General Insurance

What is General insurance? General Insurance provides much-needed protection against unforeseen events such as accidents, illness, fire, burglary et al. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Almost everything that has a financial value in life and has a probability of getting lost, stolen or damaged can be covered through General Insurance policy. Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty and also one's liability towards others can be covered under general insurance policy. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory. The general insurance business in India is governed by the Insurance Act, 1938 which is based on the British Insurance Act. The Act was amended in 1969 for „social control‟ to govern the general insurance business on healthy lines. However, it was felt that there still existed some scope for improvement. In view of this, on May 13, 1971 the government nationalized the general insurance industry by an ordinance which became the General Insurance (Nationalization) Act, 1972. At that time there were 63 domestic insurance companies and 44 foreign insurance companies operating in India. The managements of all the 107 companies were taken over by the Government and accordingly the General Insurance Corporation (GIC) was formed as a government company in November 1972. The GIC as the holding company is entrusted with the task of superintending, controlling and carrying on the general insurance business in the country. Its subsidiaries in all the four zones of the country viz., the Oriental Fire & General Insurance Company (now known as the Oriental Insurance Co. Ltd.), the National Insurance Company Ltd., the New India Assurance Company Ltd. and the United India Insurances Company do all classes of direct business of general insurance except aviation which is done by the GIC. If you ever hear the term “general insurance”, it means anything other than life insurance coverage. In other words, general insurance is comprised of protection coverage against things such as burglary, fire, and so on. In addition, this type of insurance could personal insurance to include accident and health, as well as liability, which is actually a type of legal insurance that would be used by professionals against errors and omissions. Companies that sell general insurance provide various policy types, even those that provide protection for the home. In this case, coverage would include allied perils, fire, inundation, earthquake, flood, storm damage, etc. In addition, general insurance would cover your home from a break in, theft, and other such damages. Interestingly, general insurance also has policies for machinery should any of them break down. Then, general insurance covers marine issues. Under the Marine Cargo policy, any type of goods being transported on the water, by air, or by road would also be protected from theft or

damage. Additionally, automobiles would be covered under different policies for general insurance and in fact, of all the different types of policies available, automobile coverage accounts for the majority of this insurance type. One important note when it comes to general insurance and property protection. Only the real value of the property can be purchased in the form of an insurance policy. If someone were to take out a policy of greater value, risk of being charged with a hefty fine is likely. By law, insurance coverage cannot be more than actual value so in this case, there could be some legal consequences. In addition, for general insurance you would be required to insure a property for the value and not less. If you did not carry enough insurance and something were to happen, you as the policyholder would have the brunt of responsibility for what is referred to as “ratable proportion of loss.” In other words, if a home were appraised at $200,000 but you only insured it for $100,000, if damage were done to the home to the full amount of the policy, being $100,000; the policy would only pay out $50,000 because you carried 50% less insurance than required. Of course, if the property were underinsured for 25%, 30%, 40%, or some other amount, the policy would match that on a claim. Then for personal accident and health, this too would fall under the general insurance policy. For insurance, you would have coverage if ever hospitalized in the form of cashless or reimbursement. Individuals could also take out a general insurance policy for accident and health just as for groups. In this case, insurance protection for an individual would be for one person but for group coverage, it would be for employees in the form of employer provided coverage. Even liability is a part of general insurance. Some of the policy types in this case would include motor third-party liability and worker‟s compensation. With so many different types of coverage, general insurance is without doubt important. With this, people can have the type of coverage needed to enjoy life while being protected. Today let me share with you another facet of financial matters. In law and economics, general insurance is defined as a form of risk management basically used to hedge against the risk of a contingent, uncertain loss. General insurance is also defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is an institution or a company selling the insurance; an insured or policyholder is the person or entity who is buying the insurance policy. The general insurance rate is a factor used to determine the amount to be charged for a particular amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has come out as a discrete field of study and practice. The transaction involves the clients assuming a guaranteed and known relatively very small loss in the form of money or payment to the insurer in exchange for the insurer‟s promise to indemnify the insured in the case of a large, possibly bad loss. The insured receives a contract which is called the insurance policy that details the conditions and circumstances under which the insured will be compensated or indemnified.

(Source:http://www.iloveindia.com/finance/insurance/general-insurance/index.html, http://www.economywatch.com/insurance/general/#) These are the common types of general insurance: 

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Home Insurance: Houses, lands and other real estate properties and hard assets are subject to accidental risks like theft, damage, destruction due to natural disasters or fire accidents etc. with such large investments gone into buying a real estate property like your home or office, the problem or risk involved is a loss of large amount of money. Home and property insurance protects you in managing and protecting against these risks. The cost of a real estate property and its monetary insurance is mostly based on the value of the already insured hard assets and also the place or location in which the assets are situated. Travel Insurance: This is intended to shoulder or cover any of the financial or any other losses which were basically incurred by the insured while on his journey or traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers or simply as a tourist. Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, some times bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require or obliged you to have an auto insurance while on road in your vehicles. If you have an accidental auto crash, a total repair could cost you a lot or a fortune. On the other hand, a little scratch on your Land Cruiser may also soar up your bills to a high level. Whether or not you want or need auto insurance mostly depends on the type of automobile you own. If you have an expensive car and a little repair could worry you out financially, you should therefore decide in buying an allinclusive and crash insurance which will protect you against any and every harm done to your vehicle. Health Insurance: Whether you like it or not, almost always we face certain health challenges that may cause us a lot through medicines, hospitalization bills and other related expenditures. If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment. Fire insurance: Fire is one truly big problem that may endanger our valuables, properties and even businesses. Worse it may threaten our lives and those of or loved ones. Well this would not be very hard unless we are ready to face such calamity with fire insurance. This will help us become more secured and ready to face fire cases Property Insurance: It refers to insurance against the loss of possessions or property due to unforeseen events like fire, earthquake, floods etc…. Marine Insurance: It refers to insurance of goods in transit including by sea, air and road. Liability Insurance: Liability insurance is done by companies to insure against risk of any claim which may arise due to the business of company. It includes insurance against legal liability, workmen insurance etc… (Source: http://dulawat.com/Types of General Insurance.htm)

1. Motor Insurance Legally, no motor vehicle is allowed to be driven on the road without valid insurance. Hence, it is obligatory to get the vehicle insured. Motor insurance policies cover against any loss or damage caused to the vehicle or its accessories due to the following natural and manmade calamities. Natural Calamities: Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide. Man made Calamities: Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, and any damage in transit by road, rail, inland waterway, lift, elevator or air. Motor insurance provides compulsory personal accident cover for individual owners of the vehicle while driving. One can also opt for a personal accident cover for passengers and third party legal liability. Third party legal liability protects against legal liability arising due to accidental damages. It includes any permanent injury / death of a person and damage caused to the property. The vehicles are insured at a fixed value called the Insured's Declared Value (IDV). IDV is calculated on the basis of the manufacturer's listed selling price of the vehicle (plus the listed price of any accessories) after deducting the depreciation for every year as per the schedule provided by the Indian Motor Tariff. If the price of any electrical and / or electronic item installed in the vehicle is not included in the manufacturer's listed selling price, then the actual value (after depreciation) of this item can be added to the sum insured over and above the IDV. In case the vehicle is fitted with CNG / LPG, the CNG/LPG kit fitted to the vehicle is to be insured separately at an additional premium. Vehicle insurance (also known as auto insurance, gap insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefore. The specific terms of vehicle insurance vary with legal regulations in each region. Auto Insurance in India deals with the insurance covers for the loss or damage caused to the automobile or its parts due to natural and man-made calamities. It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability. There are certain general insurance companies who also offer online insurance service for the vehicle.

Auto Insurance in India is a compulsory requirement for all new vehicles used whether for commercial or personal use. The insurance companies have tie-ups with leading automobile manufacturers. They offer their customers instant auto quotes. Auto premium is determined by a number of factors and the amount of premium increases with the rise in the price of the vehicle. The claims of the Auto Insurance in India can be accidental, theft claims or third party claims. Certain documents are required for claiming Auto Insurance in India, like duly signed claim form, RC copy of the vehicle, Driving license copy, FIR copy, Original estimate and policy copy. There are different types of Auto Insurance in India: Private Car Insurance - In the Auto Insurance in India, Private Car Insurance is the fastest growing sector as it is compulsory for all the new cars. The amount of premium depends on the make and value of the car, state where the car is registered and the year of manufacture. Two Wheeler Insurance - The Two Wheeler Insurance under the Auto Insurance in India covers accidental insurance for the drivers of the vehicle. The amount of premium depends on the current showroom price multiplied by the depreciation rate fixed by the Tariff Advisory Committee at the time of the beginning of policy period. Commercial Vehicle Insurance - Commercial Vehicle Insurance under the Auto Insurance in India provides cover for all the vehicles which are not used for personal purposes, like the Trucks and HMVs. The amount of premium depends on the showroom price of the vehicle at the commencement of the insurance period, make of the vehicle and the place of registration of the vehicle. The auto insurance generally includes: Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act. Liability for third party injury/death, third party property and liability to paid driver on payment of appropriate additional premium, loss/damage to electrical/electronic accessories the auto insurance does not include: 1).Consequential loss, depreciation, mechanical and electrical breakdown, failure or breakage 2).When vehicle is used outside the geographical area 3).War or nuclear perils and drunken driving Excess An excess payment, also known as a deductible, is a fixed contribution that must be paid each time a car is repaired with the charges billed to an automotive insurance policy. Normally this payment is made directly to the accident repair "garage" (the term "garage" refers to an establishment where vehicles are serviced and repaired) when the owner collects the car. If one's car is declared to be a "write off" (or "totaled"), then the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to the owner.

If the accident was the other driver's fault, and this fault is accepted by the third party's insurer, then the vehicle owner may be able to reclaim the excess payment from the other person's insurance company. Compulsory excess A compulsory excess is the minimum excess payment the insurer will accept on the insurance policy. Minimum excesses vary according to the personal details, driving record and insurance company. Voluntary excess To reduce the insurance premium, the insured party may offer to pay a higher excess (deductible) than the compulsory excess demanded by the insurance company. The voluntary excess is the extra amount, over and above the compulsory excess, that is agreed to be paid in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by the insurer, the insurer is able to offer a significantly lower premium. Basis of premium charges Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company, in accordance with a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverage than on mandatory liability coverage. When the premium is not mandated by the government, it is usually derived from the calculations of an actuary, based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future claims. Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven). Gender Men average more miles driven per year than women,[citation needed] and have a significantly higher rate of accident involvement. On 1 March 2011, the European Court of Justice controversially decided insurance companies who used gender as a risk factor when calculating insurance premiums were breaching EU equality laws. The Court ruled that car-insurance companies were discriminating against men, and these practices had to stop. Age Teenage drivers who have no driving record will have higher car insurance premiums. However, young drivers are often offered discounts if they undertake further driver training on recognized

courses, such as the Pass Plus scheme in the UK. In the U.S., many insurers offer a good-grade discount to students with a good academic record and resident-student discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Some insurance companies offer "stand alone" car insurance policies specifically for teenagers with lower premiums. By placing restrictions on teenagers' driving (forbidding driving after dark, or giving rides to other teens, for example), these companies effectively reduce their risk. A teenager driving a safer car, such as a sedan rather than a flashy sports car, can also get lower insurance rates. Senior drivers are often eligible for retirement discounts, reflecting the lower average miles driven by this age group. Rates may increase for senior drivers after age 65, due to increased risk associated with much older drivers. Typically, the increased risk for drivers over 65 years of age is associated with slower reflexes, reaction times, and being more injury-prone as a result of aging. Additionally, older drivers between the ages of 60 and 70 in the U.S. must be able to demonstrate competency in order to retain a driver's license. Driving history In most states, moving violations, including running red lights and speeding, assess points on a driver's driving record. Since more points indicate an increased risk of future violations, insurance companies periodically review drivers' records, and may raise premiums accordingly. Laws vary from state to state, but most insurers allow one moving violation every three to five years before increasing premiums. Accidents affect insurance premiums similarly. Depending on the severity of the accident and the number of points assessed, rates can increase by as much as twenty to thirty percent. Any motoring convictions should be disclosed to the insurers, as the driver is assessed by risk from prior experiences while driving on the road. Marital status Policy owners who are married often receive lower premiums than single persons. One reason is that marriage may be considered an indicator of stronger financial stability within the household. Vehicle classification Two of the most important factors that go into determining the underwriting risk on motorized vehicles are: performance capability and retail cost. The most commonly available providers of auto insurance have underwriting restrictions against vehicles that are either designed to be capable of higher speeds and performance levels, or vehicles that retail above a certain dollar amount. Vehicles that are commonly considered luxury automobiles usually carry more expensive physical damage premiums because they are more expensive to replace. Vehicles that can be classified as high performance autos will carry higher premiums generally because there is greater opportunity for risky driving behavior. Motorcycle insurance may carry lower property-damage premiums because the risk of damage to other vehicles is minimal, yet have higher liability or personal-injury premiums, because motorcycle riders face different physical risks while on the road. Risk classification on automobiles also takes into account the statistical analysis of reported theft, accidents, and mechanical malfunction on every given year, make, and model of auto.

Distance Some car insurance plans do not differentiate in regard to how much the car is used. There are however low-mileage discounts offered by some insurance providers. Other methods of differentiation would include: over-road distance between the ordinary residence of a subject and their ordinary, daily destinations. Reasonable distance estimation Another important factor in determining car-insurance premiums involves the annual mileage put on the vehicle, and for what reason. Driving to and from work every day at a specified distance, especially in urban areas where common traffic routes are known, presents different risks than how a retiree who does not work any longer may use their vehicle. Common practice has been that this information was provided solely by the insured person, but some insurance providers have started to collect regular odometer readings to verify the risk. Odometer-based systems Cents per Mile Now (1986) advocates classified odometer-mile rates, a type of usage-based insurance. After the company's risk factors have been applied, and the customer has accepted the per-mile rate offered, then customers buy prepaid miles of insurance protection as needed, like buying gallons of gasoline (liters of petrol). Insurance automatically ends when the odometer limit (recorded on the car's insurance ID card) is reached, unless more distance is bought. Customers keep track of miles on their own odometer to know when to buy more. The company does no after-the-fact billing of the customer, and the customer doesn't have to estimate a "future annual mileage" figure for the company to obtain a discount. In the event of a traffic stop, an officer could easily verify that the insurance is current, by comparing the figure on the insurance card to that on the odometer. Critics point out the possibility of cheating the system by odometer tampering. Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and reconnecting them later. However, as the Cents per Mile Now website points out: As a practical matter, resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical. For example, to steal 20,000 miles [32,200 km] of continuous protection while paying for only the 2000 in the 35000 to 37000 range on the odometer, the resetting would have to be done at least nine times, to keep the odometer reading within the narrow 2,000-mile [3,200 km] covered range. There are also powerful legal deterrents to this way of stealing insurance protection. Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel. Odometer tampering, detected during claim processing, voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail.

Under the cents-per-mile system, rewards for driving less are delivered automatically, without the need for administratively cumbersome and costly GPS technology. Uniform per-mile exposure measurement for the first time provides the basis for statistically valid rate classes. Insurer premium income automatically keeps pace with increases or decreases in driving activity, cutting back on resulting insurer demand for rate increases and preventing today's windfalls to insurers, when decreased driving activity lowers costs but not premiums. GPS-based system In 1998, the Progressive Insurance company started a pilot program in Texas, in which drivers received a discount for installing a GPS-based device that tracked their driving behavior and reported the results via cellular phone to the company. Policyholders were reportedly more upset about having to pay for the expensive device than they were over privacy concerns. The program was discontinued in 2000. OBDII-based system The Progressive Corporation launched Snapshot to give drivers a customized insurance rate based on recording how, how much, and when their car is driven.[26] Snapshot is currently available in 38 U.S. states.[26] Driving data is transmitted to the company using an on-board telemetric device. The device connects to a car's Onboard Diagnostic (OBD-II) port (all petrol automobiles in the USA built after 1996 have an OBD-II.) and transmits speed, time of day and number of miles the car is driven. There is no GPS in the Snapshot device, so no location information is collected. Cars that are driven less often, in less-risky ways, and at less-risky times of day, can receive large discounts. Progressive has received patents on its methods and systems of implementing usage-based insurance and has licensed these methods and systems to other companies. Credit ratings Insurance companies have started using credit ratings of their policyholders to determine risk. Drivers with good credit scores get lower insurance premiums, as it is believed that they are more financially stable, more responsible and have the financial means to better maintain their vehicles. Those with lower credit scores can have their premiums raised or insurance canceled outright. It has been shown that good drivers with spotty credit records could be charged higher premiums than bad drivers with good credit records. Behavior-based insurance The use of non-intrusive load monitoring to detect drunk driving and other risky behaviors has been proposed. A US patent application combining this technology with a usage based insurance product to create a new type of behavior based auto insurance product is currently open for public comment on peer to patent. See Behavior-based safety (Source: http://en.wikipedia.org/wiki/Vehicle_insurance)

2. Engineering Insurance A well-known dictionary defines engineering as “the activities or function of an engineer“ and “the application of science and mathematics by which the properties of matter and the sources of energy in nature are made useful to people in structures, machines, products, systems and processes”. Both of these definitions have a strong relationship to the words “engineering insurance”, which the insurance industry uses as a collective term to describe various types of policies for the protection of construction works, as well as the erection and operation of machinery. Historical Reflections The origins of engineering insurance are to be found in the inspection of steam boilers. In the nineteenth century, in Great Britain during the industrial revolution, the frequent occurrence of explosions involving serious property damage and loss of life made it necessary to take steps to guard against such dangers. In 1854, prominent gentlemen interested in the use of steam decided to form the Manchester Steam Users' Association. Members were entitled to use the services of boiler inspectors who were employed by the association. This organization not only gave advice on how to prevent explosions but also undertook to guide its members in the most advantageous and economical method of using the plant. This principle is still maintained today. Plant owners can call upon the engineer-surveyor for advice and suggestions on plant operation and maintenance. Though the Manchester Steam Users' Association rendered valuable services, it was not an insurance company. In 1858, however, in response to an evident need, certain members founded the first engineering insurance company, the Steam Boiler Assurance Company. This company started with the insurance of boilers, and its lead was soon followed by the formation of similar companies. At first only boilers were insured, but covers were gradually extended to pressure vessels of various kinds. Engine Insurance (known today as Machinery Breakdown insurance) began in 1872 and both boiler explosion and engine covers rapidly spread to other industrialized countries. By the beginning of the twentieth century, the first insurance policies for loss of profits following machinery breakdown were being issued. At the same time, erection insurance (covering the onsite erection and assembly of machines) appeared. The policy was on a "named perils" basis and did not cover fire, but it offered reasonable protection for small and medium-sized erection project. From 1920 to 1930, some German and British companies introduced a contractors' policy providing insurance cover for buildings and civil works during the course of construction. Based on this policy, Contractors' and Erection All Risks policies were developed. However, neither of

these types of policies reached any great importance until after World War II when postwar reconstruction and development brought these covers to their present standing. With the advance of technology, other engineering policies such as Computer All Risks, Low Voltage and Electronic Equipment All Risks, and Deterioration of Stock following Machinery Breakdown were developed, along with business income protection covers such as Advance Loss of Profits, written in conjunction with Contractors' All Risks and Erection All Risks policies. The engineering insurance industry will undoubtedly have to remain flexible needs as a result of the huge technological advances which the world is facing. (Source: http://www.imia.com/about_engineering_insurance.php) Types of Engineering Insurance Contractors All Risks Insurance (CAR). This type of insurance is the perfect cover for all kinds of construction projects such as buildings, roads, bridges… etc. This Policy will cover the policyholder against any unforeseen and sudden physical loss or damage from any cause, other than those specifically excluded, to the project's property specified in the policy schedule In addition to indemnify the insured in respect of his legal liability toward third parties for accidental bodily injury to or illness and / or Accidental loss of or damage to property belonging to third parties occurring in connection with the construction works. Erection All Risks Insurance (EAR). This type of insurance concerning all kinds of Erection projects such as machineries erection, heavy equipment installation process extended to include testing and commissioning works. This Policy will cover the policyholder against any unforeseen and sudden physical loss or damage from any cause, other than those specifically excluded, to the project's property specified in the policy schedule In addition to indemnify the insured in respect of his legal liability toward third parties for accidental bodily injury to or illness and / or Accidental loss of or damage to property belonging to third parties occurring in connection with the erection works. Machinery Breakdown Insurance (MB). This policy cover's the insured machineries entered in the Schedule, against any unforeseen and sudden physical loss or damage from causes such as defects in casting and material, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short circuit, storm, or from any other cause not specifically excluded

Loss of Profits Following Machinery Breakdown Insurance (LOP). This policy indemnify the Insured against the amount of loss resulting from the interruption or interference of any machinery described in the list of machinery and plant insured in consequence of an accident. The cover provided under this Policy shall be limited to loss of gross profit due to reduction in turnover and increase in cost of working and the amount payable as indemnity hereunder shall be: - In respect of reduction in turnover: the sum produced by applying the rate of gross profit to the amount by which the turnover during the indemnity period, in consequence of the accident, falls short of the standard turnover. - In respect of increase in cost of working: the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in turnover which but for that expenditure would have taken place during the indemnity period in consequence of the accident, but not exceeding the sum produced by applying the rate of gross profit to the amount of the reduction thereby avoided, less any sum saved during the indemnity period in respect of such of the charges and expenses of the business payable out of the gross profit as may cease or be reduced in consequence of the accident. Contractors Plant & Machinery Insurance (CP&M). This policy is the appropriate cover for heavy machineries/construction Machineries and any other item entered in the Policy Schedule, against any unforeseen and sudden physical loss or damage from any cause not specifically excluded whilst at the location or in the geographical area mentioned in the schedule. Boiler and Pressure Vessel Insurance (B. Exp). This policy will provide the cover for the insured's Boilers and Pressure Vessels against damages (other than by fire), and the cover is extended to include legal liability of the Insured for damage to property not belonging to the Insured, in addition to the legal liability of the Insured on account of fatal or non-fatal injuries to any persons other than the Insured‟s own employees or workmen or members of the Insured‟s family, caused by and solely due to explosion or collapse of the insured items whilst in the course of ordinary working.

Electronic Equipment Insurance (EEI). This policy covers the insured electronic equipment whether are at work or at rest, or being dismantled for the purpose of cleaning, overhauling or of being shifted within the premises, or in the course of the aforesaid operations themselves, or during subsequent re-election, this cover applies after successful commissioning, and it is divided into three Correlated sections:

- Any unforeseen and sudden physical loss or damage from any cause other than those specifically excluded. - Loss or damage to the external data media inclusive of the information stored thereon, which can be directly processed in External Date Processing systems, resulting from any peril indemnifiable under Section 1 of the Policy. - Any additional expenditure incurred for the use of substitute External Data Processing equipment, resulting from material damage indemnifiable under Section 1 of this Policy gives rise to a total or partial interruption of operation of the External Data Processing equipment Deterioration of Stock in Cold Storage Insurance Policy (DOS). This policy cover's the insured goods against loss or damage caused by deterioration due to any unforeseen and sudden physical loss of or damage to the contained machinery and indemnifiable under the machinery breakdown policy in force. (Source: http://www.jerco.com/engineering.htm) 3. Aviation insurance

Aviation insurance is insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation. Aviation insurance policies are distinctly different from those for other areas of transportation and tend to incorporate aviation terminology, as well as terminology, limits and clauses specific to aviation insurance Aviation Insurance was first introduced in the early years of the 20th Century. The first aviation insurance policy was written by Lloyd's of London in 1911. The company stopped writing aviation policies in 1912 after bad weather and the resulting crashes at an air meet caused losses on many of those first policies. The first aviation polices were underwritten by the marine insurance underwriting community. The first specialist aviation insurers emerged in 1924. In 1929 the Warsaw convention was signed. The convention was an agreement to establish terms, conditions and limitations of liability for carriage by air, this was the first recognition of the airline industry as we know it today. In 1931, Captain Lamplugh, the British Aviation Insurance Company's chief underwriter and principal surveyor, said of the new industry: "Aviation in itself is not inherently dangerous. But to an even greater degree than the sea, it is terribly unforgiving of any carelessness, incapacity or neglect."

Realizing that there should be a specialist industry sector, the International Union of Marine Insurance (IUMI) first set up an aviation committee and later in 1933 created the International Union of Aviation Insurers (IUAI), made up of eight European aviation insurance companies and pools.

US Airways Flight 1549 was written off after ditching into the Hudson River The London insurance market is still the largest single centre for aviation insurance. The market is made up of the traditional Lloyd's of London syndicates and numerous other traditional insurance markets. Throughout the rest of the world there are national markets established in various countries, this is dependent on the aviation activity within each country, the US has a large percentage of the world's general aviation fleet and has a large established market. Types of insurance Aviation insurance is divided into several types of insurance coverage available. Public liability insurance This coverage, often referred to as third party liability covers aircraft owners for damage that their aircraft does to third party property, such as houses, cars, crops, airport facilities and other aircraft struck in a collision. It does not provide coverage for damage to the insured aircraft itself or coverage for passengers injured on the insured aircraft. After an accident an insurance company will compensate victims for their losses, but if a settlement cannot be reached then the case is usually taken to court to decide liability and the amount of damages. Public liability insurance is mandatory in most countries and is usually purchased in specified total amounts per incident, such as $1,000,000 or $5,000,000.[6] Passenger liability insurance Passenger liability protects passengers riding in the accident aircraft that are injured or killed. In many countries this coverage is mandatory only for commercial or large aircraft. Coverage is often sold on a "per-seat" basis, with a specified limit for each passenger seat. Combined Single Limit (CSL) CSL coverage combines public liability and passenger liability coverage into a single coverage with a single overall limit per accident. This type of coverage provides more flexibility in paying

claims for liability, especially if passengers are injured, but little damage is done to third party property on the ground. Ground risk hull insurance not in motion This provides coverage for the insured aircraft against damage when it is on the ground and not in motion. This would provide protection for the aircraft for such events as fire, theft, vandalism, flood, mudslides, animal damage, wind or hailstorms, hangar collapse or for uninsured vehicles or aircraft striking the aircraft. The amount of coverage may be a blue book value or an agreed value that was set when the policy was purchased. The use of the insurance term "hull" to refer to the insured aircraft belies the origins of aviation insurance in marine insurance. Most hull insurance includes a deductible to discourage small or nuisance claims. Ground risk hull insurance in motion (taxiing) This coverage is similar to ground risk hull insurance not in motion, but provides coverage while the aircraft is taxiing, but not while taking off or landing. Normally coverage ceases at the start of the take-off roll and is in force only once the aircraft has completed its subsequent landing. Due to disputes between aircraft owners and insurance companies about whether the accident aircraft was in fact taxiing or attempting to take-off this coverage has been discontinued by many insurance companies. In-flight insurance In-flight coverage protects an insured aircraft against damage during all phases of flight and ground operation, including while parked or stored. Naturally it is more expensive than non-inmotion coverage since most aircraft are damaged while in motion. No single insurer has the resources to retain a risk the size of a major airline, or even a substantial proportion of such a risk. The catastrophic nature of aviation insurance can be measured in the number of losses that have cost insurers hundreds of millions of dollars (Aviation accidents and incidents) Most airlines arrange "fleet policies" to cover all aircraft they own or operate. (Source: http://en.wikipedia.org/wiki/Aviation_insurance)