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