INSTITUTE OF MANAGEMENT STUDIES DAVV INDORE

MBA (FINANCIAL ADMINISTRATION) IVth SEMESTER

RISK AND INSURANCE MANAGEMENT

NON LIFE INSURANCE - MISCELLANEOUS INSURANCE

 Miscellaneous insurance can be classified into

- Fidelity Guarantee insurance
- Crop insurance
- Burglary insurance
- Flood insurance
- Cattle insurance
- Cash in transit insurance
- Medi-claim

MEDICLAIM AND HEALTH POLICIES

 A health insurance policy is a contract between insurer and an individual or a group, in which
insurer agrees to provide specified health insurance at an agreed price (premium)
 Health insurance is insurance that pays for all or part of person’s health care bill.
 Types of health plans are – individual plan, group health plan, workers compensation etc.
 Health insurance insures an individual and his family against medical expenses for
hospitalization and post hospitalization expenses, as agreed upon.
- Mediclaim individual - policy covers reimbursement of hospitalization/ domiciliary
hospitalization expenses for illness or injury sustained by insured person within India only.
- Medicalim group – policy is available to any group/ association, institution etc provided it
has a centralized administration point. Normally a group should have minimum 50
members.

GROUP INSURANCE
 Group insurance is a plan under which a group of people is given protection under one
insurance contract, without individual selection of their lives.
 A single policy known as master policy is issued to the group who may be employer.
 Insurer underwrites the group as a whole rather than individual
 It is cost effective as group insurance is generally at less cost than a cover taken by an
individual.
 No medical examination is required for individual members.
 Number of person in group should be minimum 50.
 It is the responsibility of employer to collect premium and deposit with insurer.
 Group should be homogenous.
  FIDELITY GUARANTEE INSURANCE
 Fidelity guarantee insurance falls under Misc. insurance. This is a type of contract of insurance
as well as contract of guarantee, which does not mean the guarantee of employee’s
dishonesty, but guarantees the employer for any damage or loss resulting from employees’
dishonesty or disloyalty. The insurer is liable to compensate the said loss to the employer as
prescribed by contract.

 CROP INSURANCE
 A contract of crop insurance is a contract to provide a measure of financial support to farmers
in the event of a crop failure due to drought or flood. The insurance covers all risks of loss or
damage relating to production of rice, wheat, oilseeds and pulses etc.

 BURGLARY INSURANCE
 Burglary insurance falls under category of insurance of property. In such cases loss or
damages of household goods and properties and personal effects due to theft, burglary, house
breaking and acts of such nature are covered, and the actual loss is compensated.

 CATTLE INSURANCE
 A contract of cattle insurance is a contract whereby a sum of money is paid to assured in the
event of death of animals like cow, buffalo etc. It is a contract against death resulting from
accident, disease etc.
 No tag no claim is followed by insurance companies.

 CASH IN TRANSIT INSURANCE

 Cash in transit insurance also falls within category of misc. insurance. It covers the insured
against any loss in the event of money or cash being stolen from his business premises or
while it is being carried from or to the bank.

Prepared by:
Arvind Paranjape, CAIIB
paranjape.arvind@yahoo.com
9425067026