An overview of Insurance sector

 Name : Muskan Choudhary

 Class : SYBBI
 ROLL NO : BF22056
 SUBJECT : FOUNDATION COURSE
 Topic : A STUDY OF AWARENESS ABOUT
PROPERTY INSURANCE AMONG THE PEOPLE OF
DOMBIVLI
 INDEX

S.R.NO Topics PAGE

NO

1 Introduction

 Meaning of property Insurance

 Introduction to term property
2 Types of property

3 Types of
property
Insurance
4 Importance of
property
Insurance
5 Overview

6 Data Analysis
 INTRODUCTION TO PROPERTY INSURANCE

PROPERTY INSURANCE-MEANING

Insurance of property means insurance of buildings, machinery, stocks etc

against Fire and Allied Perils, Burglary Risks and so on. Goods in transit
via Sea, Air, Railways, Roads and Courier can be insured under Marine
Cargo Insurance. Hulls of ship and boats can be insured under Marine
Hull Insurance. Further, there are specialized policies available such as
Aviation Insurance Policy for insurance of planes and helicopters. Thus
Property Insurance is a very vast category of General Insurance and the
type of cover that you need depends upon the type of property you are
seeking to cover.

INTRODUCTION TO TERM "PROPERTY"

Property insurance deals with property in two broad categories, real
property and personal property. However, property insurance does not protect
property.
It protects property owners and other parties that meet two qualifications.
First, they must have an insurable interest in the property at the time of the
loss, and second, their interest must be insured under a contract of insurance.
The amount any insured party may be entitled to recover from property
insurance proceeds depends not only on the extent of that party's insurable
interest but also on the method used to determine the value of the property as
well as any financial loss. resulting from the fact that the property cannot
be used. For example, a driver may need to rent a car while his or her own car
is being repaired following an accident. Likewise, a family may incur expenses
to live in a hotel while its house is being repaired, and a business may suffer
a
loss of income if the place of business has been damaged or destroyed.
Property insurance covers only losses that result from a covered cause, also
known as a covered peril. When damage to property by a covered peril occurs,
the insurance contract specifies certain duties that the insured party and the
insurer must meet. The amount payable under a property insurance policy
depends on various provisions in the insurance contract, especially limits,
deductibles, and insurance-to-value provisions.

TYPES OF PROPERTY

 All property falls into one of two categories:

 Real property
 Personal property

Real property, a term closely related to the more familiar term real estate, is
defined as land and anything that is growing on it, or affixed to it, and the
bundle of rights inherent in the ownership. It includes such items as crops,
mineral rights, air rights, buildings, itens that are permanently attached to
buiklings, fences, in-ground swimming pools, driveways, and retaining walls.
The antonym of real property is not imaginary property, but rather
personal property. In the context of financial planning, “personal” often
means “non business.” The term “personal property, however, has nothing
to do with individuals and families. Personal property is owned and used by
individuals, families, and businesses.
Personal property is defined to include anything that is subject to ownership
other than real property. This includes such items as clothes, furniture, dishes,
artwork, musical instruments, money, securities, airline tickets, office
equipment, business inventory, vehicles, and boats. It also includes intangible
property, such as copyrights and patents. Rather than use these broad legal
categories, insurance policies often use more specific terms, such as
building.
Structure, private passenger auto, or trailer. Insurable Interests and Insured
 Parties Property insurance policies pay only when policy owners or other
insured parties have an insurable interest in the property that has suffered a
loss. Two or more persons who jointly own property are likely to be listed as
policy owners and entitled to the policy's protection. In any case, the insurer
will not reimburse an insured party for more than that party has lost. Coverage
applies to the extent of each insured party’s insurable interest in the property
at the time of the loss, subject to policy limits and any other relevant
provisions. Lenders have an insurable interest in specific property pledged as
collateral for a loan. Therefore, a mortgagee, who has lent money to the
purchaser of a home or another buikling, has an insurable interest in the
building, and a bank has an insurable interest in an auto pledged as security
for an auto loan. The interest of a mortgagee named in the policy’s declarations
can be protected by a property insurance policy’s mortgage clause, and a
lender’s interest in personal property can be protected by a loss payable
clause. In either case, the lender’s insurable interest in the property is equal to
the unpaid balance on the loan.

INSURABLE INTEREST AND INSURED PARTIES

Property insurance policies pay only when policy owners or other insured
parties have an insurable interest in the property that has suffered a loss. Two
or more persons who jointly own property are likely to be listed as policy
owners and entitled to the policy’s protection. In any case, the insurer will not
reimburse an insured party for more than that party has lost. Coverage applies
to the extent of each insured party’s insurable interest in the property at the
time of the loss,subject to policy limits and any other relevant provisions.
Lenders have an insurable interest in specific property pledged as collateral for
a loan. Therefore, a mortgagee, who has lent money to the purchaser of a
home or another building, has an Insurable interest in the buikling, and a
bank has an insurable interest in an auto pledged as security for an auto loan.
The interest of a mortgagee named in the policy’s declarations can be
protected by
a property insurance policy’s mortgage clause, and a lender’s interest in
personal property can be protected by a loss payable clause. In either case,
the lender’s insurable interest in the property is equal to the unpaid balance on
the loan.

TYPES OF PROPERTY INSURANCE

Insurance of property means insurance of buildings, machinery, stocks etc
against Fire and Allied Perils, Burglary Risks and so on. Goods in transit via
Sea, Air, Railways, Roads and Courier can be insured under Marine Cargo
Insurance. Hulls of ship and boats can be insured under Marine Hull
Insurance. Further, there are specialized policies available such as Aviation
Insurance Policy for insurance of planes and helicopters. Thus Property
Insurance is a very vast category of General Insurance and the type of cover
that you need depends upon the type of property you are seeking to cover.

PACKAGE OR UMBRELLA POLICY

There are package or umbrella covers available which give, under a single
document, a combination of covers. For instance there are covers such as
Householders Policy, Shopkeepers Policy, Office Package policy etc that,
under one policy, seek to cover various physical assets including buildings,
contents etc. Such policies, apart from seeking to cover property may also
include certain personal lines or liability covers. Make sure you understand the
complete details of cover and exclusions contained in the policy you are
considering. Package or Umbrella covers could have common terms and
conditions for all sections as also specific terms for specific sections of the
policy.
FIRE INSURANCE
The most popular property insurance is the standard fire insurance policy. The
fire insurance policy offers protection against any unforeseen loss or damage
to/destruction of property due to fire or other perils covered under the policy.
The different types of property that could be covered under a fire insurance
policy are dwellings, offices, shops, hospitals, places of worship etc and their
contents; industrial/manufacturing risks and contents such as machinery,
plants, equipment and accessories; goods including raw material, material in
process, semi finished goods, finished goods, packing materials etc in
factories, godowns and in the open; utilities located outside
industrial/manufacturing risks; storage risks outside the compound of
industrial risks; tank farms/gas holders located outside the compound of
industrial risks etc.

What a Fire Policy covers???

Thought it is called ‘Fire Insurance”, apart from the risk of fire, it also offers
cover against lightning, explosion/implosion, aircraft damage, riot, strike and
malicious damage, storm, cyclone, typhoon, hurricane, flood and inundation,
impact damage, subsidence and landslide including rockslide, bursting and/or
overflowing of water tanks, apparatus and pipes, missile testing operations,
accidental leakage from automatic sprinkler installations, bush fire etc.

What a Fire Policy excludes???

A fire insurance policy usually does not cover a certain amount known as
“excess” under the policy. Loss or damage caused by war and warlike
operations, nuclear perils, pollution or contamination, electrical/mechanical
breakdown, burglary and housebreaking are excluded. Certain perils like
earthquake, spontaneous combustion etc can be covered on payment of
additional premium.
Fire insurance policies are issued for one year except for dwellings, where a
policy may be issued for long term (with a minimum period of three years).

BURGLARY INSURANCE
A Burglary Insurance policy may be offered for a business enterprise or for a
house. The policy covers property contained in the premises including
stocks/goods owned or held in trust if specifically covered. It also covers cash,
valuables, securities kept in a locked safe or cash box in locked steel cupboard
if you specifically request for it.

Apart from offering cover for the contents in the premises, a Burglary Insurance
policy covers damage to your house or premises caused by burglars during
burglary or attempts at burglary. The Policy pays actual loss/damage to your
insured property caused by burglary/house breaking subject to the limit of Sum
Insured. If Sum Insured is not adequate, Policy pays only proportionate loss.
Hence, you must ensure that you value the property covered correctly to
ensure that there is no underinsurance.

A Burglary Insurance Policy can generally be extended to cover Riot, Strike,

Malicious ”amage and Theft.

What is not covered in a Burglary Insurance Policy???

Generally, the Policy will not pay for loss/damage to goods held in
trust/commission unless specifically covered, jewellery, curios, title deeds,
business books unless specifically insured; any amount that is recoverable
under Fire/Plate glass insurance policy, loss from a safe using a key or
duplicate key, unless it is obtained by violence or threat; Due to shop lifting.
Acts involving you your family members/ your employees; due to War
perils,Riot & Strike (covered by payment of additional premium), Acts of God,
Nuclear perils

ALL RISK INSURANCE

All Risks Insurance generally offers cover for jewellery and/or portable
equipment etc. This cover is generally offered selectively. The design of the
policy may vary from company to company. It is important to note that an All
Risks policy is not free from exclusions. So, the term “All Risks” doesn’t mean
that anything and everything is covered.

What is generally excluded in All Risks Insurance???

Lookout for the exclusions-generally actions of moth, vermin, mildew, wear

and tear or repairs, dyeing or bleaching or any gradually operating cause, Mere
breaking/ scratching or cracking of fragile items unless caused by accident to
the means of conveyance and Any mechanical or electrical
breakdown/derangement except due to accidental external means, Over
winding. Denting or internal damage to watches or clocks Thefts from cars
except fully closed saloons Consequential losses, any legal liability, War perils,
nuclear risks, any government/ local authority action and Any loss due to
insured’s action which has contributed to increase in risk are excluded from
the scope of the policy.

On payment of additional premium mechanical and/ or electrical electronic

breakdown extension may be offered.
 PROPERTY VALUATION

PROPERTY VALUATION

Property insurance policies invariably include valuation provisions that specify

the approach to use to determine the value of covered property. That approach
should be used when determining how much insurance to purchase and it will
be used when determining how much the insurer will pay in the event of a
property loss.

Traditionally, most property insurance policies provided coverage on an actual

cash value basis. Replacement cost valuation, the other dominant approach,
is increasingly common, especially for insurance on houses and other
buildings. Other variations include coverage on the basis of agreed value, often
used with antiques and collectibles; the stated amount approach; and the
valued policy laws found in some states.

Actual Cash Value

The concept of actual cash value is based on the principle of indemnity, which
means that an insured should not profit from a loss but should be put into
approximately the same financial position that existed before a loss. Policies
written on an actual cash value basis (such as auto physical damage and
personal property under many homeowners policies) state that losses will be
settled at actual cash value at the time of loss but not in an amount greater
than the amount required to repair or replace the property.
AAIS home owners policies define actual cash value as “the cost to repair or
replace property using material of like kind and quality, to the extent practical,
less a deduction for depreciation, however caused.” However, most property
insurance policies do not include a specific definition of actual cash value. As
a result, there are varying court interpretations, statutes, and regulations
concerning its precise meaning. Generally, it is defined as replacement cost
minus physical depreciation. As an illustration, assume a 10- year-old
refrigerator is destroyed in a fire. It cost $900 when new, but a similar new
model now sells for $1,200. The $1,200 amount is the replacement cost.
However, according to the principle of indemnity, the insured is not entitled to
a new refrigerator, because the one that was destroyed was several years old.
The issue then becomes the amount of the deduction for physical
depreciation. Insurance companies tend to have depreciation schedules for
various items, and refrigerators typically last about 15 years. Therefore, the
insurer would probably assume the refrigerator was two-thirds depreciated
and offer the insured one- third of $1,200, or $400.
In some cases, market value is used to establish the insurable value of
property. The fair market value of property is the amount for which a
knowledgeable seller, under noun usual pressure, would sell the property and
a knowledgeable buyer, under no unusual pressure, would purchase it. The
actual cash value of an auto is usually considered to be its fair market value. It
is relatively easy to establish the actual cash value of any auto, because there
is an active market for autos, and the price at which comparable used cars
have recently sold is readily available.
Replacement Cost
When property is valued on a replacement cost basis (as the dwelling buikling
is in most homeowners policies), no deduction is made for depreciation. In the
past, it was argued that this method of settlement violated the principle of
indemnity because the insured was put into a better position after the loss. In
many cases, however, there is no way to put the insured into exactly the same
position that existed before the loss. For example, if a windstorm blows the
shingks off a roof, the insured clearly needs new shingles. However, if the okd
shingles had already served a portion of their life expectancy, an actual cash
value settlement would require the insured to use additional resources to
fully repair the roof. Such a result, obviously, would leave the insured feeling
less than fully indemnified. To alleviate this situation, replacement cost
coverage is commonly written on homes and commercial buildings.
Replacement cost coverage is also increasingly common with both commercial
and residential personal property. If the refrigerator in the previous example
had been insured on a replacement cost basis rather than an actual cash value
basis, the insurer would pay the $1,200 cost of a similar new model, even
though the customer had originally purchased the refrigerator for only $900.
Replacement cost is based on replacement with materials or items of like
kind and quality as that lost. For example, if a kitchen were destroyed, the
value of the loss would be determined by characteristics of the old kitchen.
The insurance company would pay the cost to replace an old laminated counter
top with a new counter top of something similar. The insured would have to
assume the extra cost if he or she wanted a new granite counter top. Similarly,
the insurance company would not pay to replace standard low-cost kitchen
cabinets with expensive custom-made cabinets.
Agreed Value
With some types of property, it is extremely hard to determine values after an
item has been totally destroyed or lost through theft. Examples include fine art
and antiques. To avoid this dilemma, the insurer and the insured may agree
upon a value at the time a policy is written. In the event of a total loss to
the property, the insurer pays the agreed value. The insurance company will
probably want detailed appraisals before issuing a policy with an agreed value.
Stated Amount
The stated amount approach is often used in insurance policies on
antique autos or other unusual vehicles. The policy lists a stated value for the
item. At
the time of the loss, the insurer will pay the stated amount, the actual cash
value, or the cost to repair or replace the property-whichever is kast. In many
cases, the insurer therefore pays less than the stated value.

Valued Policy Laws

A few states have valued policy laws that can apply to certain types of property
losses and/or certain perils. As a rule, this type of law applies to real property
only. Under such a law, the full amount of insurance coverage is paid if a total
loss occurs. For example, $500,000 is paid for a total loss to a building
insured for $500,000 even if the actual cash value or replacement cost of the
building is lower. Valued policy laws were introduced to prevent agents and
insurance companies from benefiting from premiums and commissions that
are too high because a building is insured for an amount greater than what
the insurer will pay in the event of a loss. The burden is on the insurance
company to either prevent over insurance or to be bound by the amount of
coverage it has sold if a loss occurs.
Today, underinsurance is more often a problem than over insurance. Insurers
and their agents face the challenge, especially during inflationary periods, of
adequately increasing insurance limits at every renewal in order to keep policy
limits in line with insurable property values so that the insurer is able to pay for
a major property loss. Adequate insurance to value benefits to policy owners,
and it enables insurers to collect premiums consistent with the values they
insure, which, in turn, helps avoid a need for rate increases.

SETTLEMENT OF CLAIMS
Settling property insurance claims is usually somewhat more complicated
than settling life insurance claims. Property insurance policies therefore need
to spell out the post-loss duties of both the insured and the insurer in some
detail. Most of these duties are fairly obvious.
Duties of the Insured
A typical property insurance policy requires, for example, that the insured must
promptly tell the insurer there has been a property loss, and the insured must
cooperate with the insurer in showing that a covered loss occurred within the
policy period. If property coverage is on a named-perils basis, the insured
also needs to establish that the loss was caused by one of the named perils.
The insured also needs to cooperate with the insurer in establishing the
value of covered property that has been lost or damaged. It is much easier to
do this when an insured has maintained receipts of major purchases and has
a current inventory of personal property supplemented by photographs or
videotapes. Of course, the insured should keep this information at a separate
location so that the information itself is not among the property that is
destroyed.

Duties of the Insurer

The insurance company has a duty to pay losses fairly and promptly once the
coverage and the value of the property loss have been established. The
insurance policy and/or state law might specify that losses are payable within
a stated period, such as 60 days.
The insurer will usually settle property insurance claims by paying the policy
owner unless some other person with an insurable interest is also covered by
the policy. A mortgage holder or a lender named as a loss payee is also entitled
to be paid to the extent of the lender’s interest in the property.Insurers typically
settle property insurance claims by issuing a check or draft to the policy owner
and/or other insured parties. However, many policies give the insurer the right
to repair or replace the damaged property rather than making a monetary
settlement. Thus, for example, an insurer might have a glass shop replace a
broken windshield on a car rather than giving the policy owner cash and having
the policy owner deal with a repair shop. Auto insurers often do this because
they have arrangements with glass shops to provide prompt quality service at a
discount that enhances policy owner service and helps keep premiums down.

IMPORTANCE OF PROPERTY INSURANCE

IMPORTANCE OF PROPERTY INSURANCE HOUSEHOLDER TO

For most people, buying or building a house is probably the biggest and most
expensive investment they would ever make and it is vital that their investment
is fully protected. All over the world, many secure their property with the aid of
property insurance.
Property insurance provides protection against most risks to property, such as
fire, theft and some weather damage, these includes specialised forms of
insurance such as building insurance, content insurance, fire insurance, flood
insurance and earthquake insurance. It is important to mention that your
property is vulnerable and it can crash down any time owing to some disaster.
So why take the risk? Prevention they say is better than cure. The cost of
property insurance often depends on what it would cost to replace the house
and which additional items to be insured are attached to the policy. The
insurance policy itself is a lengthy contract, and names what will and what will
not be paid in the case of various events.
The property insurance policy is usually a term contract a contract that is in
effect for a fixed period of time. The payment the insured makes to the insurer
is called the premium. The insured must pay the insurer the premium each
term.
Most insurers charge a lower premium if it appears less likely the house will be
damaged or destroyed: for example, if the house is situated next to a fire
station or if the house is equipped with fire sprinklers and fire alarms
Building.insurance Buildings insurance is designed to cover the full cost of
rebuilding or repairing your property in the event of fire, storm damage,
lightning strike, earthquake, damage caused by burst pipes, vandalism or
explosion.
Some building insurance cover provide alternative accommodation if the
house is no longer fit to live in; liability cover if damage to your property affects
a neighbouring property, and help and support with access to approved
tradesmen. Most people are concerned about the amount of money they
would spend on repairing their property once it gets damaged by some natural
disaster. With adequate property insurance in place, you can be free of this
worry.
A major benefit of getting your property insured is that it covers the
replacement value. Most people do not care much about the replacement
value and they will lose everything in case of disasters like natural calamities.
The process of getting things back on track will be painstaking in case you have
not insured your property.
Buildings insurance will typically cover you for any damage or destruction to
your property, including the walls, roof, windows and doors, and pipe-work.
It also normally includes your bathroom and kitchen and most built-in interior
fittings. External structures, such as garages, sheds and outbuildings are often
also covered but you may have to specify them separately on your policy.
Boundary walls, fencing and gates, paths and driveways and damage to
electric and water supply pipes may not be covered.
Your property can be broken into at any time and the contents of the house can
be stolkn. Property insurance covers portable and immovable components of
the house and you will be provided financial assistance by the insurance
company to replace those lost or damaged. Insuring your property gets you a
lot of cover. You can choose the areas that are to be covered.Getting more
coverage will surely increase the premium rates but it will decrease the
premium per coverage. Contents insurance helps cover the furniture, personal
possessions and valuables that you keep in your home. It does not include
damage sustained to the blocks of the building or any permanent fixtures and
fittings in your home.
Contents insurance mostly covers household furniture, furnishings, carpets
and curtains on a new-for-old basis, personal possessions in your home,
garage, shed or other outbuilding, home office equipment, such as computers
or laptops, if you work from home, loss, damage or destruction to portable
items and adornments such as jewellery and watches, cameras, sports and
camping Equipment,Laptop ,Computers And Cash .

OVERVIEW

The Oriental Insurance Company Ltd was incorporated at Bombay on 12th

September 1947. The Company was a wholly owned subsidiary of the Oriental
Government Security Life Assurance Company Ltd and was formed to carry
out General Insurance business. The Company was a subsidiary of Life
Insurance Corporation of India from 1956 to 1973 (till the General Insurance
Business was nationalized in the country). In 2003 all shares of our company
held by the General Insurance Corporation of India have been transferred to
Central Government.

The Company Is a pioneer in laying down systems for smooth and orderly
conduct of the business. The strength of the company lies in its highly trained
and motivated work force that covers various disciplines and has vast
expertise. Oriental specializes in devising special covers for large projects like
power plants, petrochemical, steel and chemical plants. The company has
developed various types of insurance covers to cater to the needs of both the
urban and rural population of India.
 Among the key drivers of economic process. The travel insurance market in
India is gaining momentum annually as insurance corporations area unit
currently providing custom-built travel insurance plans, considering the
convenience of the travelers.

• To analyze if students are aware of the abroad insurance.

• To understand the financial condition of an abroad student and how they
use it efficiently
• Identifying challenges regarding abroad students
• Identifying the mental health support available to international students
RESARCH METHODOLOGY
The topic “A study of awareness of student abroad insurance among students
provides information about the main objectives and benefits of abroad
insurance for students
Sources of Data
Data collection is an important step in the research process. To collect data
from the Respondents, the researcher approached the respondents with
structured Ǫuestionnaire. The Instructions were also given in the form.
Respondents were asked to give their responses Freely and were permitted to
ask their difficulties, if any. After the respondents had submitted
Their responses, data was collected and conclusions were drawn, in this study,
both primary
And secondary data has been utilized to arrive at certain conclusions
Sample size:
Sample size determination is an important and often difficult step in planning
an empirical study. A sample is a subset of a population element, where a
population is a theoretically specified aggregation of an element. Hence a
sample size is a subset of a population. The aim of the sample was to select
estimated population parameters. The information was collected from the
sample size of the population.
What is a primary data?
Primary data refers to the first hand data gathered by the researcher
himself/herself Primary sources can be described as those sources that are
closest to the origin of the information. They contain raw information and thus,
must be interpreted by researchers. Secondary sources are closely related to
primary sources and often interpret them.
The sources of primary data are usually chosen and tailored specifically to
meet the
Demands or requirements of research. Also, before choosing a data collection
source, things
Like the aim of the research and target population need to be identified.
For example: when doing survey for a product, the goal of the survey and the
sample population need to be identified first. This is what will determine what
data collection source will be most suitable-an offline survey will be more
suitable for a population living in remote areas without an internet connection
compared to online surveys.
 How primary data was collected for this study?
Primary data was collected by conducting survey, the questions were asked
with the help of a set of structured questionnaires which comprised statistical
and personal information about the respondent i.e. their daily habits and some
questions to test their level of awareness regarding the mobile banking no
personal questions were asked so that they don’t feel uncomfortable the
data was collected offline
What is secondary data?
Secondary data refers to data that is collected by someone other than the
primary user. Common sources of secondary data for social science include
censuses, information collected by government departments, organizational
records and data that was originally collected for other research
purposes.
Secondary data analysis can save time that would otherwise be spent
collecting data and, particularly in the case of quantitative data, can
provide
larger and higher-quality databases that would be unfeasible for any individual
researcher to collect on their own, In addition, analysts of social and economic
change consider secondary ciata essential, since it is impossible to conduct a
new survey that can adequately capture past change and/or developments.
However, secondary data analysis can be less useful in marketing research, as
data may be outdated or inaccurate.
Sources of secondary data
Censuses and government departments like housing, social security. Electoral
statistics, tax records

➤ Internet searches and libraries

➤ GPS and remote sensing

➤ km progress reports.

➤ journals, newspapers and magazines

Data Analysis