shruti narang, 1273646, F2, Q-35 , Comment on compensation in non-life insurance

Q- Comment on Compensation in Non-Life Insurance

A- Introduction

First, what is Non-Life Insurance?

Non-Life Insurance is a policy that provides compensation for losses incurred from   a specific financial event. This type of policy is also known as general insurance, or property and casualty insurance. Example- of non-life insurance policies includes automobile policies etc.

Any business prefers to deduct its expenses from its income, which will reduce the income subject to taxation. A non-life compensation plan or agreement simply defers the payment of a portion of the employs compensation to a future date.

Discussion

About compensation in non-life insurance, these are different in different states.As each state/territory applies slightly different requirements and as a result this cover is only available to certain states.

You may be say that as to which insurer you wish to use and can change between insurers dependent upon the incentive, benefits and services being offered. There are many acts those formed by government like- ‘The Federal Employment Compensation Act’ provides workers compensation for non-military, federal employees.

‘The Federal Employment Liability Act’(FELA) while not a workers compensation statute, provides that railroads engaged in interstate commerce are liable for injuries to their employees.

‘Merchant Marine Act’ etc

In short, basically they protect people those who are injured on the job and or if the worker who killed because of work related accidents etc and then provided amount to them as the compensation.

Conclusion

At last, conclude that compensation in non-life insurance is basically a payment to an employee in return for their contribution to the organization that is for doing their job.