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(d) Cargo insurance

(d) Protection of life

(c) Indemnity contract

(a) Insurable Interest

(b) Life Insurance

When a marine insurance policy is taken by the cargo owner to be compensated for loss caused to his cargo during the journey, it is known as cargo insurance.

When a ship is insured against any type of danger, it is known as hull insurance. This policy is taken to indemnify the insured for losses caused by damage to ship.

(b) Contribution

IRDAI – Insurance Regulatory Development and Authority is the statutory, independent and apex body that govern and supervise the Insurance Industry in India. It was constituted in 2000 by Parliament of India Act called IRDAI Act, 1999. Presently IRDAI headquarters is in Hyderabad.

1. Life Insurance 

2. General Insurance 

3. Fire Insurance 

4. Marine Insurance 

5. Health Insurance

In mid 80’s, most of the hospitals in India were government owned and treatment was free of cost. With the advent of Private Medical Care, the need for Health Insurance was felt and various Insurance Companies introduced Health Insurance as a Product. Presently the health insurance exists primarily in the form of ‘Mediclaim policy’.

Insurance covers various types of risks. All. contract of insurance can be broadly classified as follows:

1. Life Insurance (or) Life Assurance 

2. Non – life Insurance (or) General Insurance

It can be further classified into:

1. Fire Insurance

2. Marine Insurance 

3. Health Insurance and 

4. Miscellaneous Insurance.

1. Life Insurance: Life Insurance may be defined as a contract in which the insurance company called insurer undertakes to insure the life of a person called assured in exchange of a sum of money called premium which may be paid in one lump sum or monthly, quarterly, half yearly or yearly and * promises to pay a certain sum of money either on the death of the assured or on expiry of certain period.

2. Non – Life Insurance or General insurance: It refers as the insurance not related to human but related to properties. 

3. Fire Insurance: Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by a fire during a specified period upto the amount specified in the policy.

4. Marine Insurance: Marine insurance is a contract of insurance under which the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. The insured . pays the premium in consideration of the insurer’s (underwriter’s) guarantee to make good the losses arising from marine perils or perils of the sea.

5. Health Insurance: In mid 80’s, most of the hospitals in India were government owned and treatment was free of cost. With the advent of Private Medical Care, the need for Health Insurance was felt and various Insurance Companies introduced Health Insurance as a Product. Presently the health insurance exists primarily in the form of ‘Mediclaim policy’.

1. To promote the interest and rights of policy holders. 

2. To promote and ensure the growth of Insurance Industry. 

3. To ensure speedy settlement of genuine claims and to prevent frauds and malpractices.

(a) Hyderabad

Business risk arises due to a variety of causes which are classified as follows:

1. Natural Causes: Human beings have little control over natural calamities like flood, earthquake, lightning, heavy rains, famine, etc. These result in heavy loss of life, property, and income in business.

2. Human Causes: Human causes include such unexpected events like dishonesty, carelessness or negligence of employees, stoppage of work due to power failure, strikes, riots, management inefficiency, etc.

3. Economic Causes: These include uncertainties relating to demand for goods, competition, price, collection of dues from customers, change of technology or method of production, etc. Financial problems like rise in interest rate for borrowing, levy of higher taxes, etc., also come under this type of causes as they result in higher unexpected cost of operation of business

4. Other Causes: These are unforeseen events like political disturbances, mechanical failures such as the bursting of boiler, fluctuations in exchange rates, etc. which lead to the possibility of business risks.