The Insured should first of all notify the insurers as quickly as possible but in any case within the time limit specified in the policy. He should also co-operate with the surveyor(s) deputed by the Insurance Company to inspect and make assessment of the loss. He should also submit claim form and all the substantiating documents as required as per the nature of each incidence.
Once the risk is transferred from the insured to the insurers, the insurers also seek to further spread the risks by transferring some part of it, after keeping its retention according to the company's financial strength and the degree of exposed risks, to another Reinsurance or Direct Insurance Company. Reinsurance is, therefore, a tool for further spreading the risks by an Insurance Company.
It is the first amount of each and every claim under the policy which the insured is required to bear for himself. This amount is deducted from the total assessed claim before determining insurance company's liability.
A policy is a document evidencing the undertaking of the insurer to compensate the loss which may occur by the oeperation of the insured perils. It is important for the insured to go through all terms and conditions of the Insurance Policy to see whetehr they confirm to what the insured needs or whether he is adequately protected.
Sums insured of your property should be fixed for insurance to match the market value of the property at the time of loss. In short, sum insured should be adequately fixed to be adequately indemnified if the loss occurs.
Anybody wishing to insure has to fill up the proposal form particular to each type of insurance. All other additional quarries about the subject matter of insurance and risks to be covered have to be answered as needed. Then the Insurers fix premium and terms of insurance. The insurance becomes effective once the premium is paid by the insured.
There are various types of general insurance policies to cater for individuals, industries, trade and commerce. To name the few are Household Insurance, Fire and Allied Perils Insurance, Personal Accident Insurance, Burglary and Housebreaking Insurance, Marine Cargo/Transit Insurance, Cash in Safe Insurance, Cash in transit Insurance, Fidelity Guarantee Insurance, Travel Medical Insurance, Medical Insurance, Public Liability Insurance, Aviation Insurance and so on.
Insurance is a device which provides financial compensation for the effects of loss or damage caused by operation of the insured risks. Insurance, in modern term, can be defined as a risk transfer mechanism whereby the one who is exposed to risks transfers all or some part of it to an Insurer. The Insurer charges premium as a consideration of his undertaking to compensate the fortuitous loss caused by the insured peril(s).