Property Insurance

Property Insurance

CHAPTER-1

(1.1) MEANING(1.2) DEFINITION(1.3) TYPES OF INSURANCE

(1.1) MEANING OF INSURANCE

Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company. A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool.Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.

(1.2) DEFINITIONInsurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event in case of general insurance.The party bearing the risk is known as the 'insurer' or 'assurer' and the party whose risk is covered is known as the 'insured' or 'assured'.

(1.3)TYPES OF INSURANCE

Life insurance:Life insurance is a contract between an insured (insurance policy holder) and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the benefits.The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders.It is possible for life insurance policy payouts to be made in order to help supplement retirement benefits; however, it should be carefully considered throughout the design and funding of the policy itself.Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.Life-based contracts tend to fall into two major categories:

Protection policies designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.

Investment policies where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies.

General insurance:General Insurance is the type of insurance which covers the loss and pays compensation against any uncertain financial event. It is often referred to as the non-life insurance. General Insurance covers all aspects of loss in case of objects and one which does not fall under life insurance and is particularly done for property loss in any natural hazards, theft, burglary, accidents etc. General Insurance is often under annual contracts but there are also a few products under general insurance policies which are under the long-term contracts.The general insurance rate is a factor used to determine the amount to be charged for a particular amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has come out as a discrete field of study and practice.These are the common types of general insurance:

Home Insurance:Houses, lands and other real estate properties and hard assets are subject to accidental risks like theft, damage, destruction due to natural disasters or fire accidents etc. with such large investments gone into buying a real estate property like your home or office, the problem or risk involved is a loss of large amount of money.Home and property insurance protects you in managing and protecting against these risks. The cost of a real estate property and its monetary insurance is mostly based on the value of the already insured hard assets and also the place or location in which the assets are situated.Travel Insurance: This is intended to shoulder or cover any of the financial or any other losses which were basically incurred by the insured while on his journey or travelling, be it nationally or internationally, such as mountain trekkers, cruise travellers or simply as a tourist.Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, some times bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require or obliged you to have an auto insurance while on road in your vehicles.If you have an accidental auto crash, a total repair could cost you a lot or a fortune. On the other hand, a little scratch on your Land Cruiser may also soar up your bills to a high level.Whether or not you want or need auto insurance mostly depends on the type of automobile you own.If you have an expensive car and a little repair could worry you out financially, you should therefore decide in buying an all-inclusive and crash insurance which will protect you against any and every harm done to your vehicle.Health Insurance: Whether you like it or not, almost always we face certain health challenges that may cause us a lot through medicines, hospitalization bills and other related expenditures. If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment.Fire insurance: Fire is one truly big problem that may endanger our valuables, properties and even businesses. Worse it may threaten our lives and those of or loved ones. Well this would not be very hard unless we are ready to face such calamity with fire insurance. This will help us become more secured and ready to face fire cases.

CHAPTER:2

EFFECTS OF INSURANCE

(2.1) INSURANCE AS SECURITY TOOL(2.2) CONTRIBUTION TO AN INDIAN ECONOMY(2.3) CURRENT SCENARIO(2.4) FUTURE SCENARIO

(2.1)INSURANCE AS A SOCIAL SECURITY TOOL

Individuals income is dependent upon the investment of his time. Over a period of time, he saves sufficiently to provide for the time, when he is too old to earn. But no body can guarantee him this time.The concept of insurance was born. A co-operative society was created, where each member of the family contributed a small portion to provide for a possible big loss which was too big for anyone to bear.Insurance, let it be noted, does not prevent the loss to occur. It cannot prevent thievery, fire, sinking of a ship due to storm or even death of the bread winner. Far from it, if they could be prevented, there would be no need for insurance. It is only the damages beyond the control of men, purely accidental, or due to fury of nature, which are subjects for insurance.The factories would not restart after a fire, houses cannot be rebuilt after an earthquake or a cycle or a motorcycle for that matter cannot be replaced after being stolen. Unlike a socialist society or a highly developed capitalist society where the State takes care of individuals who become destitute or deprived, in a developing society like ours, the State is too poor to take up such responsibilities.The declaration of Human Rights by United Nations similarly declares from the house top that everyone has a right to a standard of living adequate for health, well-being of himself and his family including food, clothing, housing, medical care and necessary social services and the right to security in the event of unemployment, sickness, disability, widowhood and other loss of livelihood in circumstances beyond his control.If wishes were horses, beggars would ride. Even in highly developed countries like Britain and United States where some medium of social security is available, insurance, both life and general is a thriving business.Normally in case of human beings, 90% of the income comes from investment of time and 10% of the income comes from savings. As one grows old, the ratio is reversed and 90% of his income comes from his savings and 10% from investment ofhis time. That is the ideal situation. But who can guarantee him the time - time to save adequately so as to reverse this ratio.In case of a house burnt due to an accidental fire, he does not have to go to other members of the society begging help. Insurance thus creates a society of proud people who know how to take care of themselves even during difficult times. Insurance is thus a tool of social security par excellence.

(2.2)CONTRIBUTION TO INDIAN ECONOMYInsurance is the only sector which garners long term savings Insurers are increasingly introducing innovative products to meet the specific needs of the prospective policyholders. An evolving insurance sector is of vital importance for economic growth. While encouraging savings habit it also provides a safety net to both enterprises and Individuals. Insurance Companies receive, without much default, a steady cash stream of premium or contributions to pension plans. Various actuary studies and models enable them to predict, relatively accurately, their expected cash outflows. Generates Long term funds for infrastructure and strong positive correlation between development of capital markets and insurance/pension sector For GDP to grow at 8 to 10%, qualitative improvement in infrastructure is essential. Estimates of funds required for development of infrastructure vary widely. An investment of 6,19,600crore is anticipated in the next 5 years. Tenure of funding required for infrastructure normally ranges from 10 to 20 years. The insurance industry also provides crucial financial intermediary services, transferring funds from the insured to capital investment, critical for continued economic expansion and growth, simultaneously generating long-term funds for infrastructure development. In fact infrastructure investments are ideal for asset-liability matching for life insurance companies given their long term liability profile.The insurance sector in India, which was opened up to private participation in the year 1999, has completed over seven years in a liberalized environment. With an average annual growth of 37 per cent in the first year premium in the life segment and 15.72 per cent growth in the nonlife segment, together with the largest number of life insurance policies in force.

(2.3)CURRENT SCENARIOGlobal integration of financial markets resulted from de-regulating measures, technological information explosion and financial innovations. Liberalisation and Globalisation have allowed the entry of foreign players in the Insurance sector. With the entry of private and foreign players in the Insurance business, people have got a lot of options to choose from. Radical changes are taking place in customer profile due to the changing life style and social perception, resulting in erosion of brand loyalty. To survive, the focus of the modern insurers shifted to a customer-centric relationship. The paper focuses the current position of insurance industry.Liberalisation and Privatisation India's economic development made it a most lucrative Insurance market in the world. Before the year 1999, there was monopoly state run LIC transacting life business and the General Insurance Corporation of India with its four Subsidiaries transacting the rest. In the wake of reform process and passing Insurance Regulatory and Development Authority (IRDA) Act through Indian parliament in 1999, Indian Insurance was opened for private companies.Liberalisation on the Insurance sectors has allowed the foreign players to enter the market with their Indian partners. Most of the foreign Insurers have joined within the local market. India offers immense possibilities to foreign Insurers since it is the world's most populous country having over a billion people.Insurance industry had ten and six entrants in life and non-life sector respectively in the year 2000-2001. The industry again saw two and three entrants in the life and non-life business respectively in the year 2001-2002. One additional entrant was made both in the life and in non-life business in 2004 and 2005 respectively. At present there are fourteen companies each in Life and General Insurance. The Funds earlier generated by the state owned insurers have been diversified with other new insurers. We should wait and see how the new players are going to boost up our economy.Competition Private and Foreign entrants in the Insurance Industry made others difficult to retain their market. Higher customer aspirations lead to new expectations and compel him to move towards the insurer who provides him the best service in time. It becomes less viable for them even to maintain the functional networks or competitive standards and services. To survive in the Industry they analyse, the emerging requirements of the policyholders / insurers and they are in the forefront in providing essential services and introducing novel products. Thereby they become niche specialists, who provide the right service to the right person in right time.The following table shows the market share of non-life insurersNON LIFE INSURERS

1.New India21.41

2.National17.11

3.United India17.11

4.Oriental17.02

5.ICICI- Lombard8.04

6.Bajaj Allianz6.15

7.IFFCO-Tokio4.00

8.Tata-AIG2.89

9.ECGC2.50

10.Royal Sundaram2.17

11.Cholamandala m1.22

12.HDFC-Chubb0.89

13.Reliance General0.75

14.Agriculture Insurance Co.--

Private total27.35

Public total72.65

Grand total100.00

(2.4)FUTURE OF INSURANCE SECTOR IN INDIAAccording to me, future of insurance sector is very good in India. Current market share of new companies is not attractive but the potential market is very attractive and lucrative in this country.Insurance has gotten popularity in cities ,most of members in every familyhad taken different type of insurance policy ,where as only head of the family is insured in thetowns. The position of insurance sector is worse in the villages .People living in villages do not know the importance of insurance and no family member is insured in many of the families.New companies has entered into the India ,not because of the current market but because of the potential market ,as the population of India is increasing continually .They believe that if they will educate people about the importance of insurance then a good response may come in the future.To get success in India companies have to change the mindset of people because the Indian people believe more on public sector companies. So, The companies belong to private sector must have to provide the lucrative product with user friendly facilities.

CHAPTER 3FIELD STUDY(3.1) INTRODUCTION TO PROPERTY INSURANCE(3.2) CONCEPT OF PROPERTY INSURANCE(3.3) TYPES OF PROPERTY INSURANCE(3.4) RENTAL PROPERTY INSURANCE(3.5) METHODS(3.6) BENEFITS(3.7) LIST OF COMPANIES

(3.1) INTRODUCTION OF PROPERTY INSURANCEProperty insurance insures your business against loss or damage to the location of the business and to its contents. It will also insure against loss or damage to contents under your control. Finally, if your business rents or leases a location or travels to other physical locations, then your business will be required by the property owner to carry property insurance by the terms of the lease or contract.The more kinds of loss the policy covers, the higher the premium. Property insurance comes in two forms: Broad Form This type of policy identifies a number of different types of disasters and covers against loss from all identified causes in the policy. Single or Specific Peril This type of policy insures against loss only from the identified peril. This is typically a separate fire policy. However, other single perils can be insured against, for example, terrorism.For most small businesses, a broad form property insurance policy is included in a packaged policy known as the business owners policy and will be the best coverage for the premium dollar. Some businesses, however, either because of specific risks or unusually high risk, may not be eligible for such a package. In that case, several specific peril policies may need to priced and examined.

Property insurance policies can be modified: Endorsements Endorsements add increased coverage or identify other business locations that are covered. This can include a customers location, for example, if your business is working at their location. Endorsements are a big benefit for your business and can be added, typically by a phone call, to a policy relatively easily if you have a good insurance professional. Exclusions Exclusions take away coverage. Your insurance professional or insurer will tell you that property policies are always written with the such-and-such exclusion. Exclusions are the business insurance purchasers worst enemy. Many insurers claimed that the exclusion in their policies for wind damage excluded much of the damage from coverage. Regardless of what an insurer tells you: exclusions take away coverage. Schedules Schedules are lists of covered locations and property. These must be updated regularly and at any time a location or major covered equipment changes or is purchased. Good insurance professionals will contact you on a regular basis to discuss updating scheduled locations and equipment. If a location or piece of equipment is not a scheduled location or content, there is a possibility that a claim could be denied on that basis.

(3.2) CONCEPT OF PROPERTY INSURANCEThe concept behind insurance is that a group of people exposed to similar risk come together and make contributions towards formation of a pool of funds. In case a person actually suffers a loss on account of such risk, he is compensated out of the same pool of funds. Contribution to the pool is made by a group of people sharing common risks and collected by the insurance companies in the form of premiums.

Lets take some examples to understand how insurance actually works:Example 1Example 2

SUPPOSE Houses in a village = 1000 Value of 1 House = Rs. 40,000/- Houses burning in a yr = 5 Total annual loss due to fire = Rs. 2,00,000/- Contribution of each house owner = Rs. 300/- SUPPOSE Number of Persons = 5000 Age and Physical condition = 50 years & Healthy Number of persons dying in a yr = 50 Economic value of loss suffered by family of each dying person = Rs. 1,00,000/- Total annual loss due to deaths = Rs. 50,00,000/- Contribution per person = Rs. 1,200/-

UNDERLYING ASSUMPTIONAll 1000 house owners are exposed to a common risk, i.e. fireUNDERLYING ASSUMPTIONAll 5000 persons are exposed to common risk, i.e. death

PROCEDUREAll owners contribute Rs. 300/- each as premium to the pool of funds

Total value of the fund = Rs. 3,00,000 (i.e. 1000 houses * Rs. 300)

5 houses get burnt during the year

Insurance company pays Rs. 40,000/- out of the pool to all 5 house owners whose house got burntPROCEDUREEverybody contributes Rs. 1200/- each as premium to the pool of funds

Total value of the fund = Rs. 60,00,000 (i.e. 5000 persons * Rs. 1,200)

50 persons die in a year on an average

Insurance company pays Rs. 1,00,000/- out of the pool to the family members of all 50 persons dying in a year

EFFECT OF INSURANCERisk of 5 house owners is spread over 1000 house owners in the village, thus reducing the burden on any one of the owners.EFFECT OF INSURANCERisk of 50 persons is spread over 5000 people, thus reducing the burden on any one person.

While insurance is expensive and certainly takes a chunk out of your budget, being without it could lead to financial ruin. Always check with your employer first for available coverage, as this will probably be where you will find the most economical way to of securing coverage. If your employer doesn't offer it, obtain multiple quotes from several insurance providers. Schedule times with agents who offer coverage in multiple areas as they may have some discounts available if you purchase more than one type of coverage. Property insurance provides protection against most risks to property, such as fire, theft and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, or boiler insurance. Property is insured in two main waysopen perils and named perils. Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war. Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft. There are three types of insurance coverage. Replacement cost coverage pays the cost of replacing your property regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement cost values, and not based on actual cash value. Actual cash value coverage provides for replacement cost minus depreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased. This generally will not exceed 25% of the limit. When you obtain an insurance policy, the coverage limit established is the maximum amount the insurance company will pay out in case of loss of property.

(3.3) TYPES OF PROPERTY INSURANCEProperty insurance includes several forms of insurance like:

EARTHQUAKE INSURANCEThis is a kind of property insurance that compensates the insurer in case his property faces any kind of loss due to earthquake, but it is to be kept in mid that homeowners insurance does not provide security in case of damages caused by earthquake. Such type of insurance coverage comes with high deductible rates that gains if the property gets fully damaged and does not help much in case of small losses.EARTHQUAKE INSURANCE OFFER AND RESPONSEMany property owners utilize earthquake insurance to help defray the expense of costly earthquake repairs. Residential property insurers (insurance companies that sell homeowners policies and policies for qualifying condominiums and apartments) are required under California Insurance Code (CIC) Section 10081 to offer earthquake coverage for the peril of earthquake. The mandatory earthquake offer must: Be made in writing Describe coverage amounts List the deductible offered State the policy premiumYou have 30 days from the date of mailing from the insurance company to accept the offer of earthquake coverage. If your homeowners insurance company does not receive a response from you, then they consider the offer rejected. Your insurance company is only required to make the offer of earthquake coverage every other year. The law prohibits an insurer from cancelling, rejecting, or refusing to renew a residential property policy solely because the policyholder has accepted the offer of earthquake coverage.

EARTHQUAKE COVERAGEEvery offer of earthquake insurance must provide coverage for your dwelling, for your personal property (not less than $5,000 or 10% of the covered dwelling loss), and for any additional living expense (ALE) of at least $1,500. You may waive ALE coverage if you or your family do not occupy the dwelling you wish to insure. CIC Section 10089(b) states that the maximum deductible that can be charged is 15% of the policy dwelling limit. It is common for the deductible to be the maximum 15%. If you desire earthquake insurance offering more than the minimum limits and a deductible less than the maximum established by law, then you may contact your current residential property insurer or earthquake insurer to see if higher limits or lower deductibles are available.ALE coverage is designed to pay for the cost associated with living somewhere else while repairs are being made to your home. Typically your insurer will cover increases in your normal living expenses to help you maintain the standard of living you had before an earthquake damaged your home and personal property. ALE coverage can include costs for the following: Temporary rental home, apartment, or hotel room Restaurant meals Telephone or utility installation in a temporary residence Relocation and storage Furniture Rental Laundry

SPECIAL EARTHQUAKE PROVISIONSInsurance companies are required to offer earthquake coverage even if your property does not meet current Building Code and Health and Safety Code requirements relating to foundation anchor bolting and water heater bracing. However, your insurer may charge additional premium and/or an increased earthquake deductible if this is the case with your dwelling. Also, your insurance company must disclose any available discounts (such as retrofitting) for earthquake hazard reduction to your property in writing. In some cases taking simple steps such as bolting your wood frame home to the foundation can save your home from severe earthquake damage and can reduce your earthquake insurance premium. Residential retrofitting includes, but is not limited to the following: Anchoring a dwelling to its foundation through seismic bolting Reinforcing and/or bracing the fireplace chimney Securing and bracing the water heater to the dwelling frame Installing automatic gas shut-off valves Installing bracing for sheer walls

CLAIMS1. Check your insurance to be sure that earthquake damage is covered. Most standard home owners insurance policies do not cover earthquakes, which means that you must purchase the coverage separately.

2. Keep a copy of your policy and insurance card near you while you call your agent, as you will likely be asked questions that involve the information that they contain.

3. Take notes of what the agent says over the phone. This way, you have a record of any promises that are made.

4. Offer a phone number where you can be reached at any time, especially if you have to leave your house while repairs are made. This may be a cell phone, work phone or the number of the shelter or hotel where you are staying.

5. Schedule a time for an adjuster to look at the damage, the sooner you get the done, the faster your earthquake insurance claim will go, so set up an appointment as soon as possible.

6. Document damage, take photographs of both major destruction and minor breakage. If you cannot take pictures, be sure to take notes regarding anything that is broken, carefully describing the extent of the damage. The more detail that you include, the easier it will be for the insurance adjuster to get the repairs you need.

7. Make a list of the broken item and their and their cost, including the receipts from the original purchase is helpful. Otherwise, you will likely get market value for the items that need to be repaired or replaced.

8. Get estimates of how much it will cost to fix the earthquake damage, quotes from contractors are typically free, and this step can save you from having the costs underestimated by your insurance company, give copies of the quotes to your adjuster.

9. Acquire a proof of loss form from your insurance agent or adjuster. This is a sworn statement regarding your losses that needs to be needs to be submitted within about two months of the earthquake. It must be filled out before you can get any compensation for your home, which means you should ask your agent about it right away if they do not mention it upfront.

OTHER BUSINESS POLICIES THAT COVER EARTHQUAKE LOSSESCommercial Auto - Most standard commercial auto policies cover loss or damage from earthquakes. This can include damage from falling debris, fire, or other events. Workers' Compensation - Injury to employees at work by earthquake effects is a covered loss under workers' compensation insurance. Business Interruption - Some business interruption policies do not exclude earthquakes as covered events, but check with your insurance professional.If you do business in an at risk area (especially California or the West), you may want to consider a separate earthquake policy or consider an endorsement adding such protection. This is one risk that you know will happen someday.FIRE INSURANCE

Fire insurance also falls under the forms of property insurance that offers protection to office, residences, hospitals, shops, industries and corporate offices. Damages caused by explosion, strike, riot, terrorist acts, landslide burst etc are all covered under this and damages caused by war, any electrical equipment or temperature change are not covered under such an insurance policy.OBJECTIVEa. Provide claims handling guidance and settlement of freight so that each process can be carried out properly, accurately and on time.b. Facilitate the implementation and control work procedures.

SCOPE:a. Fire claims include: Partial Loss claims Total Loss claims Business Interruption claims (BI)b. Guidelines and procedures applicable to fire insurance claims filed by through the head office.CLAIMS APPROVAL AUTHORITYAuthority to sign and approve the fire claims is set as given:a.Up to Rs. 200.000.000,- (two hundred million rupiahs) for simple cases and Non-Ex-Gratia Claims required verification from the Supervisor for approval from the Assistant Manager and Technical GM.b. Claims ranging from Rp. 200.000.000,- up to Rp. 1.000.000.000,- required verification from the Assistant Manager for the approval of Technical GM. c. Beyond the items a & b above, verification is required from the Assistant Manager and the Technical GM for further approval from Management, provided at least two signatures of Management.THE PROCEDURE FOR EFFECTING FIRE INSURANCE.The term fire denotes a condition of burning or visible flame accompanied by heat. Fire insurance contract is an important and popular form of insurance for the business world. A fire insurance contract is an agreement whereby one party in return of a consideration, undertakes to indemnify the other party against financial loss suffered by the insured as a result of damage or destruction of the insured property by fire. A claim for the loss by fire can be entertained if there must be actual fire and the fire must be accidental but not intentional.A fire insurance policy covers actual fire losses and any of the following losses consequent upon fire:i. Damages caused to property because of collapse of roof or side wall due to fire.ii. Damages caused to property by sprinkling of water to put out the fire.iii. Damages caused to property at the time of removing it in the hot haste from the building under fire. All losses caused due to efforts in extinguishing fire.iv. Damages by lighting are not covered under fire policy but if lighting cause ignition of fire, it will be included in the policy of fire insurance.v. It does not cover losses due to explosion but if it causes actual ignition which ultimately spreads into fire, it will be covered by fire insurance policy.A fire insurance contract is a contract of indemnity and as such the insured cannot claim more than the actual amount of losses. The property so covered under fire insurance policy must be clearly described. Property held in trust are not covered under fire insurance policy.When a house is insured under fire insurance policy, it does not cover household goods. The following steps are observed while effecting fire insurance policy:I. Filling up Proposal Form:A person desiring of taking a fire insurance policy has to select and contact a fire insurance office. He will obtain a proposal form from the office and fill up the proposal form. While filling up the proposal form of principles of good faith must be observed and he has to fill up the form with utmost good faith.

II. Associating Evidence of Responsibility:The insurer will ascertain that the proposer is a respectable person and is undertaking the policy in utmost good faith. This consideration should be viewed before accepting the proposal. Since the insurance policy covers a high degree of moral hazards, these considerations are to be kept in mind.III. Survey of the Property:The proposed property to be insured is surveyed by an expert called the surveyor. The surveyor inspect the property and estimate the degree of risks involved in such property. On the basis of the surveyor's report the insurer accepts or rejects the policy.IV. Accepting Proposal and Issuing of cover note:After the receipt of surveyor's report, it is scrutinized to see whether risks is acceptable or not. When the insurer is satisfied with regard to the report of the surveyor, he accepts the proposal and gives intimation to the proposer accordingly. The rate of premium is decided and on acceptance of appropriate premiums a cover note is issued. A cover note is an interim policy till the final policy is issued. A cover note serves as an evidence of insurance when losses to property are caused before the issue of final policy but after the issue of cover note.V. Issue of Final Policy:After the issue of cover note, policy document is prepared. It is duly stamped document which contains terms and conditions of the insurance. The policy serve as an evidence of insurance between the insured and the insurer.

HOME INSURANCEHome insurance is the kind of property insurance that offers insurance coverage to the homes. This insurance also gives liability protection (for accidents occurring inside the home) and also property protection at the same time for a single premium. This insurance covers the home, its contents and personal possession.If you have suffered damage to your home or personal belongings as the result of a natural disaster you likely have many unanswered questions about how the insurance settlement process works. Keep in mind that it is a process that needs to be worked through step-by-step, but there is plenty of assistance available to you through your insurance company and other financial service providers.

INSURANCE SETTLEMENT PROCESSStep 1: Adjusting Your ClaimWhen you are allowed back into your home contact your insurance company to set up a meeting with a claims adjuster. An adjuster will inspect the damage to your home and offer you a certain sum of money for repairs. The first check you get from your insurance company is often an advance against the total settlement amount. It is not the final payment.If youre offered an on-the-spot settlement, you can accept the check right away. Later on, if you find other damage, you can reopen the claim and file for an additional amount. Most policies require claims to be filed within one year from the date of disaster. Check with your state department of insurance.When both the structure of your home and personal belongings are damaged, you generally receive two separate checks from your insurance company, one for each category of damage. You should also receive a separate check for additional living expenses that you incur while your home is being renovated.Step 2: What About My Mortgage?If you have a mortgage on your house, the check for repairs will generally be made out to both you and the mortgage lender. As a condition of granting a mortgage, lenders usually require that they are named in the homeowners policy and that they are a party to any insurance payments related to the structure.The lender gets equal rights to the insurance check to ensure that the necessary repairs are made to the property in which it has a significant financial interest. This means that the mortgage company or bank will have to endorse the check. Lenders generally put the money in an escrow account and pay for the repairs as the work is completed. You should show the mortgage lender your contractors bid and let the lender know how much the contractor wants up front to start the job. Your mortgage company may want to inspect the finished job before releasing the funds for payment to the contractor. Bank regulators have guidelines for lenders to follow after a major disaster. If you have any questions contact your state banking department.Step 3: How Do I Select a Contractor and Who Pays?Hiring a reputable contractor to do repairs or construct a new home is critical. Word of mouth is still one of the best ways to choose a contractor. Also check with the area Home Builders Association, Better Business Bureau or Chamber of Commerce. Make certain they are licensed and have adequate insurance coverage.Dont become a victim of disaster fraud. After a natural disaster, professionals often go from door-to-door in damaged neighborhoods, offering clean up or repair services. Many of these business people are reputable. Others are not. The dishonest ones may pocket payment without completing the job or use inferior materials and perform shoddy work not up to code.

FLOOD INSURANCE

This is also another type of property insurance that offers insurance coverage against any kind of damages suffered by the property in an event of a flood. Such type of an insurance is not very common in India as it is often covered under the home insurance and is not needed to separately adopt a policy as such.WHY IS FLOOD INSURANCE IMPORTANT?It is necessary to obtain flood insurance because flooding occurs more frequently than you may imagine. Among the natural disasters that can happen, flooding is the most common. Thus, it is best to consider it as a very real possibility. Given that, protecting your assets with insurance formulated specifically to address the water damage is needed.Another reason why flood insurance must be sought is because most homeowner insurance policies do not include damage by floods. It often needs to be specified in order to apply. Also, some areas actually require homeowners to get flood insurance. If the location of your property is prone to flooding, you must purchase a policy before a mortgage loan can be approved.Homes are often the biggest investments made by a person. With this in mind, it is easy to grasp the significance as to why it needs to be protected by flood insurance.CLAIMS1. Call your flood insurance agent right away, and be sure to have your insurance company's name, policy number and contact information ready. If you cannot stay in your home due to the extent of the damage, be sure to include a way for you to be reached away from the house, such as a cell phone, shelter, or hotel phone number

2. Make an appointment for an insurance adjuster to come look at the flood damage. It should be done as soon as possible so that you can begin replacing and repairing the damaged items.

3. Move any undamaged personal items away from the water to ensure that they do not get wet. This can also help keep the area organised so that the flood insurance adjuster can quickly see what has been destroyed.

4. Take pictures of the flooded areas of the home, as well as any items that got wet. Include pictures of items that you plan on throwing away so that you can be compensated for them. If you carpet is damaged and you need to throw it out, cut a swatch from it so that you have an example of damage that a photo might not reflect.

5. Make a list of items that were damaged due to the water. Include the name of each product, price and date and location of the purchase. If you are not sure of the exact information , either try to find receipts or estimates facts like pricings.

6. Show the flood insurance adjuster any damage estimates that you may have gotten from a contractor, since these will help in getting the correct compensation to repair the damage.

7. Obtain a proof of loss form from the adjuster, which will serve as your certified flood insurance claim for damages. This form is required for the national flood insurance program to pay your claim, and you must file it with your insurance company no more than 60 days after the flood.

8. Tell your adjuster if you need at least some of the payment in advance so that you can replace necessities that were lost in the flood. If you have accurate records of what you lost, you are likely to get some money ahead of time. You can also repair or replace items first, and then show the receipts to the adjuster. Permanent or expensive repairs should wait until the flood insurance claim is finished to ensure their costs will be compensate.

9. Sign and give your proof of loss form to your flood insurance company once you come to an agreement on the payment to be made.

10. Keep in touch with your flood insurance agent until the process is complete so that questions can be answered quickly.

BOILER INSURANCEBoiler insurance is that form of property insurance that compensates for damages suffered by your home boiler or any kind of electrical equipment of your house with some exceptions attached to it. Boiler insurance is a specific kind of insurance policy that covers items related to the malfunction or breakdown of a furnace or boiler. This term arises from heating technologies using hot water and steam to effectively heat an indoor space. Regardless of changes in heating technology, boiler or heating systeminsurance may still be a vibrant part of the residential or commercial insurance system in any of several countries or regions of the world. Some insurance professionals and others refer to boiler or furnace insurance as mechanical breakdown coverage. This type of insurance can be listed under a more general category of equipment coverage, especially in commercial boiler insurance policies that cover heating as part of a manufacturing or other business process. Boiler insurance and similar infrastructure coverage can also apply to residential or commercial insurance where standard heating systems keep the inhabitants of a building warm. For those who are looking at what a boiler or furnace insurance policy typically covers, the specifics of coverage vary from one policy to another. Boiler or heating system insurance policies will typically cover the cost of repairing a malfunctioning heating system. They may also cover any incidental water damage, according to specific language in a policy, although water damage is often excluded in policies. Comprehensive boiler insurance policies might cover the costs of creating livability when a boiler breakdown compromises temperature in a building or indoor space.WHAT IS COVERED?Home + Boiler Response offers you all the cover and support you'd receive with boiler insurance, plus much more Plumbing and drainage problemsDamage to - or failure of - your plumbingand drainage system (where internal flooding or water damage is likely). Blocked toilets and blocked external drains within the boundaries of your home (where this can be fixed by jetting). Internal electricity, gas and water supply problems Electricity failure of at least one complete circuit, gas leaks and water supply system failure. Security problemsDamage to - or failure of - external locks, external doors and external windows. Access problemsLoss of the only key that can gain access to the property - when it can't be replaced and means the house cannot be accessed in the 'normal' way. Pest problemsInfestations: wasp nests, hornet nests, house mice, field mice, rats and cockroaches. Roof damageSudden and unexpected damage to the roof of your properLIMIT OF INDEMNITY

The Limit of Indemnity for the policy shall be:Any One Claim: A maximum of 500 including VAT inclusive of labour.Any One Period of Insurance: A maximum of 1,500 including VAT.Unless otherwise shown below.

SECTION OF COVERSSection of CoverCover ProvidedSpecific Section Exclusions(Please note that this only shows the significant exclusions and reference should be made to the policy wording for a definitive list)

Primary HeatingPrimary Heating system where the system has failed or broken downAny claim involving boilers over 15 years old or over 238,000 btunet input (70 Kilowatt)Excludes replacement of water tanks, cylinder and central heating radiators

Boiler ReplacementContributionSubject to acceptance of a claim under Section 5 of this policy, where your boiler has failed and is deemed by the contractor and us to be uneconomical to repair, we shall contribute (upon production of an original receipt for payment) a sum including VAT for boilers:a) up to 5 years old, of 500b) between 5 years and 10 years old, 300c) between 11 years and 15 years old, of 150 towards the cost of a brand new replacementAny boiler over 15 years old

SIGNIFICANT AND UNUSUAL EXCLUSIONS OR LIMITATIONSThe policy will exclude claims where the incident falls outside of the scope of cover provided by the policy wording or where this is subject to a specific exclusion or limitation. Please refer to the policy wording for full details. The most significant or unusual exclusions or limitations are outlined below. The policy covers emergency situations only. It does not cover circumstances more properly handled by your Household Insurer. Please note if you engage the services of a contractor direct, cover will not apply. All claims must be reported to the Claims Helpline who will arrange to send a contractor. Where it is not possible to validate your claim at the time of initial notification, you will be required to leave either credit or debit card details which may be debited in the event that the cost of the call-out and any subsequent repairs are not covered by this insurance.

DURATION OF THE CONTRACTThis is a monthly policy. It commenced from the date shown on the policy schedule and will automatically renew for a further 1 month duration subject to you paying the monthly premium in accordance with your agreed payment schedule. Where payment is not made, cover will automatically be cancelled at the end of the 1 month period for which you have paid.

CANCELLATIONWe wish you to be happy with the cover provided by your policy. However you have the right to cancel the policy within 14 days of receiving the policy documents without giving reason. If you chose to cancel, we will refund your premium after first (at our discretion) charging for the cover provided from the date of commencement of the contract until the date of cancellation and any helpline costs incurred.

(3.4)RENTAL PROPERTY INSURANCEThe policy used for owners of rental properties is often known as "Dwelling Fire" (DP-3 for houses and DP-3C for condos) although it actually covers several perils beyond fires. It is important to note that dwelling policies are generally not as broad as a full homeowners policy. The "a la carte" nature of dwelling polices, however, means coverages can be customized for owners of rental properties.Unlike other options, coverage for personal property and certain losses must be specifically added to the dwelling policy. Discuss your needs with a qualified agent to determine if a dwelling policy is right for you.Coverages (DP-3 and DP-3C Dwelling) Dwelling (Coverage A)- This is coverage for the costs to repair damages to the rental property. Examples are damages to flooring, wall and ceiling coverings, and fixtures such as cabinets, lighting, counter tops and built-in appliances contained within the home. Other Structures (Coverage B) - This is coverage for the costs to repair damage to the additional structures on your property other than the home. (Coverage B is for DP-3 and not DP-3C.) Personal Property (Coverage C)- This is coverage for your personal belongings located at the residence premises. Coverage is not provided for your tenants personal belongings under this coverage. Fair Rental Value (Coverage D)- This is coverage for loss of rents to you should the dwelling you rent to others become uninhabitable, or unfit for its normal use, due to a covered loss. Premises Liability Insurance(Coverage L)- This coverage provides protection if someone were to file a lawsuit against you, claiming bodily injury or damaged property in connection with the insured location. Liability can protect you in situations that may be unforeseen in addition to covering certain defense costseven if the lawsuit filed against you is false, groundless or fraudulent.(3.5) METHODS OF PROPERTY INSURANCEProperty is insured in two main ways: opens perils

named perils.Open perils cover all the causes of loss not specifically excluded in the policy. Common exclusions on open peril policies include damage resulting from earthquakes, floods, nuclear incidents, acts of terrorism, and war.Named perils require the actual cause of loss to be listed in the policy for insurance to be provided. The more common named perils include such damage-causing events as fire, lightning, explosion, and theft.

(3.6)BENEFITS OF PROPERTY INSURANCE Property insurance is basically required for the financial security, it provides security in case of any loss suffered.

A major benefit of getting your property insured is that it covers the replacement value.

The insurance pays off the losses caused by any unfortunate disaster or for the particular cases listed on the policy.

Such insurance also covers up for the accommodation at the time of your property being renovated.

Property insurance offers security and financial aid against any kind of property risks like natural disaster, theft and fire.

Property insurance safeguards the financial future if certain damages occur to your property or a third party files a negligence suit for damages suffered on property.

Property insurance reimburse for damages due to fire, theft and unforeseen calamities as well as situations that are specified in your policy.

Property insurance also includes protection for personal liability in situation where someone, such as tenant or your neighbour is injured while visiting your home or property.

(3.7)LIST OF COMPANIES PROVIDING PROPERTY INSURANCE

Bajaj Allianz General Insurance

Bharti AXA General Insurance

HDFC ERGO General Insurance

ICICI Lombard General Insurance

IFFCO Tokio General Insurance

L & T General Insurance

Reliance General Insurance

Royal Sundaram General Insurance

SBI General Insurance

Tata AIG General Insurance

CHAPTER 4

(4.1) TERMS AND CONDITIONS OF POLICY(4.2) DOCUMENTS REQUIRED(4.3) PREMIUM COVERAGE

(4.1)TERMS AND CONDITIONS OF POLICY The first basic thing is that the property should be of the own i.e individuals property whose opting for the policy.

The property insurance could be of varied types: Fire Flood Natural disaster Boilers Home insuranceThus the insurance taken by the person should specify the certain terms and accordingly the policy should be purchased.

Now the next step is to specify the perils of the policy in the policy determination the type of the policy perils must be specified effectively.

The terms regarding the premium coverage.

The time period of the policy to be taken.

At last the value of the compensating money of the property at the time of claiming i.e. actual cashes value or the replacement value.(4.2)DOCUMENTS REQUIRED FOR THE PURCHASE OF THE POLICY

Identity proof Pan card voters ID

Residential proof tax document light, telephone bill

In case of any kind of property insurance. Vehicle, house, commercial property documents of that particular property is required like agreement of house or commercial propertys document, vehicle document.

Bank statement of individual

Photograph of the individual(4.3)PREMIUM COVERAGEThe coverage of premium is not an easy thing for an normal person in any policy. The premium is of two types:- Individual charge Other law suits for (company paying for certain pre determined terms)

Read the policyRead your policy to understand what is included. Your insurance premium is a calculation of the individual coverage in your policy, and you should be aware of each charge to know what you are paying for. You should received a policy booklet when your policy started, however, you can contact your insurer to receive an additional copy if you do not have one. Aggregate of the total individual and policy coverageAdd the individual coverages together. Although each policy is different, property insurance generally includes dwelling and contents coverage, liability protection and medical payments to others. Each category has a separate charge and the price depends on the limit and deductible for each. The dwelling section covers the structure of the property in case it is damaged due to a covered peril such as fire. Contents coverage insures your personal property in the event it is lost stolen or damaged. The liability portion of your policy pays lawsuits if someone sues you for injury that occurred at your premises and medical payments to other pays hospital bills for people who incur harm at your property. Look in your policy or at your statement and add each individual charge to get a total. Subtraction of various discounts:Subtract your discounts. Most insurers offers a variety of discounts to property owners such as multiple policy, no smoking credit and senior discount. The multiple policy discounts occur if you have multiple items insured with the same carrier, such as your car and home. According to MNS money, over 23000 house fires occur each year due to smoking cigarettes, and insurance carriers provide discounts if no one smokes on the property. The senior discount is for individual over 55 years of age. Review your policy to determine what discounts you have and talk to your agent to determine if you qualify for any additional credits. Checking of the in all credit score ull getFactor in your credit score. Insurance companies review your credit rating to determine your property insurance premium and call it an insurance score. The higher your credit score, the less you willpay, insurance companies do not disclose their specific formula for obtaining your insurance score.

Chapter 5

(5.1) CLAIM SETTLEMENT PROCEDUREConsumers purchase insurance to return property to the condition enjoyed before a loss occurred. Property insurance is purchased to protect a home, business or other premises. Property insurance covers losses that result from theft, vandalism, weather-related incidents, falling objects, fire or electrical malfunction. If you experience a loss, you must follow certain claims-filing procedures to ensure your property is repaired or replaced efficiently. 1. Police ReportThe first step to take in filing a property claim is to contact the police and file a report if you are the victim of a theft or vandalism. Contact emergency medical personnel if an injury has occurred on the insured premises. A police report legally establishes that a loss has occurred and strengthens the validity of your claim. In many cases, a law enforcement official will come to the scene of the loss to take your statement. Your insurance company will use the police report during the claims process as evidence of your loss.2. Contact Your Insurance CompanyAfter you have filed a police report, call your insurance company to inform it of the loss and file a claim. Do not wait to contact your company because many property insurance policies have a time limit on claims filing. Ask your insurance company questions regarding the loss such as whether the loss is covered or if you have to pay a deductible. Your insurance company will open a claims file regarding your loss. They will ask you several questions regarding the circumstances of the loss and begin an investigation to determine the validity of your claim. If necessary, a property adjuster will be sent to the insured premises to further investigate the loss and to protect the premises from further damage. The time frame of this step varies depending on the severity of the loss. Some property claims take days to investigate while others take weeks or months.3. Collect InformationOnce your claim file is opened, the insurance company may periodically contact you to ask more questions or request additional information regarding the loss. It is important to collect as much information you can at the time of the loss to ensure you give the insurance company accurate information. For example, if you are the victim of a break in, make a detailed list of any items damaged or stolen and include the property's value. If you have receipts of such items, make copies of them. If you have a camera, consider taking pictures or recordings of any damages and give them to your claims adjuster.4. Settling Your ClaimThe last step in the claims filing process is claims settlement. The settlement amount will be based on either the actual cash value of the lost or damaged property or the replacement cost of the property. Whether the company pays the actual cash value or the cost to replace your property is determined when you purchase the policy. Some property policies guarantee the replacement of property for an additional premium. Once the insurance adjuster has completed the inspection of your property, he will offer you a sum of money based on your property's value. You will receive a separate payment for each category of damage. For instance, if the structure of your home and the furniture within your home were damaged in a fire, your insurance company will cut you a check to repair the home's structure and a check to replace your damaged furniture.

(5.2)PRE- ACCIDENT SETTLEMENT CLAIM PROCEDURESIf you are in a car accident, contact the authorities right away, especially if there are injuries or the accident causes property damage of any kind. When there are damages, insurance companies typically have a claims procedure they follow to pay for repair, medical bills or other expenses. While each company has its own methods, there are some general commonalities among all accident claims procedures.1. File Your ClaimAccording to Allstate Insurance, the first step after a crash is to file the claim. Do this over the phone or online, or meet with a company representative. You'll need a lot of information when you file your claim, including any police report details along with insurance and other information from others involved in the accident, if applicable. Even though your insurance company should have all the pertinent details about your vehicle on file, you should still have your vehicle identification number and the make and model of your auto on hand when filing your claim. You might also need your driver's license information.When filing a claim, disclose if there were any injuries in the accident. Have all medical information handy, so you can provide it to your insurance company. Report if there were any damages to other types of property as a result of the accident.

2. Coverage and RepairsThe claims process may vary depending on whether the accident is your fault. If not your fault, your insurance company may do much of the legwork to assure the other driver's carrier handles your claim quickly. If it is your fault, or the other driver does not have insurance, you will have to go through your own carrier.Every policy is different, as are insurance coverage deductibles. The deductible is the amount you have to pay out of pocket before your insurance kicks in. After reviewing your coverage with your agent, he will most likely schedule an estimate to assess the damage to your vehicle. An agency-preferred mechanic may do this or you might get a private estimate from one or more mechanics to submit to your carrier.Once you have an estimate, your insurance provider will typically authorize repair by an approved mechanic and pay the shop directly. In some cases, you might receive a check to cover the estimated costs and have the option of working with the repair business of your choice.If you have rental car coverage, your insurance company either will reimburse you for allowed costs while your vehicle is in for repair, or will pay the rental agency directly.

3. Claims Against YouIf the accident is your fault, your insurance company will work with the other driver(s) to investigate the accident, get estimates and pay what you owe. You must pay your deductible and any charges beyond your coverage.

(5.3)POST ACCIDENT SETTLEMENT CLAIM PROCEDURE

If you have been involved in a car accident and you need to file a claim against your insurance company or another driver's insurance company, there are some things you can do to help yourself through the process. 1. Contact your insurance agent as soon as possible when you know that you will be filing a claim against the insurance company. The same is true if you were involved in an accident and you expect that the other driver(s) may file a claim against your insurance company.2. Plan for the deductible amount you will be required to pay.If you are at fault for the accident then check your policy or with your insurance agent to find out how much your collision deductible will set you back. If the cost of the repair exceeds the deductible, your insurance company will cover the additional costs if they are within policy limits.If the accident was caused by another driver, your insurance company will take the lead in getting the costs of the repairs covered. They will use subrogation or act legally in your behalf to recover the costs of your repairs including the deductible. If the driver who caused the accident did not have insurance or was underinsured, you may have to pay the collision deductible.3. If your car requires repairs, you should expect that your vehicle is restored to the condition it was in just before the accident.Your insurance company may try to require you to take your car to a specific collision shop, if so the insurance company must guarantee the shop's work and assess no extra cost to you.The insurance company may be allowed to use used parts if your car is not within the current model year. Check the written estimate to find out the origin of the parts. If the estimate does not include details of the parts then make them rewrite it for you. If new parts are readily available and the repair shop is trying to fix your car with used parts, then insist they provide new parts and tell them where to find the parts. For older cars finding new parts may be impossible. Insist on OEM parts not generic parts. The insurance company may be able to substitute generic parts for OEM parts if it is stated in your policy. If the accident is not your fault stand strong in your insistence.4. Try to get a rental car paid for by the insurance company. If another driver damaged your car and you have a liability claim against their insurance, most states require the other driver's insurance to pay the rental cost of a similar vehicle during the repair of your vehicle. If your vehicle is totalled, they may not be required to pay for a rental car, prior to you receiving final settlement, but insist anyway. It is in their best interest to avoid causing you added expense. If they are not willing to cooperate it is one more reason to seek legal council. If the accident is your fault, the only way you will be able to receive reimbursement for a rental vehicle is if you have rental car insurance covered in your policy.5. Once you have a settlement offer from the insurance company make sure that the amount will cover the damage bill. Try to first talk to the adjuster if you do not agree with the settlement offer. If you cannot come to an agreement, then talk to the claims supervisor. If you still cannot agree talk to your insurance agent if the accident was your fault. If the accident was another driver's fault you can either consult with an attorney or take the other driver to small claims court. Most states have a small claims maximum in the range or $3000-$5000, so first check with the county court where the accident occurred to find out the limit. Once you accept the settlement you typically have at least 30 days to report either a problem with the settlement covering the expenses or additional damage caused by the accident that the service shop did not repair. ANNEXURE

QUESTIONNAIRE

Q.1. what are the insurances policies that cover property?

Ans. Insurance policies like standard fire and special perils policy, marine(cargo), marine(hull), engineering and burglary insurance policies covers various types of property.

Q.2. how do we get the valuation of our property?

Ans. The contents are covered on the market value i.e. the cost of buying a similar new item after deducting appropriate depreciation on the basis of the age of the item. This includes house appliances, furniture, jeweller, personal effects and miscellaneous items.

Q.3. What if I sell the property during the insured property?

Ans. You can cancel the policy and get back the premium on pro-rata basis.

Q.4. How do you differentiate between riots and terrorism cover in case of home policy?

Ans. Riot refers to the violent disturbance of the public peace by three more persons assembled for a common purpose. Whereas terrorism activity means use of the force or the violence harming human life or property, with the objective of pursuing personal or vested interests.

Q.5. What types of risks are covered under fire policy?

Ans. Fire, lightening, explosion/implosion, aircraft damage, storm, cyclone, riot, strike, impact damage, landside, bush fire, e.t.c

Q.6. If someone has already taken out the home insurance policy whether he has to take the separate flood insurance policy for protection from flood?

Ans. Yes, because home insurance policy does not pay for flood.

Q.7. What factors are considered while setting the premium?

Ans. Number of factors to determine the basic risks of your property. The primary factors in setting property insurance premiums include the type of building structure, the presence or absence of protective safety measures measures and the proximately of property to other high- risk areas.

Q.8. if three people share an apartment can each one take a separate home insurance policy?

Ans. Yes, they can but for their part of the asset.

CONCLUSIONWith the overall study of the property insurance itis concluded that property insurance is one of the ,majorly used or issued policy by the non life insurance companies and its one of the largely sold policy. Under property insurance the major aspects of insurance is not only the property where we life or any other property it refers to the any property of the individual it could be vehicle, jewellery commercial property or the business property.One of the other important things in property insurance is that the policy determination could be on the actual value or reimbursing value of the certain property.Not only the insurance companies now-a-days set their R&D department with an aim to come up with more and more ever changing ans challenging situation to set up their new policies in order to face the people in the market.The insurance companies are mainly calculating the risk associated with any property which they are being insuring because at the time of settlement of claim of the policy, the company should not face any problem by over risky property insured by them.After the attack in New-York on trade centre we are much more sure about the insurance to be done for the propertys after all there are major activities that being carried out over.Thus therefore lastly concluding the part of property insurance by saying that its essential to cover the policy of property because its importance is also as important as the life of any individual.

BIBLIOGRAPHY

BibliographyI have collected the information from the following sources:-1.PRIMARY visit: Visit to IIFCO-TOKIO

2.WEBSITES: www.iifcotokio.com www.moneycontrol.com www.google.com

3.BOOKS: Innovations on banking and insurance

4.MAGAZINES: The Indian bankers Insurance booming sector

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