Goal of Non-Life

Insurance Compensation

Prepared by: GROUP II

BSMA 1-12
Insurance
NON LIFE INSURANCE
 LIFE INSURANCE vs. NON-LIFE INSURANCE
LIFE INSURANCE
Subject matter human being
Period of contract Long term contract
Compensation Insurance company pays
the predetermined sum of
money on the expiry of
the policy or in case of the
death of the insured
Nature of expense Personal expense
NON-LIFE INSURANCE
goods and properties
Short term contract
Insurance company pays
the predetermined sum
of money in case of the
loss of such goods or
properties
Business expense
•Fire Insurance
(Non-Life Insurance)
HISTORY OF FIRE INSURANCE
FIRE INSURANCE
Fire Insurance is a contract whereby one promises, for a consideration
to indemnify another, for direct loss or damage of the latter's property
by fire or lightning
FIRE INSURANCE BUSINESS
Fire insurance business means the business affecting, otherwise than
independently to some other class of business, contracts of insurance
against loss by or incidental to fire or other occurrence customarily
included among the risks insured against in fire insurance policies.
OPEN POLICY
In the event of loss, whether total or partial, it is understood that the amount of loss shall
be subject to appraisal and the liability of the company, if established, shall be limited to t
he actual loss, subject to applicable terms, conditions, warranties and clauses of the policy,
and in no case shall exceed the amount of the policy.

VALUED POLICY
The thing that insured shall be valued as a specific sum. In the event of total loss, the valuation
on the policy is deemed to be conclusive between the parties except when there is fraud or error
on the part of either party.
WHAT MAY BE INSURED?
• Buildings
• Electrical Installations
• Machinery, Plant and Equipment, Accessories, etc.
• Goods in Factories
• Furniture and Fixtures
• Pipelines
FEATURES OF FIRE INSURANCE
1. Offer and Acceptance – The property will be insured under the fire insurance policy a
fter the offer is accepted by the insurance company

2. Payment of Premium – An owner must ensure that the premium is paid well in advan
ce so that the risk can be covered

3. Contract of Indemnity – Fire insurance is a contract of indemnity and the insurance c

ompany is liable only to the extent of actual loss suffered

4. Utmost Good Faith – The property owner must disclose all the relevant information t
o the insurance company while insuring the property
5. Insurable Interest – the fire insurance will be valid only if the person who is insuring the pro
perty is owner or having insurable interest in that property.

6. Contribution – Is a person insured his property with two insurance company, then in case of
fire loss both the insurance companies will pay the loss to the owner proportionately

7. Period of the Insurance – Generally, the period of fire insurance will not exceed by one year

8. Deliberate Act – If a property is damaged or loss occurs due to fire because of deliberate act
of the owner, then that damage or loss will not be covered under the policy

9. Claims – To get the compensation under fire insurance , the owner must inform the insuran
ce company immediately so that the insurance company can take necessary steps to determin
e the loss
PROCEDURE TO INSURE THE PROPERTY UNDER
FIRE INSURANCE
i. Filing of Proposal Form
- construction of external walls and roof
- occupation of each portion of the building
- presence of hazardous goods
- process of manufacture
- the sums proposed for insurance
- the period of insurance
- history of previous losses
- insurance history

ii. Inspection of the Property

iii. Payment of Premium

iv. Issue of Cover Note/Policy Document

Cover Note – Unstamped document issued to provide evidence of cover till the ti
me the policy is issued. The cover notes provides insurance against specified perils
on the usual terms and conditions of the company’s policy
PROCEDURE TO SETTLE THE FIRE INSURANCE CLAIM

a) If there are damage or loss arising due to fire then the policy holder should immediate
ly inform the insurance company in writing and with estimated amount of loss

b) Survey Report
i. cause of loss
ii. extent of loss
iii. under-insurance
iv. details and value of salvage
v. details of expenses
vi. compliance with policy conditions
vii. details of other insurance policies on the same property
c) Claim Form
i. Name and address of the insured
ii. Date of loss, time and place from where the fire started
iii. Cause of fire
iv. Details of the property damaged
v. Value at the time of fire, value of salvage and amount of loss
vi. Details of other policies on the same property giving the name of the
insurer, policy number and sum insured
vii. Fire Brigade report details
viii.FIR at the nearest police station regarding third party liability

d) Settlement of Claim
PERILS COVERED BY FIRE INSURANCE POLICY
• Fire (subject to certain exclusions)
• Lightning, whether fire ensues or not

FORMS OF DAMAGE ARE LIKEWISE COVERED:

• Damage during or immediately following a fire caused by (1) smoke or scorching;
and (2) falling walls and the like
• Damage caused by fire brigade or other competent authority in the discharge of
their duty
• Damage due to property removed from a burning building in an effort to save
such property
EXCLUSIONS
a. Inherent vice, process of decay
b. War, invasion, act of foreign enemy, hostilities or warlike operations, civil war, civil
commotion, rebellion, revolution, military power
c. Riot, strike, malicious action, impact y vehicle, forest fire
d. Earthquake, volcanic eruption, flood, windstorm, water damage, removal of debris
e. Nuclear reaction, nuclear radiation

SPECIAL PERILS INSURANCE

a. Earthquake
b. Typhoon and flood
c. Riot and strike
d. Loss or damage caused by directly by impact of land vehicle or falling
object
e. Bursting of overflow of water tanks, apparatus or pipes
•Theft Insurance
(Non-Life Insurance)
Theft Insurance
 Theft Insurance includes:
● Stock-in-trade
● Furniture
● Fittings and fixtures
● Machinery, tool and moulds
● Office equipment
● Goods held in trust or on commission
What does Theft Insurance covers?
It protects vitals business assets including:
● Stock-in trade
● Office equipment
● Plant and machinery
● Any other business-related goods
What does Theft Insurance covers?
Covers theft with forcible and violent entry and the
following unlawful acts:
●Attempted theft by a person hiding in the insured
premises
● Hold-up
● Armed robbery
What does Theft Insurance covers?
Damage to the building
●This should fall as a result of theft or an attempt to
break-in.
What does Theft Insurance covers?
Sum insured will either be issued on a:
●Full Value Basis: The maximum value of your
property will be insured.
●First Loss Basis: You will be insured for the
maximum amount a thief could possibly steal from
your property.
Theft Insurance: Guide for Landlords
and Businesses
Theft insurance for landlords
●Landlord contents insurance. This includes white goods,
but will not cover your tenants’ belongings. They’ll need to
take out their own contents insurance to keep those protected.
●And if your property suffers damage during a break-in then
landlord buildings insurance could pay out for repairs.
Theft insurance for small businesses
and shops
●If you run a business selling items you make yourself, for
example, you may need tool cover to protect the tools you
use to make your products and stock cover to protect the
products themselves, as well as the raw materials.
●If you run a bricks and mortar shop, your needs might be
slightly different - you might not create your products
yourself so won’t need tool cover, but perhaps you have
contents such as chillers that you might want to protect with
business contents insurance.
Theft insurance for tradesmen
●It’s an unfortunate reality that many tradesmen worry
about theft of their tools or vans.
●If you’re a tradesman then tool insurance covers
theft of tools, while stock insurance covers theft of
stock.
Theft insurance for freelancers
●If you’re a freelancer or other professional then it’s
likely that computer equipment is vital to the running
of your business. It’s likely portable equipment
insurance you’re after, or contents insurance - the
type of insurance that’s applicable to you really
depends on the specifics of your business.
•Robbery Insurance
(Non-Life Insurance)
 What is Robbery?
sometimes referred to as “hold-up” is a term which is frequently used
incorrectly
limited to a felonious and forcible taking of property:
a) by violence inflicted upon the custodian/s in the actual care of the
property at the time
b) by putting such custodian/s in fear of violence
c) which the custodian has been killed or rendered unconscious by injuries
inflicted maliciously or sustained accidently
 Types of Robbery Insurance

Paymaster Robbery Insurance

Outside Messenger Robbery Insurance

 Paymaster Robbery Insurance
This insurance is intended for concerns which pay their employees’
wages in cash.
This policy covers two separate hazards.
a) Loss of or damage to property intended solely for the payroll of the
assured
b) Loss of or damage to other property not intended solely for the
payroll of the assured
 Outside Messenger Robbery Insurance
This insurance is intended for the protection of business houses
such as investment houses, banks, jewelry stores and others
which are required to send property of value outside of their
premises for delivery or for other reasons.
 Interior Office or Store Robbery Insurance
This insurance is designed to meet the needs of merchants and
others who have exposed, within their premises, valuable
property which may attract criminals during the time the
premises are open for business.
Rates of Robbery Insurance
 Paymaster and Messenger Robbery Insurance Rates
Rates for these coverages depend upon several factors, the
premium for the individual risk is built up as in other cases by
combining those factors which apply to the conditions of the risk:
Territory in which the risk is located. – there are four territorial
divisions based upon the experience or risks of this class. The fourth
territory where the hazard is lowest and the rates are only one-half of
those for the highest hazard.
 Paymaster and Messenger Robbery Insurance Rates

Number of guards accompanying the custodian. - It is obvious that the

greater the number of guards the less the likelihood of attack by the
robbers. The annual rate per thousand dollars of coverage, therefore, is
reduced as the number of guards increases.
Paymaster and Messenger Robbery Insurance Rates

Annual Rates Per Thousand

Custodian Accompanied by Territory I Territory IV
No guard……………………….. $15.00 $7.50
One guard……………………… 12.00 6.00
Two guards……………………... 9.60 4.80
Three guards…………………… 7.60 3.80
Four guards…………………….. 6.84 3.42
Five or more guards……………. 6.16 3.08
Paymaster and Messenger Robbery Insurance Rates

Protective Measures Employed - the rates quoted above are manual rates. They are
subject to discount for the maintenance of conditions which tend to reduce the
hazard. There are two items of this character:
a) 10% discount is allowed if the assured provides a private conveyance for the
exclusive use of the custodian and his guards during the trip. Additional 10%
discount is allowed if the conveyance is an armored car.
b) 10% discount is allowed if the insured funds are carried in a locked messenger
safe or chest; or in a satchel or wallet lined with steel or wire mesh and attached
by a chain, steel or wire strap to the person of the custodian or to the vehicle in
which the funds are conveyed
Paymaster and Messenger Robbery Insurance Rates

Kind of Properly Covered. – 25% discount is allowed if the

coverage is limited to securities only, is provided.
 Calculation of Annual Premium for Paymaster or Messenger Robbery Insurance
Amount of Insurance………………………………………………………………………… $100,000.00
Five guards employed to accompany custodian
Risk located in New York City
Custodian transported in armored car
Property transported in approved satchel
Calculation of Premium
Number of thousands of insurance multiplied by table rate ($3.08)…………………………… 308.00
Less discount for private conveyance (10%)…………………………………………………… 277.20
Less discount for armored car (10%)…………………………………………………………... 249.48
Less discount for satchel (10%)-Net Premium………………………………………………… 224.53

If securities only were covered this premium would be subject to a further discount of 25%
•Business Interruption
(Non-Life Insurance)
Business Interruption Insurance

 Also known as Business Income Insurance.

 Designed to cover lost income when you
have to close your business temporarily
because of events beyond your control.
 Is not sold as a stand-alone policy, often part of a Business
Owner’s Policy.
 Business Owner’s Policy (BOP)
 Bundles with General Liability Insurance (provides coverage for
costumer injuries, costumer property damage and lawsuits
related to both) and Property Insurance (protects the stuff your
business needs to run, pay to repair/replace business property if
stolen, damaged or destroyed in a fire or natural disaster).
 Coverege
1. Liabilities
2. Property
 3 Types Business Interruption Insurance

1. "Business interruption" insurance to compensate

the insured for the income lost during the period of
restoration or the time necessary to repair or restore
the physical damage to the covered property.
 3 Types Business Interruption Insurance

2. “Extended business interruption” limited by a

period of time, for the income lost after the
property is repaired but before the income returns
to its pre-loss level.
 3 Types Business Interruption Insurance

3. "Contingent business interruption" provides

coverage for the insured's loss of income resulting
from physical damage, not to its property, but to the
property of providers or suppliers on the one hand
or consumers of its product or services on the other.
 Business Interruption Insurance
 Coverage
 Loss of revenue
 Fixed costs
 Temporary Location
 Commission and Training Cost
 Extra expenses
 Civil Authority Ingress / Egress
 Extends until the end of business interruption period determined by the
insurance policy.
 Business Interruption Insurance Cost
 the cost of business interruption insurance depends
on how much coverage you need. In determining
how much coverage you need is to imagine the worst
case scenario, calculate your profits during the 12 to
24 months it might take to rebuild your business.
•Loss of Income
(Non-Life Insurance)
 Non life Insurance caused by loss of income

Is a long- term insurance policy designed to help you if you

can’t work because you’re ill or injured.
It ensures you continue to receive a regular income until you
retire or able to return to work.
 Key points in Non life insurance cause of loss of income

1. It replaces part of your income

2. It pays out until you can stark working again.
3. There’s often a waiting period before the payment.
4. It covers most illnesses that leave you unable to work.
 Waiting Period
A waiting period is part of every income protection insurance policy
It refers to the length of time the sickness or accident must keep you off
work before your benefit period commences
14 days,30 days,60 days,90 days
 Before choosing a waiting period, you first need to
consider:

Your employment type; full-time, part-time, self-employed, contractor or business

owner.
Whether your employer offers any provisions in the event of disability, for example,
sick leave and annual leave.
How long your employer provides cover for.
Whether you have an emergency fund or savings stored up and how many times your
salary it is.
Calculate the number of months you’ll be able to sustain your lifestyle and support
your family when unable to work.
 How much will you be paid?

Generally, your monthly payment will be up to 85% of

your salary before you were injured or ill.
 Role of Claim Assessor

1. Help you understand the process

2. Look after your application from start to finish
Requirements to have this kind of Non life Insurance
1. Medical Attendants Statement
2. Certified Copy of birth certificate, driver’s license or passport
3. Any existing medical reports
4. Copies of recent payslips from before you stopped work
 6 reasons why you need to get this Non life Insurance

1. Quality of Life
2. Peace of Mind
3. Keep up with the bills
4. Added Protection
5. Focus on recovery
6. Be prepared!
•Bodily Injury
(Non-Life Insurance)
NON-LIFE I
NSURANCE

BODILY INJ
URY
It is included as one of the commercial general liability
insurance policy
What is Commercial General Liability Insurance Policy?
Sometimes, the word Comprehensive is much more
appropriate. Its ensures the party included a fair
compensation without the expense of putting any business
entity at risk or dilemma.
Bodily injury means physical damage to a person’s
body. It is also referred as physical injury. 18 USCS
defines it as a cut, abrasion, bruise, burn, or disfigurement;
physical pain ; illness; impairment of the function of a
bodily member, organ, or mental faculty; or any other
injury to the body, no matter how temporary.
bodily injury, sickness, or disease sustained by a person,
including death resulting from any of these at any time
It also includes death if death results from bodily injury,
sickness, or disease. Death that results from unexplained
causes does not usually qualify
can include psychological injuries such as but not limited
to shock, fright, mental injury, mental anguish, or
humiliation. When psychological injuries are included,
they're generally covered only if they result from a
physical injury
In a few countries, courts have determined that purely
psychological injuries can constitute bodily injury.
Mental stress, anxiety, or other mental issues can qualify as
bodily injury in these states even if the mental injury
didn't result from a physical injury.
Bodily Injury VS Personal Property Injury
Lawyers often refer to bodily injury as "personal
injury." In the legal profession, a personal injury
attorney represents individuals who have been physically or
mentally injured in accidents caused by someone else's
negligence
May confuse policyholder of the usage of terms bodily injury
and personal injury because the two fields have distinguishable
meanings.
In a general liability policy, personal injury is included in
personal and advertising injury, a defined term that
encompasses various intentional acts like libel, slander, and
false arrest. Such acts are covered under personal and
advertising injury liability
helps pay for damage you cause to another person's belongings
includes payments that include compensation to the
injured individuals and legal defence costs
Includes medical bills, pain and suffering, and loss
of income
Three Main Types of Bodily Injury
• Bodily Injury Liability is insurance that covers physical injuries
caused by an automobile accident that you were not responsible
for
• Medical Payment Coverage applies to the medical expense of
anyone who is injured, including you which requires a higher
amount due to the injury.
• Uninsured Motorist's Protection covers you and your family
members if an accident occurred with an uninsured or hit-or-run
driver.
Exclusions also are:
• You knowingly put yourself in a dangerous situation (or did
something to someone else intentionally)
• Your home happens to also be your place of work
There are also exceptions of the policy including but
not limited to:
• Communicable viruses, infections, diseases, etc. that you, or others
on your policy, give to others
•3rd Party Inside the
Premise
(Non-Life Insurance)
 What is 3 rd Party Insurance?
Also known as compulsary motor vehicle
liability insurance.
It is referred to as a 'third-party' cover since
the beneficiary of the policy is someone other
than the two parties involved in the contract
(the car owner and the insurance company).
The policy does not provide any benefit to the
insured. However, it covers the insured's legal
liability for death/disability of third-party
loss or damage to the third-party property.
 Benefits of 3rd Party Insurance?
Key benefits - covers your liability for
damages and injury caused to third party
This motor insurance does not cover you and
your motor vehicle. It covers your legal
liability for the damage you caused to a third
party only - bodily injury, death and damage
to third party property - while using your
vehicle.
 Benefits of 3rd Party Insurance?
The policy covers:
• Death or bodily injury to a third party
• Damage to third party property
• Accidental Death of the insured vehicle
owner/driver
• Permanent Total Disability of the insured
vehicle owner/driver
 How Third Party Insurance Works
After a Car Accident
Third party, or third party fire and theft
insurance policies don't cover the cost of
repairs on your own vehicle if you're involved
in a car accident, however they will cover the
cost of any damage caused to other vehicles or
property if you are at fault.
 How Third Party Insurance Works
After a Car Accident
Information to gather after an accident
• Date and time of the accident and the
weather/visibility conditions at the time
• Details of any other drivers, vehicles (and
the registered keeper, if not the driver) and
their insurance information
• A description of any injuries to drivers or
passengers, and the damage to other
vehicles or property
• Contact details of any independent
witnesses
How Third Party Insurance Works
After a Car Accident
•A brief description of how the
accident happened, together with
any sketches or photographic
evidence you collected at the scene
•If the police attended the accident,
give your insurer their contact
details and a Crime Reference
Number, if relevant
•Make a note of any other relevant
information, such as whether
headlights or indicators were used.
GROUP 2
CAINGCOY, CECILIA CLARISSE
CAILING, ARDYN MAE
DEL MUNDO, MARK ANTHONY
BRIONES, RHALF
CASTAÑEDA, JOMARI
DELA CRUZ, JAVY
CRUZ, VINCENT
DELA CRUZ, MARICAR