unit 3 IRM even sem

What is the fundamental principle of general insurance?

• Premiums are fixed and cannot change over time.

• Guaranteed profit for all policyholders.

• Risk pooling and sharing of financial losses.

• Insurance only covers natural disasters.

Name the different types of general insurance.

• Life Insurance

• Pet Insurance

• Accident Insurance

• Health Insurance, Motor Insurance, Home Insurance, Travel Insurance, Liability Insurance, Property Insurance, Marine Insurance, Fire Insurance

What does fire insurance cover?

• Protection against water damage

• Fire insurance covers damage to property from fire, including buildings and personal belongings.

• Coverage for theft of personal belongings

• Liability for injuries on the property

What are the key features of marine insurance?

• Protection against natural disasters

• Key features of marine insurance include coverage for hull and machinery, cargo insurance, protection and indemnity, and liability coverage.

• Insurance for land vehicles

• Coverage for personal belongings

How does motor insurance protect vehicle owners?

• It covers only the driver’s personal injuries.

• It guarantees a new vehicle in case of an accident.

• Motor insurance protects vehicle owners by covering damages, liability, and theft.

• It provides free fuel for the vehicle.

What is personal accident insurance designed for?

• To provide life insurance for natural causes.

• To cover medical expenses for chronic illnesses.

• Personal accident insurance is designed to provide financial protection against injuries or death resulting from accidents.

• To protect against theft and property damage.

Explain the purpose of liability insurance.

• To protect against natural disasters.

• To provide health insurance for employees.

• The purpose of liability insurance is to provide financial protection against legal claims and liabilities.

• To cover personal property damage only.

What is miscellaneous insurance?

• It is a type of insurance that only applies to businesses.

• Miscellaneous insurance only covers health-related risks.

• Miscellaneous insurance is the same as life insurance.

• Miscellaneous insurance is a type of insurance that covers various unique risks not included in standard policies.

How is a claim settled in general insurance?

• A claim is settled by ignoring the loss and denying the payout.

• A claim is settled by automatically approving all requests without review.

• A claim is settled by sending a refund check without any assessment.

• A claim is settled by assessing the loss, verifying details, and determining the payout based on policy terms.

What factors affect the premium of fire insurance?

• Weather conditions

• Type of insurance provider

• Age of the property

• Factors affecting fire insurance premium include location, construction type, fire safety measures, property value, claims history, and risk assessment.