Page 273 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes 1. In the new structure of non-life insurance sector one can see the four subsidiaries and new
entrants.
2. New entrants would require an approval from the RBI if they are banks or finance
companies.
3. GIC is now the reinsurer in the country.
4. Insurance Regulatory Development Authority (IRDA) is the regulator of Indian insurance
industry.

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Caution New entrants would require an approval from the RBI if they are banks or finance
companies.

Did u know? All insurance contracts are governed by the basic principles of insurable
interest, indemnity, utmost good faith, subrogation and proximate cause.

Insurance Regulatory Development Authority (IRDA) is the regulator of Indian insurance
industry.

Tasks 1. "ONGC gets Rs. 1,700 cr insurance claim for Mumbai high fire" study the
case and comment on claim settlement procedure in general insurance
sector.
2. "Customer gets a policy instead of a cover note straight away. No follow
up required for getting the original policy document". Discuss Maruti
insurance in comparison to car insurance by other insurers.

Notes GIC is now the reinsurer in the country.

13.3 Classification of General Insurance Business

Let us have a look at the different products under the two segments.

Commercial line of insurance: Insurance for businesses, professionals and commercial
establishments
1. Policies for cottage, tiny and small sector industries: Fire policy specifically for tiny
sector, burglary policy, cash policy, motor policy and other miscellaneous policies are
also available to trader and general traders.

2. Policies for traders:
(i) Dukan Mitra Policy
(ii) Fire policy
(iii) Marine cargo policy
(iv) Cash policy

268 LOVELY PROFESSIONAL UNIVERSITY