IRDAI IC38 (Insurance Agent) General Insurance Products and Practice Syllabus

In burglary insurance, what distinguishes 'theft' from covered 'burglary'?

Burglary requires forcible and violent entry/exit. Simple theft (without force/violence) is generally not covered unless specifically extended.

What do engineering insurance covers protect?

Machinery, plant, electrical/mechanical equipment and projects against sudden and accidental breakdown, erection and construction risks.

Differentiate CAR (Contractors' All Risks) and EAR (Erection All Risks) policies.

CAR covers civil construction projects (buildings, roads, dams). EAR covers erection/installation of plant and machinery. Both are all-risk project covers.

What does a Machinery Breakdown (MB) policy cover?

Sudden, unforeseen and accidental physical damage to machinery while at work, at rest or during dismantling/cleaning, e.g. from electrical/mechanical defects, short circuit, or operator error.

What is an Industrial All Risks (IAR) policy?

A comprehensive single policy for large industrial risks combining fire and special perils, burglary, machinery breakdown and business interruption on an 'all risks' basis with named exclusions.

Under the Motor Vehicles Act, what is the only legally compulsory motor insurance cover?

Third-party liability insurance — cover for the insured's legal liability for death/bodily injury and property damage to third parties.

Differentiate Act-only (liability-only) and comprehensive (package) motor policies.

Act-only covers just compulsory third-party liability. Comprehensive/package adds own-damage cover for the insured vehicle against accident, fire, theft and perils.

What is 'No Claim Bonus' (NCB) in motor insurance?

A discount on the own-damage premium given for each claim-free year, rising from 20% up to a maximum of 50%; it is lost if a claim is made.

What is the limit of third-party property damage liability under a standard motor policy?

Statutory cover for third-party property damage is limited to Rs 7,50,000 (which the insured may increase by paying additional premium).

What is IDV (Insured's Declared Value) in motor own-damage insurance?

The current market value of the vehicle (manufacturer's listed price less depreciation by age); it is the sum insured and the maximum payable for total loss/theft.

What are the two main types of marine insurance?

Marine cargo insurance (goods in transit) and marine hull insurance (the vessel itself, its machinery and equipment).

What do Institute Cargo Clauses (A), (B) and (C) represent?

Standard cargo cover scopes: ICC (A) is the widest (all risks); ICC (B) is intermediate (named perils, broader); ICC (C) is the most restricted (limited named perils).

What is the duration of cover under a marine cargo policy (transit clause)?

Cover attaches when goods leave the warehouse at origin and continues during ordinary transit until delivery to the final warehouse at destination (the 'warehouse-to-warehouse' clause).

Define 'insurable value' of cargo in a marine policy.

Typically CIF value (Cost + Insurance + Freight) plus an agreed margin (often 10%) to cover incidental expenses and anticipated profit.

What does a marine hull policy cover?

Loss of or damage to the ship's hull, machinery, equipment and fittings due to marine perils, plus a proportion of collision liability (running-down clause).

Distinguish 'particular average' from 'general average' in marine insurance.

Particular average is a partial loss borne by the individual interest affected. General average is a deliberate sacrifice/expense for the common safety, shared proportionately by all interests (ship, cargo, freight).

What is a 'total loss' in marine insurance, and its two types?

A complete loss of the subject matter. Actual Total Loss = the property is destroyed or irretrievably lost. Constructive Total Loss = abandonment is reasonable because the cost of saving/repairing exceeds the insured value.

What does public liability insurance cover?

The insured's legal liability to third parties for accidental bodily injury or property damage arising from the insured's business premises or operations, plus defence costs.

What does product liability insurance cover?

The manufacturer's/seller's legal liability for bodily injury or property damage to third parties caused by a defect in the products supplied.

What is the Public Liability Insurance Act, 1991 about?

It mandates compulsory no-fault public liability insurance for owners handling hazardous substances, providing immediate relief to victims of accidents involving such substances.

What does professional indemnity insurance cover?

The legal liability of professionals (doctors, lawyers, architects, CAs) to clients/third parties for losses caused by negligence, errors or omissions in rendering professional services.

What does Directors' and Officers' (D&O) liability insurance cover?

The personal legal liability of directors and officers for wrongful acts (errors, misstatements, breach of duty) committed in their managerial capacity, plus defence costs.

On what basis are most liability policies (e.g. professional indemnity, D&O) written?

On a 'claims-made' basis — cover applies to claims first made and reported during the policy period (subject to the retroactive date), not when the act occurred.

What does Workmen's Compensation / Employees' Compensation insurance cover?

The employer's statutory liability under the Employees' Compensation Act to pay compensation to employees for death, disablement or occupational disease arising out of and in the course of employment.

What are the categories of disablement under the Employees' Compensation Act?

Death; permanent total disablement; permanent partial disablement; and temporary disablement — each with a defined scale of compensation.

What does personal accident (PA) insurance cover?

Benefits for death or disablement caused solely by accidental, violent, external and visible means — paying fixed sums for death, permanent total/partial disablement and temporary total disablement.

List the standard benefits (Table) under a personal accident policy.

Table A: Death only; Table B: Death + Permanent Disablement; Table C: above + Temporary Total Disablement; Table D: comprehensive (above + medical expenses extension).

How does personal accident insurance differ from life insurance on the principle of indemnity?

PA is a benefit policy paying agreed fixed (capital) sums on defined events, not strict indemnity; like life cover the amounts are pre-agreed rather than measured by actual loss.

What are rural and social-sector insurance products, and what drives their existence?

Low-cost insurance covers (cattle, crop, hut/dwelling, agricultural pump-set, Janata PA) for rural and economically weaker sections; insurers must meet IRDAI's mandatory rural and social-sector obligations.

Give two examples of government-supported social/rural insurance schemes in India.

Pradhan Mantri Fasal Bima Yojana (crop insurance) and Pradhan Mantri Suraksha Bima Yojana (personal accident); also PM Jan Arogya Yojana (health) and cattle/livestock insurance schemes.