HEALTH INSURANCE

A health insurance contract is a contract between an insurer and

an individual or group, in which he insurer agrees, to provide
specified health insurance at an agreed- upon price (the
premium).
Health insurance usually provides either direct payments or
reimbursement for expenses associated with illness and injuries.
In India presently the health insurance exists primarily in the form
of Mediclaim policy offered to an individual or to any group
,association or corporate bodies
FIRE INSURANCE
Fire insurance contract is said to be a contract of indemnity.
The insurer promises to compensate the insured for actual loss
caused to him by the destruction or damage of the insured
property by fire for a consideration called the premium.
The fire insurance policy is for a period of one year after which it
is to be renewed from time to time. The premium may be paid
either in lumpsum or instalments.
The claim for loss must satisfy the following two conditions:
1. There must be actual loss
2. Fire must be accidental and non- intentional.
The terms and conditions of a fire insurance contract are
embodied in a document called the Fire Insurance policy.
The FIP usually contains the following details:
1. The name of the insured
2. The name of the insurer

3. The description of the property insured

4. The sum insured
5. The period of insurance
6. The amount of premium.
7. The risk insured against.
. MARINE INSURANCE
Marine insurance in an indemnity contract of insurance.
It is a contract between two parties under which one party agrees
to compensate the other party against the loss of arising from
certain marine marine risks in consideration of a payment called
premium.
Important types of marine insurance contracts:
1. Hull Insurance: If the subject matter of insurance is the
ship, the marine insurance is called as the Hull insurance.
2. Cargo Insurance :If the subject matter of insurance is the
cargo, the marine insurance is called as Cargo Insurance.
3. Freight Insurance: If the subject matter of insurance is the
freight , which is to be received at the part of destination on
the safe arrival of the ship, the marine insurance is called
the Freight Insurance.
4.Liability Insurance:
- On the collision of the ships or on any other perils of the sea,
if the third party incurs loss, the liability to compensate such
a loss is the subject matter of marine insurance.
Marine Risk:

The risks of the sea as well as the land risks incidental to the sea
voyage against which the insurance is effected are called the
marine risks.
The important marine risk / perils are :
1. Sinking of the ship
2. Burning of the ship / cargo
3. Attack from enemies /robbers
4. Jettison - Throwing away of the cargo to protect the ship
from sinking.
5. Collision of the ships.
6. Tsunami,storms,cyclone,unfavourable climatic conditions etc.
7. Terrorist attack, attack from enemy countries etc.
POSTAL SERVICES
- Indian Post and Telegraph department provides various
postal services across India.
-

For providing these services the whole country has been

divided into 22 postal circles.

- These circles manage the day to day functioning of the

various head post offices , sub post offices, and branch post
offices.
The various facilities provided by postal department are broadly
categorized into:
(i)

Financial facilities:
- These facilities are provided through the post office savings
schemes.

- Example : PPF, Kisan Vikas Patra, National Savings

Certificates .
- Other services like retail banking functions of monthly
income schemes , recurring deposits , savings account, time
deposit and money order facility.
POSTAL SERVICES
- Indian Post and Telegraph department provides various
postal services across India.
-

For providing these services the whole country has been

divided into 22 postal circles.

- These circles manage the day to day functioning of the

various head post offices , sub post offices, and branch post
offices.
The various facilities provided by postal department are broadly
categorized into:
(i)

Financial facilities:
- These facilities are provided through the post office savings
schemes.
- Example : PPF, Kisan Vikas Patra, National Savings
Certificates .
- Other services like retail banking functions of monthly
income schemes , recurring deposits , savings account, time
deposit and money order facility.

ii) Mail facilities:

Mail services consist of parcel facilities that is transmission of
articles from one place to another, registration facility to provide
security of the transmitted articles and insurance facility to

provide insurance cover for all risks in the course of transmission

by post .
The important mail facilities are:
1. Registered Post
2. Speed post
3. Electronic Money Order (E.M.O)
4. Instant Money Order (I.M.O)
5. Express Parcel Service(E.P.S)
6. Electronic Mail Services (E.M.S)
7. Value Payable Post (V.P.P)
8. Electronic Post (E POST)
FINANCIAL SERVICES
1.Senior Citizen Savings Scheme (SCSS):
-Any individual who has attained the age of 60 years on the date
of opening or who has attained the age of 60 years on the date of
opening or who has attained the age of 55 years and who has
voluntarily retired from the service can open this account.
- The account holder gets an attractive interest of 9.3% p.a.
- Automatic transfer of interest into savings account facility is
available.
- Joint account is opened with the spouse only and not with
any other person.
-

The amount of deposit is Rs 1000 or in multiples of one

thousand ,subject to the maximum of Rupees 15 lakh .

- No withdrawal is permitted before 5 years from the date of

opening .
2. Public Provident Fund(PPF):
- PPF is intended for the employees and people having regular
monthly income.
- Minimum deposit amount in a year is Rs.500 and maximum
is Rs 1 lakh
-

With certain conditions loan facilities are available after 3

years.

- The investment by individual will qualify for tax deduction

under section 88 of IT Act.
3.Kisan Vikas Patra:
- The certificates will be available in the denomination of Rs.
100,Rs.500,Rs.1000,Rs.5000,Rs.10000 and Rs.50000.
- The certificates will be issued to individuals only and there is
no limit for purchase.
- Certificates cab be chased at any time after the expiry of 2
years and 6months from the purchase.
- Nomination and identity slip facilities are available
- The issue of KVP is discontinued from 30 11-2011.
- 4. National Saving Certificate(NSC):
- NSC VIII Issue available in denominations of Rs.
100,500,1000,5000 and 10000 and can be issued to
individual only.
- The maturity period shall be 6 years from the date of issue.
There is no limit for purchase .

- Only local cheques are accepted and NSC can be as security

and also nomination facility is available.
- No premature encashment is permitted in the normal course.
- Investment by individuals will qualify for tax deductions
under Income Tax.
- 5. Time Deposit Accounts( TD):
- There are four types of accounts , namely 1 year , 2- year ,
3 year and 5 year account.
- An individual can open ,two adults jointly guardian on behalf
of a minor or a minor himself who has attained the age of 10
years.
-

The deposit should be in multiples of Rs. 200and there is no

maximum limit.

Annual interest can be automatically credited to savings

account of the depositor. Premature closure is allowed on
some conditions.