This document summarizes a presentation about general/non-life insurance. It defines insurance and outlines key principles like utmost good faith, insurable interest, indemnity, contribution, subrogation, and loss minimization. It defines general insurance and describes major types like fire, motor, health, and marine insurance. For fire insurance, it explains scope and perils covered. For marine insurance, it outlines scope, who can take policies, selecting sum insured, and claims. It provides an overview of New India Assurance Co., including its history, position in the market, vision, mission, strengths, international presence, and awards.

1. A presentation by, Avish Shah (87), Deepa Suvarna (103), Saraniya Esakie (86), Shyam
Subramaniam (97) and Vaishnavi Esakie (86).
GENERAL / NON LIFE INSURANCE

2. DEFINITION OF
INSURANCE
Insurance in broad terms may be described as a method of
sharing financial losses of few from a common fund who are
equally exposed to the same loss.
Insurance is defined as the equitable transfer of the risk of a
loss, from one entity to another, in exchange for a premium,
and can be thought of a guaranteed small loss to prevent a
large, possibly devastating loss.

3. PRINCIPLES
OF
INSURANCE
UTMOST GOOD FAITH, INSURABLE INTEREST, PRINCIPLE
OF INDEMNITY, PRINCIPLE OF CONTRIBUTION,
PRINCIPLE OF SUBROGATION, PRINCIPLE OF LOSS
MINIMIZATION, PRINCIPLE OF ‘CAUSA PROXIMA’

4. UTMOST GOOD FAITH
Both the parties i.e. the insured and the insurer should a
good faith towards each other.
The insurer must provide the insured complete ,correct and
clear information of subject matter.
The insurer must provide the insured complete ,correct and
clear information regarding terms and conditions of the
contract.
This principle is applicable to all contracts of insurance i.e.
life, fire and marine insurance.

5. INSURABLE INTEREST
The insured must have insurable interest in the subject
matter of insurance.
The owner of the party is said to have insurable interest as
long as he is the owner of the it.
It is applicable to all contracts of insurance.

6. PRINCIPLE OF
INDEMNITY
Indemnity means a guarantee or assurance to put the insured
in the same position in which he was immediately prior to the
happening of the uncertain event.
The insurer undertakes to make good the loss. It is
applicable to fire ,marine and other general insurance.
Under this principle the insurer agrees to compensate the
insured for the actual loss suffered.

7. PRINCIPLE OF
CONTRIBUTION
The principle is a corollary of the principle of indemnity.
It is applicable to all contracts of indemnity.
Under this principle the insured can claim the compensation
only to the extent of actual loss either from any one insurer
or all the insurers.

8. PRINCIPLE OF
SUBROGATION
As per this principle after the insured is compensated for the
loss due to damage to property insured , then the right of
ownership of such property passes on to the insurer.
This principle is corollary of the principle of indemnity and is
applicable to all contracts of indemnity

9. PRINCIPLE OF LOSS
OF MINIMIZATION
Under this principle it is the duty of the insured to take all
possible steps to minimize the loss to the insured property
on the happening of uncertain event.

10. PRINCIPLE OF ‘CAUSA
PROXIMA’
The loss of insured property can be caused by more than one
cause in succession to another.
The property may be insured against some causes and not
against all causes.
In such an instance, the proximate cause or nearest cause of
loss is to be found out.
If the proximate cause is the one which is insured against,
the insurance company is bound to pay the compensation
and vice versa.

11. GENERAL
INSURANCE
DEFINITION, TYPES, ETC

12. DEFINITION OF
GENERAL INSURANCE
General insurance or non-life insurance policies, including
automobile and homeowners policies, provide payments
depending on the loss from a particular financial event.
General insurance typically comprises any insurance that is
not determined to be life insurance.
It is called property and casualty insurance in the U.S. and
Non-Life Insurance in Continental Europe.

13. TYPES OF GENERAL
INSURANCE
The major types of General Insurance are:
• Fire
• Motor
• Health
• Marine

14. FIRE
INSURANCE
WHAT IS FIRE INSURACE? ITS SCOPE AND
PERILS COVERED

15. WHAT IS FIRE
INSURANCE?
A fire insurance is a contract under which the insurer in
return for a consideration (premium) agrees to indemnify the
insured for the financial loss which the latter may suffer due
to destruction of or damage to property or goods, caused by
fire, during a specified period.

16. SCOPE
All moveable/ immoveable properties of the proposer on land
(excluding those in transit) broadly categorised as follows :
1. Building (including plinth and foundations, if required):
• Whether completed or in course of construction (excluding
the value of land).
• Interiors, Partitions and Electricals.
2. Plant & Machinery, Equipments & Accessories (including
foundations, if required)
• Bought Second hand.
• Bought New
• Obsolete Machinery

17. SCOPE
Stocks:
• Raw Material
• Finished Goods
• In process
• In trade belonging to Wholesaler, Manufacturer and Retailer.
Other Contents such as
• Furniture, Fixtures and Fittings
• Cables and Piping's
• Spares, Tools and Stores
• Household goods, etc.

18. PERILS COVERED
Fire Perils
• Fire
• Explosion / implosion
• Aircraft damage
• AOG perils (Lightening, SCTTTHF, Flood)
• Subsidence & landslide including rock slide
Social Perils
• Riot, strike, malicious damage.
• Terrorism (the optional cover).
Other perils
• Impact damage.
• Bursting or overflowing of water tanks & pipes.
• Bush fire.

19. MARINE
INSURANCE
WHAT IS MARINE INSURANCE? ITS SCOPE, WHO
CAN TAKE THE POLICY? HOW TO SELECT SUM
INSURED? AND HOW TO CLAIM?

20. WHAT IS MARINE
INSURANCE?
This policy covers goods, freight and other interests against
loss or damage to goods whilst being transported by rail,
road, sea and or air.

21. SCOPE
Goods in Transit:
• Inland Transit
• Import
• Export

22. WHO CAN TAKE THE
POLICY?
The contract of sale would determine who buys the policy.
The most common contracts are :
• FOB (Free on Board)
• C & F (Cost & Freight)
• CIF (Cost, Insurance & Freight)
In FOB AND C&F contracts, the buyer is responsible for
insurance.
Whereas in CIF contracts the seller is responsible for
insurance from his own premises to that of the purchaser.

23. NEW INDIA
ASSURANCE
CO. LTD
COMPANY PROFILE, VISION, MISSION,
STRENGTHS, PRESENCE, ETC

24. HISTORY
Incorporated on July 23rd, 1919 Founded by the House of
Tata Founder member - Sir Dorabji Tata.
Nationalized in 1973 with merger of Indian companies.

25. PRESENT POSITION
Gross Premium (in India) of Rs. 8542.86 crores in the year
2011-2012, as against Rs. 7097.14 crores in the year 2010-
2011.
Assets Rs. 42162.74 crores as on 31st March 2012.

26. MARKET SHARE

27. PRESENCE
INDIA
• 28 Regional Offices
• 5 Large Corporate Offices
• 400 Divisional Offices
• 588 Branches
• 26 Direct Agent Branches
• 149 Micro Offices
INTERNATIONAL
• Overseas operations commenced in 1920
• Operations in 20 countries
• Overseas Premium of Rs. 1531.37 crores in the year 2011-12

28. STRATEGY
VISION: To be the most respected, trusted and preferred Non-
life Insurer in the Global markets we operate.
MISSION: To develop General Insurance Business in the best
interest of the community. To provide Financial Security to
Individuals, Trade, Commerce & all other segments of the
Society by offering Insurance products & Services of High
Quality at affordable Cost.

29. PIONEERS
First company to set up an Aviation Insurance Department in
1946.
First company to handle the Hull Insurance requirements of
the Indian Shipping Fleet.
First company to establish its own Training School.
First company to introduce the concept of 'Model Office
Training'.
First company to create department in Engineering
insurance.
Pioneer in Satellite insurance.

30. AWARDS
Best Insurance Provider rated by IRDA.
Rated best non life insurance company by Nielsen for 5 years
(2005, 2006, 2007, 2010, 2011)