This document provides an overview of principles and practices of insurance in India. It discusses the main types of insurance including life and non-life insurance. Non-life insurance, also called general insurance, provides coverage for risks like fire, marine, motor, and more. The origins of non-life insurance in India and the major players in various segments are also outlined. The key differences between life and non-life insurance are explained. The role of the Insurance Regulatory and Development Authority (IRDA) in regulating the insurance sector and important provisions of the Insurance Act of 1938 and its amendments are summarized as well.

1. PRINCIPLES & PRACTICES
OF
INSURANCE

2. CONTENTS :-
• INSURANCE
• TYPES OF INSURANCE
• NON LIFE INSURANCE
• ORIGIN & GROWTH
• TYPES OF NON-LIFE INSURANCE
• LIFE INSURANCE v/s NON-LIFE INSURANCE
• IRDA ACT
• INSURANCE ACT
• IMPORTANT INFORMATION

3. INSURANCE
“Insurance is a contract by which one party , for a
consideration called premium , assumes a particular risk
of the other party and promises to pay to him or his
nominee a certain or ascertainable sum of amount on a
specified contingency” .

4. TYPES OF INSURANCE
INSURANCE
NON-LIFE
INSURANCE
LIFE
INSURANCE

5. NON – LIFE INSURANCE

6. NON-LIFE INSURANCE
• Non-Life insurance is also known as the general
insurance.
• Non-Life insurance policies provide coverage to
protect consumers against the risk of their
insurance premiums.

7. ORIGIN OF NON-LIFE INSURANCE
 The general insurance corporation of India was formed in
pursuance of sec 9(1) of GIBNA.
 It was incorporated on 22 November 1972.
 General life company in India is the sole reinsurance company
in India.
 It came to India as a legacy of British occupation.
 General insurance in India has its origin in the
establishment of triton insurance company Ltd.
1850
 In 1907 the Indian mercantile insurance Ltd. Was set
up.

8. TOP NON-LIFE INSURANCE
POLICY IN INDIA
 Bajaj Allianz general insurance
 ICICI Lombard general insurance
 New India assurance
 Oriental insurance
 Reliance general insurance

9. ADVANTAGE OF NON-LIFE
INSURANCE
• Pet insurance policies
• Accident insurance policies are necessary
• Home insurance policies
• motor vehicle insurance plans
• unemployment

10. Types Of Non- Life Insurance
Non life
insurance
Marine insurance
Fire Insurance
Miscellanies
Insurance
Motor insurance
Burglary ins.
Rural ins.
Personal ins.

11. Marine Insurance

12. Principle Of Marine Insurance
• Utmost good faith
• Indemnity
• Insurable interest
• Causa proxima

13. Kinds Of Marine Policy
• Voyage Policy
• Mixed Policy
• Valued Policy
• Floating Policy

14. FIRE INSURANCE

15. Claim Under Fire Insurance
• 1)Information about loss
• 2)Appointment of assessor
• 3)Checking of document
• 4)Issue of claim form

16. Kinds Of Fire Insurance Policies
 Valued policy
 Specific policy
 Floating policy
 Consequential loss policy

17. Miscellaneous insurance
Motor insurance
The risk of motor insurance are two types:-
(i)legal liability for damage for bodily injuries.
(ii)damage to or loss of one’s automobile.

18. Settlement of claim in motor
insurance
• 1. Receipts of claim intimation.
• 2. Entering in claim register.
• 3. Claim form
• 4. Quantum of damages.

19. BURGLARY INSURANCE
In burglary insurance the insurance company agrees to
indemnify the financial losses due to theft, dacrity,
burglary etc.

20. Types of policy issue under
burglary insurance
• Private dwelling burglary insurance
• Business premises burglary insurance
• Policy for money –in-transit.
• Legal opinion
• Inspection of claim
• Settlement of claim

21. PERSONAL ACCIDENT POLICY
This insurance provide better protection against death or
disability

22. POLICY OF PERSONAL
INSURANCE
• Personal accident and specified disease insurance.
• Medical benefit and hospitalization schemes.

23. RURAL INSURANCE POLICY
 Insurance company are bringing out policies for rural
people in meeting growing risks in their area.

24. POLICY OF RURAL INSURANCE
i) Janta personal accident policy.
ii) Group personal accident policy.
iii) Livestock insurance.
iv) crop insurance.

25. PROCEDURE FOR GETTING NON -LIFE
INSURANCE POLICY
• Who can take insurance
• Document require for taking a policy
• Warranties
• Construction of policy
• Duration of the contract
• Alteration of non-life policies
• Assignment
• Termination of contract
• Refund of premium

26. LIFE INSRANCE V/S NON -LIFE
INSURANCE
BASIC LIFE INSURANCE GENERAL INSURANCE
1. Nature of Risk The risk is certain The risk is not certain
2.Object Secure Future To get Security
3.Time period Generally for 10 years or
15 years or for life
Gradually for an year
4.Payment of Premium Paid in installments Paid in lump sum
5.Surrender of policy Can be surrendered Cannot be surrendered
6.Moral Obligation No moral obligation Moral obligation is
avaliable

27. INSURANCE REGULATORY
&
DEVELOPMENT AUTHORITY

28. IRDA
• Insurance Regulatory & Development Authority
• To Protect Interest Of Policy Holders
• To Regulate, Promote and Ensure Orderly Growth Of
Insurance Industry
• Situated at Hyderabad
• Established under IRDA Act,1999

29. IRDA ACT
• Enacted in 1999 in Indian Parliament.
• Amended in 2002.
• To overcome deficiencies in the processes.

30. Irda missions
1
•To protect the interests of the
policyholder.
2
•To Promote, Regulate and Ensure
orderly growth of insurance industry.
3
•Conduction of insurance business
across the country Ethically.

31. INSURANCE ACT, 1938
• Passed in 1938 in British India.
• To regulate Insurance sector.
• Provides the broad legal framework within which the
industry operates.
• 120 sections and 8 schedules.
• Only an Indian company, as defined and registered
under Companies Act, 1956 is allowed to operate in
India.

32. INSURANCE ACT, 2015
• Provisions :-
v Part-1: Distinguishes between consumer & non-
consumer insurance contracts.
v Part-2: Addresses the duty of fair presentation.
v Part-3: Addresses warranties & other terms.
v Part-4: Addresses Fraudulent claims.
v Part-5: Addresses Good faith.

33. INSURANCE ACT, 2015
• The Insurance Act 2015 was to have contained
provisions relating to damages for the late
payment of insurance claims.
• Inserted in Part 5, which was introduced into
Parliament on 16 September 2015.
• “It is an implied term of every contract of insurance
that if the insured makes a claim under the contract,
the insurer must pay any sums due in respect of the
claim within a reasonable time. A reasonable time
includes a reasonable time to investigate and
assess the claim”

34. IMPORTANT
INFORMATION
• No Insurance company is yet listed on the stock
exchange in India.
• First company  ICICI PRU LIFE
• IPO  6,000 cr
• Biggest IPO in last 6 years