INDEX

INSURER INSURED RISK PERIL SUM INSURED COVER SMI CLASS SUBCLASS DISCOUNTS LOADING DEDUCTIBLE

EXCESS RATE CUSTOMERS ISSUE DATE INCEPTION DATE CONDITIONS UNDERWRITING PROPOSAL FORM CLAIM POLICY DURATION PREMIUM CALCULATION

Types Of Insurance
General Insurance Life 1.Group Medical 2.Group Life 3.Individual Life

General Insurance
Basic Concepts

The Insurance Transaction

The Risk

The Insured

The Insurer

Insurance Company is the INSURER

One who insures and takes a policy is the INSURED

RISK

Risk is a condition where there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for there is no requirement that the possibility be unmeasurable,only that it must exist.

PERIL

A peril is a cause of loss,e.g. fire,windstorm,hail or theft.

SUM INSURED(SI)

Value of the property/max amount payable when a loss occurs.

COVER
A group of perils put together. Fire,Flood,Earth Quake,Theft RSMD-Riot,Strike,Malacious Damage

SMI

Subject Matter Insured Eg building ,FFF

CLASS
Classifications of General Insurance 1.Fire 2.Marine 3.Miscellaneous(Motor,Personal Accident,Money,Engineering)

SUBCLASS
PTE Preferred Car Workshop Private Car Standard Tour Care Plus Individual Tour Care Plus Family

DISCOUNTS
The amount that is reduced from the Premium. For E.g., FEA,ATD,OFD,NCD

LOADING
This is the amount added to the Premium amount. E.g.,Katcha Construction Flash Point,Earth Quake zone

DEDUCTIBLE
This an amount that is reduced from the claim amount. Decided by tariff advisory committee. Discourage small claims.

EXCESS
For a predecided claim amount. Amount is deducted from Premium.

CHARGES
1.Service Tax 2.Educational Cess 3.Stamp Duty

RATE
The factor upon which the premium is based. E.g.,%,per mil

PREMIUM CALCULATION
1.Annual 2.Pro-Rata 3.Short Period

CUSTOMERS
A customer may be: 1. Insured or policy Holder 2. Broker/Agent 3. Banks 4. Other Insurance Companies 5. Reinsurance Companies 6. Surveyors/Loss Assessors

CONDITIONS
All policies contain a list of conditions.They appear in different parts of the policies but convey similar points. 1. That the insured will comply with all the terms of the policy. 2. That the insured will notify the insurer of any changes in the risk.

UNDERWRITING
The process of selecting risks for insurance and determining in what amount and on what terms the insurance company will accept the risk.

PROPOSAL FORM
The information of the risk to be insured is entered.

ISSUE DATE
Date on which the Policy is issued.

INCEPTION DATE
Date on which Policy commences/with effect from.

DURATION OF POLICY
Annual Short Term Long Term

COMMISSION
Commission to agents and brokerage to brokers. Both are a percentage of Premium.

CLAIM
A request for the payment of a loss which may come under the terms of an insurance contract. 1.date of loss 2.date of intimation 3.estimate 4.surveyors 5.loss assessors 6.claim provision 7.outstanding claims 8.claims ratios

COVER NOTE
It states that insurance is in force and give breif details of the cover. Temporary

CERTIFICATE OF INSURANCE
This certificate provides evidence of insurance to the Police and Registration authorities.

THE POLICY SCHEDULE

It is the place where the policy is made personal to the insured. It includes:1.the insured 2.the address of the insured 3.the nature of business/profession 4.the period of insurance etc.

ENDORSEMENTS
Alterations to the issued Policy. Non-monetary Monetary

FIRE INSURANCE

The standard fire policy covers damage to the property caused by fire,lightening or explosion. The other perils 1.storm tempest or flood 2.burst pipes 3.earthquake 4.aircraft 5.riot,civil commotion

6.malicious damage 7.explosion 8.impact

REINSTATEMENT
Can be attached to the fire policy during settlement of claim. To cover stocks which are subject to market fluctuations in quantity.

DECLARATION POLICY
Declare the value of the stocks at regular interval

FLOATING POLICIES
These policies may be issued for stocks at various locations under one sum insured.

MOTOR INSURANCE
Third party only:-covers the insureds liability in respect of third party injury,death or property damage. Comprehensive :-includes accidental damage to the vehicle in addition to the thirt party ,fire and theft cover.

Such policies may also include personal accident benefits for insured and spouse,medical expenses and loss of or damage to rugs ,clothing and personal effects.

Motor policies are described by the type of vehicle insured.Thus there are separate policies for private cars,motor cycles,commercial vehicles[taxis,lorries,vans,hire cars and so on] ,and special type of

Vehicles [like forklift trucks,mobile cranes,etc.]

PERSONAL ACCIDENT
The policy is to provide compensation in the event of an accident causing death or injury. What are termed as capital sums are paid in the event of death or certain specified injuries,such as the loss of limbs or sight as may be

defined in the policy.A typical benefits schedule is:Death 100% of the SI Loss of one hand Or leg or eye 50% of the SI