design of study

Scope:
Insurance itself means that getting secured against the uncertainties in life. In todays world we see a wide scope in the insurance sector. Earlier their were only few in this business like L.I.C, G.I.C etc., But now after private sectors entry in this field there has been tremendous improvement and lot of opportunities for people have increased. They are now benefited with various other types of Insurance like Health, Accident, Cattle, and Crop etc.

Objective:
The main objective of all these insurance is to provide the people against the best possible assistance against the loss occurred to them. And the basic objective of mine behind this project is to put glance over various kinds of insurance available to the people.

INTRODUCTION TO INSURANCE

Nature Of Insurance.
Insurance is defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against the risk. Risk is uncertainty of a financial loss. It should not be confused with the chance of loss which is the probable number of losses out of the given number of exposures. It should not be confused with the perils that is defined as the cause of loss or with the hazard which is a condition that may increase the chance of loss. They are agreed to share the loss because the chances of loss, i.e., the time, amount, to a person is not known. Anybody of them may suffer loss to a given risk, so, the rest of persons who are agreed will share the loss. In fact, the loss is shared by them by payment of premium which is calculated on the probability of loss. In olden time, the contribution by the persons was made at the time of loss. The insurance is also defined as a social device to accumulate funds to meet the uncertain losses arising through a certain risk against the person insured against the risk.

Definition of Insurance
The definition of insurance can be made from two points: i) ii) Functional Definition and, Contractual Definition.

i)

Functional Definition

Insurance is a co-operative device to spread the loss caused by a particular risk over a number of persons, who are exposed to it and
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who agree to insure themselves against the risk. Thus, the insurance is (a) a co-operative device to spread the risk: (b) the system to spread the risk over a number of persons who are insured against the risk; (c) the principles to share the loss of each member of the society on the basis of probability of loss to their risk; and (d) the method to provide security against the losses to the insured. Similarly, another definition can be given. Insurance is a cooperative device of disturbing losses, falling on an individual or his family over a large number of persons, each bearing a nominal expenditure and feeling secure against the loss.

ii] Contractual Definition.

Insurance has been defined to be that in which a sum of money as a premium is paid in consideration of the insurers incurring the risk of paying a large sum upon a given contingency. The insurance, thus, is a contract whereby (a) Certain sum, called premium, is charged in consideration, (b) Against the said consideration, a large sum is guaranteed to be paid by the insurer, who received the premium, (c) The payment will be made in a certain definite sum, i.e., the loss or the policy amount whichever may be, and (d) the payment is made only upon a contingency. More specific definition can be given as followsInsurance may be defined as a consisting one party (the insurer) agrees to pay to the other party (the insured) or his beneficiary, a certain sum upon a given contingency (the risk) against which insurance is sought.

Evolution of Insurance

Evolution of Insurance.
The origin of insurance is lost in antiquity. The earliest traces of insurance in the ancient world are found in the form of marine trade
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loans or carriers contracts which included an element of insurance. Evidence is on record that arrangements embodying the idea of insurance were made in Babylonia and India at quite at early period. The codes of Hummurabi and of Manu had recognized the advisability of provision for sharing the future losses. However, there is no evidence that insurance in its present form was practiced prior to the twelfth century. There are basically four types of Insurance: 1. 2. 3. 4. Marine Insurance Fire Insurance Life Insurance Miscellaneous Insurance

1. Marine Insurance
It is the oldest form of insurance. Under the Bottomry bond, the system of credit and the law of interest were developed and were based on a clear appreciation of the hazard involved and the means of safeguarding against it. The contract of insurance was made a part of the contract of carriage, and Manu shoes the Indians had even anticipated the doctrine of average and contribution. Freight was fixed according to season and was expected to be reasonable in the case of marine transport which was then very much at the mercy of winds and elements. Travelers by sea and land were very much exposed to the risk of loosing their vessels and merchandise because the piracy on the open ses and highway robbery of caravans were very common. Besides, there were several risks. The risks to the owners of such ships were
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enormous and, therefore, to safeguard them the marine traders devised a method of spreading over them the financial loss which could not be conveniently borne by unfortunate individual victims. The marine policies of the present forms were sold in the beginning of fourteenth century by the Brugians. On the demand of inhabitants of burges, the Count of Flanders permitted in the year 1310, the establishment in this town of a character of Assurance, by means of which merchants could insure their goods, exposed to the risks of sea.

2. Fire Insurance
After marine insurance, fire insurance developed in present form. It had been observed in Anglo-Section Guild form for the first time where the victims of fire hazards were given personal assistance by providing necessaries of life. It had been originated in Germany in the beginning of sixteenth century. The fire insurance got momentum in England after the great fire in 1666 when the fire losses were tremendous. About 85 per cent of the houses were burnt to ashes and property worth of sterling ten crores were completely burnt off. Fire Insurance Office was established in 1681 in England. Sun Fire Office was successful fire insurance institution. In India, the general insurer started working since 1850 with establishment of the Triton Insurance, Calcutta. The general insurance in India could not progress much. The slow growth of joint stock enterprise and mechanized production was another reason for low level of mechanized business.

3. life Insurance
Life insurance made its first appearance in England in 16th century, first recorded evidence in England being the policy on life of William Gybbons on June 18, 1653. Even before this date annuities had become quite common in England, and marine insurance had, in fact, made its appearance three thousand years ago. The life insurance developed at exchange Alley. The first registered life office in England was the Hand-inHand Society established in 1696. Life insurance did not prosper in the United States during the 18th century, because of serious fluctuations in the death-rate, but soon after 1800 some active interest began to be shown in this enterprise because of the application of level premium plan which had by then been in operation in U.k. for more than a generation. In India, some European started the first life insurance company in 1818. The year 1870 was a year of landmark in the history of Indian Insurance separating the early period of pioneering attempts at life insurance from the subsequent period of steady development at the establishment of Indian life office, viz., Bombay Mutual Life Assurance Society in 1871. The next important life office was Oriental Government Security life Assurance Co., Ltd., which started its operation since 1874. Since then several offices developed in India.

4. Miscellaneous Insurance
The miscellaneous insurance took the present shape at the later part of nineteenth century with the industrial revolution in England. Accident insurance, fidelity insurance, liability insurance and theft
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insurance were the important form of insurance at that time. Lloydss Association was the main functioning institution. Now, insurance, etc., are taking place. The scope of general insurance is increasing with the advancement of the society.

Kinds of Insurance According to Risk Point of View.

INSURANCE PERSONAL
LIFE

PROPERTY
MARINE

LIABILITY
3RD PARTY

FIDELITY
FIDUCIARY

PERSONAL ACCIDENT

FIRE

EMPLOYEES

CREDIT

HEALTH

AUTOMOBILE

MOTOR

PRIVELEGE

CATTLE

REINSURANCE

CROP

MACHINERY

THEFT

personal insurance

1] Personal Insurance
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Introduction:
The personal insurance means insurance related to human life which may suffer loss due to death, accident and disease.

Personal Insurance is then divided into: a) Life Insurance b) Personal Accident Insurance c) Health Insurance Let us study each of them.

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Life insurance

12

i) Life Insurance Introduction:

Life Insurance products have to suit the requirements of customers. The three major concern of any person could be : a) Dying too early or b) Living too long c)Living with disability. Besides, there are other concerns about taking care of children and their future and about creating wealth that most individuals cherish. Life insurance products are generally designed to address such needs of an individual. With these situations in mind, life insurance products provide for a) Risk Cover b) Investment c) Health Cover. There are four types of insurance policies1. 2. 3. 4. Term Insurance Endowment life Insurance Whole Life Insurance Annuities

1. Term Insurance
Term Insurance pays a death benefit to the legal heirs if the person insured dies during the term of the policy. It may be described as temporary insurance. Term insurance plan could be of following different typesa) Level Term Insurance- Here there is a uniform premium and benefit throughout the term of the policy. In the event of death anytime during the term, the same sum assured is payable. Where the term is for over a year, the renewal premium is same each year. It is simple plan.

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b) Decreasing term Insurance- Here, premium is constant throughout the term, but the benefit decreases over a period of time. Hence, the amount payable on death depends on the timing of death, even though premium being paid is constant. It is suitable to cases where temporary need is reducing. c) Increasing term Insurance- Here, premium as well as benefit amount increases periodically as agreed. It could be at fixed percentage or agreed index. It is helpful in keeping the benefits in line with time value of money. d) Renewable term Insurance- A renewable teem insurance policy gives the right to renew the policy without submitting fresh insurance of health The new premium however, is increased to reflect the increased age of life insured. e) Convertible term Insurance- Such plan includes a conversion privilege, which gives the proposer the right to convert the policy to a permanent plan.

2. Whole Life insurance

It guarantees a death benefit cover throughout the course of life, provided the required premium is paid. Its advantage is that the policy if kept current, covers you over your entire life, as opposed to term insurance that covers only to certain term of years. whole life policies pay out on the death of assured, whenever it occurs.

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3. Endowment Insurance
Pure endowment is a plan where the benefit is payable to the insured only on survival of the specified term. Combining the future of term assurance and pure endowment are endowment policies that pay either on the death of assured, whenever it occurs, or after a fixed period. Here the claim may arise either by death or by maturity.

4. Annuities
Annuities are a form of pension which an insurance company makes a series of periodic payments to a person (annuitant) or his or her dependents over a number of years (term), in return for the money paid to the insurance company in lump sum or installments.

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PERSONAL ACCIDENT INSURANCE

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ii) Personal Accident Insurance

Personal accident insurance is the insurance designed to replace a substantial part of earned income lost disability to a person caused by accident injury including the medical expenses. It also indemnify the loss due to death, leading to the accident. Types of personal accident insurance Some important types of policies are as below: 1. Janata individual accident policy 2. Third party/passenger/driver accident policy 3. accident policy issued by aviation department 4. Group insurance personal accident policy for school children 5. Rural personal accident policy 6. Personal accident family package policy 7. Medical (Hospital and house) treatment policy Every type of policy has its own features and premium rate.

Classification of risks
The amended rules in regard to personal accident policy have been implanted from April 1, 1994. According to these directions, the personal accident risks are classified as: 1] Risk group I- It includes Accountants, Doctors, Advocates, Artisans, Consultants, Engineers, Teachers, Bankers, Administrative officers and other professional field. 2] Risk group II- It includes architects, contractors, vertinary doctors, vehicle drivers, other form of same trade but not doing manual work. 3] Risk group III- All such persons, excluding the risk group IV, engaged in physical labour, such as garage and motor mechanics,

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machine operators, drivers of trucks or other vehicles sportsmen and athletics, carpenters engaged in this type of risks. 4] Risk group IV- Persons engaged in underground mines, and armory, persons engaged in electricity generation, circus, hoarse race, mountaineers, winter sports, and polo players others belonging to this field.

Insurance cover/benefits in personal accident policy.

1. In case of death 2. Permanent disablement (damages to both hands/legs, or both eyes, or one eye and one leg. 3. In the case of damages to one assured Hand/leg or one eye 4. Other kind of permanent disablement in addition to the damages happened to the injury 5.Temporary or total disablement Paid on weekly basis 100 % 50 % of the sum Full sum assured Full sum assured

1.00 % of the sum assured per week 6. Temporary or partial disablement % of sum assured per week.
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Paid on weekly basis current rate is 3.00

HEALTH INSURANCE

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iii) Health Insurance

Health Insurance mainly covers two types of benefits: one is related to the reimbursement of medical expenses related to specific diseases and the other is related to the hospitalization. Globally, the health covers operate in two ways cashless and cash reimbursable ones. The health insurance has changed the way medicine is dispensed and sold in the most parts of the world. In India, its impact has yet to be felt. However, the introduction of the now famous Mediclaim policy made a huge difference to an ordinary citizens usage of insurance for medical cover purpose. There are following types of policies:

1) Individual Mediclaim Policy 2) Bhavishya Arogya Policy

3)

Jan Arogya Bima Policy

4) Cancer Insurance 5) Group Mediclaim Policy 1. Individual Mediclaim Policy

This policy covers the domiciliary hospitalization expenses for diseases sufferd during the policy period. It also covers hospitalization for injuries caused during an accident. The policy covers following expenses: 1.
2.

Boarding expenses in a hospital or nursing home-as per the Surgical fees, medical practitioner and consultants fees. Nursing expenses.
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description provided in the policy. 3.

4. etc.

Anesthesia, blood, oxygen operation theatre charges, surgical

appliances, medicine and drugs chemotherapy, prosthetic limbs

2. Bhavishya Arogya Policy

This is deferred Mediclaim policy that can taken at any age between 25 and 55 years of age. The retirement age can be selected by the insured at the time of taking policy and can be between 55 and 60 years of age. The amount of total benefit can be a maximum of Rs. 50000 during the lifetime of insured commencing from the date of retirement, and cannot exceed Rs. 20000 per illness or injury.

3. Jan Arogya Bima Policy

It was devised to address the smaller covers and people with limited means of paying the premium. It does not offer any cumulative bonuses. It does not offer any medical check up benefits. The sum assured is limited to Rs. 5000 premium is low compared to regular policy. So this differs it from usual Mediclaim policy.

4. Cancer Insurance
There are two Cancer policies offered in India; Group Policy issued by Indian Cancer Society and other is Group Policy offered by members of Cancer Patients Aid Association. The cover is limited upto Rs. 50000 in the case of the ICS policy and can go upto Rs. 200000 in the case of CPAA policy. Both policies require cancer check up prior taking the policy It includes costs of diagnosis, surgery, biopsy, radio therapy, hospitalization.

5. Group Mediclaim Policy

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This policy is available to any corporate, association, institution and group of people provided they form the minimum number of persons to be covered under the policy. The policyholder in this type of insurance is the group itself and the premiums are payable by the group. The individual member of the group may enter and exit the policy upon their becoming or ceasing to be member of the group.

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PROPERTY INSURANCE

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II] Property Insurance

The property insurance of an individual and of the society is insured against the loss of fire and marine perils; the crop is insured against unexpected decline in production, unexpected death of the animals engaged in the business, breakdown of machines and theft of the property and goods. Property Insurance is further divided into:

a) Marine Insurance b) Fire Insurance c) Automobile Insurance d) Cattle Insurance e) Crop Insurance f) Machinery Insurance g) Theft Insurance

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marine insurance

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a) Marine Insurance
Marine insurance has been defined as a contract between insurer and insured whereby the insurer undertakes to indemnify the insured in a manner and to the interest thereby agreed, against marine losses incident to marine adventure. Section 2(13) A of Insurance Act 1938 defines it as follows: Marine insurance business means the business of effecting contracts of insurance upon vessels of any description, including cargoes freights and other interests which may be legally insured in or in relation to such vessels, cargoes, freights, goods, wares, merchandise and property of whatever description insured for any transit by land or water or both, and whether or not including warehouses risks or similar risks in addition or as incidental to such transit and includes any other risks customarily included among the risks insured in marine policies. The standard policy contains the following information: (i) Name of insured or his agent. (ii) Subject matter insured. It may be ship (hull) cargo and freight. (iii) Risks insured against. (iv) Name of vessels and officers. (v) Description of voyage and period of insurance. (vi) Amount and term of insurance. (vii) Premium

Different types of policies are used in marine insurance they are:

1. Voyage policy- This policy is issued to cover a particular voyage from one port to another and from one place to another. The policy mentions the port of departure and the port of
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destination, between which the risks are generally underwritten. It is used in case of cargo insurance. The liability of the insurer continues during lading and re-shipping of goods. 2. Time policy- Here the subject matter is insured for a specific period of time. This policy is taken for one year although it may be for less than one year. It is commonly used for hull insurance. The policy may cover while navigating the vessel or under construction. Risk covered for under construction is for more than 12 months. 3. Voyage and time policy- The elements of voyage and time policy is combined under this policy. 4.Valued policy- Here the value of loss to be compensated is fixed and remains constant throughout the risk except where there is fraud excessive over-valuation The value of the subject matter is agreed by the insurer and the assured at the time of taking the insurance. 5. Unvalued policy-When the value of the policy is not determined at the time of commencement of risk but is left to be valued when the loss takes place. The value thus left to be decided later on is called the insurable value or unvalued or valuable policy. Usually unvalued policies are not common in marine insurance because evaluation of loss at the time of damage poses a difficult problem. 6. Floating policy- The policy describes the general terms and leaves the amount of each shipment and other particulars to be declared later on. It is made in order of dispatch of shipment. The most popular form of contract is Open Cover. In which both the insured and the assured agree to accept all the shipment falling within the scope of the open cover which is merely an original ship.
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7. Blanket policies- It is taken to cover losses within the particular time and place. Policy is taken for certain amount and premium is paid on the whole of it in the beginning of the policy and is readjusted according to the actual amount at roisk. 8. Named policy- Here the name of the ship and the amount of cargo are mentioned. they are specific policies. 9. Single vessel and fleet policy- A ship or a fleet of ship is insured here. When one policy is assured, it is single vessel policy and when a fleet is insured in single policy, it is fleet insurance policy. 10. Block policy- This policy insures incidental risks, too, along with the marine perils. eg. Cotton is insured from the time of its processing to the time it is delivered to destination. 11. Currency policy- It is issued in foreign currency, where the sum assured is stated in foreign currency. It avoids fluctuations in foreign currency. 12. P.P.I. Policies- It is to avoid the complication of principle of insurable interest. It is called Policy Proof of Interest .It is based on mutual understanding, they are known as honored policies. It is called as wagering policy as insurable interest is not required, and cannot be enforceable.

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Fire insurance

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b) Fire Insurance
Fire Insurance is one of the oldest form of insurance and goes as fr back as Marine insurance. Its origins are in the the age-old fear of fire and human failing to control fire. In the early development of industrial society fire was the main source of energy. No industrial activity or commerce was possible without fire and the need to insure the risk of uncontrolled fire became the integral part of society. Fire insurance is designed to provide for financial loss to property due to fire and few other related hazards. Fire insurance is governed by Tariff under the Tariff Advisory Committee (TAC). Examples of property that can be covered under the Fire insurance policy are: 1. 2. 3. 4. 5. 6. 7. Buildings Contents of Building such as Machinery, equipments, semiElectrical installation of Building Goods in the open Dwellings and contents of dwellings Furniture, fixture and fittings Pipelines located inside and outside buildings, dwellings and

finished goods, finished goods etc stored in factories and godowns.

compounds.

The standard Fire Policy covers the following hazards

1.

Fire- Usually this excludes destruction or damage caused to

property by, i. Its own fermentation, natural heating ii. Its undergoing any heating or drying process iii.burning of any property insured by order any Public Authority.
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2.

Explosion/Implosion- This would exclude the destruction or

damage caused to boilers, economizers, or other vessels in which steam is generated, machinery or apparatus subject to centrifugal force by its own explosion/implosion. Such explosion as may happen to boilers can be covered by Boiler Explosion policy under Engineering insurance.
3.

Aircraft damage- Destruction or damage caused by Aircraft,

other aerial or spatial devices and articles dropped from them excluding those caused by pressure waves. 4.
5.

Lightning Riot, strike, malicious and terrorism damage- Direct visible

physical loss, destruction or damage by external violent means caused to property but excluding those caused by:
a)

Total or partial cessation of work, stoppage, retardation/slow

down, or interruption or cessation of any process or operation of omission of any kind. b) Permanent or temperory dispossession of any building or plant, or factory or unit or machinery resulting from unlawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same. c) Permanent or temporary disposition resulting from confiscation, commandeering, requisition or destruction by order of the government or any lawfully constituted authority. d) Burglary, housebreaking theft, larceny or any attempt by any person taking part in such activities.

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6.

Impact damage- Impact by any rail/road vehicle or animal by

direct contact not belonging to or owned by a) The insured or any occupier of premises, or b) Their employees while acting in the course of employment. 7. Storm, cyclone, typhoons, tempest, hurricane, flood and inundation.
8.

Subsidence and Landslide including rock slides, or

destruction, damage caused by subsidence of part of site on which the property stands or landslide/rockslide excluding: a)
b)

The normal cracking, settlement or breeding or bedding down Coastal or river erosion. Defective design or workmanship or use of defective material. Demolition, construction, or repair of any property. Leakage from automatic sprinkler installation excluding: Repair or alterations to the buildings or premises. Repairs, removals or extensions of sprinkler installations. Defects in construction known to insured.

of new structures. c) d)
e)

i) ii)
iii)

9. Bush fire, excluding fire caused by forest fires.

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automobile insurance

33

c) Automobile Insurance
Introduction:
Losses from property damage, medical and legal costs, and lost income add up to billions of dollars annually for automobile mishaps. Automobile insurance plays an important role in protecting consumers from serious financial losses that can result from such accidents The basic types of auto insurance coverage include:

Bodily Injury Liability. Pays your legal defense costs and claims

against you if your car injures or kills someone. Covers family members living with you and others driving with your permission.

Property Damage Liability. Pays your legal defense costs and

claims against you if your car damages another's property. Does not cover your property, including your auto.

Medical Payments or Personal Injury Protection. Pays

medical expenses resulting from an accident for you and others riding in your car. Also pays for you or your family members injured while riding in another's car or while walking.

Collision. Pays for repairs of damage to your car caused by a

collision with another vehicle or any other object, regardless of who was responsible.

Comprehensive Physical Damage. Pays for damages to your

car resulting from theft, fire, hail, vandalism, or a variety of other causes.

Uninsured or Underinsured Motorist. Pays for costs related to

injuries or property damage to you or your family members and

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guests in your car caused by an uninsured, underinsured, or hitand-run driver. If you are involved in an auto accident, take the following steps: Dont leave the scene.

Call for medical assistance if there are injuries. Provide basic first Call a law enforcement officer if needed. Get the officer's name

aid.

and police station address. Ask when the accident report will be filed, its case number and how to get a copy.
o o o o o

Take careful note of the following: Date and time of the accident. Street and city. Weather and road conditions. Direction and speed you and other drivers were going. Brief description of how the accident occurred. Record the license plate, drivers license and insurance

information numbers of each driver involved.

Filing claim

Phone your insurance agent or a local company representative as

soon as possible.

Ask your agent how to proceed and what forms or documents will

be needed to support your claim.

Keep records of your expenses because any you incur as a result

of an automobile accident may be reimbursed under your policy.

Keep copies of your paper work.

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cattle insurance

36

d) Cattle Insurance
Introduction:
Risk is an inherent part of any agricultural business. The cattle business is no exception. Most experienced events beyond their control such as drought or mad cow scares. One of the effective ways to limit risk is a crop producer is to use crop insurance. Insurance Corporation programs are now an integral part of many producers risk management plans. Until 2003, however, there had been no federal insurance option for beef cattle producers. The pilot program of Livestock Risk Protection (LRP) Insurance was halted in December of 2003 due to the discovery of bovine spongiform encephalopathy (BSE), known as mad cow disease, but insurance is again available to cattle producers in certain states. How LRP Works LRP contracts are essentially a single peril price contract. Currently, LRP contracts are available for both feeder cattle and fed cattle in Wyoming. The insurance price level is tied directly to a Chicago Mercantile Exchange (CME) index. LRP contracts are available for a certain price level, weight, and number of head. For example, a producer has 75 head of steers expected to weigh 650 pounds in six months at marketing. Assume that an insurance coverage price of $100 per cwt is selected. When it comes time to market the steers, assume the price (as determined by the CME index) is $90 per cwt. This results in an indemnity payment of $10 per cwt or $4,875 total. It is important to note that LRP does not necessarily guarantee the
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producer a cash price. The cash price a producer receives on the open market may be different than that determined by CME index. Therefore, it is important to try and market cattle for the CME index price to fully take advantage of an LRP contract. LRP Requirements and contracts A producer must make an application with insurance agent determine eligibility for an LRP contract. To be eligible, a cattle producer must own or have a substantial interest in the cattle being insured. Heifers, Brahma, and dairy crosses are now eligible for LRP, but their specific coverage levels are determined by the U.S.Department of

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crop insurance

39

e) Crop Insurance
India is basically an agricultural country and different varieties of crops have been cultivated here. Cultivation of agricultural and commercial crops have been faced with many problems such as: 1. Adverse climatic conditions causing draughts, floods, untimely rains, storms, fog, frequent changes in temperatures, etc. 2. Pests and insects causing damages to crops. 3. Wild animals, etc. The important agricultural cultivated in the country include: 1. Food crops- such as wheat, jowar, millet, paddy etc. 2. Plantation crops- like coffee, tea, rubber etc. 3. Fruits orchids- such as apples, oranges, etc. 4. Commercial crops- Such as cotton, jute, tobacco, groundnuts etc. Objects of crop insurance New methods cultivation and high yielding crops have been developed in country in the areas of food crops and commercial crops. In spite of these developments, the Indian farmers still have to bear heavy losses from unfavourable climatic conditions. Most of the agricultural based countries do not have suitable means or resources to overcome such losses arising out of failure of crops. The objectives of crop insurance is to indemnify the farmers from losses of natural calamities, disease spread in crops and plants, damage to crops, riots and strikes etc.

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Advantages of crop insurance

1.

Provide security for agricultural production. Provide rights to the farmers against damage to crops. Certainty of payment for farmers who depends upon the Stability to agricultural economy Increase in income Assistance to industries Acts as the coordinating agency of government.

2.
3.

economic conditions of farmers. 4. 5. 6. 7.

8. Refund of agricultural credit.

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Machinery insurance

42

f) Machinery Insurance
Introduction:
Machinery insurance coverage is a special type of property insurance designed to reduce-through periodic inspections-the chance of malfunction among boilers and other equipment, including pressurized, electrical, and electronic machinery. Machinery insurance reduces risk, direct loss and indirect loss arising from accidents to objects. Objects include boilers, generators, engines, pumps, compressors, and turbines. The first step in the risk identification process for machinery is to determine what objects present could cause loss-not an easy task. The most apparent is any object containing steam. In addition to steam boilers, any object under pressure or vacuum should be considered. Refrigeration and air conditioning compressors are also insured under a machinery policy.

BASIC COVERAGE:
This coverage can be written under the small business form to cover boilers and vessels equipment, including or excluding air conditioners/compressor units. Machinery insurance covers direct damage to covered property when caused by a covered cause of loss. Covered property is any property that is owned by the named insured or is in the named insured's care, custody, or control and for which the named insured is legally liable. A covered cause of loss is a sudden and accidental breakdown of the insured's boiler and machinery equipment or any part of the equipment described in the policy.

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Machinery insurance is necessary because commercial property policies exclude explosion of steam boilers and breakdown of machinery. The standard machinery policy contains three extensions of coverage.

Theft Insurance

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g) Theft Insurance Introduction:

The theft cover is usually restricted to items taken after a forcible entry of your home. So theft by a maid or guests may not be covered. Nor is theft during or after a fire more properly called looting usually covered under the theft clauses of a home insurance. Property insurance can also be extended to cover neighboring liabilities also called neighbors recourse. Such an addition covers damages done to neighboring properties as a result of fire coming out of your property or destruction or any damage to it. It is very similar to third party liability in motor insurance Applying The property application form is one of the longest in terms of detail. In addition to the name of the applicant (whether tenant or owner), the companies require the full address of the property, the plot number, the type of property (residential or office, retail or factory), the story to be insured, and the period of insurance. Other sections in the application would concern the sum to be insured, broken down into building, contents, neighbors recourse, and other risks. Particulars of the building, the furniture, and the machinery or equipment are also required, as well as the fire protection measures available. A detailed description of the neighborhood is also required, and there is a complete section to be filled in with regard to theft insurance, if that is taken as part of the policy.

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Your reimbursement may also be limited, depending on the constraints of your insurance. Homeowner's insurance is designed to assure you that you will not panic when things like jewelry, cameras, collectibles, heirloom silver, computers, clothing, stored vehicles like boats, or legal documents are lost or irreparably harmed. Again, be sure that your policys monetary limits match what all of your valuables are actually worth. There are always ways of increasing the coverage amount when you plan ahead. Homeowner's insurance protects your home, belongings, family, and valuables in the event of unexpected misfortunes like vandalism, theft, accidents, or natural disasters. It is designed to replace or rebuild your property when it gets damaged, from reproofing a garage after a hurricane to purchasing a laptop stolen from your home office. Homeowner's insurance doesnt just cover your home, but usually extends to shield you from accidents your pets, family, or property cause, such as a dog digging up a neighbors new magnolia or a child breaking a window with a baseball.

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Liability insurance

47

Liability Insurance
Introduction:
The liability insurance covers the risks of third party, compensation to employes, liability of the automobile owners and re-insurances

It includes:
a)Third Party Insurance b) Employee Insurance c) Motor Insurance d) Re-insurance

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THIRD PARTY INSURANCE

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i) Third Party Insurance

Introduction
Third Party Insurance (TPI) indemnifies vehicle owners and drivers who are legally liable for personal injury to any other road user in the event of a motor vehicle accident. Your TPI insurance will cover you for personal injury claims made against you by other road users such as drivers, passengers, pedestrians, cyclists, motorcyclists and pillion passengers. It is a compulsory form of insurance and the TPI premium is included in your registration payment.

Management of Third Party Insurance

In the Australian Capital Territory (ACT) vehicle registrations and Third Party Insurance (TPI) schemes are owned by the ACT Government. The Department of Urban Services manages vehicle registrations. NRMA Insurance manages TPI claims and in consultation with the ACT Government, TPI premiums. NRMA Insurance is listed under "Third Party Insurance Company" on Certificate of Registration (Renewal) documents. The TPI premium is paid with other registration fees as a single payment at Road User Services or ACT Government shop fronts.

Compulsory Third Party

Queensland operates a common law 'fault' based Compulsory Third Party (CTP) scheme, first introduced in 1936. The scheme provides motor vehicle owners with an insurance policy that covers their unlimited liability for personal injury caused by, through or in connection with the use of the insured motor vehicle in incidents to which the Motor Accident Insurance Act 1994 applies.
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For the injured third party it provides access to common law, that is, the injured person has a right to approach a law court to seek monetary compensation from the person 'at fault' for the personal injury and other related losses. As a fault based scheme it requires proof of liability, i.e. the injured party must be able to establish negligence against an owner or driver of a motor vehicle. Consequently, circumstances can arise where, for example, a driver who is wholly at fault in an accident cannot obtain compensation because there is no negligent party against whom a claim can be made.

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EMPLOYEE INSURANCE

ii) Employee Insurance

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Introduction:
The geneses of employees liability insurance can be traced to industrial development. It was, however, thought that the employer had no more than the ordinary duty of care to his employees. Hence an employer injured as a result of negligence on the part of his employer. Employee has the same rights against the employer for the damage as any other could have. So, the employer should take care of the following: a) A safe place of work, b) Proper plant, tools, machinery and working implements for their maintenance in good working order. c) Competent and fellow employees. It would appear that the duties of employer would wide enough to encompass all situations in which an employee might be placed that would give him automatically a right of action against employer and enable avoid damages

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Motor insurance

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iii) Motor Insurance

Introduction:
Motor Insurance is one of the largest non-life insurance business in the world. This is because it is statutorily mandated in most parts of world. All motor vehicles are required to be registered with road transport authorities and insured for third party liability. The basic premise is that motor vehicles could either cause injury or be a subject to damage and injury and thus require insurance. The Motor Vehicle Act of 1939 introduces compulsory insurance to take care of those who may get injured in an accident. The insurance of damage to vehicle is not mandatory. In U.S every state has to comply with it but in India Tariff Advisory Committee regulates this business.

Types of Vehicles
For the purpose of insurance motor vehicles are classified into three categories: 1) Private cars, 2) Motor cycles and scooters, 3) Commercial vehicles; a) Goods carrying vehicles b) Passengers carrying vehicles i) Auto-rickshaw ii) Taxis iii) Buses c) Miscellaneous vehicles i) Hearses ii) Ambulances iii) Cinema vans/Recording vans
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iv) Mobile Utilities

re-insurance

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iv) Re-insurance
Introduction:
The term Re-insurance, is also termed as insurance of insurance. It means an insurer who has assumed larger risk may arrange with another insurer to insure a portion of his insured risk. In other words in the event of loss, it would be beyond the capacity of insurer, then this re-insurance process is resorted to. In reinsurance, therefore, the one insurer insures the risk which has been undertaken by another insurer. The original insurer who transfers a part of insurance contract is called re-insured and the second insurer is called the re-insurer. Of course, the re-insurance has to pay re-insurance premium for risk shifted. To be effective, the re-insurance policy must be formulated after carefully considering all aspects of situation to which it is to be applied.

Characteristics of re-insurance
1) Re-insurance is like insurance which is practiced by which insurers can spread their loss. 2) Its contract is applied by same principles which governed original contract of insurance. 3) An original insurer has got insurable interest to the extent of risk undertaken by him. Therefore, he can re-insure the property to that extent. 4) Re-insurance can be terminated when the original insurance lapses for any reason. 5) In the extent of loss, the original insurer has to pay the assured sum first to the insured then he will recover from re-insurance his share.

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6) In the absence of any privity of contract between the original party who has insured his subject matter and the re-insurer, the reinsurance are discharged. 7) The re-insurance is not liable to original insurer in the extent of loss.

fidelity/ guarantee insurance

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Fidelity/Guarantee Insurance
Introduction

This policy is designed for companys need to cover any loss caused by the dishonesty or fraud of any loss of the persons mentioned in the schedule to be advised whilst in the employment of the assured and up to the extend of the respective sums set opposite the name of such persons

Fidelity/Guarantee Insurance Further includes:

1) Fiduciary Insurance 2) Credit Insurance 3) Privilege Insurance

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1) Fiduciary Liability Insurance

Introduction :
On knowing about this insurance we come to know that fiduciary insurance is first of all a kind of liability insurance. We can study this in detail as follows: Moreover, designated fiduciaries are not the only targets of such lawsuits; targets can also include the employer and even the plan itself. Claims can be brought by plan participants, participants legal estates, the Department of Labor, and the Pension Benefit Guaranty Corporation. Such claims may include allegations of:

Improper advice or disclosure Inappropriate selection of advisors or service providers Imprudent investments Lack of investment diversity Breach of responsibilities or fiduciary duties imposed by ERISA Negligence in the administration of a plan Conflict of interest with regard to investments

A private company can help mitigate the personal liability of its fiduciaries by following the advice of outside experts and by selecting diverse, financially sound investments. But, it cannot entirely eliminate their personal liability. In order to help protect private companies, their fiduciaries and the benefit plans they manage, against fiduciary liability claims, InsureCast offers Fiduciary Liability Insurance coverage. Please go to our online Coverage Coach questionnaire to get a free no obligation Fiduciary Liability Insurance quote.

Typical

Fiduciary

Liability
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Insurance

coverage

highlights:
plans and its fiduciaries

Broad definition of insured including the company, its benefit

credit insurance

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b) Credit Insurance
Introduction:
Like any form of insurance, Credit Insurance is usually purchased by a company to protect itself against specific losses that could impair the performance of the company. In the case of credit insurance, protection is offered to the supplier against the risk of the debtor going into liquidation (Insolvency); delayed or nonpayment (Protracted Default) and in respect of export risks, the unilateral cancellation of contract (Repudiation) as well as a myriad of Political related risks. Cost Insurance costs depend on many factors such as: policy structure, credit worthiness of the risks involved, and the amount of retention of risk assumed by the insured. Typically a policy of domestic credit insurance would range between one tenth of one percent of sales to four tenths of one percent of sales. Additionally, the degree of risk (or quality of the customers); historical loss experience in your organization; current credit extension and collection operating procedures; level of experience or expertise (as evaluated by the insurer) and the concentration or distribution of risk throughout your customer base is considered. However, as with any insurance product, the quality of what is being insured will have a bearing on the cost of the insurance. This supports the assertion that insurance should be viewed as a partnership with the credit management objective. Consequently, the better job you are doing, the more economical the insurance is in protecting your company against a catastrophic loss.

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privilege insurance

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3) Privilege Insurance
Introduction:
Privilege specializes in offering highly competitive car insurance for safe drivers, with a guarantee to beat renewal quotes for any driver with 4 years or more no claims discountproving that you really don't have to be posh to get cheaper car insurance.

Privilege Car Insurance

Who cares if the only estate you own has four wheels and an engine? With Privilege car insurance, you only need 4 years No Claim Discount to get high class car insurance for a lower price. Which means youll enjoy such luxury treatment: A guarantee that we'll beat your renewal quote if you have 4 years or more No Claims Discount.*

Car Insurance Benefits

When you choose car insurance from Privilege, you're privy to a wealth of great benefits and services.

Repairs guaranteed for at least 5 years when undertaken by an Courtesy car provided for you, in the event of an accident (not

approved repairer.

theft or total loss), if you use one of our approved repair companies (subject to availability).

24-hour accident recovery. Convenient installments, subject to status*. Windscreen replacement hotline, open 24 hours. Emergency roadside assistance will arrive within 3 hours of

your call if your car's glass breaks

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How to claim
It doesn't matter if you're upper crust or down at heel, anyone can be involved in an accident or fall prey to car crime. With Privilege car insurance, claiming on your car insurance couldn't be easier. Insurance companys claims representative will get to work on getting you back on the road. One of network repairers will also collect your car and deliver it to your doorstep repaired, cleaned and in tip-top condition. Make sure you have all the following in order to contact any insurance company:

Your insurance policy number. The date and time that the accident happened. Details of the event. What the damage was to your car and any other vehicles. If other people were involved, you'll need their insurance details A policy report number of reference if you were given one.

(including their policy numbers).

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CONCLUSION
Thus I tried my best to put before you the concept of my topic Kinds of by mainly focusing on types of insurance before you and their way of developing in the field. Here we have seen that each insurance has its own features and benefits to the people. Lastly, I would like to conclude my saying that it was a great experience working on this project.

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Case Study on marine insurance

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ENERGY AND UTILITIES CASE STUDY Thames Water: Streamlining IS operations and improving service delivery, strengthening customer relationships and creating a thin layer of IS Thames Water is the worlds third largest water company providing clean and waste water services to over 69 million customers around the world. In the past year Thames Water has strengthened their position in key markets; most notably in the Americas with the acquisition of American Water Works. With around 13 million customers in the UK, Thames continues to be one of the most efficient water companies in the world.

The challenge
Thames Water had embarked on a journey to streamline their IS operations to ensure better service delivery, improved customer relationship and closer links with business. They also wanted to move to a thin layer of IS. This was a challenge considering that the Thames Support Estate consists mostly of bespoke applications using a wide spectrum of technologies and functional areas that cover all the business functionality of a typical Water Utility.

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Over a two year period, through a series of strategic initiatives Wipro made Thames Water realize significant cost savings as well as remarkably improved the quality of the application estate. This was done by following a cycle of Define, Perform, Review and Refine for each of the functions that Wipro was entrusted with. Wipro devised and implemented a strategy for cost savings by leveraging on its Global Sourcing model. The savings in the application support budget was also enabled through a system of Forecasting and reviewing service requirements with partners and third party vendors.

The benefits
The solution has resulted in higher service levels and a productivity improvement of 45 minutes per user per day in the work management area. The solution also resulted in improved partner performance and a reduction in Total Cost of Ownership by 0.5 million GBP per annum. This combined with other business benefits resulted in a cost saving of 32% in two years.

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BIBLIOGRAPHY.
For this project I have have referred certain books and websites which helped me to complete my project. Books 1) Principals and Practice of Insurance By, Dr. Pariasamy 2) Insurance By, J.M Mathew 3) Principals of Insurance By, M.N Mishra Websites 1) www.google.co.in 2) www.lic.com.

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