In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss.

Insurable interest is the legal right to insure. The three essentials of insurable interest are: The existence of a potential legal liability which is capable of being insuredSuch potential liability must be the subject matter of insurance, andThe insured must bear a legal relationship to the subject matter whereby he will benefit on freedom from liability and will lose financially on creation of liability.Liability Insurance, Lift Third Party Liability : Policy covers legal liability for accidental bodily injury/accidental Direct damage to wearing apparel or personal effects of third parties in connection with insured lift including machinery, plant, door, safety devices or other appliances.

A risk that conforms to the following criteria: The possible loss must be plainly explained; the loss must be accidental and significant enough to be considered a hardship to the insured; the loss must also be part of a similar group of risks, so as to make the loss foreseeable; the loss must not occur at the same time as multiple others; and finally, the insurer must be able to compute the probability of a loss and a realistic cost for the insurance.
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A risk which meets most of the following requisites (i) The loss insured against must be capable of being defined. (ii) It must be accidental. (iii) It must be large enough to cause a hardship to the insured. (iv) It must belong to a homogeneous group of risks large enough to make losses predictable. (v) It must not be subject to the same loss at the same time as a large number of other risks. (vi) The insurance company must be able to determine a reasonable cost for the insurance. (vii) The insurance company must be able to calculate the chance of loss.
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MEDICAL,USA: Potential of a foreseen loss to the insured that has the following conditions: loss not under the control of the insured, others are subject to the same loss, chance of loss is calculable, cost is economically feasible, would not affect all insureds at the same time, and has the potential to be a serious financial hardship if not insured.
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UK: Risk capable of being insured. A risk is only insurable when: (a) it is measurable in financial terms; (b) an insurable interest exists; (c) it exists in large homogeneous groups (see risk combination; (d) the probability of loss can calculated; (e) it is a pure risk; (f) it is of a fortuitous nature; (g) it is not against public policy to insure it; (h) the premium is a reasonable premium in relation to the individual’s financial risk; (i) it is not so widespread that it is beyond the scope of commercial insurance as with certain fundamental risks. An uninsurable risk is one that fails to meet some or all of these elements.
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US: The conditions that make a risk insurable are (a) the peril insured against must produce a definite loss not under the control of the insured, (b) there must be a large number of homogeneous exposures subject to the same perils, (c) the loss must be calculable and the cost of insuring it must be economically feasible, (d) the peril must be unlikely to affect all insureds simultaneously, and (e) the loss produced by a risk must be definite and have a potential to be financially serious.
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The exposure to significant, measurable accidental loss from identifiable perils. The exposure, while not catastrophic, must be shared by a sufficient number of potential insureds so that the cost of loss for one can be measured and affordably shared throughout the market.

(i) Full value of property being insured, measured by the valuation standard specified in an Insurance Policy. Under a replacement cost standard, the property’s insurable value is its full replacement cost; under and actual cash value standard, the property’s insurable value is its actual cash value. Contrast “Actual cash value” with “Replacement cost.” (ii) Amount of Insurance applicable to property covered, with an allowance made for specific items which are not covered.

Marine Policies are generally are valued policies and unvalued policies are very rare. Section 18 of the Marine Insurance Act, 1963 provides measure of insurable value.—Subject to any express provision or valuation in the policy, the insurable value of the subject-matter insured must be ascertained as follows:— In insurance on ship, the insurable value is the value, at the commencement of the risk, of the ship, including here outfit provisions, and stores for the officers and crew, money advanced for seamen’s wages, and other disbursements if any incurred to make the ship fit for the voyage or adventure contemplated by the policy, plus the charges of insurance upon the whole. The insurable value, in the case of a steamship, includes also the machinery, boilers, and coals and engine stores if owned by the assured; in the case of a ship driven by power other than steam includes also the machinery and fuels and engine stores, if owned by the assured; and in the case of a ship engaged in a special trade, includes also the ordinary fittings requisite for that trade; In insurance on freight, whether paid in advance or otherwise, the insurable value is the gross amount of the freight at the risk of the assured, plus the charges of insurance; In insurance on goods or merchandise, the insurable value is the prime cost of the property insured, plus, the expenses of and incidental to shipping and the charges of insurance upon the whole. In insurance on any other subject-matter, the insurable value is the amount at the risk of the assured when the policy attaches, plus the charges of insuranceM.F.N. : (Most Favored Nation) : Designation for countries which receive preferential tariff rates. This is no longer the best tariff structure available.

(i) The first preamble to the first English Marine Insurance Statute of 1601 observed that by means of Insurance “it shall come to pass that loss lighteth lightly upon many rather than heavily upon few.” (ii) Insurance is a device by means of which the risks of two or more persons or firms are combined through actual or promised contributions to a fund out of which claimants are paid, (iii) Insurance is a contractual relationship which exists when one party, for a consideration. agrees to reimburse another for a loss caused by designated contingencies. The first party is called the Insurer or underwriter, the second. the insured or Policyholder; the contract is the Insurance Policy: the legal consideration is the premium; the loss of the life or property in question is the exposure and the contingency is the happening of the insured event.
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A combination insurance policy and maintenance contract, Boiler and Machinery insurance insures against losses due to the breakdown or malfunction of boilers, machinery, and equipment, including air conditioners, heating systems, and refrigeration systems. While such a loss, such as the explosion of a steam boiler, can be catastrophic, loss of income and extra expense associated with an equipment breakdown can be even more expensive for the insured. For example, if the air conditioning system in a hospital malfunctions, there will be a loss of income from patients who have to be moved, extra expense to expedite repair, and spoilage of food and pharmaceutical products. Therefore, extra expense and business interruption are often added to a boiler and machinery policy.Another benefit of boiler and machinery insurance is the inspection feature. Engineering and safety experts familiar with the specific type of insured equipment regularly inspect the policyholder’s equipment. In many jurisdictions, these inspections meet local code requirements. Additionally, the insured receives expert loss control advice. This benefit is included in the basic policy.
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A contract whereby an insurer promises to pay the insured a sum of money or some other benefit upon the happening of one or more uncertain events in exchange for the payment of a premium. There must be uncertainty as to whether the relevant event(s) may happen at all or, if they will occur (eg death) as to their timing.
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US: A contractual relationship that exists when one party (the insurer) for a consideration (the premium) agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils). The term “assurance,” commonly used in England, is considered synonymous with “insurance.”
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A method of risk reduction that shifts the risks of individuals to an insurance company. In exchange for consideration, known as a premium, the insurer assumes the losses the insured may suffer. To what extent the insurer assumes the losses is clearly defined in the policy contract.
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US: A system under which individuals, businesses, and other organizations or entities, in exchange for payment of a sum of money (a premium), are guaranteed compensation for losses resulting from certain perils under specified conditions.
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A transfer under which the source of funds is an Insurer. As an institution, Insurance, is a device that combines the risks of two or more insured’s through actual or promised contributions to a fund out of which claims are paid.
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UK: Conduct of Business Source book (ICOB) Rules applicable to an insurance intermediary, including an insurer, when carrying on insurance mediation for a customer in relation to a non-investment insurance contract or entering into a distance non-investment mediation contract with a retail customer. The rules also apply to insurers when acting as product providers and managing agents at Lloyd’s in relation to non-investment insurance contracts. ICOB also applies to: a firm which communicates or approves non-investment financial promotion; motor vehicle liability insurers and the Society of Lloyd’s for that type of business. ICOB does not apply to reinsurance and large risk contracts for commercial customers.
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MEDICAL,USA: Contractual relationship between a first party (insurer) and a second party (insured) in which the insurer agrees to protect against risk and reimburse the insured for financial loss caused by certain contingencies or hazards (fire, accident, illness, death) in return for payment of a monthly or annual premium.
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UK: Insurance is risk financing, risk transfer and risk combination. By combining a large number of exposure units into a group the insurer can predict the probability of loss with a reasonable degree of accuracy for the group as a whole and so spread the loss over the group. The degree of uncertainty for the group is reduced but not for an individual member. The individual transfers his risk of loss to the insurer who finances the risk in return for a premium. The insured substitutes the certainty of a premium for an unknown loss in regard to insurable risks. See CONTRACT OF INSURANCE for the legal definition.

Basics are similar to basics of other forms of accounting. However, there are certain peculiarities that make for specialization of insurance accounting (A) General Accounting: Items such as “Balance Sheet, Receipt and Payments Accounts, cash Flow Statement, and Profit and Loss Account etc will be in line with the accounting standard (AS) issued by the ICAI to the extent applicable to insurers carrying on general insurance business with 3 exceptions. The 3 exceptions are: (a) Cash Flow statement to be prepared only under direct method (b) Accounting for investments is not applicable, and (c) Segment reporting applies to all insurers. (B) Premium: Premium is to be recognized as income over the contract period or the period of risk. Premium received in advance not relating to the current accounting period to be disclosed separately under the head current liabilities. Premium reserve for unexpired risks has to be created. Premium deficiency to be recognized if the expected claim costs and related expenses exceed the related reserve for unexpired risks. (C) Acquisition Costs: Acquisition costs to be placed in the period in which they are incurred (D) Claims: The ultimate cost of claims to an insurer comprises claim under the policies and specific claims settlement costs. Claims under policies comprise the claims made for losses incurred, and those estimated or anticipated under the policies following a loss occurrence. A liability for outstanding claims shall be brought to account in respect of both direct business and inward reinsurance business. The liabilities shall include (i) the future payments in relation to unpaid reported claims (ii) Claims incurred but not reported including inadequate reserves. (E) Investments: Detailed procedure is prescribed for determining value of various investments, such as Real Estate, Investment Property, debt securities, equity securities and derivative instruments. (F) Loans: at historical costs (G) Catastrophe Reserve to be created in accordance with the norms, if any, prescribed by the authority. (H) Accounting Module: to be introduced and implemented.

A professionally qualified, experienced and IRDA accredited person who, for any consideration whatsoever, engages in business or accepts employment to furnish, or agrees to make, or make, any investigation for the purpose of obtaining, information in the course of adjusting or otherwise participating in the disposal of, any claim under or in connection with a proof of loss or engages in soliciting insurance adjustment business.
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A person charged with investigating a claim to establish whether the company is liable and to what extent. The investigation can include interviews of the parties involved, property inspections, and reviewing hospital records or police reports.

Insurance advertisement means any communication directly or indirectly related to a policy and intended to result in the eventual sale or solicitation of a policy from the members of the public and includes all forms of printed and published materials or any material using the print and or electronic medium for public communication such as (i) newspapers, magazines and sales tasks; (ii) billboards, hoardings, panels (iii) radio, television, website e-mail, portals (iv) representations by intermediaries (v) leaflets (vi) descriptive literature/circulars (vii) sales aids flyers (viii) illustrations from letters (ix) telephone solicitations (x) business cars (xi) videos (xii) faxes, or (xiii) any other communication with a prospect or a policyholder that urges him to purchase, renew, increase, retain or modify a policy of insurance.

The IRDA (Insurance Advertisements) Regulations, 2000 seeks to regulate and control every insurance advertisement issued by the insurer, intermediary or insurance agent. For this purpose every insurer, intermediary or insurance agent is required to maintain a system of control over the contents, form and method of dissemination of all advertisements concerning its policies and such advertisement should be filed with the Authority. As per regulations every advertisement for insurance shall state clearly and unequivocally that insurance is the subject matter of the solicitation and state the full registered name of the insurer/intermediary/insurance agent. A third party or group shall not distribute information about an insurance policy, intermediary or insurer on its letterhead.