Types of Insurance

Insurance can be classified in to two types, they are

INSURANCE

Life insurance

Non- Life insurance

General insurance

Miscellaneous Insurance

Marine Insurance

Fire Insurance

Personal acc. Insurance

Motor vehicle Insurance

Insurance : Insurance means a promise of compensation for any potential future losses. It facilitates financial protection against by reimbursing losses during crisis.

Non-Life Insurance : Including automobiles and home owners policies, provide payments depending on the loss from particular financial event.

General Insurance : General insurance typically compraises any insurance that is not determined to be life insurance.

Types of General Insurance : The types of general insurance are as follows

 Marine Insurance : Marine insurance is a contract of insurance under which the insurer undertakes to indemnify the insured against losses incidental to marine adventure. It may cover loss or damages to the ship, cargo, freight, vessels or any other subject of a marine adventure. Features of Marine Insurance : 1. It is a contract of indemnity. 2. It is a contract based upon the utmost good faith. 3. The striking features of marine insurance policies is that they are issued on agreed value basis. Restricted to damage or injury that you cause to a third party.

Fire Insurance : Fire insurance means insurance against any loss caused by fire. It is a contract of agreement between the insurer and the insured whereby the insurer undertakes to indemnify the insured for distruction of or damage to property caused by fire or other specified perils during an agreed period of time, in return for payment of a premium in lump sum or by instlaments. Features of Fire Insurance : 1. Fire insurance is a contract of indemnity. The insurer is liable only to extent of the actual loss suffered. If there is no loss there is no liability, even if there is fire. 2. Fire insurance is usually made for only one year. The policy can be renewed according to the terms of the policy. 3. Fire insurance is a contract of good faith. The policy holder and the insurer must disclose all the material fact known to them. Personal Accident Insurance : Personal accident insurance is a contract of insurance. It provides absolute protection against death or disability arising solely and directly from accident caused by violent external and visible means. It includes or the events covered by personal accident insurance are as follows 1. Rail or road or air accident. 2. Injury due to any collision.

3. Snake bite or dog bite. 4. Injury due to bursting of gas cylinder. 5. Burn injury. Motor Vehicle Insurance : Motor vehicle insurance falls under general insurance. Its importance is increasing day by day. In motor insurance the owners liability to compensate people who are injured or killed through the negligence of the motorists.

Features of Motor Vehicle Insurance : 1. 2. 3. 4. Unlimited liability for 3rd party death or injury. Car emergency assistance. Car break down assistance. Past accident assistance.

Present Scenario of General Insurance in India

The govt of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory Development Authority Bill, lifting all entry restrictions for private players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26% equity capital for foreign partners in an insurance co. There is a proposal to increase this limit to 49%. The sector facilitates long term funds for infrastructure development and simultaneously strengthens the risk taking ability of the country. Indias rapid economic growth and development over the past decade is consider to be very significant on the global canvas. Over the past five years many foreign insurance co, have ventured into the Indian landscape in order to have immense and untapped latent potential of this industry In the private sector 12 life insurance and 8 general insurance co, have been registered. A host of private insurance co, operating in both life and nonlife segments have started selling their insurance policy since 2001. General insurance premiums to 0.65% of Indias GDP.

Players of General Insurance in India :

Public Sector : New India Assurance co ltd : Established in 1919 at Mumbai. The premium collected by this is 10000 crores in 2012-2013. National Insurance co ltd : Established in 1906 at Kolkatta. Asset 88.67 billion