Personal Accident insurance

Personal Accident insurance is insurance for individuals or groups of persons against any personal accident or illness. The risk insured is the bodily injury resulting solely and directly from accident caused by violent, external and visible means. In India this type of insurance is done by the General Insurance Corporation. A contract of personal accident insurance is not a contract of indemnity and the insurer has to pay a fixed sum of money on the death or total disablement of the insured or provide medical benefits for recovery from the injury. If risks against certain specified diseases are also covered, the policy is known as 'Personal Accident and Sickness Insurance'. For example, personal accident insurance by United India Insurance Company Limited.

Motor Vehicle Insurance

under it, a personal or commercial vehicle is subjected to combined insurance against the risks of :- (i) loss or damage to the motor vehicle and its accessories on account of accident or theft; (ii) death of or injury to the owner or passenger of the vehicle due to accident; (iii) damages payable to third parties by the owner of the vehicle for accident. A comprehensive insurance policy may be taken to cover all these risks. Insurance against the first two types of risks is optional. But every owner of motor vehicle is required to take out an insurance policy to cover the third party risks under the Motor Vehicles Act, 1956. Such a policy is known as 'third party insurance or liability insurance'. Under such a policy, the third party who has suffered any loss can sue the insurer directly even though he was not a party to the contract of insurance. For example, motor insurance by United India Insurance Company Limited. This policy provides insurance cover to owners of the vehicle, financiers or lessee, who have insurable interest in a motor vehicle.

Fidelity Insurance

under it, the insurer undertakes to compensate the insured i.e. the employers against the losses suffered by him due to the employees. The losses may be due to fraud,dishonesty,misappropriation of funds,goods or damages to property caused by the employees. In order to avail the protection under it,the employer is required to provide all material facts about their employees to the insurer and also, notify all changes in the condition of their service. For example, fidelity insurance by New India Assurance Company Limited. Under this policy, the insurance company agrees to indemnify the insured (employer) against a direct pecuniary loss sustained by reason of any act of fraud/dishonesty committed by employee:-

• On or after the date of commencement of this policy.


• During uninterrupted service with the Insured and discovered during the continuance of this policy or within twelve calendar months of the expiration thereof.


• In the case of death, dismissal or retirement of the employee with twelve calendar months of such death, dismissal or retirement whichever of these events shall first happen.

Credit Insurance

Credit Insurance is a policy taken to cover the loss which may arise due to bad debts or non-payment of dues by the debtors. It provides protection to businessmen, who sell goods on credit terms while substantially reducing the overall risk of exposure to non-payment. It protects them against losses arising out of insolvency of their debtors. It thus enables a business to take advantage of peak and cyclical selling periods and to safely expand into new product lines or territories.

For example, credit insurance by New India Assurance Company Limited. They provide two fold credit management support:-

• Credit Monitoring:- During the policy period the insurance company receives monthly statements of clients sales and keeps a close watch on client-wise sales and their payment patterns. This it helps in fixing clients future sales, buyer-wise.


• Credit Control:- While processing the proposal form, they appraise a section of the clients buyers. This enables them to fix credit limits, both Buyer wise and discretionary. These limits are authentic indications of clients buyers' paying capacity.

In India, Export Credit and Guarantee Corporation of India Ltd provides credit insurance to exporters. The export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseas business without fear of loss.

Workmen's Compensation Insurance

An employer is required to pay compensation to his workers who receive injuries or contract occupational diseases during the course of their work. Such compensation is payable under the Workmen's Compensation Act. An employer may obtain an insurance policy to cover such liability. The premiums are payable usually on the basis of wages. It is also known as 'Employers' Liability Insurance'. For example, workmen's compensation insurance by United India Insurance Company Limited. This policy provides insurance against the following risks:-

• Indemnity to insured against his liability as an ‘employer' to accidental injuries (including fatal) sustained by the ‘workman' whilst at work.


• On extra premium-medical, surgical, and hospital expenses including the cost of transport to hospital for accidental employment injuries.


• Liability in respect of diseases mentioned under the Workmen's Compensation Act, on additional premium, which arise out of and in the course of employment.

Travel insurance

Travel insurance provides protection cover to all those individuals travelling outside India against risks such as loss of baggage,travel related accidents including injuries,illnesses and medical emergencies requiring hospitalization treatment.In India,this insurance policy has become popular among International travellers. For example, travel insurance by United India Insurance Company Limited.

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