The document provides information on different types of insurance policies including fire, marine, motor and personal accident insurance. It summarizes the key details of each type of insurance such as what risks are covered, claim procedures, documentation required and exclusions. It also discusses the importance of insurance and provides definitions and explanations of core insurance concepts like risk, peril and indemnity.

1. Fire, marine,
Motor, and
Personal
Insurance

2. Group members
name Roll no
Kusum Parmar 65
Madhushree Rangrej 77
Thrapti Sheety 91
Kajal Singh Yadav 110
Sanjoli Bhageria 115

3. ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave us the
possibility to complete this project. I want to thank prof. Seema. S for
her suggestions and encouragement in all the time research of the
project. I would here by like to thank my parents and group members
who helped me throughout the project.

4. INDEX
TOPIC PAGE NO
INTRODUCTION 5-8
TYPES OF INSURANCE 8
FIRE INSURANCE 9-14
MARINE INSURANCE 15-19
MOTOR INSURANCE 20-22
PERSONAL ACCIDENT 23-25
INSURANCE
INSURANCE
REGULATORY AND 26-28
DEVELPOMENT
AUTHORITY (IRDA)
ACT, 1999

5. INTRODUCTION
Insurance is a means of protection of the economic value
of assets. It is method of spreading over a large number of
persons, a possible financial loss, which cannot be borne
by an individual. The occurrences which cause any
damage to the assets are called perils. The damage that
these perils may cause to the assets is called risk that the
asset is exposed to. The concept of risk is integral to the
concept of insurance. The risk means, that there is a
probability of loss of an asset. Whether the loss will
actually occur is not certain. It is the uncertainty that
gives rise to the risk. If there is no risk, there is no need
for insurance.

6. Some assets have a value because of their income-
generating capacity. Some assets may not generate an
income but they have a value because of certain needs,
which they fulfill. Loss of any assets could result in the
loss of income or loss in value of assets. When the assets
performs as expected, the owner could manage his affairs
easily and his income or value is not lost. However, when
the asset is lost, damaged, or destroyed or made non-
functional, the owner will suffer losses because his
income will be reduced or lost. Insurance is a mechanism
through which assets are protected against the risk of
damage or destruction. Thus, the owner of the assets can
cope with the economic consequences of such events.
Human being is considered as an income generating
assets.
Risk is a pervasive condition of human existence. It has a
simple meaning in everyday usage but sometimes it has a
specialized connotation, when used in a particular field. A
car accident, fire, theft, natural calamities like earthquake,
flood, etc. cause harm to some people which we call as a
risk. Losses like these happen to some people, while
others go along happily free from misfortune. Therefore,
such losses are uncertain. Insurance is still in its infancy
in India. The term „risk‟ is used by the people in the

7. business of insurance to mean-either a peril insured
against a person or property protected by insurance.
Insurance is a social device to reduce or eliminate risk of
loss to life and property. A group of individuals transfer
risk to another party in order to combine loss incurred. It
includes statistical prediction of losses and provides for
payment of losses from funds contributed by all members
who transferred risks. Thus collective bearing of risks is
immense.
With India‟s growing exposure to global markets is now
being appreciated that the business of insurance with its
unique feature has a special place in economy of our
country. Insurance is essentially an arrangement for
paying if losses they occur and thus is a risk – which
provides a much needed cover to industry thereby
economizing its growth. Society cannot ignore risks or
negative surprises, which are ever, present but can learn
to live with them.
According to D. S. Hansell, “Insurance may be defined as
a social device providing financial compensation for the
effects of misfortune, the payments being made from the
accumulated contributions of all parties participating in
the schemes.”

8. According to Riegel and Miller, “Insurance is a social
device whereby the uncertain risks of individual may to
combined in a group and thus made certain small periodic
contribution by the individuals, providing fund out of
which those who sufex losses may be reimbursed”.
Insurance are of following types:
1. Life insurance
2. General insurance
3. Fire insurance
4. Marine insurance
5. Motor insurance
6. Crop/ agriculture insurance
7. Wedding insurance

9. FIRE INSURANCE
“Fire insurance is a contract between the insurer and the
insured whereby the insurer undertakes to indemnity
the insured for destruction of or damage to the properly
caused by fire or other specified perils during an agreed
period of time, in return for payment of a premium in
lumpsum or by instalments”.
Fire insurance is the oldest form of insurance. In the
early development of industrial society, fire was the
main source of energy. The industrial or commercial
activities were not possible without fire. However, there
was a need to insure the risk of uncontrolled or
uncertain fire. Fire insurance is designed to provide for
financial loss to property due to fire and a few other
related hazards. Fire insurance is governed by a tariff

10. under the tariff advisory committee (TAC). The
property that can be covered under fire insurance
includes Building, Machinery, Equipments,
Accessories, Goods, Raw Materials, Electrical
Installation of building, Residential houses, Furniture
and fittings, Pipelines located outside and inside the
building.
The standard fire policy covers the following
hazards:
1. Fire i.e. burning of any property.
2. Explosion/implosion as may happen to boilers.
3. Aircraft damage caused by pressure waves.
4. Lightning.
5. Riot, strike, malicious and terrorism damage.
6. Impact damage by rail, road, vehicle or any animal
by direct contact not belonging to, or owned by the
insured or his employees.
7. Storm, cyclone, typhoons, tempest hurricane,
tornado, flood.
8. Subsidence and landside including rockslides.
9. Missile testing operations.
10. Leakage from automatic sprinkler insatallation

11. General conditions in the fire policy:
The following are the general conditions in the fire
policy:
a) The policy will become void in case of non-
disclosure of material facts or misrepresentation.
b) Cancellation of the policy is possible by either party.
c) Notice of loss or damage should be given to the
insurer immediately and the claims should be
submitted within 15 days.
d) The insurer has a right to enter and take possession of
the building or premises where the loss has incurred,
remove or salvage the insured property.
e) If the claim is fraudulent or false, the insured will
lose all the benefits under the policy.
f) The insurer has the right to replace, re-instate the
property lost or damaged instead of paying for the
loss or damage.
g) An insured is expected to insure his property to the
fullest extent of its value, otherwise average clause is
made applicate and then insured will get
proportionate amount of loss or damage.

12. h) In case of one more policies covering the same
property for the same hazard, all policies will
contribute the claim in the proportion of sum assured.
i) If the loss or damage is caused by a third party, the
insured is required to help and assist the insurer to
enable it to recover the loss from the third party
responsible for the loss or damage.
j) Any dispute regarding the amount of claim should be
referred to arbitration.
k) The amount of premium payable under this policy is
deducted from net claim payable under the policy.
l) All notices under this policy should be given in
writing.
Fire insurance procedure and documentation:
a) Proposal Form: A typical proposal form of fire policy
seeks information from the insured, which covers the
important aspects of risk assessment such as
description of this property, duration of the insurance,
history of previous losses, proposed sum assured,
history of insurance and risk inspection report of
insurer‟s engineer

13. b) Cover note: The cover note is an unstamped
documents of the evidence of insurance cover until
the issuance of the policy. The cover note provides
insurance against specific perils on the usual terms
and conditions of the insurer. It is issued after the
insurer receives the duly completed proposal with the
inspection reports and another information sought by
insurance company.
c) Policy: The policy document is the final contract
between the insurer and the insured. It is a stamped
document. It contains the details of the contract with
relevant schedules and rates.
d) Claims: The claim is a form prescribed by the insurer
which contains the name and address of the insured,
policy number, date, time, place, and cause of fire,
the details of property damaged, etc.
e) Survey report: A survey report is a report submitted
by the survey to the insurance company giving the
details of cause of the fire, event of loss, value of
salvage, expenses, etc. the surveyor is appointed by
the insurance company to assess the loss of the

14. policy. The surveyor has to give the amount of extent
of loss incurred of the policy. On the basis of the
survey report the insurance claim is to be settled with
the insured.

15. MARINE INSURANCE
“Marine insurance is a contract of insurance under which
the insurer undertakes to indemnity the insured against
losses incidental to marine adventure which may cover
loss or damages to the ship, cargo, freight, vessels or any
other subject of marine adventure”.
Insurance was introduced to the world by the concept of
marine insurance. The object of marine insurance is to
make good losses exposed to the seafarers due to sea
condition, war, pirates, weather, diseases, spoilage, etc.
the legal framework of marine insurance is provided by
the marine insurance Act, 1963. All the related subjects
like the basis principles, basis of valuation under the
policies, basis of settlements of losses are laid down in
this act

16. Marine insurance has two important and broad
components. The first one is cargo insurance and the
second one is hull insurance. Cargo insurance provides
cover from losses or damages that could occur to goods in
transit on sea, rail, road or air. This insurance is purchased
by the owners of cargo/ships. Cargo insurance covers
shipments by inland ships, steamers, boats and crafts,
costal shipments by steamers, sailing vessel, mechanized
boats etc., export and import shipments and consignments
shipped by rail, road or air and articles send by post of
couriers.
Hull insurance covers the insurance of the carrier of the
goods. This type of insurance is purchased by the owners
of the transportation vehicle. In case of import- export
trade, the responsibility for purchase of insurance lies
with the seller if the price quoted is cost, Insurance and
Freight (CIF). Then the seller or exporter includes the
premium charges as part of the cost of goods sold.
Moreover, the bank gets the goods as the security against
the amount paid out to the exporter and hence it requires
then the goods are insured against loss or damage in
transit.

17. The important risks covered by the institute cargo
clauses are as follows:
a) Fire
b) Vessel or craft being stranded, grounded sunk or
capsized.
c) Overturning or derailment of land conveyance.
d) Collision or contract of vessels, craft or any
conveyance with any external object other than
water.
e) Discharge of cargo to a port of districts.
f) Jettison.
The following extraneous risks are also covered:
a) Theft, pilferage or non-delivery.

18. b) Fresh water and rain water damage.
c) Hook of oil damage.
d) Damage by mud, acid and other extraneous
substances.
e) Heating and sweating.
f) Breakage.
g) Leakage.
h) Country damage.
i) Bursting or tearing of bags.
However the marine insurance does not cover the
following cases:
a) Loss caused by wilful misconduct of the insured.
b) Ordinary leakage loss, in weight or volume or wear
and tear.

19. c) Loss caused by the inherent vice or nature of the
subject matter such as perishable commodities.
d) Loss caused by delay.
e) Loss arising from insolvency or financial default of
the owners/operators.
f) Loss or damage due to inadequate packing.
g) War and kindred perils.
h) Strikes, riots, lock-out, civil commotions and
terrorism.

20. MOTOR INSURANCE
The motor vehicle insurance act of 1939, introduced
compulsory general insurance to protect those who may
get injured in an accident. However, the insurance to the
damage of vehicle is not compulsory. The tariff‟s
advisory committee regulates motor insurance business in
India. Motor insurance is one of the largest non-life
insurance business in the world. All motor vehicle are
required to be registered with the Road Transport
Authorities. They are also insured for third part liability.
This is based on the premises that the motor vehicles
could either cause injury or be a subject of damage or
injury. The motor vehicles require compulsory insurance
because any motor vehicles can parked or drived in public
places.

21. The liability that requires to be covered under this
Act, includes the following:
a) Any liability arising in respect of death or bodily
injury to any person including the owner of the
vehicle or his authorized person in the carriage.
b) Any liability incurred in respect of damage to any
person or property of a third party.
c) Any liability incurred in respect of death or bodily
injury of any passenger of a public service vehicle.
d) Liability arising under workmen‟s compensation Act,
in respect of injury or death of a paid driver of the
vehicle, conductor or workers carried in goods
vehicle.
e) Liability for bodily injury or death of passenger who
are carried for hire by reason of contract of
employment.
f) The policy should carry a „no fault‟ liability limited
to a sum of Rs. 50,000 in case of death, Rs. 25,000 in
case of permanent disability and Rs. 6,000 in case of

22. damage to the property. No fault liability is based on
the premises that the injured party does not have to
prove any fault in order to claim this amount under
the policy.
Motor vehicle are classified into three categories for
the purpose of insurance:
a) Private cars.
b) Motor cycles and Scooters.
c) Commercial vehicle carrying goods.
Passengers and other miscellaneous items, which includes
Auto Rickshaws, Taxis, Buses, Ambulances and Mobile
utilities.

23. PERSONAL ACCIDENT
INSURANCE
The purpose of this insurance is to pay fixed
compensation for death or disablement resulting from
accidental bodily injury. It is known fact that despite all
possible precautions, accidents do occur. Accidents may
occur while walking, driving or even in house due to fall
from stairs or in toilet/bathroom. This may result into
disablement or loss of limbs or even death. Personal
insurance has divided into two categories of persons viz,
normal risks and heavy risks as per their nature of job
done, for heavy risks, the premium are loaded with extra
amount.
Such normal risks/heavy risks:
Normal Risks: Persons engaged in occupation of
accounts doctors/lawyers/architects/consulting

24. engineers/teachers/bankers engaged in
administrative/secretarial and managerial
functions/shopkeepers/shop assistants not using
machinery/commercial travelers/builders/contractors/
engineers in superintending functions only/veterinary
doctors, drivers to private motor cars and light vans and
persons engaged in similar occupation.
All persons engaged in manual labour/cash carrying
employees garage and motor mechanics, machine
operators/drivers of trucks or lorries and other heavy
vehicles/professional athletes and sports persons/wood
working machinists etc.
Heavy Risks: Persons working in underground mines,
explosives, magazines, electrical installation with high
voltage supply/Jockeys Circus personnel/Mountaineering
winter sports/ice hockey/and other similar hazards.
Percentage of compensation
Death 100% permanent total
Loss „of Two limb. 100% disablement i.e.
2 years of 2 Limbs 100% 100%
Additional benefits at no extra premium:

25. i. Expenses incurred for carriage of dead body, (death
due to accident) to place of residence are reimbursed
@ 2% of sum assured or Rs. 2500, whichever is less.
ii. Funds to dependent children of the decreased 10% of
sum assured or maximum Rs.5000 per child
iii. 5% for every year the policy being in force subject to
maximum 50% of capital sum insured.
The sum insured is compared with the average monthly
income of the insured. A policy for Rs. 1 lakh may not
be granted to a person earnings. Rs. 1000 per month,
because in the event of temporary disablement, his
benefit per week is Rs. 1000 (Rs. 4000 per month)
which is disproportionate to his monthly salary.
The above benefits are allowed to capital sum policy
holders.

26. INSURANCE
REGULATORY AND
DEVELOPMENT
AUTHORITY (IRDA) ACT,
1999:
This Act was passed by parliament in December, 1999
and came into forces from 2000. This provides for the
establishment of the:
1. Authority to protect the interest of holders of
policies.

27. 2. To regulate, promote and ensure orderly growth
of insurance.
3. Matters connected there with or incidental
thereto with the establishment of new authority
IRDA, the UC Act and GIC Act stands amended,
taking away their monopoly right to transact, life
insurance and general insurance business
respectively.
Some of the important functions of IRDA are as below:
1. Licensing to transact insurance business. It fixes the
financial and legal requirements for starting
insurance business. It also gives licence to the
intermediaries like agents and brokers and regulate
their profession.
2. Providing security to the policy holders by
supervising the functioning of the insurance
companies. It shall insist on a periodical valuation
and other financial requirements so that they have
adequate assets to pay the claims of the policy
holders.

28. 3. Examine the quality of insurance products to ensure
that they are fairly priced and honestly illustrated.
The quality of sales literature is important. To
maintain transparency in the product.
4. Monitor the functioning of the companies by spot
inspection, whenever felt necessary and by
maintaining close liaison with the various consumers
forums and the other stake holds of the economy.
5. The paid up capital of companies wanting to transact
life or general insurance business, should not be less
than Rs.100 crores and in case of companies wanting
to transact reinsurance business, the paid up capital
will have to be not less than Rs. 200 crores.
6. Every insurance company will have to appoint an
actuary, to be approved by the IRDA. And he/she
would work till the 70 years of age.

29. THE END