General insurance presented by kavitha from Tkr institute of management and science.

Kavitha
TKR Institute of Management & Science,
Hyderabad

Introduction:
General insurance corporation of India (GIC) was formed in pursuance of section 9 (1)of GIBNA.IT was incorporated
on 22 November 1972.under the companies act1956 as a private company limited by share.
Meaning: General insurance is typically defined as any insurance that is not determined to insurance. These would
Include workers compensation public liability, product liability, commercial fleet and other general insurance
products sold in a relatively standard fashion to many organizations.
Definition: Insurance contact 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.
Kavitha
TKR Institute of Management
& Science, Hyderabad

General insurance:
General insurance is a contingent contract with the aim of providing security againstrisk.IT is a short term
contract, premium of which varies with renewal of contract. There is no specification made relating to surrender
value or paid up value.
Risk face by owner of Assets: The owner of Assets may face the risk that assets may get damaged, destroyed or
being stolen by different causes is known as property risk. A property risk. A property risk may face three types of
losses.
They are direct losses and indirect losses and losses from extra expense for maintaining property.
Direct losses: rect losses: Direct Losses emerge directly from unsecured peril.
Indirect losses: indirect losses is also known as consequential loss. For example factory which insured fired
damage by fire policy.
Extra expense: when company incur loss due to fire then alternative arrangement should be made to continue the
work. Kavitha

Types of general insurance:
There are different types of general insurance they are:-
• Automobile insurance: It covers loss due to legal liability against the driver and losses to the automobile.
• Aviation Insurance: IT covers hull, spares, war and liability risk.
• Business Insurance: Business Insurance includes professional liability insurance and business owners policy
that covers multiple risks of business owners.
Builder’s risk Insurance: It covers risk of losses, damages to property during construction.
• Credit insurance: It covers risk of being unpaid because of borrower’s disability.
• Crime insurance: it covers losses which arises because of criminal act of third party.
• Crop insurance: It covers framers risk involved in growing crops.it insures loss or damage of crops caused due
to weather, hail, drought, insects etc.
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Marine Insurance:
It is a common type of insurance that protects good Shipped.it covers loose ships and cargos.
• Travel insurance: IT liabilities travelling against medical expenses, travel delay, personal liabilities etc.
• Fire insurance::fire insurance can be defined as” The agreement which covers the loss” Casualty insurance:
incurred by incurred because of fire accident.
• Casualty insurance: It covers accident which are not restricted to specific property.
Health insurance meaning: The term’ health insurance’ is a generic term which covers different types of insurance
contracts which are even though interrelated with each other but offers security against different types of risk. Health
Insurance was also referred as accident insurance, accident health insurance, and sickness insurance and disability
insurance. Health Insurance is basically divided into two different types of insurance as follows,
1.Disability income Insurance. 2. Medical expenses Insurance. Kavitha

Important of health insurance:
Diabetes has become a common disease among the Indian families.
Treatment disease is expensive. Thus health insurance helps in providing financial support to individuals.
VARIOUS HEALTH INSURANCE POLICIES
• Types of Health Insurance Policies in India
• Individual Health Insurance.
• Family Floater Health Insurance.
• Group Health Insurance.
• Senior Citizens Health Insurance.
• Maternity Health Insurance.
• Critical Illness Insurance.
• Top-Up Health Insurance.
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1.Individual Health Insurance
An Individual Health Insurance is a policy which you may buy to cover you, your spouse, children and parents. This type of
insurance policy covers your medical expenses for injury & illnesses related hospitalization, surgery costs, room rent,
daycare procedures and more.
2.Family Floater Health Insurance:
If you want an affordable health insurance policy for all the members of your family then Family Floater Health Insurance
should be your choice. Under a Family Floater Health Insurance, single Sum Insured floats for all the members covered
under the policy. A Family Floater Health Insurance Plan is beneficial because the premium is comparatively lower than the
Individual Health Insurance policy. This policy can cover yourself, your spouse, children and parents.
You should not consider adding members of your family who are above 60 years of age. They are more prone to illness and
hence it will impact the premium.1Family Floater Health Insurance If you want an affordable health insurance policy for all
the members of your family then Family
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How Many Family Members Do Family Floater Plans Cover?
In most cases, family floater plans cover a family, comprising you and your partner along with up to four kids. There are
some plans which also allow you to include your parents in the same policy. Also, a few family floater policies in India permit
you to add your in-laws and siblings too. However, the higher the number of people the plan will cover, the higher the sum
insured you will need. This will significantly increase the premium of the health insurance cover for family. Thus, it may be
better only to include your spouse and your kids in such policies. While you can add your parents to many policies, it may not
really be a prudent decision. You may consider buying a separate policy for them.
Family Floater Health Insurance –
Who All Can Be Included in the Policy?
Medical emergency is in no way related to someone’s age. This means that every member of your family, including kids,
should have health insurance. But rather than purchasing individual health insurance for every family member, you can prefer
health insurance coverage for family through a family floater plan. Kavitha

3.Group Health Insurance: A Group Health Insurance policy is designed for a group of employees working together. So if
you own a start-up or a corporate house, you should buy such plans for your employees. It is a kind of benefit offered to the
employees. As an employees you can buy the cover to boost the rate of employee retention.
4.Senior Citizens Health Insurance: That insurance policy which is dedicatedly designed for old people above the age of
60 years is called Senior Citizen Health Insurance Plan. If your parents or grandparents are above 60, then this good choice
for you.
5. Maternity Health Insurance: A Maternity cover can be bought as a rider along with the basic health insurance plan. All
the expenses incurred in the prenatal stage, delivery and post-natal stage are covered.
6.Critical Illness Insurance: The occurrence of the lifestyle-related diseases are on the rise. Keeping this in mind, the
insurance companies have offered the Critical Illness Policy.
Dedicatedly designed for middle-class families, this health plan covers diseases like:
Cancer, Stroke, Kidney Failure, Paralysis
7. Top-Up Health Insurance: You can buy a top-up policy if you seek coverage for higher amounts. But such plans come
with a “Deductible Clause”. So, in case of a claim the payment will be made over and above a defined limit mentioned in the
policy. Like if you have taken a cover for 15 lakhs and it has a deductible of Rs.3 lakhs, then you will have to bear claim up
to Rs.3 lakhs. The

Various types of accident insurance:
There are two types of accident insurance they are,
Personal accident insurance: Personal accident insurance aims at paying a fixed of compensation to person
who met with an accident leading to death or disablement in body due to accident injury.
When insured become partial disable then insurer will pay one time or periodically till recovery.
Insured need to follow policy condition like written notice must be given before cremation in case of death and
in any case, must be given with in one month after the death.
Group personal accident policy
Group personal accident policy will be issued only if there is common relationship among group members and a common
point of controlling Insurance scheme’s
Claim form is made to acquire information relating to the following,
Personal information relating to age, occupation, name and address, medical certificate details of other Insure
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Group personal accident premium calculated
5000 or 1% of the sum insured will be paid out to the insured. Fixed medical expenses of Rs. 5000 or 10% of the
total sum insured or 40% of the total admissible claim will be paid to the insured as medical expenses. 10000 is
paid out in case of the death or disability of the insured caused due to an accident.
How many people can be in a group insurance
To be eligible for small business health insurance, a company must have between one and 50 employees. That is
considered a small business for purposes of purchasing group health insurance. If you have more than 50
employees, you’ll need to: apply for large group coverage.
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Benefits of health and accident insurance:
• Coverage against medical expenses
• Coverage against critical illness
• Cashless claim benefits
• Additional protection over and above you employee cover
• Tax benefits
Personal Accident Insurance:
• Cover against accidental death or permanent total disability on account of accident
• Optional cover against accidental hospitalization expenses & accidental hospital daily allowance
• No health check-up required
• Digitally signed policy available online
• Easy claim process with minimal documentation
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MOTOR AND FIRE INSURANCE
Meaning of motor vehicle insurance:
Motor insurance is an insurance policy that covers the policyholder in case of financial losses –resulting from an
accident or other damages –sustained by the insured vehicle. A comprehensive motor insurance policy covers
damages to third-party and third-party property along with compensating for own losses as well.
Definition of motor vehicle insurance:
Vehicle insurance is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide
financial protection against physical damage or bodily injury resulting from traffic collisions and against liability
that could also arise from incidents in a vehicle.
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Types of motor vehicle insurance policies
Different types of policies which are issued under motor vehicle insurance to cover the losses emerging from motor vehicle
1. Act/Liability policy: Act/ Liability policy is issued with the aim to fulfill the requirements of motor vehicle act,1988 and
cover act risk. According to Act, it is compulsory for motor vehicle to have insurance to overcome the liability emerging
from use of motor vehicles in a public place.
2. Third party policy: Third party policy provide Insurance coverage for liability of third parties who suffer the loss
resulting in damage of property/person injury/death policy must have coverage of liability faced by insured.
3. Package / comprehensive policy: This policy is also referred as from 'B’ policy. It is an optional policy which covers
personal damages, losses and act liability.
4. Collision Insurance policy: Garage Insurance policy: Garage Insurance policy covers the risk which is related to motor
vehicles standing in motor garage or service station.
5. Collision Insurance policy: collision Insurance policy provide Insurance coverage to damages and losses which are
caused by collision.

Benefits of motor vehicle insurance policies:
• Badly insures to yourself or other.
• Lost wage die to injury
• Benefits to survivors when an accident results in death
• Law suits brought against you as the result of an accident
• Repairs made to your car due to damages caused in an accident.
Fire insurance can be defined as “The agreement which covers the loss incurred by insured because of fire accident
according to a specified Insurance policy”. The fire insurance helps an individual a shopkeeper or a business firm to
rebuild it’s lost property or restart it’s operations as usual which were halted due to unexpected accident and provides
enough financial support to the insured parties. Best company for fire insurance
Amica: Best for claims
USAA: Best for military families
State farm: see theirs cheapest plans
All State: get a custom quote directly from all states in minutes
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Features:
1.Policy: fire insurance involves a specific policy, on which both the parties agree into a contract. The policy duly states
the procedure of premium payment and claim settlement.
2.Lawful consideration: A fire insurance policy includes lawful consideration from the insured. The insured must duly
pay the stated premium with the time period.
3.material facts: In a fire insurance policy, it is necessary to disclose all the material facts by both the parties i.e.
Insurance company and the policy holder.
SCOPE:
The scope of fire insurance basically depends upon on the nature of policy selected. General fire insurance policy have
limited scope to the insured, while the special policies have a wider scope for the policy holder.
General policy: Good property being damaged due to fire. Good or property spoiled while restricting the expansion of
fire. Damage to good while shifting from area of fire
Special policies:
• All losses covered in general fire insurance policy
• Losses due to stoppage in production
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Types of fire insurance policies
• Fire insurance are of nine types as follows,
• Special policy
• Floating policy
• Declaration policy
• Average policy
• Valued policy
• Adjustable policy
• Comprehensive policy
• Consequential loss policy
• Replacement policy
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Credit insurance:
Credit Insurance covers the risk of being unpaid because of borrowers disability. If the debtor dies or is disabled , the
insurer clears the debt in full or part. Example: mortgage insurance.
◦Indian government has taken measures to build guarantee corporation to secure lender against default risk of the
borrower with respect to special group like exporters, small scale industries etc.
Corporation of credit Insurance
1. Deposit insurance and credit guarantee corporation of India:
After the failure of banking in 1950s and early 1960s, deposit insurance scheme was initiated on 1st January 1962.
Deposit Insurance: Deposit insurance and credit guarantee corporation of India provide Insurance coverage to all
commercial banks which consists of foreign bank branches, local area banks, regional rural banks and cooperative
banks. Kavitha

2 . Export Credit guarantee corporation of India:
In 1957, government of India established export Credit guarantee corporation of India in order to provide
assistance and reinforce export promotion.
• Standard policy
• Specific policy
Financial guarantee
a) Packing credit guarantee
b) Export production finance guarantee
c) Post –shipment export Credit guarantee
d) Transfer guarantee
3. Credit guarantee fund trust for small industries:
All though these organizations are similar to Insurance companies but doesn’t come under the control of IRDA nor they are
managed by the insurance act1938.
Eligibility lenders: The eligible lender for guarantee are all scheduled commercial banks, national small industries
corporation limited and north eastern development finance corporation limited.
Free structure
• Up to the amount of ₹2lakhs
• To female entrepreneurs
• Eligible borrower staying in Jammu and Kashmir and north eastern region
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CREDIT INSURANCE OR TRADE CREDIT INSURANCE
Trade credit insurance transaction refers to transaction that exists between seller and buyer of commodity and services.
Credit cover exit only when there is authentic fulfilment of trade transaction and satisfaction of the contract terms.
Scope and conditions:
• Policy holder should pay the premium amount for complete policy period
• Policy holder acts as a supplier of good or service in return for a fair market value
• Credit risk which is insured need to have a direct connection with Trade transactions
Crop insurance
Crop insurance is a Insurance companies enter into a contract with the farmers to provide remedy in case of loss
or damage to crop by natural calamities.
Objectives
Crop covered
Areas to be covered
Framers to be covered
Risk covered and exclusion
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List of the companies which provides crop insurance
Reliance general insurance co....
• Cholamandalam MS general Insurance co...
• Agriculture Insurance company of India Ltd
• IFFCO Tokio general insurance co....
• Universalsurance co....
• HDFC ERGO general insurance co....
• ICICI combard general insurance co...
• Bajaj Allianz general insurance co. ltd
• Universal sompo general insurance company limited
• SBI
(continue to read references)
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REFERENCES
• https://www.gicofindia.com
• https://m.economictimes.com
• https://www.godigit.com
• https://www.policybazaar.com
• https://www.benzinga.com>money
• https://www.bankbazaar.com>crop
....bt.com.aotaxgiver.in.cdn.ampproject.org
• https://www.ehealth insurance.com>
• https://www.idfcbank.com>benefit
• Wikipedia
• https://www.adityabirlacapital.com> Kavitha

General insurance presented by kavitha from Tkr institute of management and science.

General insurance presented by kavitha from Tkr institute of management and science.

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