Unit III Irm
Unit III Irm
Unit III Irm
General Insurance
General Insurance Business - Fundamental Principles of General Insurance – Types - Fire
Insurance Marine Insurance – Motor Insurance – Personal Accident Insurance – Liability
Insurance –Miscellaneous Insurance – Claims Settlement
What is general insurance business?
General insurance is an agreement between a policyholder and insurer wherein the insurance
company protects your valuable assets from fire, theft, burglary, or any other unfortunate
accident. Often, general insurance is confused with life insurance.
General Insurance Business
Property Insurance: This type of insurance provides coverage for physical properties such as
homes, buildings, factories, and other structures against risks like fire, theft, vandalism, and
natural disasters like earthquakes or floods.
Motor Insurance: Also known as auto insurance or vehicle insurance, this type of insurance
provides coverage for vehicles against risks such as accidents, theft, and damage to third-party
property.
Liability Insurance: Liability insurance protects individuals and businesses from the risks of
being held legally liable for injuries or damages caused to other people or their properties.
Examples include public liability insurance, professional indemnity insurance, and product
liability insurance.
Health Insurance: Health insurance covers medical expenses incurred due to illnesses,
accidents, or hospitalization. It provides financial assistance for healthcare services, including
hospitalization, surgeries, medications, and preventive care.
Travel Insurance: Travel insurance offers coverage for unforeseen events that may occur while
traveling, such as trip cancellations, medical emergencies, lost baggage, or travel-related
accidents.
Marine Insurance: Marine insurance provides coverage for ships, cargo, and other maritime-
related risks, including damage or loss of goods during transit by sea, air, or land.
Miscellaneous Insurance: This category includes various specialized insurance products that
cover specific risks not covered by other types of insurance, such as pet insurance, event
insurance, and cyber insurance.
What is the fundamental principle of general insurance?
In the insurance world there are six basic principles that must be met, i.e. insurable interest,
Utmost good faith, proximate cause, indemnity, subrogation and contribution. The right to insure
arising out of a financial relationship, between the insured to the insured and legally recognized.