Frequently Asked Questions

Insurance is a contract between two parties — insurer and insured — in which one party (the insurer, in return for a certain and agreed amount of money called the premium) assures the other party (the insured) to make good the financial loss the insured may suffer as a result of the occurrence of specified, insured and unforeseen events (perils) that take place within the period described in the contract.

There are two types of insurance in the market: Life Insurance and Non-Life (or General) Insurance. Life Insurance provides cover for human and human-related things. Sanima GIC Insurance Ltd. only issues Non-Life Insurance.

Non-Life or General Insurance provides cover for everything apart from what is covered under Life Insurance — automobiles, showrooms, houses, industries, warehouses, etc. Personal Accidents, Personal Medical, Third Party Liability, Product Liability, and Travel Trip are also covered under Non-Life Insurance. The nature of Non-Life insurance cover is normally short term, such as one year.

Underwriting is the function of evaluating the subject of insurance — whether a person, property, profession, business, or other entity — and determining whether to insure it. The underwriter applies company standards to each applicant and, based on those standards, ascertains whether the application represents an acceptable risk. Underwriting is the foundation of the insurance transaction process.

Underwriting involves examining application forms, supporting documents such as appraisals or bills that verify the value of property, or medical reports that verify the health condition of an individual, reviewing insurance maps and statistical data relevant to the risk, reviewing company records regarding the application, and evaluating site inspection reports. Underwriters then assign rates to the application or decline to issue a policy if it does not meet underwriting standards, communicating throughout with agents, inspectors, adjusters and other field personnel.

Underwriting is the process of determining whether an applicant is an acceptable risk and, if so, at what rate they will be accepted. Insurers must balance their responsibility to existing policyholders — ensuring they can meet contractual obligations — against the commercial need to grow the policyholder base, all within the standards set by insurance regulation.

The purpose of the proposal form is to gather information from the insured in order to issue an insurance policy. The information collected includes:

1. Name & address of the proposer
2. Details about the proposed properties, persons, liabilities, etc.
3. Location, transit route, etc. of the proposed risk
4. Property, profession, age, etc. of proposed persons; nature of business for liabilities, etc.
5. Proposed value, limit of liabilities, sum insured, etc. for the insurance
6. Risks required
7. Period of insurance
8. Past insurance and claim record, etc.