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General Insurance
 Insurance is classified into Life and Non-Life.
 Insuring anything other than human life is called general
insurance.
 It provide payments depending on the loss from a
particular financial event
 It comprises of insurance of :-
 Property against fire, burglary etc,
 Personal Insurance such as Accident and Health Insurance,
travel Insurance, motor Insurance.
 And liability insurance which covers legal liabilities.
Principles of General Insurance
 Indemnity - Compensation for loss or injury sustained.

 Utmost Good Faith – Disclosure of all material facts.

 Insurable Interest - Legal interest in the protection of property from loss or

damage.

 Causa Proxima - Cause of the loss must be proximate or immediate & not remote.

 Risk- Uncertainty regarding loss or an unforeseeable event.

 Mitigation of Loss – Minimization of the loss by the insured.

 Subrogation – Transfer of rights & remedies from insured to insurer.

 Contribution – Recovery of losses from any one insurer in case of multiple policies
for same subject matter.
Origin in India
 General Insurance in India has its roots in the establishment of
Triton Company Ltd. in the year 1850 in Calcutta by the
British.
 In 1972, General Insurance Business Nationalisation Act was
passed allowing the formation of GIC as the holding company
& amalgamation of 107 insurers.
 The process of Mergers resulted in 4 fully owned subsidiaries
of GIC namely :
1) National Insurance Company Ltd.
2) The New India Assurance Company Ltd.
3) The Oriental Insurance Company Ltd.
4) United India Insurance Company Ltd.
 General Insurance Industry

PSUs: 60 %;
Private Players : 40 %

*Source: IRDA Website

International Comparison
Penetration( premium as % Density ( Premium per capita)
of GDP) USD
 United states 4.32  USA 1474.4
 Canada 3.31  Canada 700.6
 UK 3.05  UK 741.5
 Germany 3.55  Germany 913.5
 Japan 2.30  Japan 805.5
 South Korea 2.89  South Korea 262.3
 China 0.61  China 5.0
 India 0.54  India 2.4
Features
 Most general insurance policies are annual – that is, they last
for one year.
 Some policies are given for longer periods – like fire insurance
for residences – and some for shorter periods – like insurance
for goods transportation or for emergency medical treatment
during foreign travel.
 All costs, fees &expenses incurred in investigation, defense and
settlement of claim made against the insured, cost of representation
at any inquiry or other proceedings in respect of matters having
direct relevance to the claim made against the insured are covered
by the policy subject to the overall limits stated in the policy
Few of the General Insurance Products

Health Insurance

Motor
Insurance

Home Insurance

Travel
Insurance
Business
Insurance
 Business Insurance
Fire & Special Perils Insurance
Policy
Insurable Object in Fire Insurance
 Building
 Electrical installation in buildings
 Machinery, Plant and equipment
 Goods ( raw materials, stocks in process, semi finished,
finished etc ) in factories
 Godowns, Goods in open
 Shops, Hotels etc.
 Furniture, fixture and fittings, pipelines located inside or
outside the compound etc.
Fire & Special Perils Insurance Policy
E.g: ICICI Lombard
 Sum Insured: Property - On depreciated cost / replacement cost

 Premium: Varies according to the degree of hazard.

 Term: Issued Normally for a year, needs to be renewed every year

Important pointers:
 On occurrence of fire ,its notice should be given to insurer so that
they can take necessary step.
 Insured must have insurable interest both at the time of affecting the
policy and at the time of loss.
 The claim can be done for more than once but up to the sum assured.
 A man of ordinary prudence must take necessary steps to avoid the
loss by fire.
 Scope of Cover
FIRE
LIGHTENING

EXPLOSION
/
IMPLOSION
Subsidence & Landslide including Rock
Slide

 Bursting and / or
Bush fire overflowing of
Excluding water tanks,
apparatus and
destruction &
pipes
damage caused  Leakage from
by forest fire Automatic
Sprinklers
Installations
Riot, Strike, Malicious Damage
Travel Insurance Policy
Travel Insurance Policy
E.g HDFC ERGO
 With HDFC ERGO travel insurance, there is a plan
to suit every need. And with a range of plans
covering pleasure & business travel.

Key Highlights
 Entry Age for different plans:
 Single Trip: 6 months to 70 years
 Annual Multi Trip: 18 years to 70 years
 Family Floater: 3 months to 60 years
 Single Trip Asia Excluding Japan: 6 months to
70 years
 Optimum Coverage at Low Costs
Scope of Cover
 Cover against various contingencies that can
arise while travelling to other countries either
on a business visit / tour.
 Contingencies covered are:
 Medical Expenses including transportation &
evacuation
 Dental care expenses
 Personal Accident
 Loss of Passport /Total Loss of Checked
Baggage
 Hijack Distress Allowance
 Flight Delay or Trip Cancellation
 Financial Emergency Assistance
Exclusions to the Policy
The company shall not be liable to pay any benefit to
the Insured caused due to:
 Civil War or Foreign War
 Terrorism
 Self Inflicted Injury, Suicide
 Non adherence to medical advice
 Under Influence of Liquor, Drugs or Narcotics (Unless
advised/administered by a physician)
 Participation in any Sport as a Professional Player
 Participation in any Criminal Act
 AIDS or HIV
 Treatment of Nervous and Mental Problems
 Participating in hazardous sports like parachuting, hang gliding,
bungee jumping etc.
THANK
YOU