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Agenda

Practical Implementation
Innovation
Latest News Articles

General Insurance
Insurance contracts that do not come under the ambit of

life insurance are called general insurance.
The different forms of general insurance are fire, marine,
motor, accident and other miscellaneous non-life
insurance.
The economic value of the tangible asset is to be
protected for which the general insurance is needed.
Like life insurance, general insurance products come at a
price in the form of premium.
General insurance is broadly divided into three areas:
personal lines, commercial lines and London market.

MARINE INSURANCE
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 ORIGINATED IN ENGLAND
 GOVERNED BY - Indian Marine Insurance Act 1963
 COVERS THREE MAIN INTERESTS in a marine venture :•

Hull – it represents the ship;
Cargo – it is the goods being transported by the vessel; and
Freight – is the profit or earnings of the ship at the end of a marine
venture.

 MARINE INSURANCE COVERAGE

FORTUITOUS
INSURED PERILS


Collision
Foundering at Sea
Taking at sea

HULL INSURANCE and Types of
Policies
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HULL refers to ocean going vessels (ships,

trawlers, barges, fishing vessels, etc)
HULL AND MACHINERY INSURANCE
DISBURSEMENT AND INCREASED
VALUE INSURANCE
SHIP REPAIRER’S LIABILITY
WAR RISKS
BUILDERS’ RISK POLICY
PREMIUMS OF INSURANCE

CARGO INSURANCE
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 Cargo insurance are codified under the Institute of Cargo Clauses (A),

(B) and (C).
 RISKS COVERED BY ICC CLAUSES
 All perils, Fire (including while extinguishing)
 Collision with another vessel/other objects
 Disposal of cargo at a port of distress
 Lightning, earthquakes, volcanic activity
 Loss caused due to incursion of water
 Package lost/ damaged in loading and unloading process (called sling
loss)

FREIGHT INSURANCE
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 Profit a ship owner makes by transporting his own cargo or the cargo of

another person
 TYPES OF FREIGHT:
 Prepaid Freight – paid in advance by owner of goods, at his own risk. Covers
this while insuring goods.



Freight payable on delivery – paid once goods are delivered. If
carrier fails to deliver goods, then they are not entitled to freight.
Lump sum Freight – when carrier is not required to deliver entire
cargo, but a sizeable amount of cargo should be delivered.
Time charter hire – paid to ship owner by owner of goods for
making use of the ship for transporting his goods

FIRE INSURANCE
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 PERILS COVERED

Fire, Lightning, Explosion, Aircraft damage, Riot, Strike, malicious
damages, tempest, flood, landslide, bursting, missile testing
operations, bush file, terrorist cover (with extra premium)
 COVER MAY BE EXTENDED WITH EXTRA PREMIUM (ADDON COVERS)
 Architect's, surveyor's consulting engineers fees, impact damage,
bursting and/or overflowing of water tanks
 Removal of debris, deterioration of stock in cold storage, forest fire,
earthquake, loss of rent, start-up expenses

 FIRE - SPECIAL POLICIES



FLOATER
DECLARATION POLICIES
REINSTATEMENT VALUE POLICIES
INDUSTRIAL ALL RISKS POLICY

SOME MISCELLANEOUS INSURANCE
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CRIME INSURANCE
BAGGAGE INSURANCE
MONEY IN TRANSIT INSURANCE
JEWELLERS’ BLOCK INSURANCE
HORSE / DONKEY / MULE / PONY INSURANCE
KIDNAP & RANSUM INSURANCE
VIDESH YATRA POLICY

INNOVATION IS COMBINATION OF ACTIVITIES AND TECHNOLOGIES
THAT BREAKS EXISTING PERFORMANCE TRADE-OFFS IN THE
ATTAINMENT OF AN OUTCOME IN A MANNER THAT EXPANDS THE
REALM OF THE POSSIBLE.

THE EARLIEST POLICIES LARGELY COVERED LOSSES BY
MERCHANTS GOING THROUGH FOREIGN LANDS, ENABLING THEM
TO SHARE THE RISK. MARITIME INSURANCE DATES BACK TO 13 TH
CENTURY AT LEAST.

LIFE INSURANCE, ACCIDENT, HEALTH INSURANCE AND NOW
EVERYTHING FROM BUSINESS INTERRUPTION TO CYBER
INSURANCE REFLECT INNOVATIONS DEVELOPED

Telematics insurance

 It is defined as the integrated

use of user-generated source
data, telecommunications, and
analytics to support insurance
related products and services
 Also known as black box

insurance telematics policies
offer personalized insurance
based on persons driving
behavior.

INNOVATION TO OPPORTUNITY

Putting the customer first : The competitive
advantage

Latest News
General insurers' H1 premium up 12.3 per cent, may miss

annual target of Rs 1 trillion.

Fall short of its premium growth target of Rs 1 trillion despite
registering double-digit growth in the first half of the current fiscal.

Closed 2014-15 with a total premium of Rs 87,000 crore.

Motor and health have shown slow progress in the second half.

All the four public sector general insurers -- New India Assurance,
National Insurance, United India Insurance and Oriental Insurance
-- at 11 per cent have shown better growth than their peers in 17
private sector general insurers.

Source: Economic Times Article; Oct 25, 2015

Latest News Cont..
 IRDAI draft asks general insurers to float IPOs if needed.

Allows an insurance company to go for IPO subject to compliance of
lock-in period specified at the time of grant of certificate of registration.

Public sector general insurance firm can go for "IPO subject to
compliance of the provisions of 10B of the General Insurance Business
(Nationalisation) Act, 1972“.

Suggested that the company issue the equity as fully paid-up.

No Indian insurance company transacting the non-life insurance or
stand-alone health insurance or reinsurance business shall approach
Sebi for public issue of shares and for any subsequent issue, without
previous written approval of the authority.

Source: Economic Times Article; Sep 28, 2015

Other News
Kotak Mahindra General Insurance to commence

operations with focus on retail.

Initial Capital of Rs 135 Crore.
operate in all general insurance segments, with a focus on
retail business - motor, health, home and travel insurance.
Plans to foray into commercial lines comprising fire, burglary,
marine.

State-run general insurers' common TPA launch

postponed again.

Investment of over Rs 200 crore by the four general insurers.

Thank You