BROAD CLASSIFICATION ON GENERAL INSURANCE :

General Insurance or non life insurance, based on the Indian Insurance Act, 1938, is broadly classified into –

1. Fire 2. Marine 3. Miscellaneous

Another classification is Traditional and Non – Traditional business, the former being fire and marine, motor, burglary insurance etc.

Broadly Classified as

1. Property insurance – all types of property is covered, provided the value can be converted into pecuniary terms , thus forming the sum insured under the policy.

2. Liability Insurance- Liability arising out of various contracts-employees liability, liability arising out of defective products, accident liability eg motor accidents

3. Health and Accident /casualty insurance- health and personal accident insurance

4. Insurance of interest – eg. one can insure one’s interest in a property eg. rental income from a property etc.

The primary function of a general insurance contract is to provide security, an assurance that, in the event of any loss, the contract would indemnify the insured.