Page 129 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes Marine Insurance: Marine insurance basically covers three risk areas, namely, hull, cargo and
freight. The risks which these areas are exposed to are collectively known as "Perils of the Sea".
These perils include theft, fire, collision etc.
Marine Cargo: Marine cargo policy provides protection to the goods loaded on a ship against all
perils between the departure and arrival warehouse. Therefore, marine cargo covers carriage of
goods by sea as well as transportation of goods by land.
Marine Hull: Marine hull policy provides protection against damage to ship caused due to the
perils of the sea. Marine hull policy covers three-fourth of the liability of the hull owner
(shipowner) against loss due to collisions at sea. The remaining 1/4th of the liability is looked
after by associations formed by shipowners for the purpose (P and I clubs).
Miscellaneous: As per the Insurance Act, all types of general insurance other than fire and
marine insurance are covered under miscellaneous insurance. Some of the examples of general
insurance are motor insurance, theft insurance, health insurance, personal accident insurance,
money insurance, engineering insurance etc.

8.5.3 Major Players

The main player of this sector is General Insurance Corporation or GIC as it is widely known as.
Let us know in brief about the main players of the sector. The reading has been arranged in
alphabetical order.

1. Bajaj Allianz General Insurance Co. Ltd.: It deals in motor, home, health and travel
insurance.
2. ICICI Lombard General Insurance Co. Ltd: It deals in personal, business, NRI and rural
insurance.
3. IFFCO Tokio General Insurance Co. Ltd. : It deals in various general insurance products.
4. National Insurance Co. Ltd. : National Insurance Company Limited was incorporated in
1906 with its registered office in Kolkata. Consequent to passing of the General Insurance
Business Nationalisation Act in 1972, 21 Foreign and 11 Indian Companies were
amalgamated with it and National became a subsidiary of General Insurance Corporation
of India (GICI) which is fully owned by the Government of India. After the notification of
the General Insurance Business (Nationalisation) Amendment Act, on 7th August 2002,
National has been de-linked from its holding company GIC and presently operating as a
Government of India undertaking.
National Insurance Company Ltd (NIC) is one of the leading public sector insurance
companies of India, carrying out non life insurance business. Headquartered in Kolkata,
NIC's network of about 1000 offices, manned by more than 16,000 skilled personnel, is
spread over the length and breadth of the country covering remote rural areas, townships
and metropolitan cities. NIC's foreign operations are carried out from its branch offices in
Nepal.
Befittingly, the product ranges, of more than 200 policies offered by NIC cater to the
diverse insurance requirements of its 14 million policyholders. Innovative and customized
policies ensure that even specialized insurance requirements are fully taken care of.
National transacts general insurance business of fire, marine and miscellaneous insurance.
The company offers protection against a wide range of risks to its customers. The Company
is privileged to cater its services to almost every sector or industry in the Indian economy
viz.

124 LOVELY PROFESSIONAL UNIVERSITY