“Insurance Law in reference to burglary and

Theft
Submitted By

ADITYA SHARMA

17010323066

Batch 2017-2022

Division ‘B’

Under the Guidance of

Ms. Nilima Panda

( Guest Facility, Principles of Taxation law)

SYMBIOSIS LAW SCHOOL, HYDERABAD

Inroduction

“Each form of insurance has its background of occurrences which result in sudden and
unforeseen financial shocks to individuals or to groups of individuals, and, therefore,
create contingencies against which protection is desirable. ” “Certain chines are the
background for burglary,” theft “and robbery insurance and because these chines are
spectacular and have always had publicity value is not difficult to ascertain their nature
and extent, although exact statistical analyses are impossible for reasons which will be
stated. ”

“There is considerable divergence in the several states between the legal definitions of
the terms which describe this coverage, ” so that it is difficult to combine complete data
from different jurisdictions on a uniform” basis. “In fact this never has been attempted so
that a comprehensive record of burglaries, thefts and robberies for the United States is not
available. ” But “statistics from different sections of the country, from trade associations,
and from the experience of casualty insurance companies, make possible the presentation
of an incomplete view of the situation which will at least indicate its seriousness. ”

“First, some illustrative data from a few important cities. In the city of Delhi there were
5,390 burglaries and 1,086 robberies in 1922 and 4,933 burglaries and 1,077 robberies in
1923. ” In Kanpur “City, Mumbai, there were 1,693 burglaries and 710 robberies in 1922
and 1510 burglaries and 957 robberies in 1923. ” In Calcutta, Itanagar, there were 4,301
burglaries and 2,007 robberies in 1922 and 3,019 burglaries and 1,402 robberies in
1923.” Second, “some more picturesque information from two important trade
associations. Banks are particularly exposed to burglaries and robberies, and it has been
discovered recently that the number of robberies is increasing due probably to a
considerable extent to the widespread use of the automobile and to the development of
good roads which make it possible for criminals to penetrate into even the most remote
sections of the country, ” and to travel at high speed. “

“It is true, also, that criminals have discovered that it is easier to perpetrate a holdup in a
bank, where there are few employees, than it is to blow open a safe or vault. ” Robbers
“operating in gangs of six to fifteen can overpower or intimidate from two to three times
their number without difficulty whereas entrance into a safe or vault requires far more
effort and in addition the use of considerable equipment and tools which must be
transported to the scene of the crime. ”

Research Questions

The Questions that will be analysed in the research paper are:

1. What are the classes of Insurance as applicable to burglary and theft?

2. Analysis of the historical development in the insurance of burglary
3. Analysis of the residence policy provisions in the insurance of burglary an theft.
4. Determination of the margin valuation in the Insurance of the burglary and theft.

Research objective

The objective of the research paper is that of to analyse the prevalent rules and
regulations presiding the insurance sector in relation to theft and burglary. This paper
shall analyse as to what the future holds for insurance sector in this aspect. This paper’s
objective is also to analyse and critically evaluate the residence policy provisions and the
margin valuation in the insurance sector.
Research Methodology

“The methodology used is to a great extent descriptive. The non-empirical i.e doctrinal
formula of research has been used. Dependence has been set to a great extent on
secondary sources like books and articles from various websites. The lectures and
classroom discussion have been rich with important pointers and provided guidance to
the research. The methodology is in an approach to determine a conclusion as statements
through the analysis of the information mulled over. Different sources of scholarly
authors have also been alluded..”

Literature Review

“Balachandran, S. (2001)1 in his book on “Customer Driven Services Management”

concludes that the insurance industry is fast growing and mostly becoming a customer-
driven and customer-centric one.” He also “advocates that when the insurance products
are attractive to the customers, then only the insurance industry flourishes in the market
and serves its purpose of profit earning and also income generation. ”

“Srivastava, D.C. and Srivastava, S. (2001)2 in their book on “Indian Insurance Industry–
Transition and Prospects” discuss analytically the financial significance of insurance
industry, its contribution to Indian economy and also the transitory prospects and
challenges of insurance industry due to liberalization and the opening up of the sector to
private players. ”
1
“Balachandran, S., “Customer Driven Services Management”, Response books (A Division of Sage
Publications), New Delhi, 2001.”
2
“Srivastava, D.C. and Srivastava, S., (Eds.) “Indian Insurance Industry – Transition and Prospects”, New
Century Publications, New Delhi, 2001. ”
“Mark S. Dorfman (2002)3 in his book on “Introduction to Risk Management and
Insurance” reviews the salient features of the insurance industry and also the role played
by the private enterprise.” The different “types of insurance intermediaries are also
discussed at length with suitable illustrations incorporated wherever necessary”.

“ Charles P Jones (2002)4 in his book on “Investment Analysis and Management”

explains clearly about the framework for evaluating portfolio performance through return
and risk considerations. The Risk-Adjusted measures of performance and also the
problems associated with Portfolio Measurement are also discussed.

“ Ajay Mahal (2002)5 in his article on “Assessing Private Health Insurance in India –
Potential Impacts and Regulatory Issues” asserts that the entry of private health insurance
companies in India is likely to have an impact on the costs of health care, equity in the
financing of care and the quality and cost-effectiveness of such care.” “However, he
mentions that an informed consumer and a well-implemented insurance regulation regime
in many cases eliminate some of the bad outcomes.”

“Patil Kallinath, S. (2002)6 in his thesis on “Life Insurance Corporation of India, Its
Products and their Performance Evaluation: A Special Reference to Gulbarga District”
conducts a study which covered a period of five years from 1994-95. During this period,
the Corporation launched various new plans. ” It is “found that the incidence of insurance
coverage of agricultural groups and agricultural labour is very low and the insurance
products with fewer premiums and covering more risk are the most preferred policies by
the people. ”
3
“Mark S. Dorfman, “Introduction to Risk Management and Insurance”, Englewood Cliff, N.J., Prentice
Hall, New Delhi, 2002. ”
4
“Charles, P. Jones, “Investment Analysis and Management,” John Wiley and Sons (Asia) Pvt.Ltd.,
Singapore, 2002. ”
5
“Ajay Mahal, “Assessing Private Health Insurance in India – Potential Impacts and Regulatory Issues”,
Economic and Political Weekly, February 9, 2002, pp. 559-569. ”
6
“Patil Kallinath, S., “Life Insurance Corporation of India, Its Products and their Performance Evaluation: A
Special Reference to Gulbarga District”, Ph.D. Thesis submitted to the Department of Commerce,
Gulbarga University, Gulbarga, 2002. ”
“”Shriram Mulgund (2002)7 in his article on “From Single to Sophisticated – Risk Based
Solvency Margins for the Indian Life Insurance Industry” discusses the background to the
risk-based capital approach for setting up the required solvency margins and its
application to the Indian insurance industry. ” “He suggests that the Required Solvency
Margin (RSM) level can not be determined independently of the level of the reserves set
up by the insurer. It is the total of the Reserve and RSM which is more important and
relevant rather than just the level of RSM. ”

7
“Shriram Mulgund, “From Single to Sophisticated – Risk based Solvency Margins for the Indian Life
Insurance Industry”, IRDA Journal, December, 2002, pp.23-25. ”