BE CAREFUL

Be care about your life because we not have more life today day .

Are you sure about your life and property

Please if you are not sure about your life do insurance of your and your property .

   It increases borrowing capacity of business firms
                while granting loan, banks and financial institutions perfer business firms
                    whose properties are insured. the insured properties work as good whose
                   collateral against borrowing, the landers grant adequate loan against such
                   collateral.thus it increases the borrowing capacity of business firms.

                       It increases business efficiency
                
                      uncertainty of loss may spoil the efficiency of business people.under non-
                      life insurance, the owner of the business guaranted a payment against
                      damage, destruction or dissappearance of property. as a result, the business
                     people can work with free of mind and wiyh increased efficiency.

                             It help in social property
                        Non-life insurance protect against the loss from damage property at fire,
                       accident etc. cattle, crop, profit , and machines are also protected against
                     their accidental and econamic losses. this help the people and businees to
                     prosper who are memeber of the society, the prosperity of the members of the
                   society contributes to the wellbeing of the society as a whole

                      It contributes to economic growth
             Non-life insurance protects against loss of property and encourages people
                to allocate more capital to produce more wealyh. for example, it promotes
                agricultural development by offering protection against loss of cattle and
              corps. it also promotes business growth by offering protection against loss of
              businessproperty or by minimizing business liability created by accidents,
            fire ans so on. As a result it contributes to yhe economic growth of the nations.

IMPORTANCE OF NON-LIFE INSURANCE

Non-life insurance is a contract of indemnity between insurance company
                          and the policyholder. as a contractof indemnity, it has gained increasing
                          popularity among business houses, industries, homeowners, international
                          traders ans so on. Non-life insurance is important is important in the following aspects:
                        
                       Importance of non-life insurance
It offers safety and security.
It brings peace of mind to policyholder.
It reduces business losses.
It increases borrowing capacity of  business firms.  
It increases business efficiency.
it helps in social prosperity.
it contribute to economic growth.

          It offers safety and security
      Non-life insurance provides safety and security against losses on a particular
      events. it offers safety and security against loss from fire ,
        ,damage, destruction or disappearance of property, machine etc.
         It brings peace of mind to policyholders  
         If people feel more secured, they are motivated to work more ans efficiently.
        The non-life insurance offers security against the event of fire,windstorm,accident
      ,damage so that people may work with the peace of mind.
        
     it reduces business losses
     business organizations, commercial enterprises and industrial establishment
      own properties worth millions of rupeess. a slight negligence may damage these
     properties causing huge amount of losses to the business. such losses can be transferred
    to insurance company by purchasing property and liability insurance policies. therefore               insurance of properties reduces the losses of business              

LIFE IS LIKE ROSE SO DO INSURANCE.

We know life is only for an hour which can be damage any time. Like rose so please all you do insurance of yours,family and your property it is very important for our life.

Motor/ accidnt insurance

Motor insurance is mandatory in many countries. It is dsigned to take care of those who may get injurd in an accident. This insurance also includs compensation againist damage of vehicles, but it is not mandatory.

Motor/ accident insurance may have the following coverags:

·       Liability arising in respect of death or injury of any person, owner of the vehicles in the carriage.

·       Liability incurred in rspects of damage to any property of third party.

·       Liability in respect of demage of vehicle

Generally, two types of motor insurance policies are avaliable for all types of vehicles: third party liablity policy and comprehensive damage losses policy. Under third party liability policy, the insurer indemnifies the insured against all sums which he/she may become legally liable to any person includeding occupants of the insured vehicles. Onthe other hand, comprehnsive damage losses policy covers an entire range of risks including fire, explosion, self-ignition, lightening, terrorist activity, malicious act riot and strike.

Alternative Packeges of Non-Life Insurance

Beside marine, fir and motor/ accident insuranc, the non-life insuranc offrs som other alternative packages as discussed below:

1.   Commerical package insurance

2.   Liability insurance

1.Commerical package insurance

If two or more policy are combined into a packag, it is called commerical package insurance. It combins both commrical proprty and liability insurance and also called commerical multiple perils insurance.In others words, it is the combination of two or more policies that covers risk of loss in a package against various sources.This also covers the risak of loss in commerical property by fire. Business organization like banks, hotels, business apartments, departmental stores, super markets, retail stores etc. can purches commrical packag insurance policy againast various kinds of risk. Business organizations use various kinds of valuable property such as land, business apartments, buildings, machinaries, equpement, furniturs and so on.Some unexpected result may arise causing in destruction in this properties. Beside damageof the properties, the business organazation may have to bear an unexpected resulting from unanticipated events. Risk of these types can be transferred to insurance company through the purchase of commerical package insurance.

2.Liabilitiy insurance

liability insurance is concrned with the work place and issues arising out of working conditions,death, accident at work, and unforseen incidnts while in employment. This also includes the third party liability of manufacturers towards their customers as well as similar liability of professionals towards user of their services. The liability insurance covrs the following liabilities:

·       Employee liabilities lated to working conditions.

·      Non-industrial risk rlatd to non-industrial but mainly commerical entrpries.

·      Employee state insurance liability related to injury to any employee while at work.

·      Properssional liabilitiesthat arise from the practice of a particular professional.

·      Product liabilities that arise from the sale of products to customers and resulting damage to any customer due to fault in the product.

MARINE INSURENCE

Marine insurance is the oldest form of non life insurance. It is a contract between insurer and insurd under which the insurer compensates the insured in agreed manner against marine losses. Marine insurance has four broad components: hull insurance, cargo insurance, liability insurance and fright insurance.

Hull insurance is concerned with the insurance of th carrier of the goods and is purchased by the owner of the vechicles (such as insurance of vessel and its equipment). cargo insurance provides coverage for losses that could occur to the goods in transit on sea, road, rail and air. it can cover shipment of inland ship, steamers, boats and crafts; coastal shipment by steamers, sailing vessels; import export shipments by ocean going vessels of all types; and consignment shipped by rail, road, and air. liability insurance is concerned with any kinds of liability hazards that is created because of non- compliance of rules and regulation. fright insurance provides coverage for the losses of the cargo freight due to non- delivery of oods transported.

Types of marine insurance policies

The major types of marine insurance policies are as follows:

1.       voyage policy

2.       Time policy

3.       Mixed policy

4.       Valued and unvalued policy

5.       Floating policy

6.       Blanket policy

1. Voyage policy

  This policy is issued covering the risk of voyage from one place to another place. Under this policy, the rout of voyage specifying the place of departure to the place of destination is stated along with the tim period to cover the risk. the  insurd is compensated if loss occurs during the stated period. the policy is particularly useful for cargo insurance.

2.Time policy

This policy specifica certain time period for insurance to ramin in effect. In other words, the subject matter is insured under this policy for a definition period of time, for examples, from 4A.M. of Chaitra last 2069.It is particularly useful for hull insurance and its covers the risk of both while navigation and while constructing.

3.Mixed policy

It is the combination of voyage and time policy.It contains the elements of both voyage and times policies. This policy specific the traveling route along with the definite period of time and is useful for both hull insurance and cargo insurance.

4.Valued and unvalued policy

Under valued policy, the value of subject matter is pree-agred between insurer and the insured. The loss to be compensated is fixed as per the agreed value. However, the insured value is not necessarily the actual value. It may be total of cost of goods, freight, insurance charge, transportation costs along with certain margin of profit or it may be any agreed value. As opposed to valued policy, vaqluee of the policy is not determined at the time of commencementof risk under unvalued policy. It is determined at the time when loss actually occurs.

5.Floating policy

Under this policy, the insured declares the value or amount of insured goods on the basis of shipmnt documents and the insurer accepts it. This policy is suitable in case of cargo insurance and generally taken for a larger lump sum amount.The cargo owner makes declaration of the shipmnt value at each shipmnt.With each declerations the amount of policy will be reduced until the insured sum is fully declard.

6.Blankt policy

Under this policy, certain policy amount is fixed at the beginning and the premium for the stated policy amount is paid. In th event of loss,the amount of premium is readjusted according to the actual loss. For xamples, if actual loss is greatr than th policy amount, th insured has to pay additional premium to claim against actual loss. If the actual loss is less than policy amount the excess premium is refunded to the insured.

Fire insurance

Fire insurance is a mechanism of insurance contact that compensates against the destruction of property by fire. It is a contact where by one party (insurer), in return for a consideration, undertakes to indemennify up to an agreed amount the other party (insured) against property losses caused by fire or other defined perils. The property that can be covered under fire insurance policy are: building and their contents such as machinery, equipment,accessories,furniture and goods such as raw materials, semi-finished goods, finished goods, packing materials stored in the factories and godowns, and electrical installations of a building etc.

In the contract, the insured pays a fixed rate of insurance premium to insurer to ensurer financial security aainst the events of fire.once the premium is paid, the fire insurance contract is in effect for one year and it has to be renewed every year by paying further premium to keep in effects thereafter. The major features of fire insurance are as follows:

·         It is a contract between the owner (insured) of the property and the insurance company (insurer).

·         Th insured pays the premium (considration) to get the property insured.

·         The insurer gurantees to make up the loss in case the property is damaged by fire or any other dfined peril.

·         The fire insureance contract is genrally valid for one yar and must be renewed very yars to brin in ffect thereafter.

Types of fire insurancre policies

The fire insurance policies can be of diffrent types. They are discussed in the following section:

1.       Valuable policies

2.       Valued policies

3.       Specific policy

4.       Floating policy

5.       Average policy

6.       Excess policy

7.       Declaration policy

8.       Adjustable policy

9.       Reinstatement policy

10.   Maximum value with discount policy

1. Valuable policy

Under this policy the claim against demaed property is determined at the market price. In other words, the amount of claim is not fixed in advanced. It is deteermined on the basic of prevaling market price of damaged property at the time of loss.

2.Valued policy

Under this policy the claim is fixed at the time of risk. In other words, a fixed insured sum is agreed between insurer and the insured. When the l,oss of property occurs by fire, the insurer sum to the policy holder irrespective of the market value of property damage or actual loss.

3.Specific policy

Under this policy the specific amount of insurance policy is fixed for specified property. Upon loss of the specified property, the inhsured is compensated actual loss of the maximum of insured sum. The means, if the actual loss is greater than the insured, the claim is satisfied only to the extent of the insured sum.

4.Floating policy

This policy is designed to cover risk of loss by fire against one or more kind of property at one time under signal sum assured for a single premium paid and in relation to the same owner of the property. When property or goods are located at different places, the insured can purches a singlee floating policy to cover the risk to all types of goods at different palces.

5.Average policy

This policy contains the 'average clause' which spells out that thee insured is compensated for the actual loss in the ratio that insured sum bears to the valuee of the property. If the sum insured is than value of thee property, the insured is allowed compensation in the ratio of of insured sum to the value of the property. For examples, if value of the property is rs 40,000 and the insured sum is only rs 20,000, the ratio of insured sum to value of property is 50 percent. The insured is paid only 50% of the actual loss in the event of destruction by fire.

6.Excess policy

The level of stock fluctuates in a business. In such case, it is difficult to take the policy of fixed amount. If policy is takenh for higher amount, the amount of premium will be higher, and if th policy is taken for lower amount ,the insured may have to bear proportionate loss as in the case of average policy. In such circumstance, the insurd may take two policy- one is called first loss policy and another is called excess policy. Certain minimum level -of stock is determined and the first policy is taken to cover the risk on this minimum lvel of stocks. Every month stock level is declard and the excess is taken to cover the risk of loss on the stock in excess of minimum level.

7.Declaration policy

Undr this policy, the insured for maximum amount that he/she consider would be at risk during the period of the policy. Then insurance declare the value of property in a specified date every month, and premiumis paid provisionally to the extent of 75 percent of annual premium then actual annual premium is determined in the average of every decelaration. If actual premium paid is less than this premum, the insured has pay further premimum to the insurer. In contract, if actual premium paid is greater, the insured will be refunded back the excess premium paid.

8.Adjustable policy

In this policy, the premium is adjustable accordin to the change in stock lvel. This policy is first issued undr definite trms on the existing stock and premium is paid for that.Then every month, the level of stock is vrified. When there is variation in the stock, the insured informs the insurer. Upon the receipt of information, th insurer adjust the amount of premium on pro-rata basis. The policy amount may change from time to time and adjusted accordingly.

9.Reinstatement policy

Under this policy, the amount of compensation is provided  to the extent that is required to reinstate the property lost by fire to new condition irrespective of its value at time of loss.For examples, in the event of destruction of building by fire, claim issettled to the amount reguired to rebuild the building . Similarly, if insured machine is compeletely destroyed by fire, claim is provided to the extent it reguires for replacement by similar machinary.

10.Maximum value with discount policy

Under this policy, the maximum amount of policy is taken without having required to declare or adjust the policy. The full amount of premium is paid at thee time of commencement of risk.In the event of no loss, thne insureed is refunded back one- third of premium paid. This policy is similar to the decleration policy to cover for maximum loss but does not require checking and recording declaration. 

Introduction to non-life insurance

Non life insurance is a contract of in indemnity under which the insurance company agree to compensate the policy holdr against losses of personal and commercial property and liabilitiy exposoure. In other words, any form of insurance othr than lif insurance is called non-life insurance. It is also called property liability insurance involves insurance coverage releted to the loss of commercial and personal property. Liability insurance offers protection aainst legal liability exposure, such as libility created through vehicle accident. However, many insurance companies offers a single packeg of insurance having th combined coverage of property losses and liability exposure. Such policy may cover the risk of loss against damage of property as wll as liability exposure, such as, for example, in case of accident insurance. In this case it cover the loss against damage of vehicles and liability created to third party bcause of accident.

The non-life insurance began with marine insurance.It, now a day, covers several other forms. Some examples of non-life insurance are as follows:

·         It includes fire insurence which protects against perils of fire, lightening and removal of property damages in a fire.

·         It includes homeownrs' multiple peril insurance which protects against multiplel perils of damage to personal property caused by file, lightening, windstorm, hail, explosin, theft etc. IT als includes the liability coverage against financial consequences of liability resulting from injury to otheers in the vnts of explosion, accident an so on.

·         It includes commerical multiple peril insurance which protects commerical firms against perils similar to homowners' multiple peeril insurance.

·       It includes automobiles liability and physical damag insurance which covers protection against loss resulting from legal liability due to wonership or vehicals and theft or damage to vehicles.

Insurance bylaws (seconds amendment ) 2060 has speecificed following insurance policy under non-life insurance.

·       Fire insurance

·       Motor insurance

·       Marine insurance

·       Engeneering and contract risk insurance

·       Aviation insurance

·       Miscellaneous insurance
In the later section, we will discuss the most common forms of non- life insurance 

5.Fixed period life annuity policy

 It pays insured person equal annuily payment starting from certain age or after the expire
of certain numbers of years

4.Universal life policy

It providees permanent death protction and saving accumulation. Under this policy there is
greater fixibility with respect to payments of insurance premium.

3.Endowment life policy

ndowmnt policy pays the polics amount if the insured dies but it also pays th policy amount
if the policy holder survies until the term of policy.
a.Pure endowment policy
Under pure endowmnt policy, the amount is paid to the insured if he/she survives to the end
of policy period.Th policy amount is not payable if if the insured diees before the policy period.
pure endowment policy is i9ssud for the benefit of policyholder. It is a kind of compulsory saving
for old age and is not intended for the bnfit of dependet.
b.Double endowment policy
doubl endowment policy calls for payment of double of the inmsured sum to the insured prson if he/
she lives until policy matures. This policy is benefical to those person who is confident of living long
but would like to have some coverage for dependent in the event of early death.
c.Deferred endowment policy
With deferred endowment policy, the policy am,ount is paid only after th expire of policy period
regardless of wheatr the insurd person dies bfore maturity. This types of policy is offred to the
benefit of person who desires to have money at the time of children's,marrage,higher education
and at th time of any other family events requiring large of money.
d.Anticipated endowmnt policy
 Under anticipated endowment policy a part of insured sum is paid at certain intervals say the
end of each years for a 15 years policy and the balance of sum is paid at maturity. This type
of endowment policy is popularly called money back policy.

2.Term life insurence

term life policy is affectd for short term. If insured person lives until th term of insurance, th policy amount is
is not paid. But if the insured prson dies within the term of insurance, the policy amount is paid to the nominee
a.Straiht term life policy
this policy is a temporary policy and issued gnrally with not more than two years of maturity. Under
this policy, th sum of assured is payable only at the dath of insured prson if he or she dies during
the assured period.
b.Renwal term life policy
Thse type of term life policies are renwable. They can be renwed for the next term after the exipry
of given term. Such renwal can be continued until the age of insured reaches to 55 or 60 dpending
upon diffrnt life insurance companies.
c.Convertable term life policy
Under this policy th policy owner is given an option to convert these th policy into whole life or
endowment policy.After thse conversion new policy under fixed payment whole life plan or
endowmnt plan will be issuedand th amount of premium is fixed as per the age attained.

1. Whole life insurance

as the name suggest, whole life policy is in effects over the ntire lif of the policyholder.It provides
life time protection. undr this policy, risk is covered for the entire life of the policyholders. The insured
amount and bonus are payable only to the nominee or beneficiary upon the death of policyholder.
The insured amount is paid to the nominee after the death of insured person.
  a.  Whole life policy with profits
This is the whole life policy with low rate of annual premium to be paid. undr this policy the premium
are payable ovr the life time of insured person or up to the certain age of policyholdr,say,80years,
whichever is earlier.At the maturity or on the natural death of policyholder, the nominee is paid sum
assured plus amount of bonus accured to the date. But is case of accidental death of policyholder
the nomiee is paid double of the amount of sum assured plus the amount of bonus accured.
    b. Limited-payment whole life policy
Most insurance companies hve offred fixed or limitr paymnt while lif insurance policy. under this
policy, the premium is paid over a fixed number of years but death benifit is given to the nominee
after the death of insured prson. Under this policy, the amount of annual premium for a given asured
sum is generally higher than the ordinary whole life policy because of  limited number of payment
method.
c.Convertible whole life policy  
The whole life policy can be converted as the option of insured person into eendoment policy after
the expiry of certain years is called convertible wholee life policy.If the conversion option is not exercised
the policy continues as ordinary whole lif policy. 

Typs of life insurance

life insulance companies offer diffrent life insurance policies. The rang from the traditional policies like
whole life policies, term policies, endowmnt policies to the rent innovations like universal policies and
fixed period life annuity policis.They ar discussed below:
1.Whole life insurance
a.Whole life policies with profits
b.Limited-payment whole life policy
c.Convrtible term life policy
2.Trm life insurance
a.Straight trm life policy
b.renewal term life policy
and...........
c.convertible trm life policy
3.Endowment life policy
a.Pur endowment policy
b.Double endowment policy
c.Deferred endowment policy
d.Anticipatd endowment policy
4.Universal life policy
5.fixed period life annuity policy

Maning And Defination of Insurance

Insuranc is defined as the pooling of fortuition losses by transfer of such risks to insurers,
who agree to indemnify insured for such losses,to provide other pecuniary benifits on their occurrence
or to render services connected with the risk.This definitions hilights the followings:
1. Insurance is the pooling of casual losses.
2. Insurance transfers thev risk from insured to the insurer.
3. The insurer agrees to provide pecuniary benfit on the occurrence of th lose.

concept of life insurance
life insurance is an arrangemnt by a person with a lif insurance company to cover the risk caused by
death of the person. such an arrangement takes th form of contract whre by the person pay certain
premium periodically over a started time period and in rturn th life insurance company agree to
pay back an agreed lump sum amount to the dependent open the death of prson or to the person
him/herself if the person lives at the maturity of life insurance contract.Therefore, life insurance is a
contract between insurer (the life insurance company) and insured (the person obtaining life insurance),
where by the insurer agree to pay a certain sum of money in return of premiumfrom the insured.
As per "insurnce Act (second amendment) 2058"life insurance contract is the contract about life of
person, where the person pays certain installment of money on the basic of his or her age and
in return certain sum paid to him or her, if he or she lives or to the nominee of the person on his
or her death.