Fundamental Insurance

Fundamental Risk of Insurance

The fundamental Risk of Insurance is one that is impersonal both in origin and consequences. Losses that flow from fundamental risks are not normally caused. One individual and the impact generally falls on a wide range of people.

They are termed fundamental as they arise out of the nature of society. We live in some physical occurrence beyond the control of man. Examples of fundamental risks include (1) War (2) Inflation(3) Storms/cyclones, (4) Earthquakes, etc.

Type of Arrangement

In this type of arrangement, the original or primary insurer is registered. The relevant authority and authorization to transact insurance business issues. The policy document may be required by the insurance. Law of the country and then reinsures 100% of the risk with reinsurers abroad.

In this arrangement, the primary insurer usually receives a fronting fee from the reinsurers issuing documentation. Frequency number of times a loss occurs.

Franchise free On Board (FOB)

It is like an excess usually applied under a marine cargo Fundamental insurance contract. The difference between an excess and a franchise is that in the case of a franchise, if the loss amount exceeds the franchise amount stated in the policy, the entire loss amount is payable without any deduction.

This term is used in the case of marine cargo insurance. This term represents various expenses incurred by the seller or exporter of the goods namely transportation costs for carrying goods from the seller’s factory/warehouse to the port, loading, and unloading expenses, and other incidental expenses needed to put the goods on board the vessel for onward journey.

Incidental expenses

Free of All Average clause is usually applied to goods or cargo where the insurer is liable to pay losses to the goods only in case of total loss.

Marine cargo insurance with this condition/clause does not cover partial losses or damages. Gap Insurance An automobile Fundamental Insurance option, available in some states covers the difference between a car’s actual cash value when it is stolen or wrecked and the amount the consumer owes to the leasing or finance company.

General Average Sacrifice (GA)

It is a sacrifice in which all parties involved in a sea venture (vessel, cargo, and freight owners) proportionately share losses resulting from a voluntary and successful effort to save the entire venture from imminent peril.

There are two types of General Average Acts; (a) Voluntary Sacrifice of a part of the vessel or part of the cargo(b) Extraordinary expense necessarily incurred for the joint benefit of vessel and cargo, e.g. towing charges incurred to assist a disabled vessel to a port of refuge.

Liability of Insurance

General Liability Insurance is a broad term meaning liability Fundamental Insurance other than automobile liability or employer’s liability written to cover professional and commercial risks. With respect to commercial liability, various coverages include such risks as (1) Contractual liability, (2) Product and (3) Professional liability, etc.

Glass Insurance

Coverage for glass breakage arising out of an accident or other causes is not excluded under the policy. Fire and war risks are excluded from this insurance. Insurance can be bought for windows, structural glass, mirrors, etc.

According to the Hague Protocol, (Applicable to international maritime law) carrier’s maximum liability in the event of loss and/or damage to cargo is limited to 100 gold coins (per package /per unit). Which is usually measured in terms of the equivalent of the gold franc.

Driver Plan

Good Driver Plan is an auto insurance rating program that reflects the insured’s accident and traffic violation record as a factor in determining the premium. Grace Period Extra time is allowed for payment of premiums especially applicable in the case of the life insurance contract.

The maximum time period allowed is usually 30 days in duration after the expiry of the original time period on which to pay the premium. The policy gets automatically canceled or lapsed for nonpayment of premium within the grace period.

Gross Written Premium (GWP)

It is the total amount of premium underwritten by an insurer in a given period of time usually one year for non-life insurance. However, it does not take into account premiums ceded or paid out to reinsurer (s). A fee is payable for permission to anchor in certain ports.

Group Insurance Coverage occurs under a master policy issued to the employer or association. A grantor is a person who establishes a trust by transferring his or her property to a trustee.

Gross Premium Reserve

Reserves that allow explicitly for expenses are called gross premium reserves. As opposed to net premium reserves that do not allow explicit expenses.

Hazardous Goods represent high risks from a fire point of view. For example, goods with low flash points have the potential to ignite in high. Temperatures unless stored in a temperature-controlled room. Such as include (1) Firecrackers, (2) Paints, and thinner, (3) Liquor, (4) Alcohol-based solvents, (5) Matchboxes, etc.

Market Insurance

The Hard Market Insurance market is controlled by the insurer(s) where prices charged are higher due to short supply etc. Hazards are not themselves the cause of loss, but this can increase the effect of peril or risk. Group Life insurance on a group of people, usually issued to an employer for the benefit of employees.

Individual members of the group hold certificates as evidence of their insurance. Hazardous Activity Bungee jumping, scuba diving, horse riding. Other activities are not generally covered by standard insurance policies. an insurer.

However, providing such cover for these activities is unlikely that they will provide liability and personal accident cover. It should be provided by the company hosting the activity.

Health Insurance

This insurance covers various expenses for the treatment of patient(s) suffering from a health problem(s). It covers both in-patient and out-patient treatment.

Expenses include (1) Consultation fee (2) Diagnostic test (3) Medicines prescribed by the physician (4) Ambulance charges for transportation of patient (5) Treatment in daycare center etc. Heavy Weather The term heavy weather is used to express bad or turbulent weather conditions in the sea namely; (1) Rough sea, (2) Storm and cyclone, (3) Tidal surge, etc. due to which goods may be damaged or destroyed.

Health Insurance Policy

So, a type of insurance that provides protection against. The risk of financial loss resulting from the insured person’s sickness, accidental. Payment of an investment using a large amount of borrowed funds.

A package policy for the homeowner that combines “named peril” (including theft coverage) protection on content, coverage on the dwelling house ranging but “named perils” to physical loss, additional living expense protection, and personal liability insurance. 

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