.co.in
• Reliance General Insurance Co. Limited - www.ril.com
• Royal Sundaram Alliance Insurance Co. Ltd. - www.royalsun.com
• TATA AIG General Insurance Co. Limited. - www.tata-aig.com
• Cholamandalam General Insurance Co. Ltd. - www.cholainsurance.com
• Export Credit Guarantee Corporation - www.ecgcindia.com
• HDFC Chubb General Insurance Co. Ltd. - N.A.
General Insurers (Reinsurer)

• General Insurance Corporation of India - www.gicindia.com
• Reliance Reinsurance Co.Ltd. – N.A

59
COMPANY COMPANY
AGENT / BANK
CUSTOMER CUSTOMER
0 - LEVEL 1 - LEVEL

60
61
Insurance provides security to person & property. It gives strength to the
economy. It contributes a lot to the GDP of the country. The contribution towards
GDP in our country from insurance is marginal but it is growing at very fast rate.
In Insurance industry, now it’s possible to grow which was never achieved
before.As per our honourable P.M.‘s speech at U.N.O., it is likely to achieve a
business of Rs 1,25,000 crore by 2015 which means an average growth of 20%
per year.
Insurance companies can achieve this growth likely to this by performing their
marketing and their effective policy.
If the Insurance sector is growing continuously, so it will help to the country

because with this the country can increase its National Income.
If insurance companies want to increase their profit and to grow larger in the
future, then the company need to settle the claims according to the happening of
an event. Here, the company also needs to analyse the claim properly before
settling the particular claim of the customer. This helps the company directly or
indirectly to grow and earn good rate of return from the insurance business.

62
63
Websites:-
www.ultimateinsurancesystem.com/specialreport.htm
www.orientalinsurance.org.in
www.irda.org.in
Other Sources:-
Material provided from the company.
Other Referred Book:-
Book : - Introduction to Insurance & Risk Management.
Author : - Mark S Dorfman (Eighth Edition) Page No: - 13.
Publication : - Prentice-Hall of India Private Ltd.

64

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V.M.

Patel College Of Management Studies

 The future is always uncertain.

 Uncertainty comes from changes in economic, social and political trends.

 Most business decision making takes place on the basis of expectation

 Risk refers to the possibility that something dangerous might happen.

 Making decision on the basis of assumptions, expectation and forecast of

 Insurance is nothing but it is only risk transfer to other’s shoulder.

 Many natural risks or losses can be avoided through insurance.

 There are many insurance companies in India which is taking life

 And there are three types of general insurances.

V.M. Patel College Of Management Studies

Life Insurance General Insurance

Fire Marine Miscellaneous

E.G: Riot, Flood E.G: Cargo, Hull E.G: Crop, Cattle

V.M. Patel College Of Management Studies

Documents Required For Indian Fire Insurance Companies

 Riot  Rock slide

 Flood  Aircraft Damage

V.M. Patel College Of Management Studies

V.M. Patel College Of Management Studies

The establishment of Lloyd's of London, competitor insurance companies, a

V.M. Patel College Of Management Studies

Marine insurance is the oldest type of insurance. Out of it grew non-marine

V.M. Patel College Of Management Studies

Miscellaneous Insurance exists to help people gain a good understanding of the

The dictionary defines insurance as "coverage by contract whereby one party

One of the most important things to remember is that an insurance policy is a

V.M. Patel College Of Management Studies

V.M. Patel College Of Management Studies

 Insurance helps the planning process because the planer knows a

 Insurance facilitates credit transaction because creditors are more willing

 Insurance allows families to continue their activities in a much more

 Insurance companies and the organization the support contribute directly

V.M. Patel College Of Management Studies

3. Utmost Good Faith:-

We can describe those principles followingly.

In the Insurance, insurable interest must exits

 At the time of insurance

 At the time of the loss

V.M. Patel College Of Management Studies

3. Utmost Good Faith:-

Subrogation is a principle applicable to both fire & marine insurance. Insurer

V.M. Patel College Of Management Studies

Thus, the principle of contribution applies in the case of fire insurance.

V.M. Patel College Of Management Studies

In 1914, the Government of India started publishing returns of Insurance

The Insurance Amendment Act of 1950 abolished Principal Agencies. However,

V.M. Patel College Of Management Studies

Following the recommendations of the Malhotra Committee report, in 1999, the

In December, 2000, the subsidiaries of the General Insurance Corporation of

V.M. Patel College Of Management Studies

 General Insurance has highest number of Policies in the world.

 Rural Insurance is taken only in Indian General Insurance.

V.M. Patel College Of Management Studies

In 1993, the Government set up a committee under the chairmanship of RN

Following the recommendations of the Malhotra Committee report, in 1999, the

V.M. Patel College Of Management Studies

Today there are 14 general insurance companies including the Agriculture

 IRDA takes care of policy holders’ interest.

 It ensures continued financial soundness & solvency.

 It regulates insurance & Reinsurance Company.

 It eliminates dishonesty & unhealthy competition.