Broadly speaking there are two main branches of insurance in our country, viz., life insurance and General
insurance . The general insurance
is subdivided into three types,
fire insurance , marine insurance and miscellaneous
insurance This classifications is highlighted in the figure given
below: The above mentioned types of the
have been briefly discussed below:
(1). LIFE INSURANCE: It refers to
a contract in which is the insurer
agrees to pay a specified amount of the
on the death of the assured or on the expiry of a certain fixed period,
whichever is earlier, . In consideration
of this, the insurer collects
premiums, from the insured. Since the
sum for which a policy is take is
assured to be paid, whether there is death or not, Life insurance is also
often referred to as : Life Assurance”
In India
the life business is being undertaken by the Life insurance
Corporation (LIC), of India and twelve
private insurance companies such as
(2). GENERAL INSURANCE: Except
life insurance all other
insurances come under general insurance . Before 1971, there were about the 107
general insurance c9ompanies, in India both Indian and foreign . These companies were mismanaged insurance
was a meant for big industrial,
services to clients was partial, there
were no service conditions to staff. In view of these was partial there
were no service conditions or to staff. In view of these limitations the Govt. of India has enacted General insurance Business ( Nationalizations) Act 1972, to take over general insurance business. Under the provisions of the. Act the general insurance Corporations (GIC) India was established in Jan. 9173, for the purpose of a this directing controlling and carrying
a on the general insurance business in India. Later all the 107
companies, were amalgamated and
grouped into the 4 operating companies
viz., National Insurance Co Ltd., H. O.
Calcutta the New India Assurance Co
Ltd., H. O. Mumbai., The
Oriental insurance Co Ltd., H. O New Delhi and United India insurance
Co. Ltd., H. O. Chennai . These
four companies became
subsidiaries of the general insurance
corporations of India. These four
companies were established to achieve
the following twin objectives: (a) . To
ensure that these are so situated as to
under render their combined services effectively and in all the parts of the India and,
(b) . To ensure proper service to the public through mutual competitions. In 1999, the IRDA act introduced a an amendment to the General insurance Business (Nationalizations) Act 1972, by which the exclusive privilege enjoyed by the GIC and its four subsidiaries for carrying on general insurance was removed . (1) FIRE INSURANCE: This insurance covers risk of fire to the property because there is a every likelihood of fire spreading of the in big factories, godowns houses, shops and a ships. The insurance not only covers risk of fire insurance but also the consequential losses from such loss. (2) . MARINE INSURANCE: This is a oldest from if insurance and covers a are a all the marine perils. Due to the marine perils, the ship can be damaged or destroyed cargo and can be lost and consequently there can be loss of freight . Therefore the marine insurance covers the risk to ship, cargo and freight on the high seas.
(3). MISCELLANEOUS INSURANCE: All other general insurances fall under the miscellaneous category. It include Motor insurance, public liability insurance, product liability insurance, Professional indemnity insurance, workman compensations insurance, personal accidents insurance, Individual medi claim policy, Group mediclaim policy, Overseas mediclaims policy, Bhagyashree child welfare policy, Rajeshwari Mahila Kalyan Bima Yojna, Burglary insurance, Shop keepers insurance, Jewellery block insurance, Money insurance, Fidelity guarantee insurance, Neon sign policy, Duty insurance, Electronic Equipment insurance, Boiler Explosion insurance, Machinery breakdown insurance, Erection all risks insurance, Contractor’s all risks insurance, Refrigeration insurance. Baggage insurance, All risks insurance, Amartya Siksha Yojna insurance policy, Sahana safer insurance . Householders insurance, pedel cycle insurance, Plate glass insurance, Advance loss of profits policy, Marine cum erection policy, sports insurance, Special contingency policy, Students safety insurance, and a Rural insurance.
(b) . To ensure proper service to the public through mutual competitions. In 1999, the IRDA act introduced a an amendment to the General insurance Business (Nationalizations) Act 1972, by which the exclusive privilege enjoyed by the GIC and its four subsidiaries for carrying on general insurance was removed . (1) FIRE INSURANCE: This insurance covers risk of fire to the property because there is a every likelihood of fire spreading of the in big factories, godowns houses, shops and a ships. The insurance not only covers risk of fire insurance but also the consequential losses from such loss. (2) . MARINE INSURANCE: This is a oldest from if insurance and covers a are a all the marine perils. Due to the marine perils, the ship can be damaged or destroyed cargo and can be lost and consequently there can be loss of freight . Therefore the marine insurance covers the risk to ship, cargo and freight on the high seas.
(3). MISCELLANEOUS INSURANCE: All other general insurances fall under the miscellaneous category. It include Motor insurance, public liability insurance, product liability insurance, Professional indemnity insurance, workman compensations insurance, personal accidents insurance, Individual medi claim policy, Group mediclaim policy, Overseas mediclaims policy, Bhagyashree child welfare policy, Rajeshwari Mahila Kalyan Bima Yojna, Burglary insurance, Shop keepers insurance, Jewellery block insurance, Money insurance, Fidelity guarantee insurance, Neon sign policy, Duty insurance, Electronic Equipment insurance, Boiler Explosion insurance, Machinery breakdown insurance, Erection all risks insurance, Contractor’s all risks insurance, Refrigeration insurance. Baggage insurance, All risks insurance, Amartya Siksha Yojna insurance policy, Sahana safer insurance . Householders insurance, pedel cycle insurance, Plate glass insurance, Advance loss of profits policy, Marine cum erection policy, sports insurance, Special contingency policy, Students safety insurance, and a Rural insurance.