(i) Internal Tariff rated products : All rule based underwriting products. Standard products that can be sold by any offices of the insurer with the rates, terms and conditions of cover, including choice of deductible where applicable. Examples are Fire insurance up to a certain sum insured or category of risk limitation, Motor insurance other than fleets, PA other than groups, Health insurance other than groups, Burglary, Fidelity guarantee etc. (ii) Packaged or customized : Specially designed for an individual client or class of clients in terms of scope of cover, basis of insurance, deductibles, rates, terms and conditions of cover. Also, known as Special Contingency products.

When property or people share a certain number of characteristics relevant to the cost of providing them with insurance (such as a male driver under the age of 25 without an accident) underwriters can develop insurance rates that reflect the exposures represented by the class and offer insurance based on a class rate rather than by computing individual rates for each member.

A rating method under which the rate depends upon a set of characteristics that define a class. for example, a Fire resistant building with an approved roof used as a small office building in a community with excellent Fire, wear and Policy facilities. In India, Motor and fire tariff are the best examples of class rating method where all the risks are classified into particular categories or classes and rates accordingly. Motor Tariff: All Honda City vehicles in Mumbai will be assigned a single rate. Fire Tariff: All cement manufacturing units will be rated as a single unit.

A Goods Carrying vehicle A-1 Public Carriers A-2 Private Carriers A-3 Goods Carrying Motorised 3 Wheelers and Motorised Pedal Cycle (Public Carriers) A-4 Goods Carrying Motorised 3 Wheelers and Motorised Pedal Cycle (Private Carriers) and (i) Tractors, (ii) Dumpers, (iii) Milk Vans (iv) Oil and Petrol Transport Vehicles (v) Refrigeration/pre-cooling units (vi) Tankers (vii) Tippers predominantly used for commercial purpose. B Trailers C Public Passenger Service Vehicles for Hire or Reward C-1 3 or 4 wheeler PPSV-PCC less than 3 wheeled PSV-PCC more than 17> C-3 Motorised 3 wheeled PSV for hire or reward C-4 Motorised 2 wheeled PSV for Hire or reward D Misc and SP type 51 types of vehicle included E Road Transit Risks Only F Motor Trade (Road Risks) Only G Internal Risks only

Any car manufactured after 31.12.2940 but before 31.12.1970 is considered as a Classic Car by the Vintage and Class Car Club of India.

(i) The selection of factors on which to base premium rates e.g., location, activities. (ii) A Class (iii) A Customs Term. The placement of an item under the correct number in the customs tariff for duty purposes. At times this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by the customs on a given item.
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The systematic arrangement of properties, persons, or business operations into groups or categories according to certain criteria. Such classification creates a basis for establishing statistical experience and determining rates, and to avoid unfair discrimination.

Insurance Policies underwritten in non-life insurance can be broadly classified on the basis of perils covered such as (a) Named Perils Cover (b) Multi-Peril Cover (c) All Risks Cover (d) Special Cover. Named Peril Policy, Multi Perils Cover provides coverage on loses incurred to property from perils or events named in the policy. It contains conditions which cover what the insurer thinks is the most likely perils, either a single peril or a multi-peril. Under single-peril if the damage or loss occurs by a peril not mentioned in the policy, then there is no coverage for it. The policy has standard terms, exclusions, conditions and deductibles. Standard Fire and Special Perils Policy, Motor Comprehensive Policy etc can be examples of named perils policy. Can be further classified as those with basic covers and those with add-ons.All Risks Insurance Cover : An “All Risks” policy covers any risk which the contract does not specifically exclude. All Risks covers direct physical loss or damage to the property insured unless the policy specifically excludes or limits the coverage. It is not necessary to name or list the insured perils since the intent is to cover all risks of damage or loss due to accidental circumstances.Special Cover or Package : A policy which combines two or more types of insurance covers into one policy. Commercial insurers sell insurance covers separately and offer policies that combine protection for major property and liability risks in one package. General package policies are created for business that face same kind and degree of risk. Package policy could also be applicable to various segments of customers and include Householders’ Comprehensive Policy, Shopkeepers Comprehensive/Package Policy, Office Package/Umbrella Policy etc.Customized Insurance Policies : Usually known as Customized Policies, Special Contingency Policies or tailor made policies. The need of such policies arise when existing products of insurers do not meet the insured’s requirements. Policies are usually rated individually rated risks as per the “File and Use” guidelines of IRDA. Usually policies are customized for those risks not covered in the list of standard policies, new covers to be insured in addition to existing covers such as Standard Fire Policy supplemented by peril of “Accidental external means,” Event insurance like that for a cricket match where any of the “man-made ” or “Acts of God” perils may result into personal injury, property damage as well as loss of revenue. Personal forms of customized policies such as covering a footballer’s legs or a pianist’s fingers and hands. Tailor made Health Insurance Policy.First Loss Policy : A first loss policy is a property insurance cover in which the policy holder arranges cover for an amount below the full value of items insured and for this the insurer agrees not to penalize him for under insurer.Declaration Policy : Usually issued on stock which are subject to market fluctuations in quantity. Insured is required to take the policy for the highest sum insured that he predicts during the year and pay a provisional premium. The insured has to declare periodically the actual values of stocks. These values are added on the expiry of the policy and premium calculated on average of the values with provision for adjustment of premium. Refund of premium is subject to retention of a minimum per cent age usually 50% of provisional premium paid.Floating Policies : When insured is not able to declare separate value of stock in each godown but is able to declare the total value. Policy covers in one sum stocks stored in different specified godowns. Policy can also be issued combined Declaration and Floating Policy.Insurance, General Insurance Business : Classification on the basis of subject matter of Insurance:

The effect of the classification clause is to restrict agreed rates on an open cover to apply only to goods carried on vessels complying with the standard requirements of the Institute Classification Clause. Cargo carried on vessels not complying with or not coming within the classification clause will be subject to additional premium and possibly a restriction in cover.

The identifying number for an occupational classification. It is a four-digit numeric code – based on the nature of the business of the employer – assigned by NCCI or other workers compensation rating bureaus.