Syllabus

Types of Insurance: Life and Non-life - Fire – Marine –

Miscellaneous – Motor - Personal Accident – Health –
Liability – Engineering – Aviation -– New Insurance
Products
TYPES OF INSURANCE
 TYPES OF INSURANCE

LIFE NON-LIFE
 TERM LIFE INSURANCE

It provides coverage at a fixed rate of payments for a limited period of time. If

the life insured dies during the term, the death benefit will be paid to the
beneficiary.
 BENEFITS
● Lower premium rates
● Cheaper
● Offers death benefit
 TERM INSURANCE WITH RATE OF PREMIUM

It is one of the types of term insurance plans that give back the premiums you pay on
surviving the policy period.
 UNIT LINKED INSURANCE PLAN

It that offers life cover along with investment opportunities.Being one of the
types of life insurance, it has a lock-in period of five years, which makes it a
long-term investment instrument that comes with risk protection.
 BENEFITS
● Dual Benefit
● Exposure to money market
● Tax Savings
 ENDOWMENT PLAN
It provide you with the combined benefit of life insurance and savings.
 BENEFITS
● Death Benefit
● Maturity Benefit
● Tax Benefit
 MONEY BACK POLICY
It pays a percentage of the assured sum throughout the policy tenure, unlike other types of
life insurance plans that offer no returns till maturity.
 BENEFITS

● Survival Benefit
● Death Benefit
● Maturity Benefit
 WHOLE LIFE INSURANCE

It provides insurance coverage to the insured for entire life, upto 100 years of age.
Provides option to pay premium for the first 10-15 years while you get the benefit
for entire life.
 BENEFITS

● Never expires
● Premiums on whole life policies stay the same
● Builds cash value.
 GROUP LIFE INSURANCE

Covers group of people under one master policy. This type of insurance are
generally provided as part of an employment benefit.
 BENEFITS

● Term policy
● Seasoned Fund Managers
● Gratuity Benefit
● Credit Protection.
 CHILD INSURANCE PLAN

It is an investment + Insurance plan that helps to meet your child’s financial

needs. It will help to create wealth for child’s future needs like education.
 BENEFITS

● Financialprotection
● Lump sum amount on maturity
● Partial withdrawals
 RETIREMENT PLANS

Provides financial security and help you with wealth creation after the retirement.
Through this plan, will receive a sum of money as pension in the vesting period.
 BENEFITS

● Peace of mind/ financial independence

● Source of Income for Private Sector Employees with no pension
● Protection of assets and property.
 GENERAL INSURANCE
General insurance policies are one of the types of insurance that offer coverage in
the form of sum assured against the losses incurred other than the death of the
policyholder.
TYPES OF GENERAL INSURANCE
 FIRE INSURANCE
Fire insurance policies are different types of insurance coverages that compensate
any losses/ damage/destruction of property incurred due to a fre or any other
perils covered under the policy. These insurance will cover fire, explosion, bush
fire, aircraft damage etc…
 TYPES OF FIRE INSURANCE POLICIES
1) Valued policy
2) Specific Policy
3) Floating Policy
4) Average Policy
5) Consequential Policy
6) Replacement Policy
7) Comprehensive Fire insurance Policy
8) Blanket Policy
 MARINE INSURANCE
Marine insurance covers the loss or damage of ships, cargo, terminals, and any
transport by which the property is transferred, acquired, or held between the
points of origin and the final destination.
 TYPES/ SUBJECT MATTER OF MARINE
INSURANCE POLICY
1. Hull Insurance Policy
2. Cargo Insurance Policy
3. Liability insurance policy
4. Freight Insurance Policy
 MOTOR INSURANCE

Motor insurance policy is a contract between the insured and the insurer in which the insurer promises to indemnify
the financial liability in event of loss to the insured.

Motor Vehicles Act in 1939 was passed to mainly safeguard the interests of pedestrians. According to the Act, a
vehicle cannot be used in a public place without insuring the third part liability.

According to Section 24 of Motor Vehicles Act, “No person shall use or allow any other person to use a motor
vehicle in a public place, unless the vehicle is covered by a policy of Insurance.
 TYPES OF VEHICLES

Private vehicles

(a) Private Cars - vehicles used only for social, domestic and pleasure purposes

(b) Private vehicles - Two wheeled

1. Motorcycle/Scooters

2. Auto cycles

3. Mechanically assisted pedal cycles

 TYPES OF VEHICLES

Commercial vehicles

(1) Goods carrying vehicles

(2) Passengers carrying vehicles

(3) Miscellaneous & Special types of vehicles

 RISKS UNDER MOTOR INSURANCE

● Legal liability due to bodily injury, death or damage caused to the property of
others.
● Loss or damage to one’s own vehicle\ injury to or death of self and other
occupants of the vehicle
 TYPES OF POLICIES

● Liability only policy

● Package policy
● Comprehensive policy
 FACTORS AFFECTING PREMIUM

● Type of the vehicle

● Physical condition of the driver
● Geographical area of the use
● Age of the vehicle
 EXCLUSIONS

● Normal wear and tear

● Damage to Tyres, Electric Equipments or Electronics
● Damage when the person was driving without the license
● Damage when person was driving in the influence of alcohol
● Any injury or property damage caused intentionally
● Damage due to racing
● Damage due to war
 FACTORS FOR CALCULATION OF RISK

● Insured Declared Value/ IDV

● Car Owner
● Model of the car
● Safety features
● Coverage required
● Frequency of the Claims
 MOTOR VEHICLE CLAIMS TRIBUNAL
Established by Motor Vehicle Act 1988, Claims Tribunal is defined under Chapter XII in
Section 165 which authorises the State Government to constitute Claims Tribunals to
adjudicate on the claims for compensation which emerge from motor vehicle accidents,
ensuing death or bodily injury to persons or damage to any property of third parties.
 BURGLARY INSURANCE
A burglary insurance policy is a type of crime insurance that covers losses resulting from burglary.
Put simply, burglary refers to when someone uses force to unlawfully enter someone else's
property - even if they did not steal anything in the end.

Types of losses insured include:

● Theft of property from a closed premises such as a home, place of business or automobile.
● Damage caused by the intruder in the process.
Does not cover:
● The amount of the excess as specified in the policy document
● Gold or silver articles, precious metals and any other articles which are made of
precious metals, medals, coins, sculptures, rare books of any kind
● Loss or damage caused by wear and tear or gradual deterioration
● Loss or damage caused by the sack, loot, pilferage, etc.
● Unexplained losses or damages due to errors, omissions
● Theft or attempted theft from open spaces, garden, yards, etc.; unless the contents
thereof are specifically mentioned in the policy document
● Loss or damage directly or indirectly caused by or arising from any corruption, destruction, or
distortion
● Goods held in trust, cash, jewellery, title deeds, business books, unless they are specifically insured
● Loss, damage, or expense of whatsoever nature directly or indirectly by any act of terrorism or war
● Loss or damage caused to insured property due to breach of trust or misfeasance by the insured
● Loss of money from safe following the use of the key unless such key has been obtained by
violence
● Any loss or damage directly or indirectly happens to the premises from the nuclear weapon
material
● Any loss or damage to glass, plate, or any decoration thereon
● Consequential loss or damage or legal liability of any type
● Loss or damage caused by loot, sack, spillage, or pilferage
DIFFERENCE BETWEEN ROBBERY AND BURGLARY
The terms “burglary” and “robbery” are often used interchangeably but they are very different things when it
comes to insurance. While they both involve some sort of theft, unlawful entry, and the use of force, the key
differentiator is who or what that force is used on.

Robbery is defined as using force, the threat of force or intimidation to steal from someone, meaning there was
a victim involved for the act. An easy example of this is with bank robberies where the tellers and customers
are held up.

Burglary on the other hand involves felonious or forceful entry but no force was used on a person. One
example is a cat burglar sneaking in and out without anyone noticing or getting involved.
 ENGINEERING INSURANCE
Engineering insurance refers to the insurance that provides economic safeguard to the risks
faced by the ongoing construction project, installation project, and machines and
equipment in project operation.
ERECTION COVERAGE
The Erection All Risks policy is a comprehensive insurance, which provides complete protection against all types
of risks associated with erection, testing, commissioning of machinery, plant and equipment during constructional
stage.

Erection All Risks Insurance embraces a wide variety of plant and machinery at all levels of complexity, ranging
from the relatively straight forward positioning and connecting up of single manufactured items of equipment such
as small pumps or electric motors to complete major industrial complex such as a large power station or
manufacturing facility.

Duration
The cover starts from the time of arrival of first consignment at site, normal storage and thereafter during erection,
testing, commissioning until the plant is successfully commissioned and handed over.
SCOPE
Insurance is on an 'all-risks' basis and in particular includes
● Fire, lightning, explosion, aircraft damage
● Riot, strike, malicious acts
● Flood, inundation, storm, cyclone and allied perils
● Landslide, subsidence and rockslide
● Burglary and theft
● Faults in erection
● Human errors, negligence
● Short circuiting, arcing, excess voltage
● Electrical and mechanical breakdown
● Collapse, damage due to foreign objects, impact damages
● Any other sudden, unforeseen, accidental damages not explicitly excluded
 CROP INSURANCE
Crop insurance is a type of protection policy that covers agricultural producers against unexpected loss of projected
crop yields or profits from produce sales at market. Crop insurance is divided into two categories: crop-yield and
crop-revenue.

Pradhan Mantri Fasal Bima Yojana is a crop insurance scheme sponsored by the Government of India.The policy
was launched in 2016. It aims to provide financial aid to farmers in case of crop loss or damage. Thus, it helps to
reduce farmers’s stress and keep them motivated to continue with farming as an occupation.he risks covered in the
scheme include prevention of sowing or planting of seeds, damage to the standing crop due to non-preventable risks
like drought, flood, landslide, etc. along with post-harvest losses. This policy can be purchased from a selected set of
insurance companies like SBI General Insurance and HDFC Ergo General Insurance.
COVERS
Localised calamities: It covers localised calamities and risks like hailstorm, landslide
affecting isolated farms in the notified area
Sowing/Planting/Germination risk: Any problem in planting or sowing because of deficit
rainfall or adverse seasonal conditions
Standing crop loss: Comprehensive risk insurance to cover yield losses because of
non-preventable risks, such as dry spells, flood, hailstorm, cyclone, typhoon
Post-harvest losses: It covers losses for up to a maximum period of two weeks from
harvesting
TYPES OF CROP INSURANCE

Multiple Peril Crop Insurance: Provides financial coverage to manage risks arising from
weather-related losses, such as a flood, drought, etc.
Actual Production History: Covers losses due to wind, hail, insects, etc. Also includes coverage
for lower yield and compensates for the difference between the estimate and the real
Crop Revenue Coverage: This is based not only on the crop yield but on the total revenue
generated from this yield. In case of a drop in crop price, the difference is covered by this type of
crop insurance
THANK YOU