Page 160 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 9: Marine Insurance

Introduction Notes

In the previous unit, you have studied about the meaning and definition of life insurance.
Simultaneously you have learnt whether life insurance is a scientific concept and various
classifications of policies prevailing in market. The unit also dealt with the concepts of annuity
and mortality tables along with explained the role of LIC in life insurance sector.

In this unit, you will study about marine insurance. The Indian Marine Insurance Act came into
operation on August 1, 1963. The first instance of Marine Insurance regulation was brought in
India with the enactment of this Act. It is a comprehensive document containing all the regulations
of the marine insurance business in India. Prior to this Act, the insurance business was conducted
on the basis of the principles of General Contract Act and the English Marine Insurance Law.

In the next unit, you will study about the meaning and definition of fire insurance. The unit will
also discuss the various elements of fire insurance as well as kinds of policies in fire insurance
segment. It will also deal with explaining the payment of claim under fire insurance.
Simultaneously it will explain the concept of re-insurance.

9.1 Elements of General Contract

You must note that when the insured pays the premium and the insurer accepts the risk; the
contract of insurance is concluded. The policy issued by the insurer to the insured is the proof of
the contract between them. We know that no contract is valid without a consideration. In case of
insurance contracts, premium is the consideration from the side of the insured and the promise
to indemnify is the consideration from the insurer.
Both the parties should be competent to contract and must give the consent for the insurance
contract for covering the same risk for same peril in the same sense. Insurance contracts which
are against the public policy are not valid contracts. Care should be taken by both sides that
something which is illegal cannot be insured. If insurance is affected on say for example smuggled
goods, and the insurer comes to know after some time of signing the contract, he may avoid the
contract.

Caselet Premium Collection Growth among
General Insurance Companies up 14%

remium collection amongst general insurance companies grew by 14.25 per cent in
the first half of the current fiscal which also saw insurers like IRDA registering
PRoyal Sundaram, Shriram General and United India lower mop-ups.
While the premium collection of Royal Sundaram during April-September declined by
3.90 per cent, Shriram General recorded a meagre growth of 7.04 per cent during the
period, as per the Insurance Regulatory and Development Authority (IRDA) data.

State-owned United India Insurance has recorded a growth in premium collection of
7.07 per cent during the six month period.
The data, which is based on the filings by the insurers to IRDA, revealed that the general
insurance companies recorded a premium growth of 14.25 per cent during the period.
While 21 private sector companies together registered a growth of 20 per cent, the public
sector peers saw premium income rise by 10.19 per cent, primarily because they have a
higher base.
Contd...

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