General Insurance



Any one accident. The term refers to the maximum liability of the insurer in respect of all claims, both for bodily injury and property damages of third parties arising out of any one accident.


Any one year. The term refers to the maximum liability of the insurer under the policy for all claims preferred during the policy period.


In Marine Cargo and Marine Hull Insurance, 'Abandonment' is a condition precedent to a constructive total loss of the property insured. But the insurer is under no obligation to accept the abandonment.


Agreement to an offer, thereby leading towards conclusion of a contract. One of the fundamental requirements of any contract of sale. Applicable to Contracts of Insurance also.


An accident is a sudden, unforeseen and involuntary event caused by external and visible means.

Accident Insurance

Coverage for death or bodily injury resulting from accidental means. Cover will extend benefits for different consequences of accident, namely, death, Total disablement of either permanent or partial nature as also partial disablement of permanent nature. Cover can also provide for reimbursement of medical expenses towards treatment of accidental injury on payment of extra premium.

Acquisition Cost factor

Acquisition Cost incurred by the direct insurer towards procuring business, which is taken into account by the reinsurer while fixing the reinsurance commission for the reinsurance offered.

Acquisition Costs.

This refers to the expenses incurred by the Direct Insurer for acquiring Direct Premium. Normally commission expenses come under this category.

Act in force Clause

A Clause included in Excess of Loss Treaties pertaining to Liability Insurance, where such liability is statutory, to take care of changes in law or act about quantum of compensation during the cover period, by revision of rate and/or underlying loss retention as well as the limit of the excess of loss cover.

Act Liability with Fire &/or Theft

Provision under the Motor Insurance Tariff to cover a motor vehicle against act liability of the insured together with restricted own damage to the vehicle caused by Fire, External Explosion, Self-ignition or lightning or burglary, house breaking. There is a percentage reduction from the premium applicable for the own damage portion of the cover in view of the above-restricted scope of the cover, which is provided in the tariff.

Act of God Perils

Any event not caused or contributed to by man. Some sudden and irresistible acts of nature that could not reasonably have been foreseen or prevented, such as floods or exceptionally high tides, storms, lightning, earthquakes etc. constitute Act of God Perils.

Act only Policy

Insurance Coverage for all motor vehicles to indemnify the insured up to the limits prescribed in the Motor Vehicle Act, 1988 in respect of his legal liability to pay compensation for death or bodily injury to any third party or damage to the property of any third party caused in any accident or series of accidents arising out of one event in so far as is necessary to meet the requirements of section 147 of the Motor Vehicle Act, 1988.

Actual Total Loss

An actual total loss of a property is said to take place when

1. The insured is irretrievably deprived of the subject matter insured

2. The subject matter is so damaged by an insured peril as to cease to be a thing of its kind-loss of specie

3. In so far as it relates to a vessel and/or cargo thereon, the vessel is declared as missing.


Additional coverages to your basic policy.

Additional Expenses-Strikes

If the destination port is strike-bound at the time of arrival of the ship carrying cargo meant for that port, the ship owner may exercise his liberty granted by the contract of affreightment and discharge the cargo at a nearest alternate port and absolve himself of any further responsibility to the cargo. In such circumstances, the cargo owner may have to incur additional expenses in reforwarding the cargo from that port to the intended port of discharge. The ordinary cargo policy does not cover these expenses. If the cargo owner wishes to protect his interest against such eventuality, he has to avail an "additional expenses (strikes) cover" extension for all his shipments that may be effected during a period of 12 months. This extension will not be available for shipments if cover is sought when the strike has commenced in the particular area.

Adverse selection

Selection against the insurance company, the tendency of more poor risks to buy and maintain insurance than good risks.


Two types of agents sell insurance: (1) Independent Agents are self-employed business people who typically represent more than one insurance company and are paid on a commission basis; and (2) Exclusive Agents represent only one insurance company and may be salaried or work on a commission basis.

All risk

Insurance against loss or damage to property arising from any fortuitous cause, except such as may be specifically excluded.


A survey of property made for determining its insurable value or the amount of loss sustained.


The passing of beneficial rights from one party to another.

Assigned risk

A risk which Underwriters do not care to insure, but because of state law or otherwise, the insured must be protected and the insurance is therefore handled through the state and assigned to companies.

Assumed liability

Liability which would not rest upon a person except that he has accepted responsibility by contract expressed or implied. This is also known as contractual liability.

Automobile fleet policy

A commercial automobile policy covering five or more automobiles.