Non-life insurance

   Non-life insurance refers to the insurance of goods and properties. It is a short-term contract between the insurer and the insured. It is taken for the indemnity of the loss of goods and properties on account of a specified cause. As a consideration of the insurance contract, the insured pays the amount of annual premium. The amount of annual premium is treated as business expense. Non-life insurance policy is generally taken for one year and it should be renewed every year. In fact, non-life insurance policy is taken as a means of providing financial protection for building, machinery,
equipment, furniture, vehicle and merchandise items against the risk of fire, earthquake, accident and theft.

         Non-life or general insurance includes fire insurance, marine insurance and miscellaneous insurance.

         Fire insurance:- Fire insurance is a type of insurance, which is taken for getting financial compensation against the loss by fire. Loss or damage of property caused by fire is called fire waste. The purpose of fire insurance is to make the financial compensation of losses caused by fire among insured persons.

        Fire insurance is a contract of indemnity under which the insured can not claim anything more than the value of goods lost by fire or the amount insured, whichever is less. Fire insurance is a recent growth. The first fire insurance institution was established only after the Great fire of London in 1666 A.D.

Marine insurance:-

Marine insurance is a type of insurance, which is taken for getting the financial compensation against the losses due to perils of the sea in course of sea voyage. Marine insurance can be defined as a contract between the insurer and the insured whereby the insurer undertakes to indemnify the insured upon the happening of the marine perils against a consideration of certain payment called premium.

Miscellaneous insurance:-

The following are some common types of miscellaneous insurance:-

1)      Motor insurance: The insurance, which compensates the financial losses of motor vehicles due to accident, theft and other similar type of events, is known as motor insurance. Such insurance is made compulsory. If the vehicle damages due to accident or other similar causes, the insurer compensates the financial losses to the owner of the vehicles. It also includes the insurance of staff and passenger of the vehicles.

2)      Employer’s liability insurance: General insurance also includes employer’s liability insurance. Under it, an insurance policy is taken for the workers of factories or institutions by the employer to compensate the claim of the employees on the event of injury, accident, death and disability while they are at work. Institutions or factories pay the premium regularly to the insurance company for getting such kind of compensation. Insurance company compensates at the time of injury, accident, disability or death of the workers.

3)      Fidelity guarantee insurance: Sometimes, the loss occurs in the organization due to the mistake of the staff knowingly or unknowingly. Fidelity guarantee insurance is a process of making financial compensation against the loss caused by embezzlement, theft, error or fraud committed by the staff of the business. It, thus, saves the employers for possible financial losses due to the activities of dishonest staff.

4)      Aviation insurance: Nowadays, air transportation is a popular means of transportation. Sometimes, accident may take place in the air service. If the accident takes place in the air service, the losses are unbearable. Hence, the aviation insurance is inevitable. In this reality, aviation insurance policy is taken for getting financial compensation against the losses in air service.