CONTENTS

CHAPTER TOPIC PAGE NO

1. 1.1 INTRODUCTION TO THE INSURANCE 2

1.2 OBJECTIVES OF THE INSURANCE 10
1.3 HISTORY OF THE COMPANY 11

2. 2.1 PROFILE OF THE COMPANY 12

2.2 ORGANISATIONAL CHART OF THE 14
COMPANY

3.1 POLICIES ISSUED IN THE COMPANY 19

3. 3.2 INSURANCE DOCUMENTTS OF THE 35
COMPANY

DEPARTMENTS IN UNITED INDIA 39

4.
COMPANY

5. CONCLUSION 53

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 1.1.INTRODUCTION TO THE INSURANCE

Definition:

Insurance can be defined as “A contract between parties whereby one party

agrees to undertake the risk of another in exchange for consideration known as
premium and promises to pay a fixed sum of money to the other party on happening of
an uncertain event (death) or after the expiry of certain period in case of life insurance
or to indemnify the other party on happening of an uncertain event in case of general
insurance”. Insurance is a means of protection from financial loss. An entity which
provides insurance is known as an insurer, insurance company, insurance carrier or
underwriter. A person or entity who buys insurance is known as an insured or
policyholder. The insurance transaction involves the insured assuming a guaranteed
and known relatively small loss in the form of payment to the insurer. When choosing
a policy, it is an important to understand how insurance works. Three important
components of insurance policies are the premium, policy limit and deductable. A firm
understanding of these concepts goes a long way in helping us to choose the policy that
best suits for us.

Insurance is a term in law and economics. It is something people buy to protect

themselves from losing money. People who buy insurance pay a “premium” and
promise to the careful.

An arrangement by which a company or the state undertakes to provide a

guarantee of compensation for a specified loss, damage, illness or death in return for
payment of specified premium. “many new borrowers take out insurance against
unemployment or sickness”.

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Purpose:

Assets like building, machinery and stocks and persons are called as risks.
These risks are exposed to perils like dire, lightning, riot, strike. When the perils
operate upon the risk, then the risks are lost/damaged/injured/died. Under such
contingency insurance pays compensation to the insured for the affected
property/person this is the primary function of insurance.

How Does Insurance Work

People facing common risks come together and make small contribution
(premium) to a common fund (maintained by insurer). When a few unfortunate
people whose property/life is damaged or lost and injured/died, insurer pays
monetary compensation (claims) to the victims from out of the common fund.

Thus, sharing of losses of a few by many or spreading of losses of a few

over many is the method by which the insurance companies work.

Contract of Insurance

The proposer (insured) pays premium to the insurer who accepts the risk after
scrutinizing all the material facts and issues policy which is the evidence of the
contract. The practice is knows as contract of insurance.

The following are some of the essential conditions for making an insurance
contract a valid one:

a. Payment of premium
b. Promise to indemnify
c. Competency (majors)
d. Sound mind
e. Legal capacity (not against public policy) - eg. Stolen/smuggled goods
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Risk Management

Risk Management is a managerial function. It is concerned with the

protection of the firm’s assets, earning of profit, legal liabilities and personnel
against financial losses.

Process of risk management:

Risk management process involves the following steps:

1. Identification e.g. Shop/firm

2. Evaluation (severity of losses)
3. Selection
a. Avoidance
b. Prevention
c. Retention
d. Transfer
4. Implementation
5. Review
Insurer concerned with Transfer Technique which is one of the Techniques
of selection. Though there are various kinds of Risks like Static, Dynamic, Pure
and Speculative risks, insurer concerned only with Pure Risks, which are only
insurable being uncertain about financial loss of risk and not at all concerned with
speculative risks.

E.g. Gambling/Lotteries which is not insurable risk being certain about the
financial loss.

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FUNDAMENTAL PRINCIPAL GOVERNING GENERAL INSURANCE
1. Utmost Good Faith
It means absence of fraud. Otherwise means disclosure of all material
information and representation of all material facts which enables both the insured
and the insurer to avail the required cover without facing any inconvenience in the
event of claim and charge the appropriate correct premium respectively. If this
principle is not followed either by insured or by the insurer then the contract
becomes void.
2. Insurable Interest
It means the legal right to insure making the insurance contract valid.
Without the insurable interest insurance contract becomes void.
Time when insurable interest should be present is as follows:
a. Full, miscellaneous and hull – both at the time of inception and at the time
of loss
b. Marine cargo – at the time of loss
c. If the property or person is insured without having the legal right to
insure(insurable interest) then the insurance contract becomes void and no
claim is payable.
3. Indemnity
It means to place the insured after a loss in the same financial position, as
far as possible, as he occupied before the loss (i.e. to protect the financial interest
of the insured)
The following are the measures of indemnity with relating to various types of risks:

 Building - Reinstatement and repair after depreciation

 Machinery - Replacement value at the place and date of loss after
Depreciation.

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  Stock - The price at which the goods are replaceable
 Motor
1. Total loss – the insured’s estimated
Value of market Value of the Vehicle whichever is less

2. Damages – the cost of repair with suitable depreciation

4. Subrogation
It means transfer of rights and remedies except fire and miscellaneous
where it is expressed. For example negligence of third party, negligence of
carrier, collision by rash driving, defective product and default of the
employee. If loss or damage, injury or death as a result of the said negligence,
then he insured has to subrogate his rights and remedies to the insurer so that
any recovery due from such defaulting party may be proceeded against legally
by the insurer.
5. Contribution
It means the insured does not recover more than the actual loss or the sum
insured in the event of loss or damage. In the case the property is insured with
more than one insurers then the insured recovers only the loss in proportion to the
sum insured from all the concerned insurers who are liable to pay for the loss.
However this is subject to the fact that peril, subject matter and interest are
common and the policy is legally enforceable. In the absence of this principle the
insured may recover for the loss from more than one party and thus make profit out
of misfortune.
6. Proximate cause
It means the most important, effective and powerful cause in bringing
about the loss, damage, injury and death. This is also knows as cause proximate
and non-remoto.

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 This principle is very important to ascertain as to which peril brought about
the particular loss of damage.

It is important to know whether the peril which brought about the loss is
insured or uninsured or excluded from the purview of the policy. It may be noted
that the claim is payable only when the loss caused by the insure peril. It the loss is
due to uninsured or excluded peril the insurer need not admit the claim.

COMMON CONDITION:
1. Notice - any information/communication addressed to the policy issuing
office should be in writing.
2. Description – Insurance is a contract based on utmost good faith.
3. Reasonable car – insured should take all care and cautions in proper
maintenance, employment of competent employees, complaints of all
statutory and other regulations with the aim of preventing any accident as if
the property not insured.
4. Cancellation – the condition provides for cancellation of the policy at the
option of either the insured or the insurer. The notice of cancellation by
either of the party should be given in writing.
In the event of cancellation at the option of the insured, short period
premium will be charged for the expired period and the balance will be refunded to
the insured, after retaining the appropriate minimum premium. In case the
cancellation is effected at the option of the insurer, then premium chargeable for
the expired period will be on pro-rata basis subject to retention of minimum
premium.
5. Claim procedure – in the event of claim, the insured must give immediate
notice to the company. Within fourteen days of loss, the insured must give to

7
 the company all other details including claim documents and evidence and
explanations to substantiate the claim.
6. Fraud – if it found that the insured or anyone on his behalf used fraud
then no benefits shall be payable under the policy.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

The Insurance Regulatory and Development Authority (IRDA) is a national agency of

the government of India, based in Hyderabad. It was formed by an act of Indian
parliament known as IRDA Act 1999. The mission of IRDA as stated in the preamble
of the act is “to protect the interest holders of insurance policy, to regulate, promote
and ensure orderly growth of the insurance industry and for matters connected
therewith or incidental thereto.

The IRDA Act lead to amendments of insurance act, 1938, the life insurance
corporation act, 1956 and the general insurance business(Nationalization) Act, 1972”.

Insurance can be categorized into two main factors:

 Life insurance
 General insurance

INSURANCE

LIFE GENERAL
INSURANCE INSURANCE

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Life Insurance:

Insurance against the life of an individual is called life insurance. The life
insurance policy is taken up at any time during the lifetime of the individual and is
valid till his dead or till the maturity of the policy, whichever is earlier. It is a
contract with an insurance company in exchange for premium payments, the
insurance company provides a lump-sum payment, known as death benefit, to
beneficiaries upon the insured’s death.

General Insurance:

Policies that are taken to insure the property and health of an individual
against loss due to fire, water or natural disasters are called general insurance
policy. In modern times, general insurance can be categorized as

 Insurance of person
 Insurance of property
 Insurance of interest
 Insurance of liability

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 1.2. OBJECTIVES OF THE INSURANCE

 To know about the various policies issued in the company and its norms.
 To learn the procedure of underwriting and claim practically.
 To know the premium structure of the policies.
 To learn the working procedure of the insurance company.
 To know the accounting procedure of the insurance company

1.3.HISTORY OF A COMPANY

HISTORY OF INSURANCE SECTOR IN INDIA:

 Insurance in this current form has its history dating back to 1818,
when the Oriental Life Insurance company was started by Anita
Bhavsar in Kolkata.
 In 1870, Bombay Mutual Life Assurance society became the first
Indian insurer.
 The oldest existing insurance company in India is the National
Insurance company,1906 , and still in the business.
 The Government of India issued an ordinance on 19th Jan 1956,
Nationalizing the Life Insurance sector and Life Insurance
Corporation(LIC).

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HISTORY OF GENERAL INSURANCE CORPORATION OF INDIA :

The entire General Insurance business in India was nationalized by the

Government of India (GOI) through the General Insurance business
(Nationalization) Act (GIBNA) of 1972. 55 Indian insurance companies and 52
Other general insurance operations of other company where nationalized through
the Act. The General Insurance Corporation of India (GIC) was formed in
pursuance of sec9 (1) of GIBNA. It was incorporated on 22 Nov 1972 under the
companies act, 1956.After the process of merges and consolidation, GIC was re-
organized with 4 Subsidiary companies

 National Insurance Company limited

 New India Assurance company limited
 Oriental Insurance company limited
 United India Insurance company limited

OVERVIEW OF THE COMPANY

United India Insurance company limited was incorporated as a company on 18th

Feb 1938. GIC in India was nationalized in 1972. 12 India Insurance companies, 4
co-operative Insurance societies and Indian operation of 5 foreign insurers, besides
General Insurance operations of southern region of LIC of India were merged with
United India Insurance company limited.

United India insurance company is the 2nd largest General insurance Company with
premium of Rs.16000+crore in India. It was incorporated on 18th Feb 1938 and was
nationalized in 1972.

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2.1.PROFILE OF THE COMPANY

United India Insurance Co. Ltd.

Industry General insurance, Financial services

Founded 18 February 1938; 81 years ago

Headquarters Chennai

India

Number of 2248
locations

Area served India

Key people Girish Radhakrishnan (Chairman and

Managing Director)

Products Motor Insurance, Health Insurance, Fire

,Marine, Rural ,Personal Accident
Insurance

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 Operating -300 crores
income

Owner Government of India

Number of 17,361
employees

United India Insurance company was incorporated in 1938 and it nationalized in

1972. Twelve Indian insurance companies, four co-operative insurance societies,
five foreign insurers with Indian operations and the general insurance operations of
the southern region of life insurance corporation of India were merged with United
India Insurance Company Limited to form the company.

After nationalization, United India has 17,361 nos. work force spread across 2248
offices providing insurance cover to more than 10 million policy holders. The
Company has a variety of insurance products to provide insurance cover from
bullock carts to satellites.

The Gross Domestic Premium for the Financial Year 2017-18 is above
Rs.17300 Cr.

On 2 February 2018, the Government of India announced the merger of United

India Insurance Company with Oriental Insurance and National Insurance
Company.

United India has been in the forefront of designing and implementing complex
covers to large customers, as in cases of ONGC Ltd, GMR- Hyderabad
International Airport Ltd, Mumbai International Airport Ltd Tirumala-Tirupati
Devasthanam etc. We have been also the pioneer in taking Insurance to rural

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 masses with large level implementation of Universal Health Insurance Programme
of Government of India & Vijaya Raji Janani Kalyan Yojana ( covering 45 lakhs
women in the state of Madhya Pradesh) , Tsunami Jan Bima Yojana (in 4 states
covering 4.59 lakhs of families) , National Livestock Insurance and many such
schemes.

2.2 ORGANISATIONAL CHART OF THE COMPANY

HEAD OFFICE

REGIONAL LCB (Large

OFFICE Corporate business)

DIVISIONAL
OFFICE

BRANCH MICRO
OFFICE OFFICE

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 2.1 ORGANISATIONAL CHART

Type of Office Nos.

Head Office 1

Corporate Learning Centre 1

Regional Offices 30

Large Corporate & Brokers Unit(LCB) 8

Divisional Offices 432

Branch Offices 677

Micro Offices 1033

Service Hubs 67

Total 2248

EMPLOYEE STRENGH :

CLASS I CLASS II CLASS III CLASS IV TOTAL

4834 1953 8158 2416 17361

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  Class I - Administrative officer
 Class II - Development officer
 Class III - Assistants
o Steno
o Record clerk
 Class IV - SS, Full time sweeper
INFORMATION TECHNOLOGY INITIATIVES
a. Moving towards centralized database structure and application software for
greater efficiency and flexibility in operations.
b. Leveraging of WAN connectivity between all offices of the company.
c. Web based policy insurance
d. Implementation of in-house developed policy printing software for unique
business advantage
MAJOR CLIENTS IN UIIC FOLD
 Indian, Air India, Air Deccan, GMR Hyderabad International Airport, GVK
Mumbai International Airport
 Nuclear Power Corporation (Kudankulam, Kaiga, Rawabatta)
 National Hydro Power Corporation (Subabsiri Lower Hydro electric project)
 NTPC Power Project, Power Corporations in Karnataka, West Bengal,
Madurai, Pondicherry
 IOC, Chennai Petroleum Corporation Limited, HPCL, ASP Gas, Neyveli
Lignite Corporation Nirma, Asian Paints.
STRATEGIC ALLIANCES
United India has business alliances with leading banks such as Andhra Bank,
South Indian Bank, Indian Bank, Federal Bank, State bank of Patiala, State bank of

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Indore, State bank of Travancore, State Bank of Hyderabad, Syndicate Bank,
Canara Bank, Indian Overseas bank and bank of Maharashtra
Tie ups with M/s TVS Motors, M/s Hyundai Motors and M/s Tata motors as
preferred insurance partners for automobiles business.
Working hours:
Monday to Thursday - 10.00 a.m to 5.45 p.m
Friday - 10.00 a.m.to 6.00 p.m.
Saturday and Sunday - Holiday

UNITED INDIA INSURANCE (REGIONAL OFFICE):-

Location

:- United India Insurance (Regional Office) is located at the heart of the city of
Coimbatore
178, Dr. Nanjappa road,
Coimbatore-641 018.

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 ORGANISATION STRUCTURE:-
The regional office at Coimbatore has control over the Divisional offices,
branch offices and micro offices.

Regional Office (RO)

Coimbatore

DO I DO II DO III DO IV DO V

B.O III BO I B.O Pollachi

B.O Ganapathy B.O IV M.O

Coimbatore Sulur

B.O M.O
M.O Avinashi M.O
Mettupalayam Peelamedu P.N Palayam

This structure includes the officer present in the in skirts of the city.

It also has its power over the

 13-DIVISIONAL OFFICE
 16-BRANCH OFICE
 15-MICRO OFFICE
Totally in Coimbatore, Ooty, Erode, Salem , Namakkal, Hosur, Tirupur and
Udumalpet.

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3.1 POLICIES ISSUED IN THE COMPANY

■ MARINE POLICY

■ MOTOR POLICY

■ HEALTH POLICY

■ FIRE POLICY

■ PERSONAL ACCIDENT

■ LAIBILITY POLICY

■ ENGINEERING POLICY

■ SOCIAL AND RURAL

POLICY

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  MARINE POLICY:

Marine Insurance is the contract between insurer and insured against marine
losses. Any insurance is designed to manage risks in the event of unfortunate
incidents like accidents, damage to the property and environment or loss of life.
When it comes to ships, the stakes are higher as all factors are involved in the
operation, i.e. risk of losing valuable cargo or expansive ships, the risk of damage
to the environment due to oil pollution and risk of losing precious lives of sea
farers due to accidents.

TYPES OF MARINE INSURANCE :

 MARINE CARGO INSURANCE

 MARINE HULL INUSRANCE

Cargo insurance:

The goods sent through waterway is known as cargo. It covers physical

damage or loss of your goods while in transit by land, sea, and air. It also offers
considerable opportunities and cost advantages if managed correctly. It is insured
by the owner and insurance of goods shipped through waterways is known as cargo

20
insurance. If the cargo is ruined, the owner gets the indemnity from the insurance
company.

Hull insurance:

Hull insurance is the insurance against loss caused by damage or destruction

of waterborne craft or aircraft to the owner. It is the insurance of the ship which
includes all the articles and pieces of the furniture in the ship. Hull and machinery
insurance can be done to protect the ship owner and investment in the ship. If the
ship is damaged, the owner of the ship gets indemnity from the insurance company

 MOTOR POLICY:

Motor insurance is a coverage which is bought for cars, trucks and other
vehicles that ply on roads. Its main objective is to give complete protection against
physical damage or loss from natural and man-made calamities. In India, motor
insurance is mandatory to ply a vehicle on road. Motor vehicle act has been passed
in 1939 and amendment in 1988.

21
 Section 64 VB of insurance act states that no risk to be assumed unless
premium is received assume any risk in India in respect of any insurance business
on which premium is not ordinarily payable outside India.

TYPES OF MOTOR INSURANCE :

 Two wheeler insurance

 Two wheeler long term insurance
 Private car insurance
 Commercial vehicle insurance
 Miscellaneous vehicle insurance
 Motor trade road risk
 Motor standalone CPA policy

Two wheeler insurance:

Two wheeler insurance is another type of popular auto insurance in India. It

is governed by the Indian Motor Tariff. This insurance provide protection against
natural and man made calamities like: fire, rockslide, landslide, storm, hurricane,
flood, earthquake, burglary, theft, riots or any damage caused to the vehicle in
transit by road, air, inland waterway or rail. Two wheeler insurance provides
mandatory personal accident cover of Rs 15 Lakhs to the insurer. This accident
cover can also be opted for passengers. It also protects against legal liabilities
arising due to third party’s injury/death or damage caused to its property.

Two wheeler long term policy:

The long term two wheeler policy covers you against damages that your bike
or scooter may incur due to any unforeseen events. The exceptionally high cost

22
that may arise due to damages caused to your bike by the occurrence of an
accident, natural disaster and so on. This insurance policy is convenient and, at the
same time, lets you enjoy additional benefits.

Private car Insurance :

This is the fastest growing segment in the insurance sector as car insurance
is mandatory while buying a new car. Car insurance covers loss or damage by
accident, fire, lightning, riots, earthquake, hurricane, terrorist attacks, explosion,
theft, third party’s claims and damages. On payment of appropriate additional
premium it covers loss or damage to electrical or electronic accessories and other
significant items.

Commercial Vehicle Insurance:

This type of insurance covers all those vehicles which are not used for personal
purpose. Trucks, buses, heavy and light commercial vehicles, multi utility vehicles,
agricultural vehicles, ambulances etc are covered under this insurance. The
premium is calculated on the basis of the make and model of the commercial
vehicle, place of registration, year of manufacture, current showroom price and
whether the insurer is individual or corporate.

Miscellaneous Vehicle Insurance:

Miscellaneous Insurance refers to contracts of insurance other than those of

Life, Fire and Marine insurance. It exists to help people gain a good understanding
of the various kinds of insurance coverage’s that are available to people today.
Insurance has become a very important part of many people’s lives as they realize
the need to provide protection for different areas of their everyday life.
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Motor Trade Road Risk:

Motor Trade Road Risks is designed for full or part time motor traders
operating their own business from home or from business premises, who require
road risks cover for their own vehicles or vehicles in their custody or control for
motor trade purposes. It doesn’t cover a driver for anything other than business use.
Motor traders involved with higher risk cars, such as sports cars, commercial
vehicle and classic cars, may find it more difficult to obtain insurance, due to the
increased cost involved in the event of an accident or incident.

Motor Standalone (CPA) Policy:

Vehicle owners and drivers have the choice of buying a standalone personal
accidents cover, or purchase. It acts as a bundled product along with their third
party motor insurance. This means a person with two or more cars and two
wheelers can purchase a single compulsory personal accident (CPA) cover. The
cover will extend to all the vehicle driven by the policyholder and have a validity
of one year.

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 HEALTH INSURANCE:

Health insurance is a kind of insurance that provides coverage for medical

expenses to the policy holder. Depending on the health insurance plan chosen the
policy holder can get coverage for critical illness expenses, surgical expenses,
hospital expenses etc. As a result, financial advisors suggest that it is prudent to
buy health insurance plan and health care policy early in life.

Platinum- Age group of 3 months to 35 years.

Gold - Age group of 36 years to 60 years.

Senior citizen - Age group of 61 years to 80 years.

PRODUCTS IN HEALTH INSURANCE:

 Individual health policy

 Family Medicare policy
 Overseas Medicare policy
 Super Top Up
 Group Medicare

Individual Health Policy:

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 Individual health insurance covers all pre and post hospitalization expenses
incurred around 30-60 days prior to and 90 days post hospitalization. It provides
cashless facility when you get your treatment done in a network hospital. Even
during the non-cashless treatment, the amount is refunded but after a formal
approval process. It also covers charges for ambulance and diagnostic tests up to a
predefined limit.

Family Health Policy:

Family medicare covers all the members of the family under a single sum
insured. The term of the policy is 1 year. You get a no claim discount if you have
made no claims for 3 continuous years. Payment made towards this health policy is
eligible for deduction from taxable income under section 80D of the income tax
act. Hospital expenses, day care treatment, Ayush treatment and under this plan.

Group Medicare policy:

Group health insurance is a medical insurance that covers a group of people,

who are usually the members of societies, employees of a common company, or
professionals in a common group. Group health insurance helps companies identify
and mitigate the risks faced by their employees.

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 FIRE INSURANCE:

Fire insurance is a property insurance that covers damages and losses caused
by fire. The purchase of fire insurance in addition to homeowner’s or property
insurance helps to cover the cost of replacement, repair, or reconstruction of
property, above the limit set by the property insurance policy. Fire insurance
policies typically contain general exclusions, such as war, nuclear risks and similar
perils.

PRODUCTS IN FIRE POLICY:

 Standard fire and special peril policy(single location)

 Standard fire and special peril policy(multi location)

Standard Fire and Special Peril Policy:

Standard Fire and Special Perils Insurance is a traditional cover that offers cover
against fire and allied perils which are named in the policy. The policy can cover
building (including plinth and foundation), plant and machinery, stocks, furniture,
fixtures and fittings and other contents.

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ADD ON COVER:

I Fire

II Lightning

III Explosion/Implosion

IV Aircraft Damage

V Riot, Strike and Malicious Damage

Terrorism Damage Exclusion Warranty

VI Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and

Inundation

VII Impact Damage

VIII Subsidence and Landslide including Rock slide

IX Bursting and/or overflowing of Water Tanks, Apparatus and Pipes

X Missile Testing operations

XI Leakage from Automatic Sprinkler Installations

XII Bush Fire

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 PERSONAL ACCIDENT INSURANCE

Personal Accident insurance is insurance for individuals or groups of

persons against any personal accident or illness. The risk insured is the bodily
injury resulting solely and directly from accident caused by violent, external and
visible means. In India this type of insurance is done by the General Insurance
Corporation. A contract of personal accident insurance is not a contract of
indemnity and the insurer has to pay a fixed sum of money on the death or total
disablement of the insured or provide medical benefits for recovery from the
injury. If risks against certain specified diseases are also covered, the policy is
known as 'Personal Accident and Sickness Insurance'.

Products in Personal Accident:

 Individual personal accident

 Group road safety
 Student safety
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  Group personal accident

Individual personal accident:

This policy provides complete financial protection to the insured members

against uncertainties such as accidental death, accidental bodily injuries, and
partial/ total disabilities, permanent as well as temporary disabilities resulting from
an accident. It offers you coverage against broken bones, cuts, burns, medical
services, hospitalization because of an accident, loss of eye sight or limbs, etc.

Group road safety:

Road safety package policy bears all medical expenses incurred in a

hospital. This policy covers death, total permanent disability and temporary
disablement which may occur during the policy period and due to an accident.

Student safety:

Student safety insurance policies are offered to students and can be availed
by educational institutions such as schools, colleges, etc. for the benefit of their
students. This policy is issued under the name of the educational institution and the
claim is paid out to the guardian or parent of an affected student. Once the
institution purchase a student safety insurance, all the students in the institution
will be covered.

Group personal accident:

Group personal accident insurance is a comprehensive cover that can be

bought for large as well as small groups, such as bank customers, employees,
schools, colleges, and corporate. The group personal accident cover also offers
discount on the basis of the number of members. It is designed to protect the group
of selected people from the consequences of unexpected accident.
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Death 100 % of Sum Insured

Permanent Total Disablement 100 % of Sum Insured

Loss of two limbs/ Two eyes or 100 % of Sum Insured

one limb and one eye

Loss of one limb or one eye 50 % of Sum Insured

Permanent Partial Disablement Varying % of Sum Insured as per policy

Temporary Total Disablement 1 % of Capital Sum Insured per week , Subject to a maximum
of Rs 3000 per week, for a maximum period of 100 weeks

LIABILITY INSURANCE:

Liability insurance provides the insured party with protection against claim
resulting from injuries and damage to people and or property. It covers both legal
costs and any payouts for which the insured party would be responsible if found
legally liable. Intentional damage and contractual liability are generally not
covered in these types of policies.

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PRODUCTS IN LIABILITY:

 Product liability
 Public liability
 Professional liability
 Workmen compensation liability

Product liability:

Product liability insurance protects against claims of personal injury or property

damage caused by products sold or supplied through your business. It is designed
to help protect your business by ensuring that if this happens, you don't have to pay
any legal or court costs.

Public Liability:

Public Liability Insurance (PLI) is insurance that protects a business from

costs for lawsuits brought by members of the public. Public liability insurance may
be the best solution to protecting your business from these risks.

Professional Liability:

Professional liability insurance, more commonly known as errors and

omissions , is a special type of coverage that protects your company against claims
that a professional service you provided caused your client to suffer financial harm
due to mistakes on your part or because you failed to perform some service

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Workmen compensation policy:

This policy provide for legal liability coverage for compensation to your
employees for bodily injury or death caused due to accident or occupational
deceases arising out of and in course of employment.

ENGINEERING POLICY:

Engineering insurance refers to the insurance that provides economic

safeguard to the risk face by the ongoing construction project, installation project,
and machines and equipment in project operation. Depending on the project, it can
be divided into construction project all risks insurance and installation project all
risks insurance; depending on the attribute of the object, it can be divided into
project all risks insurance, and machinery breakdown insurance.

PRODUCTS IN ENGINEERING POLICY:

 Machinery breakdown insurance

 Electrical equipment insurance
 Contractor all risk(CAR)
 Contractor plant & machinery(CPM)
 Erection policy(marine cum erection)

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  Boiler pressure and plant

Machinery Breakdown Insurance:

This policy covers the sudden and unforeseen damage to the insured
machinery, plant or equipment whilst either at work or at rest and during the
cleaning, maintenance overhauling inspection or removal to another position
within the premises. It will exclude gradual damage and loss from any cause which
is foreseeable.

Electronic equipment insurance:

This policy provides comprehensive coverage against unforeseen and

sudden physical loss or damage to your electronic equipment and data media.

Contractors all risk (CAR):

Contractor all risk (CAR) insurance is a non standard insurance policy that
provides coverage for property damage and third-party injury or damage claims,
the two primary types of risk on construction project. Damage to property can
include improper construction of structure, damage that happen during a
renovation, and damage to temporary work erected on-site.

Contractor plant & machinery (CPM):

This policy is specially designed to protect the interest of civil contractors

against the damage to or destruction of various civil engineering projects. This
project include accidental damage to civil construction works, contractors plant
and machinery at the construction site and damage during the subsequent period of
maintenance.

Erection policy (Marine cum Erection):

It offers coverage against any physical loss or damage caused due to

construction work, installation of machinery, etc.

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Marine cum erection all risk (EAR) insurance offers protection to principal and
contractors and also to the manufacturers and suppliers erecting plant & machinery
etc.

Boiler and pressure plant:

This policy is designed to cover various types of boiler and pressure plants
against the risk of any loss or damage due to explosion or collapse. This policy
covers boiler and other pressure plant against the following contingencies: damage
to the boiler and or pressure plant due to explosion or collapse.

3.2 INSURANCE DOCUMENTS

A.PROPOSAL FORM
The company’s printed proposal form is normally used for making an
application for the required insurance cover. The proposal form contains
question designed to elicit all material information about the particular risk
proposed for insurance.
In marine insurance, it is not the practice to use a proposal form, although it
is usual to obtain a questionnaire or a declaration form duly completed.
In fire insurance, practice varies among the companies. Proposal forms are
not generally used for large industrial risks where inspection of the risk is
arranged before acceptance of the risk. Forms are used for simple risks.
In miscellaneous insurance, proposals forms are invariably required and they
incorporate a declaration which extends the common law duty of good faith.
Fire proposals forms may or may not have the declaration.
Questions on the following items may be considered as common to all
proposal forms:
(a) proposer’s name in full.
(b) Proposer’s address.
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 (c) Proposer’s profession, occupation or business.
(d) Previous and present insurance.
(e) Loss experience.
(f) Sum insured.
There also special questions in the proposal form depending upon the class
of insurance concerned. For example, in motor insurance the special question relate
to the vehicle.
The purpose of the proposal form is to provide all material information to
the insurer. And the forms include a declaration by the insured that the answers
are true and accurate and that he agrees that the form shall be the basic of
insurance contract.

B. POLICY FORMS
The policy is a document which provides evidence of the contract of
insurance. This document has to be stamped in accordance with the provisions
of the Indian stamps act,
1899. Where the insurance is governed by a tariff or a market Agreement, the
policy wording is prescribed for insurer to use these wording.
In fire and miscellaneous insurance, the policy form used is scheduled basic i.e.,
all individuals details relating to a particular insurance are grouped together in a
schedule. The schedule type of policy may be divided into certain distinct
section viz

(a) The heading: Giving the insurers name and address of registered office.
(b) The permeable or recital clause: It introduces or recites the parties to the
contract.
(c) Operative or insuring clause: This clause sets out the essence of the
contract. It specifies the perils insured under the policy and the

36
 circumference in which the insurer will become liable to make payment to
the insured.
(d) Schedule: This section contains all the typewritten information applicable
to the particular contract.
(e) Conditions: All fire and miscellaneous policies are printed in the policy.
These are called express condition.

C.WARRANTIES
There are express warranties incorporated in policy. These are attached to
the policy in separate warranty forms. Having accepted a risk for a certain rate
of premium and subject to certain terms and conditions, the insurer would like
to ensure that the risk remains, throughout the duration of the policy, the same
as it existed at the time of the proposal.
D. CERTIFICATE OF INSURANCE
Motor
In motor insurance certificate of insurance is issued to the motor vehicle.
This certificate provide evidence of insurance to the police and registration
authorities.
Marine:
The certificate of insurance issued to provide evidence of cover on
shipments insured under cargo open cover or floating policies.

E.ENDORSEMENTS
It is the practice of insurer to issue policies in a standard form, covering
certain perils and excluding certain others. If it is intended, at the time of
issuing the policy to modify the terms and conditions of the policy, it is done by
setting out the alteration in a memorandum which is attached to the policy and
forms part of it. This memorandum is called an endorsement.
37
F. RENEWAL NOTICE
The preamble of the fire and miscellaneous insurances policies usually
provides that the indemnity there under applies, “during the period of insurance
named in the Schedule or of any subsequent period of insurance named in the
Schedule or of any subsequent period in respect of which the insured shall have
paid and the insurers shall have accepted the premium required for renewal of
this policy”.

38
 4.1DEPARTMENTS IN UNITED INDIA COMPANY

UNDERWRITING
DEPARTMENT

ADMINISTRATIVE MISCELLANEOUS
DEPARTMENT DEPARTMENT

DEPARTMENT
IN UNITED
INDIA
INSURANCE
CLAIMS AGENCY&
DEPARTMENT MARKETING
DEPARTMENT

ACCOUNTING
DEPARTMENT

39
UNDERWRITING DEPARTMENT:

Underwriting is the process of selecting certain types of risks and rejecting others
so that as a whole the policies issued by the insurance company will produce the
company’s desired results. The underwriting department is usually made up of
many individual underwriters who make the decisions about whether to accept or
reject the applications sent in by agents based on the company’s standards and their
own judgment. They can also be called on to review loss experience, provide
judgment rates and specified the particular policy forms that are required to
provided the coverage that applicants have requested.

UNDER WRITING

New Policy Proposal Modifications Provisional Endorsements Renewal

After one year

Note new Ref. No and Date for
collection and strike of old no. For insufficient Particulars
and date book under

If endorsement is passed
Provision not provisional policy
cannot be finalized.
applicable when
Details cannot be
coinsurance incoming
entered against that
policy is being
particular provisional
underwritten policy

Proposal entry

40
 Note reference number

And Date

Update

ProposalModif
NO OK
ication

Collection

OK

Underwriters use the following three financial ratios to help them accomplish their
task :

 Loss ratio
 Expense ratio
 Combined ratio

The loss ratio is used to compare the company’s operations from year to year. It
shows the percentage of losses the company incurred for every dollar of earned
premium. It Is calculated by dividing the amount of incurred losses by the amount
of earned premium.

The expense ratio indicates the cost of doing business it is calculated by

dividing total underwriting expenses by total written premiums. Underwriting
expenses are the costs required to acquire and maintain a book of business. Written
premium is the gross amount of premium income on the company’s books.

41
The combined ratio is simply the sum of the loss ratio and the expense ratio.
Traditionally, 100% is considered to be the break- even point. A combined ratio of
less than 100% indicates that the company had an underwriting profit; a ratio
greater than 100% indicates a loss.

ADMINISTRATIVE DEPARTMENT :

After the underwriter has approved a new application or a change to a

current policy, a whole series of events takes place. A policy analyst or screener
checks the application to make sure that all information is correct and complete. It
then goes to a rater who computes the premium to be charged. The policy forms
can be printed by computer or assembled using preprinted forms with specific
declarations and endorsements unique to that risk.

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 CLAIMS DEPARTMENT:

CLAIMS

System Non –System Policy Unsettled Old

Claims
Policy Claim intimation Received after
commencement of genisys

Enter Policy details

in Non – System
Genisys

Claim Intimation: In this module choose non system for non

Genisys policies

Claim Modification
NO

NO

Surveyor Allotment Surveyor Report

OK
Survey fee payment
Claim Processing

Approval withdraw Approval

`
Claim intimation
voucher
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 Claim payment through claim
disbursement module

The claims department sees that the company’s insured are adequately indemnified
for their losses. Claim adjusters or representatives are used to inspect a loss,
determine whether there is coverage for the loss, estimate indemnification, and in
some cases, pay for the loss immediately. Large companies have their own claim
adjusters, where as smaller companies might use the services of independent
adjusters.

At Divisional / Regional office level:

Claim processing:
The claim processing internally makes sure that in policy claim in made with
honest and no fraudulent activities are being carried out by the insured.
 Surveys of class A / B / C are appointed to estimate the amount of claims.
For eg: - If a two wheeler gets to claim due to accident, the following
information is ascertained
 place of damage
 Reason for accident
 FIR report
 Salvage analysis
Surveyors are usually appointed by the D.O / B.O of claims department or
A.O or B.M or D.M The Surveyor report contains the detail of his study on
the above grounds .
If the insurer is not satisfied with the surveyor report he asks for an
investigators report

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  The claims shall be paid only after the analysis
 Period of insurance
 Servicing office
 Insurance person
 Perils covered
 Add on cover /Rider
 Exclusions
 Endorsements
 Clauses
 Warranties
 Supportive documents
i) Surveyor’s report
ii) Investigator’s report
iii) Legal opinion
iv) Doctor opinion (mediclaim or PA policies)
:34:

Documents needed for claim processing:

Marine Loss of cargo / machinery during Import.
 Copy of Claim intimation given to Company together with Xerox of policy
& premium receipt
 Invoice & Packing list
 Bill of lading / Airways Bill
 Landing Certificate with remarks for short delivery / damage
 Custom clearance certificate
 Joint Survey with shipping company / Port Trust Authority
 GR / RR
45
  Delivery Receipt with remarks for short delivery / damage
 Survey Report & Duly paid Survey fee bill
 Sale Contract
 Photographs of Damaged Property showing extent of damage & / or video
film of loss
 Duly filled Claim Form
 Original Policy / Certificate / Cover note duly discharged by Assessed /
Consignor
 Copy of Regd. A.D. letter lodging claim of Shipping Co. /Carrier with
monetary claim & reply of shipping co.
 Letter of subrogation cum undertaking
 Bill of entry
 Certificate of Origin
Accidental death claim:
 Copy of Claim intimation given to Company together with Xerox of policy
& premium receipt.
 Duly filled Claim Form.
 Post mortems report.
 Death Certificate.
 Police Panchnama / First Information Report / Final Investigation Report.
 Medical report & details of medical expenses.
 Wage Certificate from employer.
 Proof of age.
Medi claim due to hospitalization (disease / accident):
 Copy of Claim intimation given to Company together with Xerox of policy
& premium receipt.

46
  Duly filled Claim Form.
 Hospital Discharge Report / Medical Treatment Report
 Medical recovery report.
 Original Test Reports (X-Rays / Sonography / ECG etc.).
 Details of medical expenses original bills / cash memos along with
prescriptions.
 Leave certificate from employer.
 Hospital / Nursing Home Registration No. If not registered then treating
doctor’s certificate about no of beds, availability of qualified doctors,
qualified nurses / staff round the clock and fully equipped Operation Theater
in the hospital / Nursing home.
 Police Panchanama / first information report about accident.
Damage claim to private vehicle (car/2wheeler) due to accident:
 Copy of Claim intimation given to Company together with Xerox of policy
& premium receipt.
 Name, Address, Phone / Fax No. of Spot Surveyor who visited the site.
 Duly filled Claim Form.
 Driving License (DL) Original with Xerox copy.
 Registration Certificate of Vehicle (RC) (Original with Xerox copy).
 Estimate of repairs from repairer & stamped receipt.
 Bills & cash memo of repairs & stamped receipt.
 Police Panchanama / First Information Report.
 Verification of Road Tax
Thirty Party (T.P.) Claim due to accident:
 Copy if Claim Intimation given to Company together with Xerox of policy
& premium receipt.

47
 Copy of FIR Charge Sheet.
 Copy of driving license & certificate.
 A statement of driver as to how accident occurred
 Name & address of person injured & killed in accident.
 Address of Police Station where accident reported.
 Address of Hospital where injured/ dead bodies shifted by police from site
of accident.
 Certified copies of injury/post mortem report.
 Vakalatnama duly signed by owner of vehicle & driver.
 Details of Loss to TP Vehicle or other property.
 Comment of owner/driver on FIR/Charge Sheet.
 Who are the people traveling in the vehicle?
 Whether you had prior knowledge of all occupant’s of vehicle.

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 ACCOUNTS DEPARTMENTS:

As with any profit-oriented business, the determination of financial

condition is a very important function in an insurance company. However,
insurance companies must place special emphasis in this area because their
finances are closely regulated by the states-for example, premiums must be
credited to specific accounts, agents must be paid commission and proper reserves
must be maintained. All these functions are handled by the accounts department.

COLLECTION

Premium collection Non-Premium

Collection

01) Premium 01) BG, CD

02) Transfer fee 02) Collection other than

premium
03) Duplicate fee
03) Collection Under 5480
PREMIUM COLLECTION

In respect of premium collection proposal has to be underwritten first. The

proposal reference number generated at the time of underwriting should be
utilized for collection.
In the premium collection module always use F9 to invoke the proposal reference.
Enter collection details and click on print. System automatically generates
collection number and policy number.
49
NON PREMIUM COLLECTION
In respect of non – premium collection under the account head BG & CD ,
create special client master and then create CD, BG account .While effecting
collection select the correct sub-ledger code using F9 and update the
transaction.
MAINTENANCE OF RECORDS
Account Department has to maintain the following records
 Collection register-day –wise.
 Collection summary – month –wise.
 Disbursement registers for cash and cheque separately – day –wise.
 Account head wise summary.
 Journal voucher-day wise.
 Journal register – month wise.
 All subsidiary ledger-month wise.
 All general ledgers – month wise.
 Trial balance – month wise.
 Cheque dishonor register-day wise.
 Travelling advance register – day wise.
 Cheque stop payment / stale cheque register – cheque wise.
 Policy stamp register.
 Revenue stamps register.
 Postage stamp register.
 Asset register.
 LTS register.

50
MONTHLY CLOSING OF ACCOUNTS
Even month Trial balance should be drawn after passing journal entries for policy
stamp, revenue stamp postage stamp affixed during the month. Funds transferred from
local bank and through FCS to RO.
Accounts department & UIIC have a computerized accounting system.
Genisys is the software used in branch office and fact is the software used in
divisional & regional office tom the accounting system

NOTE
1. All transactions effected during a day is updated with respect to accounting
date only and not the system date.
2. System date should not be altered under any circumstances.
3. If any message regarding date mismatch pops up, check the server date and
correct the mismatch suitably in the client.
4. Accounting date can be closed only after 4.30 P.M. if closed new date cannot
be open until 00.00 hours of next day

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AGENCY&MARKETING DEPARTMENT:

This department works very closely with, and the directs the operations of,
the agents who represents the company. Its responsibilities include recruiting,
appointing, and training, especially if an agent will be an exclusive agent. The
department must monitor the sales and marketing efforts of these agents and make
sure that the number and quality of agents are closely turned to the market
company serves.

Closely related to the agency department, marketing department helps

determine the company’s overall marketing strategy. It develops advertising and
sales aides or works closely with a separate advertising department to accomplish
these goals.

MISCELLANEOUS DEPARTMENTS:

Like all other business, insurance companies have departments whose

contributions help all other department operate smoothly. They include personnel,
training, management information systems (MIS), general administration, and
building and maintenance departments.

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 5.CONCLUSION:

This training program at United India insurance Company Ltd. has helped

me gain more knowledge and greater insights in insurance business. It has helped

me gain hands on experience in insurance business. I would like to thank all those

who helped me in gaining such knowledge.

Insurance is sold

not because

“Somebody must lose”

but because

“Somebody must live”

-Winston Churchill

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