Professional Documents
Culture Documents
STANDARD : F.Y.B.M.S.
DIVISION : B
ROLL NO. : 14
Undertaking
I , Mr. KARTIK RAITHATHA a student of FYBMS , Roll No. 14 do
hereby state that:-
2. I have not copied the project , or any part , or portion thereof , from
any student.
Place : Mumbai,
----------------------------
Kartik S Raithatha
GENERAL INSURANCE
With the opening up of the insurance industry to the private sector, the need for a
strong, independent and autonomous Insurance Regulatory Authority was felt. As
the enacting of legislation would have taken time, the then Government
constituted through a Government resolution an Interim Insurance Regulatory
Authority pending the enactment of a comprehensive legislation.
1. INSURANCE:
Insurance is the means of managing risk and protection against financial loss
arising as a result of contingencies, which may or may not occur.
In other words, insurance is the act of providing assurance, against a possible loss,
by entering into a contract, with one who is willing to give assurance. Through this
contract the person willing to give assurance binds himself to make good such loss, if it
occurs.
2. GENERAL INSURANCE:
General insurance means managing risk against financial loss arising due to fire,
marine or miscellaneous events as a result of contingencies, which may or may not occur.
General Insurance means to “ Cover the risk of the financial loss from any
natural calamities viz. Flood, Fire, Earthquake, Burglary, etc.. i.e. the events which
are beyond the control of the owner of the goods for the things having insurable
interest with the utmost good faith by declaring the facts about the circumstances
and the products by paying the stipulated sum , a premium and not having a motive
of making profit from the insurance contract.”
1. Mis-description :
the insurance policy shall be void and all the premiums paid by insured may be
forfeited by the insurance company in the event of mis-presentation or mis-
declaration and/or non-disclosure of any material facts.
2. Reasonable care :
The insured shall take all reasonable steps to safeguard the property insured
against any loss or damage. Insured shall exercise reasonable care that only
competent employees are employed and shall take all reasonable precautions to
prevent all accidents and shall comply with all statuary or other regulations
3. Fraud :
If any claim under the policy may be in any respect fraudulent or if any fraudulent
means or device are used by the insured or any one acting on the insured’s behalf
to obtain any benefit under the insurance policy, all the benefits under the
insurance policy may be forfeited.
1. insurable interest
3. subrogation
4. contribution
5. indemnity
However the risk of loss or damage by war can be insured by payment of additional
premium in some cases only.
INDUSTRIAL VISIT
VILE-PARLE. MUMBAI
General information:
Any person who has insurable interest in the subject matter to be insured can be insured
person. For example, in case of motor insurance person have the ownership of the
vehicle can insure his car. In case of Mediclaim farther can take our Mediclaim policy for
his son.
There are a number of policies available under general insurance. Since the company
deals in non-life business has various types of policies which vary from small needle to
as large as big plane or ship according to the need of the society, for example, motor
insurance, personal accident, Mediclaim insurance, householders insurance, shopkeepers
insurance, marine cargo insurance, hull insurance, boiler insurance, electronic equipment
insurance, burglary insurance, fire insurance, etc.
3. Terms of policies ?
Generally all non life insurance policies are annual policies. However, it is permissible to
issue short term policies as well as long term policies only in few cases, for example,
long term policies are available only in the case of housing premises.
4. Documents required for taking a policy ?
The concept of general insurance is based on the principle of utmost good faith in most of
the cases only proposal form which acts as a declaration is required. In few cases like in
Mediclaim doctor’s report is required according to the age of the proposer.
Risk coverage :
In case of motor insurance policy the risk covered is loss or damage to insured vehicle by
any accidental external means in addition to legal liability for third party property
damage, injury and death.
in case of fire insurance the risk covered is fire and allied perils like explosion, lightning,
bush fire, storm, tempest, etc.
In case of burglary insurance the risk covered is loss or damage to insured property by
burglary. House breaking, larceny and theft.
This policy in given in conjunction with basic fire policy. This policy covers the
loss of income suffered due to business interruption which has taken place due to
occurrence of insured perils like fire. In addition this policy also covers standing charges
like salary to the permanent employees and increased cost of working like addition
expenditure incurred for putting back the production on line.
As per the motor vehicle act this is the minimum insurance coverage for any
vehicle plying on the road. This risk is covered under motor policy. Third party means
loss or damage to the third party property damage or third party injury or death.
Proposal & acceptance :
2. Are there any conditions for the acceptance of the proposal ? If yes what ?
Yes there are conditions for acceptance which insurer may impose depending
upon risk perception. For example, in burglary if the jewellery shop has no arm guards
company may charge higher premium with a condition that all goods will be secured in
sage locked after the closure of the shop. If the motor vehicle to be insured is old than the
company may put compulsory excess of say rs.10,000 , which means that the company
will not settle any claim up to rs.10,000.
Company may not even accept the proposal in case the risk involved very high.
For example, in burglary insurance of industry which has been locked and left
unoccupied without any security.
If there are any changes to be made in the policy renewal will require a specific
request for the same or else all renewal are invited on the same expiring terms unless
there has been any adverse features.
There are minimum as well as maximum limits prescribed under various types of
policies. The limits differ for different policies.
For separate types of policies separate proposal forms are required. The reason is
that the coverage offered are different policies are different.
Premium:
Claims :
2. give immediate notice thereof to the company and shall within 14 days
thereafter furnish to the company at his own expenses detail particulars of
the amount of the loss or the damage together with such explanations and
evidence to substantiate the claim as the company may reasonably require.
Claims are settled on the basis of documents supplied by the customers. In case of
motor insurance average time taken for settlement of claim after submission of all
documents is 7 days. It further depends upon the time taken but settling authority.
New India assurance company has adverse claim ratio in case of motor insurance
and Mediclaim insurance. In other insurances the claim ratio is within profit margin.
4. How does the company calculate the amount to be paid in when claimed ?
5. Does insured get any amount after specific period without having any affect to
the goods ?
No insured doesn’t get any amount after specific period. General Insurance policy
comes into rescue after the happening of misfortunate event only.
6. Does the company take away the goods assured after happening of the
misfortunate event ?
Yes as per the subrogation principle, insurance company has the right to take
away the salvage. It means when the claim are settled on total loss basis. The Insurer
Company has the right to take the possession of the salvage.
Re-insurance :
1. What is re-insurance ?
Many times it may happen that the risk proposed for insurance is to large for one
to accept in such case, one insurer insures the risk and then in turn insures part of that risk
with other insurer. Such decision or retention of part and re-insuring balance of the risk is
termed as re-insurance.
When a claim arises where re-insurance arrangement has been made the parent
insurer first settles the claim in full and subsequently recovers the proportionate share of
the claim from the re-insurer.
CONCLUSION
The reason to opt to visit “The New India Assurance Company Ltd.”
As the said Company is the largest Non-life Insurance Company which very popular
among the public.
I hereby take the opportunity to sincerely thank the concerned officer and the Company
for extending their whole hearted support to provide me the information during my visit.
The Genaral Insurance is a basic facilities to extend the business without any tension and
risk which are beyond the control of the human beings. The insurance is a device or
mechanism to spread the loss by contributing sum in term of premium.