PERSONAL PACKAGE INSURANCE

1. HOUSE HOLDER’S INSURANCE: The house holder’s  insurance is a package cover designed to meet various  insurance  requirements of a house holder by combining  under a single  policy a number of contingencies generally  encountered by house holder. This  insurance providers protection for property and interests of the insured and his family members  who permanently reside with the insured. Generally properties like building household goods, jewellery & valuable domestic, electric appliances etc.,.  are covered by this policy. This minimum premium under this policy is Rs. 100.    

  2. PEDAL CYCLE INSURANCE: This  insurance is intended to cover loss of a or a damage to the cycle by fire, lighting , explosion  burglary house breaking theft and accident external means. It also covers the insured’s  legal liability  for bodily  injury to third parties subject to a specified  limit, say Rs. 15,000 . Any loss of a or a damage to rubber tyres , lamps, tools and accessories is covered only if they are lost or damaged in the same accident in which  the insured pedal cycle is also damaged. This policy can be extended to cover personal accident  insurance benefits on payment of additional premium.  

 3. MOBILE PHONE INSURANCE: Under this  insurance the insurer will indemnify  the insured for the loss of or a damage to cellular phone by theft, and burglary, fire, explosion , malicious or accidental damage due to external means, earthquake, flood, storm, electrical, and mechanical breakdown. On payment of additional premium, the cover can be extended  to indemnify insured against fradulent  use of the cellular  phone, following the physical loss of damage to the cellular phone, where such loss is total loss for a time limit of 24 hours, from the time of recording by the cellular operator of first fradulent call subject to a  maximum limit of Rs. 5,000 for any loss or any series of loss in any one period of  insurance. The premium for this extension is normally  charged @ Rs. 50 for any one period of  insurance.   

 4.  BAGGAGE INSURANCE:  This  insurance is damaged  to cover accompanied  baggage during specified journey, which includes  air, sea, rail or travel undertaken by the insured. The risks  covered are burglary  , theft or damage by accidental means. The route of the journey is specified in the policy and the cover is operative only when the insured is travelling  by an accepted mode of the travel on the specified  route. proposal form should be fully completed  as regards description  contents and value of each package. Further, if jewellery, valuable  and items listed in the exclusions  clause are to be covered then full description  and individual  value should be noted.  

 5.  ALL RISKS INSURANCE:  This  insurance grant very wide cover in respect of valuable property  and is normally issued  only to very good clients . Barring a  few perils like Earthquake, War, etc.,  the cover offers very comprehensive  protection  to the insured propertyagainst many perils such a as fire, Riot, & Strike. Terrorist Activity, burglary house breaking , theft, accidental  loss or damage. The following are the special features of this  : (a) The cover is strictly restricted  to personal  jewellery ornaments and other such valuable  which should be specified and separate  value declared against each.  (b) Declaration of full value should be a insisted upon but valued policies should not be a be agreed to.  ( C ) All articles  should be a sufficiently  in detail to permit identification. (d) In case of jewellery studded with pearls, diamond, or other precious , stones, valuation certificate of jewellery with number and detailed  description of the stone’s  should be obtained.  (e) furs and similar costly items, personal belongings  can also be included but articles like fountain  pens, spectacles, clothing  musical, instruments, and silver utensils etc., are not covered under this policy. However if an All Risk policy holder  insists  on coverage for clothing silver articles and the like, this may be agreed to but the policy should be endorsed restricting the cover on such items to Fire & Theft risks only.

Many Types of Insurance Policy

   SPORTS INSURANCE:  This insurance is available for amateur sportsmen only and not for  professional sportsmen covers sports like, Angling, Badminton, Cricket, Golf, Lawn tennis, Squash and use of sporting guns. It indemnifies  the insured  in respect of the following:  (a) Loss of or damage to sporting  equipments accessories etc., (b)  Loss of or damage to clothes and belonging  caused by fire , burglary, house breaking or theft. ( C ) Legal liability of the insured and named members of the insured’s family, to the public, while engaged  in practicing the sport.  (d) Accidental bodily injury to the insured and to the named members of the insured’s  family whilst engaged in or  practicing  the sports.  

  2.  OIL AND ENERGY RISK INSURANCE: This is also  known as off-shore insurance. Insurances are granted for: (a) Mobile off-shore  drilling units (drill ships and rigs). (b) Off-shore platforms for productions  and processing . ( C ) Associated pipelines, cables etc., These policies issued in Marine Hull department are granted  to Oil and Natural Gas Corporation which is engaged in oil and gas exploration  and production at sea.  (a) Insurance of aircraft against  loss or damage.  (b)  Insurance of legal liability  to third parties and passengers.  ( C )  Insurance of legal liability  for freight, mail etc carried.  (d)  Insurance pilots crew and ground staff against  personal accident risk.  (e)  Insurance   of pilots  and other crew against  loss of professional licence.     

3. SPECIAL CONTINGENCY POLICY:  This policy covers the risk relating  to machinery and or equipment or any other property. The rate of premium charged varies from 1 % to 2% of the value of the property to be covered. A new type of a special contingency policy has become popular in the recent year. This  relates to total abandonment of one day  cricket match due to specified perils. These perils being fire, lighting  explosion,  earthquake, rain, riot, strike etc.,  This policy  cover the actual financial loss suffered  by the insured i.e., the organizers . The insured has to establish the extent of loss by the submitting an audited accounts. It is a condition  under the policy that no liability  will attach event a if a  single ball is a bowled. It should  be noted that once a match thus commences, subsequent,  abandonment would be noted constitute a loss. Similarly changes in venue or postponement of the match does not constitute a claim. It is prescribed that the tickets issued shall contain a stipulation that once a ticket is sold, no refund will be allowed. 

  4.  CREDIT INSURANCE: Credit  Insurance comes in a variety. Typical credit  Insurance coverages included  credit life, credit disability, involuntary, unemployment, and credit property  Insurance. Separate coverages  such as those listed above often bundled  together and marketed as one packaged  product. Credit   life  Insurance is a type of life  Insurance that effectively pays off the debt  you owe on a credit account or mortgage in the event of your death. The payment from the  Insurance company reflecting the pay off balance of your account or loan always to the lender who is a named  as the  beneficiary of  the policy . You  cannot name a spouse, family member or friend as a beneficiary for a  credit life  Insurance policy. Credit Disability  Insurance helps to a secure your favourable  credit rating by covering  your minimum  monthly  credit account payment during a period of documented medical disability. Since it is a common for policies to contain a maximum time period for continuing payment benefits , it is likely that your entire balance will not be paid off. Morever, as interest and  Insurance charges continue  to add up throughout  the period of your disability, it is possible that you may be owe more money on your account after your disability  than you did before, depending upon your original balance,  Generally you will not be covered for any additional purchase  made after the onset of your disability. Involuntary unemployment   Insurance, like credit disability  Insurance, makes your minimum monthly  credit account payment during a of a involuntary unemployment, such as a lay off or down sizing. The limitations noted with credit disability  Insurance as defined above a are also applicable to involuntary unemployment  Insurance. It is a possible that your entire balance will not be a paid off and it is possible that your may owe more money after unemployment ends than did you before even, though the  Insurance company was making your minimum monthly payment. Credit property  Insurance cancels  the debt you owe on items purchased on a an insured credit account if the property purchased is destroyed by the specific  named perils such as an accident theft, flood, or  earthquake. Unlike most property  Insurance, you do not he  not have a to pay a deductible up-front when submitting a claim. Deductibles are not used in credit  property  Insurance.  5. STUDENT SAFETY INSURANCE: This  Insurance is issued on similar lines to personal accident  Insurance. It is meant for children going to school, college and other educational institutions. It covers death or the to the permanent disablement due to accident. The sum assured ranges from Rs. 10,000, to Rs. 10, 00, 000 . The benefits offered to the insured are as follows.

NON MEDICAL SCHEME

The practice of accepting  insurance without a medical examination ( I.e.,  non medical) became established  in the UK in the 1920’s. Eventually this practice spread to North America. For many years, non0medical medical history question are asked by agent rather than a  doctor was limited to smaller amounts at the ages of 40 under , but due to favourable  experiences, it was extended  to quite large amounts in the early 1980’s The term non-medical should not however, be taken to mean that  insurance is issued without any medical  information. Medical information is sought from the proponent directly  and in this regard, there is an additional responsibility  on the proponent to be totally fair and frank. Here the agent also plays an important role as his role as the primary underwriter is brought into play  because of his close intimacy with the proponent  and knowledge of any additional adversity in the proponent’s  health condition. There are many reason for accepting applications  without medical examination.  (a) There has been a growing  realization in the  recent past that a medical examination is not indispensable  because it is known from experience that it brings out the adverse feature in not more than the a tenth of all the applications received. (b) The slight increase in the claims can well be compensated for by the saving of medical fee and other procuring  expenses.

 ( C ) In our country more than 75% of the population is in rural areas. It is difficult to have competent  medical examiners in these areas to conduct the medical  examination for the purpose of life insurance. This is a more true in respect of lady medical examiners.  It is also difficult to bring applicants to nearby  towns for that purpose, which will also be prohibitively  costly.  (d) Where the applicants are employees of an institution which insists  on standard age proof and a medical examination  at the time of a entry in to service and also maintenance of regular  leave records, medical examination can be dispensed with.  (e) The effect of selection by medical examination for life insurance on the rate of the mortality is limited to a few years after acceptance of the application may be a year or two. There could be some extra death during the period, which can be compensated by  savings of medical fees. In view of these reasons, if some safeguards can be  designed and adopted it will become possible to considered  applications  without the necessity  oaf any medical examination. The following  condition are generally employed.:  (1) Application form may be more elaborate and may included  a personal statement. 

The applicant will have to furnish his/her physical measurements like height and weight (LIC of India has built the tables which gives the range of weight for each age and height-minimum and maximum for consideration  of applications  under its Non medical  schemes those beyond  are considered subject to medical examinations.  (2) A detailed  report of the field worker is also called for in a which,  after making careful enquiry, the agent will have to  furnish details of the health habits, personal and family history,  financial position of the applicant to avoid moral hazard.  (3) There can be certain restrictions regarding  age at entry types of products  offered maximum maturity age, maximum sum assured etc., (4)  There can be more restrictions on allowing non-medical scheme to female lives.  (5) The insurance company can always reserve its right to call for a medical examinations in any case. LIC of  India has introduced two different  schemes: (a) Non-Medical special scheme, and (b) Non Medical (General) scheme. They are discussed in detail here 

LIFE INSURANCE PREMIUM SETTING: The insurer collects contributions from a large number of individual to compensate the financial consequences  of the loss of the unfortunate few. This contributions  is known as premium. In other worlds, premium is the price paid to the insurer by the insured fro underwriting  risk. There is a rate for each type or insurance. The rate of premium depends upon the  risk undertaken by the insurer,  expressed generally per hundred  or per thousands  of sum insured. It can be paid either in one lump sum  or in easy periodic instalments like monthly, quarterly  half-yearly of annual. The manner of a payment usually annual and the payment by monthly or other instalments  usually involves slight extra cost. 

TYPE OF PREMIUM: The determination of life insurance premium is one of the most technical  and a difficult aspects of the branch of actuarial  science which requires a broad knowledge  of science of mathematics and satistics The premiums can be classified into the following heads: (1) Net  premium. (2) Gross premium. (1) NET PREMIUM: This premium  is mainly based on the past experience  mortality and assumed rate of interest. No consideration is given for expenses incurred  and for future contingencies. The net premium should be equal to the claims paid other on the death or due to the maturity of the policy.  (2) GROSS PREMIUM: It is also known as the “office premium”  It is the amount that the life assured is required  to pay. It includes  the mortality rate, the assumed rate of interest, the expenses and loading  . So if expenses and bonus to policy holder are added to net premium it becomes gross premium. Gross premium =  Net Premium + Expenses + Loading.  The premiums mentioned above may be further classified  into two parts. (a) Net single premium: and. (b) Level premium.  (a) NEWT SINGLE PREMIUM: This premium is received  by the insurer in a Lump sum and is exactly  adequate, along with the return earned thereon, to pay the amount of claim. It does not provide for expenses of management  and for contingencies. Net single premium = Mortality cost + Loading --Interest. The computation of net single premium rates on any kind  of policy requires the information as to.  the age  and sex of the assured  since rate must be commensurate with age and sex. the type of policy, for the rate depends on the type of policy. The size of the policy, for the  rate depend on the amount of assurance or the amount of the claim guaranteed and the rate of interest  assured fr investment made by the insurance company.  (b)  LEVEL PREMIUM.: Due to financial constraints, some insured may find it difficult  to pay for this their life insurance  on a single premium.

MARINE POLICY CONDITION OR CLAUSES IN A MARINE POLICY

In order to satisfy the varied requirements of the insured suitable condition are incorporated in marine policy. These condition are the clauses  which are found in the policy. There are many conditions under which a policy is issued but we shall discuss below the most important among them:

 (1)  NAME OF THE INSURED: In marine policy,  the opening words are following by a blank space which are is used for the name of insured or his agent. If the name of is not inserted in the policy, the document will not be a considered as a marine policy. The names of those persons, who have an insurable interested in the subject matter insured alone should be inserted  in the policy. In the past in some of the policies the opening words were “ In the name of God”, such practice does not exist any longer. (2) ASSIGNMENT CLAUSE: According  to this clause, a marine policy is a freely assignable unless this is expressly prohibited. The policy may be assigned to any person who has insurable  interest or who may acquire it at some later date. Generally, cargo policies can be assigned freely without giving prior notice to the underwriter insurer but in case of the hull insurance, the policy cannot be  assigned freely and the consent  of the underwriting  is essential because the degree of risk of the subject matter is the materially  altered when the management and ownership of the vessel is changed. As  the cargoes on ships change ownership  several times before they finally reach the port of destination  the assignment of a cargo policy is to be done by means of the blank endorsement i.e, by putting the signature of the insured or his agent if the policy is in the name of the agent. On the contrary, the hull insurance policy should be assigned only by means  of specific endorsement. It is interesting  too note  that marine policy can be a assigned  even after it takes places, but the assignee cannot be a get a better title than the assignor.In marine policy was that sometimes the merchants receive information of shipments of their cargoes very late, particularly  after the sailing of the steamer. In such cases therefore both the parties viz. the insured and the insurer were ignorant about the safety or otherwise of the subject matter. In order to provide  protection to the merchants for such shipments the Lost or Not Lost Clause has been inserted  in the policy which makes the insurer liable to indemnify the insured  whether  the subject matter before the date of issues of the policy has already been lost in the way or not lost. The inclusion of these words makes the policy effective  from a retrospective  date and covers any loss which might have occured  between the period of shipment of the date of issue of the Policy.

  It is quite obvious that the clause pre-suppose complete reliance on the principle of good faith on the part of the parties. If at any point of time, it is proved that one of the parties, was in possession of information about the safety or otherwise of the subject matter, the contract of marine insurance  will come to an end. For example if the insurer at the time of taking the policy knows that the good have already reached  the port of destination safely or the insured aware that the goods have been destroyed  on the way, then in both the cases, the  policy will be declared  void an account of concealment of fact. This clause  was most prevalent in olden times when communications network was not so developed. But now this clause has lost of much of its importance. 

(4) AT AND FROM CLAUSE: This clause describes the point  of times from which the risk commences and is generally applied to hull and frieght  insurance. When a ship is insured “at and Form” a particular place, the risk commences as soon as the ship is  arrives at the port safely. It means that the  policy covers the subject matter while it is lying at the port of the departure  and from the  time the ship sails. For example, if they  policy contains the words, “ at and from Chennai it means that the subject matter is covered under the  policy up to the time the ship stays  in Chennai or any time it leaves the Chennai port. In case the  policy contains the word “From” instead of at and from the risk of covered  only from the time of a departure and bot prior  to that. For example if the  policy provide. From Mumbai, it will imply that the  insurer is liable for any loss or damage arising after the ship has sailed  from the port of Mumbai and not before that. In case  of goods, the risk commences from the time they are loaded on a the vessel and insurers are not responsible for the loss while in transit In lighters and crafts from the shore to the ship. If the place of departure is specified by the  policy and the ship sails from other place than the specified one, the risk does not attach.