General Insurance


Hazardous substance

In relation to The Public Liability Insurance Act, 1991, means a list of chemicals with quantities categorized as hazardous substances and published in the form of a Notification by the Central Government for application of Public Liability Insurance Act. The Act Provides for public liability insurance for the purposes of providing immediate relief to the persons affected by accident occurring while handling hazardous substance (See "Public Liability Insurance Act. 1991")

Hit and run motor accident

Accident arising out of the use of motor vehicle or motor vehicles the identity whereof cannot be ascertained in spite of reasonable efforts for the purpose.

Hague Rules

Following an International Maritime Law Conference in Brussels in 1922 a set of rules was agreed to establish the rights and immunities of carriers in respect of the carriage of goods by sea. Many of the countries agreeing to the rules later incorporated them in statutory Acts, such as the Carriage of Goods by Sea Act, 1924.

Hail Risk Insurance

Insurance against Hailstorm for Crops given as a part of the Crop Insurance Cover.

Hand Appliances

Any of the portable fire extinguishing devices containing chemicals to put out a fire. Hand appliances are basic requirements for a risk to be considered for a discount in the fire premium rating under a Standard fire and special perils policy. (See "F.E.A. Discount")


A condition which may create or increase the chance of loss arising from any peril

Hazardous Goods

Goods in any state (solid, liquid or gas) susceptible to the risk of fire in varying degrees according to their physical properties. Hazardous Goods are categorised as I, II, III and IV and rated accordingly, for the purpose of insurance, under the Standard Fire and Special Perils Policy.

Hazardous Risks (Fidelity Guarantee Insurance)

Risks considered not good for insurance because of the very high hazard associated therewith and the high incidence of claims. (Ex. Jewellery Sales persons, Cashiers in eating houses, cinema houses and other places of entertainment, Treasurers of societies or associations, employees of bullion merchants and of works of art dealing in antiques fur and valuables.)

Hazardous Sports

In relation to Personal Accident Insurance, refers to sports activities which carry with them high hazard, like racing on wheels or horseback, big game hunting, mountaineering, winter sports, skiing, ice hockey, ballooning, hang gliding, river rafting, polo etc. Persons engaged in these sports are classified as high risk groups and attract extra premium over normal, if the proposal is accepted by the insurer.

Health Insurance Business or Health Cover

Means the effecting of contracts which provide sickness benefits or medical, surgical, or hospital expense benefits, whether in-patient, or out-patient, on an indemnity, reimbursement, service, prepaid, hospital or other plans basis, including assured benefits and long-term care.

Heating and Sweating

The former is a risk which exists in respect of cargo prone to heating by spontaneous combustion .e.g. Coal, oil cakes etc. in bulk. Sweating refers to the water damage caused by condensation of water in the vessel or container hold, under circumstances of different climatic/atmospheric conditions during the voyage.

Heating or drying process

A process carried out in a manufacturing unit where by certain property is heated and dried to remove the water contents. Any loss/damage to the property due to over heating or drying is not covered under a standard fire and special perils policy.

Heavy Industry

Traditional Production Industries in the automobile, steel, rubber, petroleum and raw material areas, requiring high capitalisation and producing large quantities of output. Heavy Industry employs many people and is often beset with environmental impacts.


Strategy adopted by importers or exporters in connection with future purchases or sales, to overcome the loss caused by price increase or decrease as the case may be due to exchange fluctuations. Protection is obtained by hedging against exchange movements by entering into forward contracts.


Robbery with violence or threat of violence. A risk which is covered under the Standard Burglary Insurance Policy

Homogeneous Exposures

Risks within a group under study that have, to a great extent, uniform characteristics as regards exposure to similar loss events and expectation of losses. Study of homogeneous exposures is carried out for the purpose of fixing rates of premium and terms and conditions in connection with insurance coverage

Homogenous Risks

Properties, interests or activities which are exposed to mostly similar types of perils and which normally meet with similar loss situation in the event of such perils occurring. Insurers consider homogenous nature of risks by evaluating them according to a) cause and b) effect with the aim of quantifying probabilities and severity in order to fix uniform rates of premium, terms and conditions coverage etc.

Honey Bee Insurance

Coverage for hives and/or bee colony belonging to the co-operative societies against all accidental losses or damages to them. Settlement of claim is as per agreed value representing the cost of hive and cost of bee colony which will be attached to the policy in the form of a valuation table.

Hospital Confinement Indemnity Insurance

Insurance Coverage to provide for a fixed compensation on a daily basis for the period of treatment in a hospital or a nursing home by the insured for any illness, injury or sickness, as against the conventional medi-claim policies which provide for reimbursement of actual expenses incurred for treatment. Any such product will have to be marketed in India after adopting the '"file and use" procedure laid down by the Regulatory Authority.


Admission of a patient in a hospital or a nursing home and treatment to him for injury, illness, sickness or disease for a minimum of 24hrs with substantiating treatment.

Hospitalisation Insurance

Insurance Coverage to individuals providing for reimbursement of expenses incurred towards hospitalisation treatment in connection with any injury, illness, sickness or disease subject to the Room Rent limits, Sum Insured limit & capping as mentioned in the policy governed by exclusions. Individuals, as also their dependants can be covered under the policy.

Hostile Fire

A fire which does not confine itself to its normal bounds and spreads beyond its habitat. For example the fire in the gas stove spreads to the nearby items and results in a big fire. A Hostile Fire is covered under the policy which is extended to cover Fire Risks.

Hot Testing

In relation to project insurance, refers to

  • operational tests, which include the checking of parts, elements and/or production lines of insured property under full or partial load and normal or simulated operating conditions including the use of feedstock or other material for normal processing or other media for load simulation. In electrical power stations hot testing means checking after connection to a grid or other load circuit of electrical generating, transforming, converting or rectifying equipment.

  • commissioning tests/acceptance tests which in turn mean operation of insured property under production conditions for the purpose of attaining (quantity, quality) specification requirements.

Hours Clause

A Clause incorporated in XL Reinsurance wordings to define Any One Event of Loss for the purpose of loss recoveries from the XL Cover. As per this clause Any One Event is defined by consecutive number of hours as per details below:

  • 72 consecutive hours are taken as one event for Storms, Earthquake, Tidal waves, Seaquake, Volcanic Eruption.

  • 168 consecutive hours are one event in case of floods.

  • Man-made catastrophic losses caused by riots and civil commotion are defined as 72 consecutive hours for one event in any one city.

  • 168 consecutive hours are taken as one event for any other catastrophe.


"A person is said to commit house breaking who commits house trespass if he effects his entrance into the house (or any part of it), for the purpose of committing an offence, or having committed an offence therein, he quits the house (or any part of it), such entrance or exit being made in the six ways as described in the Penal Code"

Householders Comprehensive Insurance

A package of insurance designed to provide householders with a broad range of property and liability coverage, pertaining to events at home as well outside.

Hull Insurance

Insurance on the ship, its machinery and equipment


A tropical storm marked by extremely low barometric pressure and circular winds with a velocity of 125 Kilometres an hour or more.

Hurricane Insurance

Part of a group of perils namely "Storm, Cyclone, Typhoon, Tempest, hurricane, Tornado, Flood and Inundation" which is inbuilt in the coverage under the Standard Fire and Special Perils policy. This group of perils can, however, be opted out by the policyholder, if he desires to reduce premium cost.

Hut Insurance

An insurance coverage to dwelling huts in rural areas constructed with financial aid from Banks/Co-Op/Govt. Institutions. Cover is against Fire, Earthquake, Flood and Inundation, Storm, Impact damage, Riot and Strike, Terrorism, Malicious damage etc. Huts are insured for an agreed value of Rs.6000/- each.

Hydrant System

A large discharge pipe system with valves at various places for drawing water from a water-main. Installation of Hydrant System together with the existence of Hand Appliances will entail the insured to a discount in the premium rate under the standard fire and special perils policy.