Page 391 - IC38 GENERAL INSURANCE

Summary
a) A householder‟s insurance policy only provides coverage on losses incurred

to an insured property from hazards or events named in the policy. The
perils covered will be clearly spelt out.
b) Householder‟s insurance covers the structure and its contents against fire,
riots, bursting of pipes, earthquakes etc. Apart from the structure, it covers
the contents against burglary, housebreaking, larceny and theft.
c) Package or umbrella covers give, under a single document, a combination of
covers.
d) For a householder‟s insurance policy generally there are two methods of
fixing the sum insured: Market Value (MV) and Reinstatement Value (RIV).
e) Shopkeeper‟s insurance usually covers damage to the shop structure and
contents due to fire, earthquake, flooding or malicious damage; and
burglary. Shop insurance can also include business interruption protection.
f) Motor insurance covers the loss of vehicles and the damages to them due to
accidents and some other reasons. Motor insurance also covers the legal
liability of vehicle owners to compensate the victims of the accidents
caused by their vehicles.
Key terms
a) Householder‟s insurance
b) Shopkeeper‟s insurance
c) Motor insurance

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