INSURANCE

Presented by : Mamta Grover(105)

W at !s Ins"ran#e $$
Ins"ran#e !s a #ontra#t bet%een t%o &art!es % ereby one o' t em #a((ed )Ins"rer* a+rees to &rote#t anot er &arty #a((ed )!ns"red* a+a!nst a (oss % !# may ar!se on t e a&&en!n+ o' an event, s"# as deat or a##!dent, '!re et#- in consideration of a sum of money #a((ed )&rem!"m*A dev!#e t ro"+ % !# t e r!s.s 'a#ed by t e !nd!v!d"a(s are &oo(ed to+et er and t ereby a(( t e members o' &oo( %!(( s are t e (osses s"''ered by a 'e% !nd!v!d"a(s-

NEE/ 01R INSURANCE

A(( ty&es o' a#t!v!t!es are s"b2e#t to r!s.s o' (oss or dama+e d"e to "n'oreseen events % !# are beyond #ontro( o' #ommon &eo&(e or b"s!nessmen 3oss or dama+e may ar!se d"e to '!re, t e't, nat"ra( #a(am!t!es (!.e '(ood or eart 4"a.e and so on

PRINCIP3ES 10 INSURANCE
Utmost Good Faith Insurable Interest Indemnity Doctrine of Subrogation Doctrine of Proximate Cause Principle of Contribution

Pr!n#!&(e o' Utmost Good 0a!t

Both the parties i.e. Insurer and Insured should ha!e good faith to"ards each other. It is a duty of insured to !oluntarily disclose accurately and fully all material fact to the insurer #no"n to him "hether re$uested or not. %aterial facts in!ol!e e!ery circumstance "hich "ould influence the &udgment of a insurer % et er: 'a( he should accept the ris# and 'b( "hat premium he should charge

Insurable Interest

)he insured must ha!e insurable interest in the sub&ect matter of insurance. Insurable interest is the interest "hen the policyholder gets benefited by the existence of the sub&ect matter and there is a loss to the policyholder if there is death or damage of the sub&ect matter. It is applicable to all contracts of insurance.

SHIP OWNER

SHIP

Insurable Interest ( Contd..)

*xistence of insurable interest at the time of happening of the e!ent

y it n m e d n I f o le ip c in r P Indemnity means a guarantee or assurance to put the insured in the

same position in which one was immediately prior to the happening of the uncertain event.
Under this, the insurer agrees to compensate the insured for the actual loss suffered. It is applicable to fire, marine and other general insurance. Exception +ife insurance is not a contract of indemnity.

Doctrine of Subrogation
5 !s &r!n#!&(e ar!ses o"t o' Principle of Indemnity Under t !s &r!n#!&(e, a'ter t e !ns"red !s #om&ensated 'or t e (oss d"e to dama+e to &ro&erty !ns"red, t en t e !ns"rer ave t e r!+ t to re#over (oss 'rom any (!ab(e t !rd &arty % o !s res&ons!b(e Reasons for subrogation: 5o &revent !ns"red 'rom #o((e#ted more t an a#t"a( amo"nt o' (oss by restr!#t!n+ t e !ns"red to re#over 'rom t !rd &arty t ro"+ (e+a( a#t!on Prevent mora( a6ard

Pr!n#!&(e o' Pro7!mate Ca"se

v )his principle states that only the immediate and dominate cause is to be considered and not the distant cause or cause that brea#s the chain of e!ents. v If the proximate cause of loss is insured then the insurer is liable to compensate the loss, other"ise the insurer may not be responsible for loss.

Contribution
Contribution is defined as the right of insurers "ho ha!e paid a loss under a policy to reco!er a proportionate amount from other insurers "ho are liable for the same ris#.
Co!er can only arise "hen the policies Cover t e same &er!( Cover t e same s"b2e#t matter Are e''e#ted by or on be a(' o' t e same !ns"redIf an insured obtains more than one policy co!ering the same ris# he cannot reco!er the same loss from more than one source so that he is not benefited by more than .Indemnity/.

5y&es o' !ns"ran#e

Presented by: Pr!yan.a Arora

LIFE INSURANCE
3!'e !ns"ran#e &rov!des a monetary bene'!t to a des#endants 'am!(y or ot er des!+nated bene'!#!ary, and may s&e#!'!#a((y &rov!de 'or !n#ome to an !ns"red &ersons 'am!(y, b"r!a(, '"nera( and ot er '!na( e7&enses- 3!'e !ns"ran#e &o(!#!es o'ten a((o% t e o&t!on o' av!n+ t e &ro#eeds &a!d to t e bene'!#!ary e!t er !n a ("m& s"m #as &ayment or an ann"!ty-

81ME INSURANCE
8ome !ns"ran#e &rov!des #overa+e 'or dama+e or destr"#t!on o' t e &o(!#y o(ders ome- In some +eo+ra& !#a( areas, t e &o(!#y may e7#("de #erta!n ty&es o' r!s.s, s"# as '(ood or eart 4"a.e, t at re4"!re add!t!ona( #overa+eMa!ntenan#e9re(ated !ss"es are ty&!#a((y t e omeo%ners res&ons!b!(!ty- 5 e &o(!#y may !n#("de !nventory, or t !s #an be bo"+ t as a se&arate &o(!#y, es&e#!a((y 'or &eo&(e % o rent o"s!n+- In some #o"ntr!es, !ns"rers o''er a &a#.a+e % !# may !n#("de (!ab!(!ty and (e+a( res&ons!b!(!ty 'or !n2"r!es and &ro&erty dama+e

8EA358 INSURANCE
8ea(t !ns"ran#e &o(!#!es !ss"ed by &"b(!#(y9'"nded ea(t &ro+rams, s"# as #ost o' med!#a( treatments- /enta( !ns"ran#e , (!.e med!#a( !ns"ran#e, &rote#ts t e &o(!#y o(ders 'or denta( #osts- In the United States and Canada, dental insurance is often part of an employer's benefits package, along with health insurance.

M151R INSURANCE
Motor !ns"ran#e &rote#ts t e &o(!#y o(der a+a!nst '!nan#!a( (oss !n t e event o' an !n#!dent !nvo(v!n+ a ve !#(e t ey o%n, s"# as !n a tra''!# #o((!s!on Covera+e ty&!#a((y !n#("des: Pro&erty #overa+e, 'or dama+e to or t e't o' t e #ar 3!ab!(!ty #overa+e, 'or t e (e+a( res&ons!b!(!ty to ot ers 'or bod!(y !n2"ry or &ro&erty dama+e Med!#a( #overa+e, 'or t e #ost o' treat!n+ !n2"r!es, re ab!(!tat!on and somet!mes (ost %a+es and '"nera( e7&enses Most #o"ntr!es, s"# as t e Un!ted :!n+dom, re4"!re dr!vers to b"y some, b"t not a((, o' t ese #overa+es- W en a #ar !s "sed as #o((atera( 'or a (oan t e (ender "s"a((y re4"!res s&e#!'!# #overa+e

0IRE INSURANCE
0!re !ns"ran#e !s a s&e#!a(!6ed 'orm o' !ns"ran#e beyond &ro&erty !ns"ran#e, and !s des!+ned to #over t e #ost o' re&(a#ement, re#onstr"#t!on or re&a!r beyond % at !s #overed by t e &ro&erty !ns"ran#e &o(!#y- Po(!#!es #over dama+e to t e b"!(d!n+ !tse(', and may a(so #over dama+e to nearby str"#t"res, &ersona( &ro&erty and e7&enses asso#!ated %!t not be!n+ ab(e to (!ve !n or "se t e &ro&erty !' !t !s dama+ed-

MARINE INSURANCE
Mar!ne !ns"ran#e and mar!ne #ar+o !ns"ran#e #over t e (oss or dama+e o' vesse(s at sea or on !n(and %ater%ays, and o' #ar+o !n trans!t, re+ard(ess o' t e met od o' trans!t- W en t e o%ner o' t e #ar+o and t e #arr!er are se&arate #or&orat!ons, mar!ne #ar+o !ns"ran#e ty&!#a((y #om&ensates t e o%ner o' #ar+o 'or (osses s"sta!ned 'rom '!re, s !&%re#., et#-, b"t e7#("des (osses t at #an be re#overed 'rom t e #arr!er or t e #arr!er;s !ns"ran#eMany mar!ne !ns"ran#e "nder%r!ters %!(( !n#("de <t!me e(ement< #overa+e !n s"# &o(!#!es, % !# e7tends t e !ndemn!ty to #over (oss o' &ro'!t and ot er b"s!ness e7&enses attr!b"tab(e to t e de(ay #a"sed by a #overed (oss

PRINCIPLE O ES!OPPEL
Esto&&e( o##"rs % en a re&resentat!on o' 'a#t made by one &erson to anot er &erson !s reasonab(y re(!ed on by t at &erson to s"# an e7tent t at !t %o"(d be !ne4"!tab(e to a((o% t e '!rst &erson to deny t e tr"t o' t e re&resentat!on

"E INI!ION
Esto&&e( &revents t e !ns"ran#e #om&any 'rom ado&t!n+ a &os!t!on t at !s not #ons!stent %!t a &os!t!on !t too. &rev!o"s(y !' !t %o"(d res"(t !n an !n2"ry to t e !ns"red- Cons!der!n+ t at t ey #an be esto&&ed 'rom #erta!n a#t!ons, !ns"rers ave to be 'a!r !n t e!r dea(!n+s %!t t e !ns"red-

C1N5=
I' yo" send !n a (ate &ayment on yo"r !ns"ran#e &rem!"m, t e !ns"ran#e #om&any #annot de#!de to #an#e( yo"r !ns"ran#e !' !t as been !n t e ab!t o' a##e&t!n+ (ate &ayments 'rom ot ers- 5 !s !s be#a"se yo" %ere "nder t e !m&ress!on t at a (ate &ayment %o"(d not (ead to a &o(!#y #an#e((at!on, based on t e !ns"ran#e #om&any>s be av!or o' a##e&t!n+ (ate &ayments 'rom ot ers %!t o"t #onse4"en#e &ENE I!S 5 !s #on#e&t o(ds an !ns"ran#e #om&any to some standards !n !ts dea(!n+s %!t #ons"mers- It +!ves &o(!#y o(ders some ass"ran#e t at t e!r !nterests %!(( not be armed !n t e!r dea(!n+s %!t t e !ns"rer E#$%PLE

Endorsement
?y N!. !( / !n+ra (100)

 An !ns"ran#e endorsement !s a # an+e to yo"r !ns"ran#e &o(!#y- An endorsement adds to or restr!#ts #overa+e- It !s not &art o' t e or!+!na( &o(!#y- W en an endorsement !s added, !t be#omes a (e+a( &art o' t e !ns"ran#e &o(!#y 5y&!#a((y, !t !s an added &rov!s!on to an !ns"ran#e &o(!#y- A(so re'erred to as a <r!der<

 I' an !ns"ran#e #ontra#t as a &rov!s!on stat!n+ t at !n t e event o' t e &o(!#y o(der;s deat t e 'am!(y o' t e &o(!#y o(der %!(( #ont!n"e to re#e!ve t e &o(!#y o(der;s mont (y !n#ome 'or a &er!od o' t!me, t !s !s an e7am&(e o' an endorsement or a r!der- Endorsements or r!ders #a"se t e &r!#e o' t e &rem!"m to r!se as t ey &rov!de a &os!t!ve bene'!t

 An !ns"ran#e endorsement !s (!.e a m!n!9 &o(!#y t at !s added to a #"rrent !ns"ran#e &o(!#y to # an+e t e or!+!na( !ns"ran#e &o(!#y terms and@or #overa+es- Ins"ran#e endorsements #an be "sed !n many %ays to en an#e an !ns"ran#e &o(!#y and to &rov!de a more #om&(ete and !nd!v!d"a( #overa+e 'or &o(!#y o(ders

 Endorsements "sed !n !ns"ran#e &o(!#!es #an d!''er de&end!n+ on t e !ns"ran#e #om&any and t e ty&e o' !ns"ran#e t e endorsement !s a&&(!ed to- It !s !m&ortant to "nderstand % at endorsements are ava!(ab(e 'or a &o(!#y a(on+ %!t o% t at endorsement #an # an+e t e #"rrent !ns"ran#e &o(!#y

$'!O INS'R$NCE
Some standard endorsements 'or t e t ree .ey !ns"ran#e ty&es are as 'o((o%s: () $'!O INS'R$NCE

Roads!de Ass!stan#e: 5 !s #overa+e &rov!des roads!de ass!stan#e s o"(d yo"r a"to re4"!re re&a!r 5o%!n+: 5 !s #overa+e ta.es #are o' yo" s o"(d yo"r #ar brea. do%n and need a to% to an a"to re&a!r s o& 3abor and Renta(: Covers a"to re&a!rs and #ost to rent a #ar Ne% Car Re&(a#ement: Ao"r !ns"ran#e #om&any %!(( re&(a#e yo"r ve !#(e !' !t !s tota(ed %!t !n a s&e#!'!ed &er!od o' t!me Pet In2"ry Prote#t!on: 5 !s #overs t e #osts o' med!#a( or deat e7&enses 'or yo"r &et s o"(d t e &et be#ome !(( or &ass a%ay % !(e yo" are on a tr!&

HO%E OWNER*S INS'R$NCE

0(ood endorsement (#overs a(( ty&es o' '(oods beyond t e bas!# &"dd(e o' %ater !n t e basement) Persona( Pro&erty E7tens!ons o' #overa+e Anot er +ood e7am&(e #on#erns s&e#!a( (!m!ts on #erta!n ty&es o' &ersona( &ro&erty- 0or !nstan#e, most &o(!#!es (!m!t t e!r #overa+e 'or t e t e't o' '"rs or 2e%e(ry to B500-5 e (!m!t 'or '!rearms or #om&"ters !s &robab(y B1000- N"mero"s ot er !tems are a(so ty&!#a((y (!m!ted to B500 or B1000 s!n#e t e omeo%ners &ro+ram !s des!+ned to '!t t e #overa+e needs o' t e avera+e !ns"red- It !s t e #ons"mer;s res&ons!b!(!ty to rev!e% t e (!m!tat!ons &(a#ed on #erta!n ty&es o' &ro&erty- I' needed, !n#rease t e #overa+e o' one area or anot er by add!n+ a <S# ed"(ed Persona( Pro&erty Endorsement< to t e bas!# &o(!#y-

 E+tra Contents Co,erage 5 e #ontents #overa+e !n yo"r &o(!#y !s re'err!n+ to yo"r &ersona( be(on+!n+s (!.e '"rn!t"re, e(e#tron!#s and #(ot esRemember t at most o' t e #overa+es are a '(at &er#enta+e o' t e amo"nt o' !ns"ran#e on t e ome !tse('- 0or e7am&(e: #ontents #overa+e !s 50C o' t e !ns"ran#e on t e ome !tse('- I' yo" !ns"re yo"r ome 'or B100,000, t e #ontents #overa+e %!(( be B50,000- 0or a m!n!ma( e7tra # ar+e, yo" #an !n#rease t e #overa+e on yo"r #ontents %!t o"t !n#reas!n+ t e amo"nt o' !ns"ran#e on t e ome !tse('

() Wai,er of premium rider W!t t !s r!der, yo" don;t ave to &ay t e &rem!"m !' yo" be#ome tota((y d!sab(ed and #an;t %or.-) "isability income rider Ao" #o((e#t a re+"(ar !n#ome 'rom t e !ns"ran#e #om&any !' yo" be#ome tota((y d!sab(ed and #an;t %or.- 5 e &o(!#y s&e#!'!es t e amo"nt o' t e !n#ome and % et er !t;s &a!d 'or a #erta!n amo"nt o' t!me or 'or t e (en+t o' t e d!sab!(!tyIn case you need more insurance but your .ealt. .as declined /) 0uaranteed insurability rider 5 !s r!der (ets yo" &"r# ase add!t!ona( (!'e !ns"ran#e #overa+e at a (ater date %!t o"t "nder+o!n+ a med!#a( e7am or &rov!d!n+ any ev!den#e abo"t yo"r !ns"rab!(!ty-

Life Insurance

1) Critical illness rider 5 e !ns"rer &ays a ("m& s"m !' yo";re d!a+nosed %!t one o' t e #r!t!#a( !((nesses s&e#!'!ed !n t e !ns"ran#e &o(!#y, s"# as #an#er, eart atta#., stro.e, .!dney 'a!("re and ot ers- Instead o' re!mb"rs!n+ yo" 'or med!#a( e7&enses, t e %ay ea(t !ns"ran#e does, t e r!der &rov!des money to "se 'or any &"r&ose d"r!n+ t e #o"rse o' treatment-

 !H$N2 3O'