WHAT IS GENERAL INSURANCE...???

 

icici prulife

The history of general insurance dales back to the Industrial Revolution in the west and the consequents growth of see-faring trade and commerce in the 17th century.It came to india as a legacy of British occupation.General Insurance in india has its roots in the establishments of Triton insurance company Ltd.,in the year 1850 in Calcutta by the British.in 1907, the Indian Mercantile Insurance ltd.was set up.This was the first company to transact all classes of General Insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of india.The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices.

In 1968,the Insurance Act was amended to regulate investments and set minimum solvency margins.the tariff advisory committee was also set up then.

In 1972, with the passing of the General Insurance Business (Nationalisation)Act, General insurance business was nationalised with effect from 1st january,1973. 107 insurers were emalgamated and grouped into four companies,namely Natonal insurance Company Ltd.,the New India Assurance Company Ltd.the Oriental Insurance company Ltd.and the united india insurance company Ltd.the General insurance corporation of india was incorporated as a company in 1971 abd it commence business on january 1st 1973.

Recently,the Central Government has proposed merger of 3 Public Sector General Insurance Companies, except New India Assurance Company Limited,paving the way for consolidation in Government run general insurance companies.

A popular or generally accepted idea is that all insurance other then life is non-life or general insurance .General Insurance comprises of insurance of properly against fire,burglary and natural calamities like floods and earthquacks etc. personal insurance such as accident and Health insurance,and liability Insurance which covers legal liabilities .There are also others covers such as Errors and Omissions insurance for professionals,credit insurance,agriculture insurance etc .Non-life insurance companies have products that cover properly against fire and allied perils,flood storm and inundation,earthquacks are so on.

there are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. for instance,there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accontants etc. apart from offering standard covers, insurers also offer customized or tailor-made ones. industries also need to protect themselves by obtaining insurance cover s to protect their building ,machinery, stocks etc. and need to cover their liabilities as well.Financies insist on insurance of property which they finance through loans.so ,most industries or businesses that are financed by banks and other institutes do obtain covers.

its is important for proposes to read and understand the terms and conditions of a policy before they enter into an insurance contract. the proposal form needs be filled correctly ,as this is the offer and first step of the insurance contract; it is always filled by a proposer to ensure that the cover is adequate and the right one.unlike life insurance ,general insurance contracts are based on indemnity of the loss assessor,as we saw in one of the earlier chapters,play acrucial role in assessing the extent of damages to arrives at the compensation. while assessing the loss on account of fire accidents to a car could be relatively simple .it because complex in certain causes for examples, public liability insurance .therefore ,it is important for the reader to appreciate how the framework around determination of liability in General insurance operates inIndia.