design of study

Scope:
Insurance itself means that getting secured against the uncertainties in life. In today’s world we see a wide scope in the insurance sector. Earlier their were only few in this business like L.I.C, G.I.C etc., But now after private sectors entry in this field there has been tremendous improvement and lot of opportunities for people have increased. They are now benefited with various other types of Insurance like Health, Accident, Cattle, and Crop etc.

Objective:
The main objective of all these insurance is to provide the people against the best possible assistance against the loss occurred to them. And the basic objective of mine behind this project is to put glance over various kinds of insurance available to the people.

1

INTRODUCTION TO INSURANCE

2

Nature Of Insurance.
Insurance is defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against the risk. Risk is uncertainty of a financial loss. It should not be confused with the chance of loss which is the probable number of losses out of the given number of exposures. It should not be confused with the perils that is defined as the cause of loss or with the hazard which is a condition that may increase the chance of loss. They are agreed to share the loss because the chances of loss, i.e., the time, amount, to a person is not known. Anybody of them may suffer loss to a given risk, so, the rest of persons who are agreed will share the loss. In fact, the loss is shared by them by payment of premium which is calculated on the probability of loss. In olden time, the contribution by the persons was made at the time of loss. The insurance is also defined as a social device to accumulate funds to meet the uncertain losses arising through a certain risk against the person insured against the risk.

Definition of Insurance
The definition of insurance can be made from two points: i) ii) Functional Definition and, Contractual Definition.

i)

Functional Definition

Insurance is a co-operative device to spread the loss caused by a particular risk over a number of persons, who are exposed to it and
3

i. thus.e. the insurance is (a) a co-operative device to spread the risk: (b) the system to spread the risk over a number of persons who are insured against the risk. called premium. a large sum is guaranteed to be paid by the insurer. Thus. and (d) the method to provide security against the losses to the insured. Insurance is a cooperative device of disturbing losses.who agree to insure themselves against the risk. (c) The payment will be made in a certain definite sum. is a contract whereby (a) Certain sum. Similarly. each bearing a nominal expenditure and feeling secure against the loss. ii] Contractual Definition.. the loss or the policy amount whichever may be. (b) Against the said consideration. a certain sum upon a given contingency (the risk) against which insurance is sought. and (d) the payment is made only upon a contingency. another definition can be given. falling on an individual or his family over a large number of persons. (c) the principles to share the loss of each member of the society on the basis of probability of loss to their risk. The insurance. Insurance has been defined to be that in which a sum of money as a premium is paid in consideration of the insurer’s incurring the risk of paying a large sum upon a given contingency. 4 . who received the premium. More specific definition can be given as followsInsurance may be defined as a consisting one party (the insurer) agrees to pay to the other party (the insured) or his beneficiary. is charged in consideration.

Evolution of Insurance Evolution of Insurance. The earliest traces of insurance in the ancient world are found in the form of marine trade 5 . The origin of insurance is lost in antiquity.

Freight was fixed according to season and was expected to be reasonable in the case of marine transport which was then very much at the mercy of winds and elements. 2. Marine Insurance Fire Insurance Life Insurance Miscellaneous Insurance 1.loans or carriers’ contracts which included an element of insurance. The risks to the owners of such ships were 6 . Evidence is on record that arrangements embodying the idea of insurance were made in Babylonia and India at quite at early period. Travelers by sea and land were very much exposed to the risk of loosing their vessels and merchandise because the piracy on the open ses and highway robbery of caravans were very common. 4. and Manu shoes the Indians had even anticipated the doctrine of average and contribution. There are basically four types of Insurance: 1. there is no evidence that insurance in its present form was practiced prior to the twelfth century. The codes of Hummurabi and of Manu had recognized the advisability of provision for sharing the future losses. However. Marine Insurance It is the oldest form of insurance. there were several risks. the system of credit and the law of interest were developed and were based on a clear appreciation of the hazard involved and the means of safeguarding against it. Under the Bottomry bond. The contract of insurance was made a part of the contract of carriage. 3. Besides.

the establishment in this town of a character of Assurance. Fire Insurance After marine insurance. In India. The fire insurance got momentum in England after the great fire in 1666 when the fire losses were tremendous. The general insurance in India could not progress much. the general insurer started working since 1850 with establishment of the Triton Insurance. The marine policies of the present forms were sold in the beginning of fourteenth century by the Brugians.enormous and. It had been originated in Germany in the beginning of sixteenth century. therefore. 2. About 85 per cent of the houses were burnt to ashes and property worth of sterling ten crores were completely burnt off. The slow growth of joint stock enterprise and mechanized production was another reason for low level of mechanized business. to safeguard them the marine traders devised a method of spreading over them the financial loss which could not be conveniently borne by unfortunate individual victims. Calcutta. ‘Sun Fire Office’ was successful fire insurance institution. by means of which merchants could insure their goods. On the demand of inhabitants of burges. 7 . the Count of Flanders permitted in the year 1310. Fire Insurance Office was established in 1681 in England. It had been observed in Anglo-Section Guild form for the first time where the victims of fire hazards were given personal assistance by providing necessaries of life. exposed to the risks of sea. fire insurance developed in present form.

. which started its operation since 1874. Life insurance did not prosper in the United States during the 18th century. In India. in fact. The next important life office was Oriental Government Security life Assurance Co. 4. Since then several offices developed in India. for more than a generation. Even before this date annuities had become quite common in England. first recorded evidence in England being the policy on life of William Gybbons on June 18. 1653. fidelity insurance. because of serious fluctuations in the death-rate. Ltd.. life Insurance Life insurance made its first appearance in England in 16th century. The first registered life office in England was the Hand-inHand Society established in 1696. but soon after 1800 some active interest began to be shown in this enterprise because of the application of level premium plan which had by then been in operation in U.k. liability insurance and theft 8 . viz. and marine insurance had. made its appearance three thousand years ago. The life insurance developed at ‘exchange Alley’.. some European started the first life insurance company in 1818. Bombay Mutual Life Assurance Society in 1871. The year 1870 was a year of landmark in the history of Indian Insurance separating the early period of pioneering attempts at life insurance from the subsequent period of steady development at the establishment of Indian life office. Accident insurance.3. Miscellaneous Insurance The miscellaneous insurance took the present shape at the later part of nineteenth century with the industrial revolution in England.

Kinds of Insurance According to Risk Point of View. The scope of general insurance is increasing with the advancement of the society. are taking place.insurance were the important form of insurance at that time. INSURANCE PERSONAL LIFE PROPERTY MARINE LIABILITY 3RD PARTY FIDELITY FIDUCIARY PERSONAL ACCIDENT FIRE EMPLOYEES CREDIT HEALTH AUTOMOBILE MOTOR PRIVELEGE CATTLE REINSURANCE CROP MACHINERY THEFT 9 .. insurance. Now. Lloyds’s Association was the main functioning institution. etc.

personal insurance 1] Personal Insurance 10 .

11 . Personal Insurance is then divided into: a) Life Insurance b) Personal Accident Insurance c) Health Insurance Let us study each of them. accident and disease.Introduction: The personal insurance means insurance related to human life which may suffer loss due to death.

Life insurance 12 .

With these situations in mind. Term insurance plan could be of following different typesa) Level Term Insurance. 2. there are other concerns about taking care of children and their future and about creating wealth that most individuals cherish. It may be described as temporary insurance. the renewal premium is same each year. The three major concern of any person could be : a) Dying too early or b) Living too long c)Living with disability. Term Insurance Endowment life Insurance Whole Life Insurance Annuities 1.Here there is a uniform premium and benefit throughout the term of the policy. 4. 13 . Where the term is for over a year. In the event of death anytime during the term. 3.i) Life Insurance Introduction: Life Insurance products have to suit the requirements of customers. Besides. the same sum assured is payable. Life insurance products are generally designed to address such needs of an individual. life insurance products provide for a) Risk Cover b) Investment c) Health Cover. It is simple plan. There are four types of insurance policies1. Term Insurance Term Insurance pays a death benefit to the legal heirs if the person insured dies during the term of the policy.

the amount payable on death depends on the timing of death. whenever it occurs. d) Renewable term Insurance.Such plan includes a conversion privilege. It is suitable to cases where temporary need is reducing. Its advantage is that the policy if kept current. It could be at fixed percentage or agreed index. provided the required premium is paid. Hence. whole life policies pay out on the death of assured. 2. covers you over your entire life. but the benefit decreases over a period of time. which gives the proposer the right to convert the policy to a permanent plan. e) Convertible term Insurance. even though premium being paid is constant. Whole Life insurance It guarantees a death benefit cover throughout the course of life. as opposed to term insurance that covers only to certain term of years. 14 . It is helpful in keeping the benefits in line with time value of money. premium is constant throughout the term.Here.b) Decreasing term Insurance.A renewable teem insurance policy gives the right to renew the policy without submitting fresh insurance of health The new premium however. premium as well as benefit amount increases periodically as agreed. is increased to reflect the increased age of life insured. c) Increasing term Insurance.Here.

Combining the future of term assurance and pure endowment are endowment policies that pay either on the death of assured. in return for the money paid to the insurance company in lump sum or installments. or after a fixed period. whenever it occurs. Here the claim may arise either by death or by maturity. 4. Annuities Annuities are a form of pension which an insurance company makes a series of periodic payments to a person (annuitant) or his or her dependents over a number of years (term).3. 15 . Endowment Insurance Pure endowment is a plan where the benefit is payable to the insured only on survival of the specified term.

PERSONAL ACCIDENT INSURANCE 16 .

accident policy issued by aviation department 4. Doctors. Rural personal accident policy 6. Artisans.It includes Accountants. Advocates. excluding the risk group IV.ii) Personal Accident Insurance Personal accident insurance is the insurance designed to replace a substantial part of earned income lost disability to a person caused by accident injury including the medical expenses. engaged in physical labour. Personal accident family package policy 7. vehicle drivers. Types of personal accident insurance Some important types of policies are as below: 1. such as garage and motor mechanics. 1994. the personal accident risks are classified as: 1] Risk group I. Teachers. Engineers. 3] Risk group III. vertinary doctors. It also indemnify the loss due to death. leading to the accident. other form of same trade but not doing manual work. Janata individual accident policy 2. Consultants. Bankers. Medical (Hospital and house) treatment policy Every type of policy has its own features and premium rate. Third party/passenger/driver accident policy 3. 2] Risk group II. Classification of risks The amended rules in regard to personal accident policy have been implanted from April 1. Group insurance personal accident policy for school children 5. Administrative officers and other professional field.It includes architects.All such persons. 17 . According to these directions. contractors.

machine operators, drivers of trucks or other vehicles sportsmen and athletics, carpenters engaged in this type of risks. 4] Risk group IV- Persons engaged in underground mines, and armory, persons engaged in electricity generation, circus, hoarse race, mountaineers, winter sports, and polo players others belonging to this field.

Insurance cover/benefits in personal accident policy.
1. In case of death 2. Permanent disablement (damages to both hands/legs, or both eyes, or one eye and one leg. 3. In the case of damages to one assured Hand/leg or one eye 4. Other kind of permanent disablement in addition to the damages happened to the injury 5.Temporary or total disablement Paid on weekly basis 100 % 50 % of the sum Full sum assured Full sum assured

1.00 % of the sum assured per week 6. Temporary or partial disablement % of sum assured per week.
18

Paid on weekly basis current rate is 3.00

HEALTH INSURANCE

19

iii) Health Insurance
Health Insurance mainly covers two types of benefits: one is related to the reimbursement of medical expenses related to specific diseases and the other is related to the hospitalization. Globally, the health covers operate in two ways – cashless and cash reimbursable ones. The health insurance has changed the way medicine is dispensed and sold in the most parts of the world. In India, its impact has yet to be felt. However, the introduction of the now famous ‘Mediclaim’ policy made a huge difference to an ordinary citizen’s usage of insurance for medical cover purpose. There are following types of policies:

1) Individual Mediclaim Policy 2) Bhavishya Arogya Policy
3)

Jan Arogya Bima Policy

4) Cancer Insurance 5) Group Mediclaim Policy 1. Individual Mediclaim Policy
This policy covers the domiciliary hospitalization expenses for diseases sufferd during the policy period. It also covers hospitalization for injuries caused during an accident. The policy covers following expenses: 1.
2.

Boarding expenses in a hospital or nursing home-as per the Surgical fees, medical practitioner and consultants fees. Nursing expenses.
20

description provided in the policy. 3.

3. The amount of total benefit can be a maximum of Rs. The retirement age can be selected by the insured at the time of taking policy and can be between 55 and 60 years of age. surgery. 50000 in the case of the ICS policy and can go upto Rs. blood. hospitalization. Group Mediclaim Policy 21 . It does not offer any medical check up benefits. Both policies require cancer check up prior taking the policy It includes costs of diagnosis. biopsy. oxygen operation theatre charges. So this differs it from usual Mediclaim policy. etc. The cover is limited upto Rs. medicine and drugs chemotherapy. radio therapy. 200000 in the case of CPAA policy. 50000 during the lifetime of insured commencing from the date of retirement. Anesthesia. and cannot exceed Rs. Cancer Insurance There are two Cancer policies offered in India. Jan Arogya Bima Policy It was devised to address the smaller covers and people with limited means of paying the premium. It does not offer any cumulative bonuses. 5.4. prosthetic limbs 2. Bhavishya Arogya Policy This is deferred Mediclaim policy that can taken at any age between 25 and 55 years of age. Group Policy issued by Indian Cancer Society and other is Group Policy offered by members of Cancer Patients’ Aid Association. surgical appliances. The sum assured is limited to Rs. 5000 premium is low compared to regular policy. 4. 20000 per illness or injury.

institution and group of people provided they form the minimum number of persons to be covered under the policy. association. 22 . The individual member of the group may enter and exit the policy upon their becoming or ceasing to be member of the group.This policy is available to any corporate. The policyholder in this type of insurance is the group itself and the premiums are payable by the group.

PROPERTY INSURANCE 23 .

Property Insurance is further divided into: a) Marine Insurance b) Fire Insurance c) Automobile Insurance d) Cattle Insurance e) Crop Insurance f) Machinery Insurance g) Theft Insurance 24 .II] Property Insurance The property insurance of an individual and of the society is insured against the loss of fire and marine perils. unexpected death of the animals engaged in the business. the crop is insured against unexpected decline in production. breakdown of machines and theft of the property and goods.

marine insurance 25 .

against marine losses incident to marine adventure.This policy is issued to cover a particular voyage from one port to another and from one place to another. including cargoes freights and other interests which may be legally insured in or in relation to such vessels. (v) Description of voyage and period of insurance. It may be ship (hull) cargo and freight. and whether or not including warehouses risks or similar risks in addition or as incidental to such transit and includes any other risks customarily included among the risks insured in marine policies. (vii) Premium Different types of policies are used in marine insurance they are: 1. cargoes. (iv) Name of vessels and officers. The policy mentions the port of departure and the port of 26 . Voyage policy. merchandise and property of whatever description insured for any transit by land or water or both. freights.a) Marine Insurance Marine insurance has been defined as a contract between insurer and insured whereby the insurer undertakes to indemnify the insured in a manner and to the interest thereby agreed. (iii) Risks insured against. Section 2(13) A of Insurance Act 1938 defines it as follows: Marine insurance business” means the business of effecting contracts of insurance upon vessels of any description. (vi) Amount and term of insurance. goods. The standard policy contains the following information: (i) Name of insured or his agent. (ii) Subject matter insured. wares.

Unvalued policy-When the value of the policy is not determined at the time of commencement of risk but is left to be valued when the loss takes place. The liability of the insurer continues during lading and re-shipping of goods. Risk covered for under construction is for more than 12 months. Floating policy. This policy is taken for one year although it may be for less than one year. Time policy.The policy describes the general terms and leaves the amount of each shipment and other particulars to be declared later on. The most popular form of contract is ‘Open Cover’. 2. 5. 3. In which both the insured and the assured agree to accept all the shipment falling within the scope of the ‘open cover’ which is merely an original ‘ship’.Valued policy.destination. It is commonly used for hull insurance.Here the value of loss to be compensated is fixed and remains constant throughout the risk except where there is fraud excessive over-valuation The value of the subject matter is agreed by the insurer and the assured at the time of taking the insurance.The elements of voyage and time policy is combined under this policy. The policy may cover while navigating the vessel or under construction.Here the subject matter is insured for a specific period of time. 4. The value thus left to be decided later on is called the insurable value or unvalued or valuable policy. 27 . 6. It is made in order of dispatch of shipment. Voyage and time policy. Usually unvalued policies are not common in marine insurance because evaluation of loss at the time of damage poses a difficult problem. between which the risks are generally underwritten. It is used in case of cargo insurance.

Single vessel and fleet policy. 11. and cannot be enforceable. 10. It is called as wagering policy as insurable interest is not required. Cotton is insured from the time of its processing to the time it is delivered to destination. It is called ‘Policy Proof of Interest’ . they are known as honored policies. too. Blanket policies. Policies. Currency policy. 12.It is taken to cover losses within the particular time and place. where the sum assured is stated in foreign currency. P. it is fleet insurance policy. it is single vessel policy and when a fleet is insured in single policy. When one policy is assured.A ship or a fleet of ship is insured here. 8.This policy insures incidental risks. Named policy.It is issued in foreign currency.7.I. 9. they are specific policies.It is based on mutual understanding. Policy is taken for certain amount and premium is paid on the whole of it in the beginning of the policy and is readjusted according to the actual amount at roisk. 28 . Block policy. eg. It avoids fluctuations in foreign currency. along with the marine perils.It is to avoid the complication of principle of insurable interest.Here the name of the ship and the amount of cargo are mentioned.P.

Fire insurance 29 .

burning of any property insured by order any Public Authority. fixture and fittings Pipelines located inside and outside buildings. Fire insurance is designed to provide for financial loss to property due to fire and few other related hazards. 6. Buildings Contents of Building such as Machinery.b) Fire Insurance Fire Insurance is one of the oldest form of insurance and goes as fr back as Marine insurance. 5. Examples of property that can be covered under the Fire insurance policy are: 1. Fire insurance is governed by Tariff under the Tariff Advisory Committee (TAC). 7. 30 . equipments. Its origins are in the the age-old fear of fire and human failing to control fire.Usually this excludes destruction or damage caused to property by. compounds. Its undergoing any heating or drying process iii. semiElectrical installation of Building Goods in the open Dwellings and contents of dwellings Furniture. 2. Its own fermentation. natural heating ii. dwellings and finished goods. No industrial activity or commerce was possible without fire and the need to insure the risk of uncontrolled fire became the integral part of society. 3. i. 4. finished goods etc stored in factories and godowns. Fire. In the early development of industrial society fire was the main source of energy. The standard Fire Policy covers the following hazards 1.

Lightning Riot. 5. 3. or factory or unit or machinery resulting from unlawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same. larceny or any attempt by any person taking part in such activities.Destruction or damage caused by Aircraft. or interruption or cessation of any process or operation of omission of any kind. other aerial or spatial devices and articles dropped from them excluding those caused by pressure waves.Direct visible physical loss. stoppage. retardation/slow down. Such explosion as may happen to boilers can be covered by Boiler Explosion policy under Engineering insurance. c) Permanent or temporary disposition resulting from confiscation. d) Burglary. commandeering. Explosion/Implosion.This would exclude the destruction or damage caused to boilers. destruction or damage by external violent means caused to property but excluding those caused by: a) Total or partial cessation of work. economizers. requisition or destruction by order of the government or any lawfully constituted authority.2. 4. strike. 31 . Aircraft damage. or other vessels in which steam is generated. malicious and terrorism damage. b) Permanent or temperory dispossession of any building or plant. housebreaking theft. machinery or apparatus subject to centrifugal force by its own explosion/implosion.

or b) Their employees while acting in the course of employment. removals or extensions of sprinkler installations. 7.Impact by any rail/road vehicle or animal by direct contact not belonging to or owned by a) The insured or any occupier of premises. typhoons. cyclone. Demolition. Storm. Defects in construction known to insured. Repairs. hurricane. Bush fire. settlement or breeding or bedding down Coastal or river erosion. flood and inundation. excluding fire caused by forest fires. damage caused by subsidence of part of site on which the property stands or landslide/rockslide excluding: a) b) The normal cracking. 32 . or repair of any property. c) d) e) i) ii) iii) 9. or destruction. tempest. Subsidence and Landslide including rock slides. of new structures. construction. 8. Defective design or workmanship or use of defective material. Impact damage.6. Leakage from automatic sprinkler installation excluding: Repair or alterations to the buildings or premises.

automobile insurance 33 .

• Comprehensive Physical Damage. Pays medical expenses resulting from an accident for you and others riding in your car. Also pays for you or your family members injured while riding in another's car or while walking. • Collision. Automobile insurance plays an important role in protecting consumers from serious financial losses that can result from such accidents The basic types of auto insurance coverage include: • Bodily Injury Liability. or a variety of other causes. hail. Pays your legal defense costs and claims against you if your car damages another's property. • Property Damage Liability. Pays for damages to your car resulting from theft. Pays for repairs of damage to your car caused by a collision with another vehicle or any other object. Covers family members living with you and others driving with your permission. Pays for costs related to injuries or property damage to you or your family members and 34 . vandalism. regardless of who was responsible. • Medical Payments or Personal Injury Protection. including your auto. Pays your legal defense costs and claims against you if your car injures or kills someone. fire.c) Automobile Insurance Introduction: Losses from property damage. • Uninsured or Underinsured Motorist. and lost income add up to billions of dollars annually for automobile mishaps. medical and legal costs. Does not cover your property.

Filing claim • Phone your insurance agent or a local company representative as soon as possible. Weather and road conditions. • Keep records of your expenses because any you incur as a result of an automobile accident may be reimbursed under your policy. Ask when the accident report will be filed. or hitand-run driver. • Ask your agent how to proceed and what forms or documents will be needed to support your claim. take the following steps: • Don’t leave the scene.guests in your car caused by an uninsured. driver’s license and insurance o information numbers of each driver involved. • and police station address. Record the license plate. Provide basic first Call a law enforcement officer if needed. 35 . • o o o o o Take careful note of the following: Date and time of the accident. underinsured. its case number and how to get a copy. Street and city. Brief description of how the accident occurred. Direction and speed you and other drivers were going. • Call for medical assistance if there are injuries. If you are involved in an auto accident. Get the officer's name aid. • Keep copies of your paper work.

cattle insurance 36 .

Until 2003. weight. LRP contracts are available for both feeder cattle and fed cattle in Wyoming. LRP contracts are available for a certain price level. Assume that an insurance coverage price of $100 per cwt is selected. however.875 total. there had been no federal insurance option for beef cattle producers. The pilot program of Livestock Risk Protection (LRP) Insurance was halted in December of 2003 due to the discovery of bovine spongiform encephalopathy (BSE). When it comes time to market the steers. The insurance price level is tied directly to a Chicago Mercantile Exchange (CME) index. This results in an indemnity payment of $10 per cwt or $4. Most experienced events beyond their control such as drought or mad cow scares. Insurance Corporation programs are now an integral part of many producers’ risk management plans. The cattle business is no exception. but insurance is again available to cattle producers in certain states. How LRP Works LRP contracts are essentially a single peril price contract. Currently. For example. a producer has 75 head of steers expected to weigh 650 pounds in six months at marketing. One of the effective ways to limit risk is a crop producer is to use crop insurance. assume the price (as determined by the CME index) is $90 per cwt. It is important to note that LRP does not necessarily guarantee the 37 .d) Cattle Insurance Introduction: Risk is an inherent part of any agricultural business. and number of head. known as mad cow disease.

producer a cash price. Brahma. but their specific coverage levels are determined by the U. and dairy crosses are now eligible for LRP. The cash price a producer receives on the open market may be different than that determined by CME index. To be eligible.Department of 38 . a cattle producer must own or have a substantial interest in the cattle being insured. it is important to try and market cattle for the CME index price to fully take advantage of an LRP contract.S. LRP Requirements and contracts A producer must make an application with insurance agent determine eligibility for an LRP contract. Heifers. Therefore.

crop insurance 39 .

storms. jute. The important agricultural cultivated in the country include: 1. the Indian farmers still have to bear heavy losses from unfavourable climatic conditions.Such as cotton. Wild animals.like coffee. 2. 4. riots and strikes etc. Plantation crops. frequent changes in temperatures. tobacco. etc. etc. Food crops. millet. Adverse climatic conditions causing draughts. damage to crops.e) Crop Insurance India is basically an agricultural country and different varieties of crops have been cultivated here. 2. Most of the agricultural based countries do not have suitable means or resources to overcome such losses arising out of failure of crops. The objectives of crop insurance is to indemnify the farmers from losses of natural calamities. groundnuts etc. Pests and insects causing damages to crops. jowar.such as apples. In spite of these developments. untimely rains. 3. disease spread in crops and plants. etc. Commercial crops. Objects of crop insurance New methods cultivation and high yielding crops have been developed in country in the areas of food crops and commercial crops. paddy etc. oranges. rubber etc. tea. fog. 3. Cultivation of agricultural and commercial crops have been faced with many problems such as: 1. 40 . Fruits orchids.such as wheat. floods.

2. 6. Certainty of payment for farmers who depends upon the Stability to agricultural economy Increase in income Assistance to industries Acts as the coordinating agency of government. Refund of agricultural credit. 3. 7. 4. 41 . 8.Advantages of crop insurance 1. economic conditions of farmers. Provide rights to the farmers against damage to crops. Provide security for agricultural production. 5.

Machinery insurance 42 .

The first step in the risk identification process for machinery is to determine what objects present could cause loss-not an easy task. The most apparent is any object containing steam. and turbines.f) Machinery Insurance Introduction: Machinery insurance coverage is a special type of property insurance designed to reduce-through periodic inspections-the chance of malfunction among boilers and other equipment. Machinery insurance covers direct damage to covered property when caused by a covered cause of loss. 43 . custody. A covered cause of loss is a sudden and accidental breakdown of the insured's boiler and machinery equipment or any part of the equipment described in the policy. Covered property is any property that is owned by the named insured or is in the named insured's care. compressors. direct loss and indirect loss arising from accidents to objects. including or excluding air conditioners/compressor units. In addition to steam boilers. Machinery insurance reduces risk. Objects include boilers. BASIC COVERAGE: This coverage can be written under the small business form to cover boilers and vessels equipment. any object under pressure or vacuum should be considered. and electronic machinery. pumps. electrical. engines. Refrigeration and air conditioning compressors are also insured under a machinery policy. generators. or control and for which the named insured is legally liable. including pressurized.

Theft Insurance 44 .Machinery insurance is necessary because commercial property policies exclude explosion of steam boilers and breakdown of machinery. The standard machinery policy contains three extensions of coverage.

the type of property (residential or office. and other risks. the story to be insured. A detailed description of the neighborhood is also required. 45 . the plot number. if that is taken as part of the policy. Particulars of the building. neighbor’s recourse. retail or factory). Such an addition covers damages done to neighboring properties as a result of fire coming out of your property or destruction or any damage to it.g) Theft Insurance Introduction: The theft cover is usually restricted to items taken after a forcible entry of your home. In addition to the name of the applicant (whether tenant or owner). the companies require the full address of the property. So theft by a maid or guests may not be covered. Property insurance can also be extended to cover neighboring liabilities – also called neighbor’s recourse. contents. Other sections in the application would concern the sum to be insured. the furniture. and the period of insurance. and the machinery or equipment are also required. It is very similar to third party liability in motor insurance Applying The property application form is one of the longest in terms of detail. broken down into building. Nor is theft during or after a fire – more properly called looting – usually covered under the theft clauses of a home insurance. and there is a complete section to be filled in with regard to theft insurance. as well as the fire protection measures available.

be sure that your policy’s monetary limits match what all of your valuables are actually worth. such as a dog digging up a neighbor’s new magnolia or a child breaking a window with a baseball. computers. or natural disasters. 46 . but usually extends to shield you from accidents your pets. family. depending on the constraints of your insurance. and valuables in the event of unexpected misfortunes like vandalism. Homeowner's insurance is designed to assure you that you will not panic when things like jewelry. belongings. accidents. heirloom silver. clothing. collectibles. from reproofing a garage after a hurricane to purchasing a laptop stolen from your home office. It is designed to replace or rebuild your property when it gets damaged. or property cause.Your reimbursement may also be limited. stored vehicles like boats. cameras. Homeowner's insurance protects your home. theft. There are always ways of increasing the coverage amount when you plan ahead. Homeowner's insurance doesn’t just cover your home. Again. family. or legal documents are lost or irreparably harmed.

Liability insurance 47 .

Liability Insurance Introduction: The liability insurance covers the risks of third party. liability of the automobile owners and re-insurances It includes: a)Third Party Insurance b) Employee Insurance c) Motor Insurance d) Re-insurance 48 . compensation to employes.

THIRD PARTY INSURANCE 49 .

first introduced in 1936. cyclists. 50 . passengers. TPI premiums. It is a compulsory form of insurance and the TPI premium is included in your registration payment.i) Third Party Insurance Introduction Third Party Insurance (TPI) indemnifies vehicle owners and drivers who are legally liable for personal injury to any other road user in the event of a motor vehicle accident. The Department of Urban Services manages vehicle registrations. The scheme provides motor vehicle owners with an insurance policy that covers their unlimited liability for personal injury caused by. NRMA Insurance manages TPI claims and in consultation with the ACT Government. The TPI premium is paid with other registration fees as a single payment at Road User Services or ACT Government shop fronts. motorcyclists and pillion passengers. Compulsory Third Party Queensland operates a common law 'fault' based Compulsory Third Party (CTP) scheme. Management of Third Party Insurance In the Australian Capital Territory (ACT) vehicle registrations and Third Party Insurance (TPI) schemes are owned by the ACT Government. NRMA Insurance is listed under "Third Party Insurance Company" on Certificate of Registration (Renewal) documents. pedestrians. through or in connection with the use of the insured motor vehicle in incidents to which the Motor Accident Insurance Act 1994 applies. Your TPI insurance will cover you for personal injury claims made against you by other road users such as drivers.

For the injured third party it provides access to common law. Consequently. 51 . the injured person has a right to approach a law court to seek monetary compensation from the person 'at fault' for the personal injury and other related losses. i. circumstances can arise where.e. As a fault based scheme it requires proof of liability. that is. a driver who is wholly at fault in an accident cannot obtain compensation because there is no negligent party against whom a claim can be made. the injured party must be able to establish negligence against an owner or driver of a motor vehicle. for example.

EMPLOYEE INSURANCE ii) Employee Insurance 52 .

It was. Hence an employer injured as a result of negligence on the part of his employer. b) Proper plant. It would appear that the duties of employer would wide enough to encompass all situations in which an employee might be placed that would give him automatically a right of action against employer and enable avoid damages 53 . So.Introduction: The geneses of employees’ liability insurance can be traced to industrial development. the employer should take care of the following: a) A safe place of work. thought that the employer had no more than the ordinary duty of care to his employees. Employee has the same rights against the employer for the damage as any other could have. c) Competent and fellow employees. tools. however. machinery and working implements for their maintenance in good working order.

Motor insurance 54 .

3) Commercial vehicles. All motor vehicles are required to be registered with road transport authorities and insured for third party liability. This is because it is statutorily mandated in most parts of world. The Motor Vehicle Act of 1939 introduces compulsory insurance to take care of those who may get injured in an accident.S every state has to comply with it but in India Tariff Advisory Committee regulates this business. In U. a) Goods carrying vehicles b) Passengers carrying vehicles i) Auto-rickshaw ii) Taxis iii) Buses c) Miscellaneous vehicles i) Hearses ii) Ambulances iii) Cinema vans/Recording vans 55 .iii) Motor Insurance Introduction: Motor Insurance is one of the largest non-life insurance business in the world. Types of Vehicles For the purpose of insurance motor vehicles are classified into three categories: 1) Private cars. The basic premise is that motor vehicles could either cause injury or be a subject to damage and injury and thus require insurance. The insurance of damage to vehicle is not mandatory. 2) Motor cycles and scooters.

iv) Mobile Utilities re-insurance 56 .

57 . is also termed as insurance of insurance. the re-insurance policy must be formulated after carefully considering all aspects of situation to which it is to be applied. 4) Re-insurance can be terminated when the original insurance lapses for any reason. Characteristics of re-insurance 1) Re-insurance is like insurance which is practiced by which insurers can spread their loss. the one insurer insures the risk which has been undertaken by another insurer. therefore. In reinsurance. then this re-insurance process is resorted to. In other words in the event of loss. the re-insurance has to pay re-insurance premium for risk shifted. the original insurer has to pay the assured sum first to the insured then he will recover from re-insurance his share. he can re-insure the property to that extent. Of course. 3) An original insurer has got insurable interest to the extent of risk undertaken by him. Therefore. To be effective. 5) In the extent of loss. It means an insurer who has assumed larger risk may arrange with another insurer to insure a portion of his insured risk. it would be beyond the capacity of insurer. 2) Its contract is applied by same principles which governed original contract of insurance.iv) Re-insurance Introduction: The term ‘Re-insurance’. The original insurer who transfers a part of insurance contract is called re-insured and the second insurer is called the re-insurer.

7) The re-insurance is not liable to original insurer in the extent of loss. the reinsurance are discharged. fidelity/ guarantee insurance 58 .6) In the absence of any privity of contract between the original party who has insured his subject matter and the re-insurer.

Fidelity/Guarantee Insurance Introduction This policy is designed for company’s need to cover any loss caused by the dishonesty or fraud of any loss of the persons mentioned in the schedule to be advised whilst in the employment of the assured and up to the extend of the respective sums set opposite the name of such persons Fidelity/Guarantee Insurance Further includes: 1) Fiduciary Insurance 2) Credit Insurance 3) Privilege Insurance 59 .

it cannot entirely eliminate their personal liability. financially sound investments. Typical • Fiduciary Liability 60 Insurance coverage highlights: plans and its fiduciaries Broad definition of insured including the company. Such claims may include allegations of: • • • • • • • Improper advice or disclosure Inappropriate selection of advisors or service providers Imprudent investments Lack of investment diversity Breach of responsibilities or fiduciary duties imposed by ERISA Negligence in the administration of a plan Conflict of interest with regard to investments A private company can help mitigate the personal liability of its fiduciaries by following the advice of outside experts and by selecting diverse. its benefit .1) Fiduciary Liability Insurance Introduction : On knowing about this insurance we come to know that fiduciary insurance is first of all a kind of liability insurance. InsureCast offers Fiduciary Liability Insurance coverage. their fiduciaries and the benefit plans they manage. and the Pension Benefit Guaranty Corporation. designated fiduciaries are not the only targets of such lawsuits. the Department of Labor. In order to help protect private companies. Please go to our online Coverage Coach questionnaire to get a free no obligation Fiduciary Liability Insurance quote. targets can also include the employer and even the plan itself. participants’ legal estates. We can study this in detail as follows: Moreover. Claims can be brought by plan participants. But. against fiduciary liability claims.

credit insurance 61 .

the degree of risk (or quality of the customers). Credit Insurance is usually purchased by a company to protect itself against specific losses that could impair the performance of the company. credit worthiness of the risks involved. Consequently. the quality of what is being insured will have a bearing on the cost of the insurance. the better job you are doing. This supports the assertion that insurance should be viewed as a partnership with the credit management objective. as with any insurance product. the unilateral cancellation of contract (Repudiation) as well as a myriad of Political related risks. In the case of credit insurance. delayed or nonpayment (Protracted Default) and in respect of export risks. protection is offered to the supplier against the risk of the debtor going into liquidation (Insolvency). 62 . historical loss experience in your organization. the more economical the insurance is in protecting your company against a catastrophic loss. However. and the amount of retention of risk assumed by the insured. Typically a policy of domestic credit insurance would range between one tenth of one percent of sales to four tenths of one percent of sales. Cost Insurance costs depend on many factors such as: policy structure. current credit extension and collection operating procedures. Additionally.b) Credit Insurance Introduction: Like any form of insurance. level of experience or expertise (as evaluated by the insurer) and the concentration or distribution of risk throughout your customer base is considered.

privilege insurance 63 .

Windscreen replacement hotline. Privilege Car Insurance Who cares if the only estate you own has four wheels and an engine? With Privilege car insurance. Convenient installments. if you use one of our approved repair companies (subject to availability). Which means you’ll enjoy such luxury treatment: A guarantee that we'll beat your renewal quote if you have 4 years or more No Claims Discount. you're privy to a wealth of great benefits and services.3) Privilege Insurance Introduction: Privilege specializes in offering highly competitive car insurance for safe drivers. subject to status*. • Repairs guaranteed for at least 5 years when undertaken by an Courtesy car provided for you. you only need 4 years No Claim Discount to get high class car insurance for a lower price. with a guarantee to beat renewal quotes for any driver with 4 years or more no claims discountproving that you really don't have to be posh to get cheaper car insurance. • • • • 24-hour accident recovery. • theft or total loss). in the event of an accident (not approved repairer. open 24 hours. Emergency roadside assistance will arrive within 3 hours of your call if your car's glass breaks 64 .* Car Insurance Benefits When you choose car insurance from Privilege.

The date and time that the accident happened. With Privilege car insurance. (including their policy numbers). If other people were involved. cleaned and in tip-top condition. claiming on your car insurance couldn't be easier. • 65 . Details of the event. you'll need their insurance details A policy report number of reference if you were given one.How to claim It doesn't matter if you're upper crust or down at heel. Make sure you have all the following in order to contact any insurance company: • • • • • Your insurance policy number. anyone can be involved in an accident or fall prey to car crime. Insurance company’s claims representative will get to work on getting you back on the road. What the damage was to your car and any other vehicles. One of network repairers will also collect your car and deliver it to your doorstep repaired.

I would like to conclude my saying that it was a great experience working on this project. 66 . Lastly. Here we have seen that each insurance has its own features and benefits to the people.CONCLUSION Thus I tried my best to put before you the concept of my topic ‘Kinds of by mainly focusing on types of insurance before you and their way of developing in the field.

Case Study on marine insurance 67 .

Thames continues to be one of the most efficient water companies in the world. In the past year Thames Water has strengthened their position in key markets. They also wanted to move to a ‘thin’ layer of IS. strengthening customer relationships and creating a ‘thin’ layer of IS Thames Water is the world’s third largest water company providing clean and waste water services to over 69 million customers around the world. The challenge Thames Water had embarked on a journey to streamline their IS operations to ensure better service delivery.ENERGY AND UTILITIES CASE STUDY Thames Water: Streamlining IS operations and improving service delivery. improved customer relationship and closer links with business. 68 . With around 13 million customers in the UK. This was a challenge considering that the Thames Support Estate consists mostly of bespoke applications using a wide spectrum of technologies and functional areas that cover all the business functionality of a typical Water Utility. most notably in the Americas with the acquisition of American Water Works.

Perform.5 million GBP per annum. 69 .Over a two year period. This combined with other business benefits resulted in a cost saving of 32% in two years. through a series of strategic initiatives Wipro made Thames Water realize significant cost savings as well as remarkably improved the quality of the application estate. This was done by following a cycle of Define. The savings in the application support budget was also enabled through a system of Forecasting and reviewing service requirements with partners and third party vendors. The solution also resulted in improved partner performance and a reduction in Total Cost of Ownership by 0. The benefits The solution has resulted in higher service levels and a productivity improvement of 45 minutes per user per day in the work management area. Review and Refine for each of the functions that Wipro was entrusted with. Wipro devised and implemented a strategy for cost savings by leveraging on its Global Sourcing model.

BIBLIOGRAPHY. M. Dr.M Mathew 3) Principals of Insurance By.in 2) www.google.N Mishra Websites 1) www. Books 1) Principals and Practice of Insurance By. J. For this project I have have referred certain books and websites which helped me to complete my project.co. Pariasamy 2) Insurance By. 70 .com.lic.