Different Types of Non-Life Insurance
Non-Life insurance policies deals with risks arising due to the loss of property, pecuniary loss or expenses arising out of liability through negligence or carelessness. Non-Life policies are of different types such as :
Marine policies relate to three areas of risk, the hull, cargo and freight. The risks against which these items may insured, are perils of seas, fire, theft, collision and a wide range of other perils. Cargo is usually insured on a warehouse ( of departure ) to warehouse ( of arrival) basis and frequently covered against ” all risks”.
Most policies are issued on an ‘ all risks’ basis subject to certain restrictions. The buyers of theses policies are the large commercial airlines, the corporate or business aircraft owners, private owners, private owners and flying clubs. Usually a comprehensive policy is issued covering the aircraft itself (the hull), the liabilities to passengers and the liabilities to others.
Most policies are issued on an ‘ all risks’ basis subject to certain restrictions. The buyers of these policies are the large commercial airlines, the corporate or business aircraft owners, private owners and flying clubs. Usually a comprehensive policy is issued covering the aircraft itself ( the hull) , the liabilities to passengers and the liabilities to others.
Standard Fire policy
A standard fire policy is used for almost all business insurance. The basic intention of the fire policy is to provide compensation to the insured person in the event of there being damage to the property insured.The standard fire policy covers damage to property caused by the fire, lightning or explosion, where this explosion is brought about by gas or boilers used for domestic purposes.
Standard fire policy is limited in its scope as property can be damaged in other ways, and to meet this need a number of extra perils, known as special perils, can be added on to the basic policy. These perils can include:
> Storm, tempest or flood;
> burst pipes;
> Aircraft damage;
> Strike, riot etc.
Personal Accident Insurance
The intention of the basic policy is to provide compensation in the event of an accident causing death or injury. What are termed ” capital sums” are paid in the event of death or certain specified injuries, such as loss of limbs or sight as may be defined in the policy. The policy is usually extended to include a weekly benefit upto 104 weeks or more for compensation, if the insured is temporarily totally disable due to an accident and a reduced weekly benefit if he is temporarily only partially disabled from carrying out his normal duties. In the event of permanent total disablement ( other than loss of eyes or limbs ) an annuity is paid. Practice varies among insurers, some of whom pay lump sum.
The cover intended to provide compensation to the insured in the event of the plant insured being damaged by some extraneous cause or its own breakdown.
Engineering insurers provide an inspection service on a wide range of engineering plant and this is a service much sought- after as follows:
Engineering cover can be summarized as follows:
a) damage to breakdown of specific items of plant and machinery;
b) an inspection service of those items;
c) cost of the repair of own surrounding property due to (a)
d) legal liability for injury caused by (a); and
e) legal liability for damage to property of other caused by (a)
Theft insurance was first introduced towards the end of the nineteenth century and originally called ” burglary insurance”. Insurance companies included in their policies a phrase to the effect that theft, within the meaning of the policy, had to involve force and violence either in breaking into or out of the premises of the insured for cover to apply.
The minimum requirement by law is to provide insurance in respect of legal liability to pay damages arising out of injury caused to any person. A policy for this risk only is available and is termed as ‘ Act Liability’ or ‘ Third Party Only’ policy. A Third Party Only’ policy would satisfy the minimum legal requirements and in addition would include cover for legal liability where damage was caused to some other person’s property. The most common form of cover is the ‘ comprehensive policy’ which adds accidental loss of or damage to the vehicle, liability to the third party, fire and theft cover.
The policy provides compensation to the insured in the event of money being stolen either from his business premises, his own home or which it is being carried to or from the bank.
Accidental damages to glass mainly plate glass windows but also glass doors and shelves, is covered by the Glass Insurance Policy. It is possible also to include damage to the shop front and the contents of the window.
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