practice of general insurance. 5

8/3/2019 Practice of General Insurance. 5

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Practice of General Insurance


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BAGGAGE INSURANCE

COVERS ACCOMPANIED BAGGAGE DURINGTRAVEL/JOURNEY ANDY WHERE IN INDIA

PRECIOUS /FRAGILE ITEMS LIKE CAMERA,GLASS

ITEMS, JEWELLERY ETC ARE TO BE DECLARED AGAINST LOSS BY FIRE, THEFT OR ACCIDENT

DURING TRAVELBY LAND, SEA, AIR

BEYOND INDIA COVERAGE CAN BE GRANTED ON

EXTRA PRMIUM LOADING


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BAGGAGE INSURANCE- EXCLUSIONLOSS OR DAMAGE ARISING FROM-

a. WAR, CIVIL WAR AND THE LIKE , CIVIL COMMOTION,

b. DEPRECIATION, WEAR & TEAR,

c. MOTH, MILDEW, VERIN,

d. ANY PROCES OF CLEANING, RESTORING, REPAIRING,

e. DAMAGE TO WATCHES AND CLOCKS BY OVERWINDING,f. MECHANICAL AND ELECTRICAL BREAKDOWN,

g. THEFT FROM UNATTENDED VEHICLE,

h. DETENTION AND CONFISCATION BY CUSTOMS OR OTHER

AUTHORITY AND CONSEQUENTIAL LOSS.


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BAGGAGE INSURANCE- EXCLUSINS.

i. MONEY, SECURITIES, MANUSCRIPT, DEEDS, BILLOFEXCHANGE, PROMISORY NOTES, STOCK OR SHARECERTIFICATE, STAMPS, BUSINESS BOOKS/DOCUMENTS,PRECIOUS STONES

j. ARTICLES OR CLOTHS WHILST BEING WORN, PROPERTY INUSE ON THE JOURNEY. ACT OR OMMISSION OF SERVANTOR AGENT


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Cash in transit and cash in safe- Money

whilst taken from office to bank and vice versa andmoney kept in safe after office hours


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MONEY IN TRANSIT INSURANCE

COVERS MONEY INCLUDING CASH, CHEQUES, POSTAL ORDERS,

ETC. AGAINST THE RISKS OF LOSS BY ROBBERY, OR THEFT DURING

TRANSIT FOR PAYMENT OF WAGES OR FOR DAY TO DAYREQUIREMENT OF THE BUSINESS

HOLD UP IN THE PREMISES DURING BUSINESS HOURS AND

THEFT FROM LOCKED SAFE AFTER BUSINESS HOURS IS ALSOCOVERED

MONEY IN TRANSIT BY EMPLOYEES BETWEEN SPECIFIEDPLACES, E.G. INSURED PREMISES TO BANK AND VICE VERSA

TOTAL MONEY TRANSACTION IN A MONTH TO BE DECLAREDTO INSURER NEXT MONTH.

THE POLICY IS SUBJECT TO ADJUSTMENT AT THE END OFPOLICY PERIOD


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MONEY IN TRANSIT INSURANCE - exclusions

- FLOOD, CYCLONE, EARTHQUAKE AND OTHER CONVULSION

OF NATURE,- WAR AND WAR LIKE OPERATION, CIVIL COMMOTION, RIOT

& STRIKE AND TERRORIST RISKS,

- SHORTAGE DUE TO ERROR OR OMMISSION,

- BY USE OF DUPLICATE KEYS TO SAFE OR STRONG ROOM,

- THEFT FROM UNATTENDED VEHICLE AND CONSEQUENTIALLOSS

- RIOT & STRIKE CAN BE COVERED ON PAYMENT OF EXTRAPREMIUM.


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ALL RISKS INSURANCE

COVERS VALUABLE ITEMS LIKE JEWELERY, WATHES,CAMERAS ETC.

AGAINST LOSS BY ALL RISKS EXCEPT EXCLUDED, LIKEFIRE, THEFT OR ACCIDENT FROM ANY FORTUITOUSCAUSE ANY WHERE IN INDIA

COVER CAN BE GRANTED BEYOND INDIA TOSPECIFIC AREA BY LOADING PREMIUM


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ALL RISKS INSURANCE EXCLUSIONS:-

a. LOSS OR DAMAGE ARISING FROM WAR, CIVIL WAR ANDTHE LIKE , CIVIL COMMOTION, DEPRECIATION, WEAR &TEAR, MOTH, MILDEW, VERMIN, ANY PROCES OFCLEANING, DYEING, REPAIRING, OVERWINDING OFCLOCKS AND WATCHES,

b. MECHANICAL AND ELECTRICAL BREAKDOWN, BREAKAGEOF GLASS, CHINA AND ARTICLES OF BRITTLENATURE,THEFT FROM UNATTENDED VEHICLE, DETENTIONAND CONFISCATION BY CUSTOMS OR OTHER AUTHORITYAND CONSEQUENTIAL LOSS.

c. MONEY, SECURITIES, MANUSCRIPT, DEEDS, BILL

OFEXCHANGE, PROMISORY NOTES, STOCK OR SHARECERTIFICATE, STAMPS, BUSINESS BOOKS/DOCUMENTS,ARTICLES DESPATCHED CONTRACT OF AFFREIGHTMENT.


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JEWELLERS BLOCK INSURANCE

SCOPE OF COVER: SECTION 1

A. PROPERTY INSURED ON THE PREMISES

1-PROPERTY IN DISPLAY WINDOWS,

2-PROPERTY IN LOCKED SAFE ON THE PREMISES

3-ELSEWHERE IN THE PREMISES

Stock in trade: jewellery , gold and silver ornaments or

plates , pearls, precious stones

B. CASH AND CURRENCY NOTES-BANK LOCKERS

-PRIVATE LOCKERS


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JEWELLERS BLOCK

SECTION- IIPROPERTY INSURED EXCLUDING CASH AND CURRENCY

NOTES WHILST ENTRUSTED AND

IN THE CUSTODY OF BROKERS OR AGENTS OR

CUTTERS OR GOLDSMITHS OR SORTERS OF DIAMOND

NOT IN REGULAR EMPLOYMEN OF INSURED, FOR

BUSINESS PURPOSE SUBJECT TO DOCUMENTARY

EVIDENCE.


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JEWELLERS BLOCK

SECTION IIIPROPERTY WHILST IN TRANSIT WITHIN INDIA

BY:

A.REGISTERED INSURED POST PARCEL NOTEXCEEDING 10% OF THE S.I. UNDER SECTION

I OR A LIMIT OF RS.5 LAKH WHICH EVER IS

LESS

B.AIRFREIGHT- 20% VALUE SHOULD DECLARED

TO AIRLINES

C. ANGADIA(COURIER)


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JEWELLERS BLOCK

SECTION IV

OFFICE FURNITURE, FITTINGS

COVERS LOSS/DAMAGE CAUSED BY FIRE,EXPLOSION, LIGHTNING, BURGLARY,

HOUSEBREAKING, THEFT, HOLD UP, ROBBERY

AND RIOT & STRIKE DAMAGE

COVER IS SUBJECT TO PAIR AND SET CLAUSE


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JEWELLERS BLOCK- EXCLUSIONS

LOSS/DAMAGE WHILE PROPERTY IS BEING WORKED UPON-CLEANING, REPAIRING OR RESTORING

INVENTORY LOSSES- STOCK TAKING

L/D WHILST PROPERTY BEING WORN

AT PUBLIC EXHIBITION THEFT FROM VEHICL LEFT UNATTENDED

DEPRECIATION, SEAR & TEAR, MOTH, VERMIN, MILDEW

L/D TO ITEM OFGLASS, PORCELAIN OR BRITTLE NATURE UNLESS

THE CARRIER ALSO MEET WITH ACCIDENT. INFIDELITYOR DISHONESTY OF MEMBER OF INSUREDS FAMILY OR

EMPLOYEE,MESSENGER IN EMPLOYMENT, CUSTOMER, BROKER,

CUTTER, GOLDSMITH, ANGADIA


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JEWELLERSBLOCK-EXCLUSIONS..

L/D WHILST IN TRANSIT OTHER THAN SPECIFIED IN SEC.III ORFOR IMPORT/ EXPORT PURPOSE

DETENTION,CONFISCATION, DESTRUCTION BY GOVT.AUTHORITY

LOSS FOLLOWING THE USE OF DULICATE KEY TO SAFE

PROPERTY INSURED IN DISPLAY WINDOW LEFT AT NIGHT ORBEYOND BUSINESS HOURS

ANYCONSEQUENTIAL LOSS OR DAMAGE INCLUDING DELAY

CONVULSIONS OF NATURE LIKE EARTHQUAKE, VOLCANICERUPTION, CYCLONE, FLOOD ,STORM, WAR AND WARLIKEOPERATIONS

NUCLEAR WEAPONS AND RADIOACTIVE CONTAMINATION


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ENGINEERING INSURANCE


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Machinery Breakdown Insurance- loss/damage tomachineries due to breakdown


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MACHINERY BREAKDOWN Cover: Various types of machinery plant and equipment

(mechanical/electrical) can be insured. Any type of installedmachinery with an option to insure/to cover only selected

equipments.

Sum Insured : The sum insured should represent: Present day

replacement value which includes

-Present day replacement value which includes Incidental cost

Policy covers the insured machinery plant and equipments

while

at work/idle, being dismantled or removed or re-erected if

performed in the same premises damage to electrical machinery due to fire originating within

itself.

It covers loss or damage due to faulty operation adjustment ,

casting vibration, entry of foreign objects, loosening of parts,self heatin centrifu al force short circuit.


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MACHINERY BREAKDOWN- EXCLUSIONS

Partial Loss: Full cost of parts plus the labour charges to and

fro freight customs duty and charges for dismantling and re-

erection. Excess applicable to the affected item is deductedfrom claim. Depreciation is applied for items with limited life.

Total Loss: Actual value of items immediately before the

occurrence less appropriate depreciation. If under insured

claim is paid only on proportionate basis Policy will not pay for loss/damage due to

Fire and allied perils

War and War like operations Nuclear perils

Willful act or gross negligence existing defects normal wear and tear and consequential loss

Loss or damage falling under manufacturers' warranty

Particulars of cover liability and exclusion given above are not

complete or exhaustive


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Electronic Equipment Insurance This is a specially

designed policy which covers accidental loss or damage

to electronic equipment.


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Electronic Equipment Insurance

Electronic equipments are high cost and warrant a

comprehensive policy to cover the perils, unforeseen circumstances.

Innovative and customized packages.

All electronic equipments are covered under this. Toname a few - Communication Facilities , Tele printers, telex,Office Machinery, Word processors, printing, franking

machine.

Scope of cover:Section I : EquipmentsSection II : External Data Media

Section III : Increased cost of working


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Electronic Equipment Insurance.

Risks covered: Sudden ,unforeseen and accidental loss or

damage to equipment caused by-- Fire, lightning and explosion

- Electrical and Mechanical breakdown

- Flood and water damages

- Extraneous impact and collision

- Burglary and theft

- Cyclone, storm and other atmospheric disturbances- Failure of air-conditioning equipment

- Negligence, faulty operation, carelessness

- Riot, strike and malicious damages

- Entry of foreign body, dirt

Subject to exceptions as per the policy

Sum Insured: The sum insured must represent the new replacement value

of the equipment including Custom duties, transportation and installation

charges.

Period ofinsurance: On annual basis and to be renewed periodically


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Electronic Equipment Insurance..

Possible Extensions:

- Third Party Liability

- Owner's Surrounding Property

- Additional Customs Duty

- Express freight

- Escalation

- Airfreight Salient features:

- Claims experience discount is available depending on the

Sum Insured and claims ratio

- Electronic equipment insurance policies are subject to a

deductible/ Excess which is to be borne by the insured for

each and every claims

- Higher Excess can be opted for with a rebate in premium

rate

- Fire & allied perils could be excluded from the scope with a


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Electronic Equipment Insurance.

Principal Exclusions:- Cessation of work

- Damage covered under AMC

- Derangement not accompanied by damage otherwise

covered by this policy

- Damage directly occasioned by pressure wave caused by

aircraft/other aerial devices

- Willful act/ Willful negligence- Loss/damage to exchangeable tools and operating media

- Wear and Tear

- Aesthetic defects

- Loss or damage for which manufacturer/ supplier is

responsible either by law or contract- Faults or defects existing at the time of commencement of

insurance, which were/ ought to have been, known by the

insured.


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Contractors Plant and Machinery Insurance - ycovers all different types of machinery used for handing

material or construction.


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Contractors plant and machinery

Scope: The policy covers Sudden- Accidental, external damage to the insured machinery due to any cause other than

those specifically excluded in the policy. The policy covers the machinery whilst they are in operation or at rest or whilst

being dismantled for the purpose of cleaning or overhauling or whilst being shifted

within the premises or during subsequent re-erection, but in any case only after

successful commissioning.

The main exclusions of the policy are:-

loss or damage due to any internal electrical or mechanical break down, defective

lubrication, lack of oil or coolant although any consequent external damage is

payable.

loss or damage to replaceable parts or attachments such as bits, drills, knives, dies,

moulds etc.

loss or damage whilst in transit from one location to another. loss due to wear and tear, corrosion, rust, deterioration, atmospheric conditions.

loss or damage during testing operating or whilst being used for a purpose other

than designed for.

loss or damage to machinery working under ground.

loss or damage for which the supplier or manufacturer is responsible either by law

or under contract.


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Contractors plant and machinery

Add on Covers The policy can be extended to cover

third party liability - personal injury and property damage.

damage to owner's surrounding property.

Who can take the policy The policy can be taken by any one

of the following parties, either individually or jointly :-

The owner of the machine

The contractor / user of the construction machinery

The financial institutes who have an interest in the

construction machinery.

Sum insured The sum insured of each item of machinery

should represent the current purchase cost of a similar new

machine including all incidental expenses like freight, duty,

taxes, cost of erection etc.


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Contractors All Risks Insurance- speciallydesigned to give financial protection to the Civil

Engineering Contractors in the event of an accident tothe civil engineering works under construction.


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Contractor All Risks This policy is specially designed to give financial

protection to the Civil Engineering Contractors in theevent of an accident to the civil engineering works

under construction.

The policy comprises of 2 Sections :

Section I-Material Damage-covering physical loss,

damage or destruction of the property insured by

any cause, other than those specifically excluded in

the policy.

Section II-Third Party Liability-covering the legal

liability falling on the insured contractor as a result of

bodily injury or property damage belonging to a third

party.


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Main exclusions

The main exclusions under Section I : loss or damage

due to: faulty design

rectification of aesthetic defects of structure not

relating to any physical loss or damage to the

structure due to any accident, or of material defector of workmanship defect.

loss or damage due to gradual deterioration,

atmospheric condition, rusting etc.

loss discovered only at the time of taking inventory.

loss arising out of penalty for delay, non-fulfillment

of terms of contract.


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Storage cum erection insurance- Coverage

against loss/damage whilst the plant and

machinery is being erected or installed


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Marine Cum Erection Insurance- Projectinsurance including transit of Plant and Machinery and

other equipment or materials. Covers all physical riskswhich a project is exposed to during storage and

erection.


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Marine cum Erection Policy

The policy comprises of 2 Sections :

Section I-Material Damage-covering physical loss, damage ordestruction of the property insured by any cause, other than

those specifically excluded in the policy.

Section II-Third Party Liability-covering the legal liability falling

on the insured contractor as a result of bodily injury orproperty damage belonging to a third party.

The policy covers all risk of physical loss or damage of

insured property other than those specifically excluded ,

including :-

marine voyage for imports , offloading / storage at port

inland transit to site storage, handling, erection at site testing

and commissioning at site


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Erection policy: exclusions loss or damage due to faulty design, defective

material or casting, bad workmanship other than

faults in erection. This exclusion is limited to the

items immediately affected and does not apply to

any consequential loss to correctly executed items.

cost necessary for rectification or correction of anyerror during erection unless resulting in physical loss

or damage.

loss or damage due to gradual deterioration,

atmospheric condition, rusting etc. loss discovered only at the time of taking inventory.

loss arising out of penalty for delay, non-fulfillment

of terms of contract.


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Marine cum Erection Policy- add on covers

Add on covers The policy can be extended to cover

the following on payment of additional premium.

clearance and removal of debris

damage to owner's surrounding property

maintenance visit / extended maintenance cover additional customs duty

civil works

express freight air freight

deletion of duration clause under marine


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Marine cum Erection Policy- sum insured

How to select the sum insured The suminsured selected under section I should not be

less than the completely erected value of the

property inclusive of estimated freights,

customs duty, erection cost etc.

In case of long term contracts, there is bound

to be escalation in prices i.e.prime cost.

The sum insured under section II should

represent the per accident limit


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Workman compensation Insurance- Employers

legal liability towards employees due to accident

whilst on dutyThe policy covers statutory liability of an employer for the death

of or bodily injuries or occupational diseases sustained by the

workmen arising out of and in course of employment.


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Workmen Compensation policy..

Any employer whether as a Principal or contractor engaging "workmen"

as defined in WC Act to cover his liability to them under statute and at

common law. Employer can cover Employees who do not qualify as

"Workmen" under separate table

Scope: To pay all sums which the insured is legally liable to pay the

employees in respect of personal injury by accident or diseases 'arising

out of and in the course of the employment'

Insured's liability arising either under common law or the laws set out in

the schedule Workmen's Compensation Act 1923.

Costs or expenses incurred by the insured with the consent of the

company, to defend any claims are paid in addition.

Exclusions Any injury by accident or disease directly attributable to war

and nuclear risk

Insured's liability to employees of contactors to the insured

Any liability of the insured which attaches by virtue of an agreement.

Any compensation for diseases mentioned in Part 'C' of Workmen's

Compensation Act-1923


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Workmen Compensation policy..

Premium rating is governed tariff. It depends on the nature of work

carried on by the insured.

Tariff prescribes 2 forms ofinsurance

Table-A: Indemnity against legal liability for accident to employees under

Workmen's Compensation Act 1993

Fatal Accident Act 1855

Common Law Table-B: Indemnity against legal liability

Fatal Accident Act 1855

Common Law

Table A policies may be extended to cover insured's liability for

contractor's workmen.


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Fidelity Insurance- to cover the losses to

employer by dishonesty of the employees


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Fidelity Guarantee Insurance..

Scope: The Insurer agrees to indemnify the insured against a

direct pecuniary loss sustained by reason of any act of

fraud/dishonesty committed

On or after the date of commencement of this policy

During uninterrupted service with the Insured person and

discovered during the continuance of this policy or within

twelve calendar months of the expiration thereof

In the case of death, dismissal or retirement of the Employee

with twelve calendar months of such death, dismissal or

retirement whichever of these events shall first happen.

Conditions The liability of the Insurer shall not exceed (a) in respect of any employee the sum insured stated against

his name or as declared herein.

(b) in respect of all claims under this policy, the total sum

insured.


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Fidelity Guarantee Insurance..

If this policy shall be continued in force for more than one

period of indemnity or if any liability shall exist on the part of

the Insurer this Policy and also under any other Policy in

respect of fraud or dishonesty of the employee, the liability of

the Insurer hereunder shall not be accumulated or increased

thereby but the aggregate liability of the Insurer during any

number of periods of indemnity and for any number of acts offraud or dishonesty committed by the employee shall not

exceed the sum insured hereunder or the sum insured under

any other such policy as aforesaid whichever is greater.

The Insurer shall not be liable to pay more than one claim in

respect of the action of any one employee.

Exceptions: The Insurer shall not be liable in respect of losses

arising elsewhere than in India.


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Professional Indemnity Insurance- This policy ismeant for professionals to cover liability falling on them

as a result of errors and omissions committed by themwhilst rendering professional service.


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Professional Indemnity insurance..

The policy covers all sums which the insured professional becomes legally liable

to pay as damages to third party in respect of any error and/or omission on

his/her part committed whilst rendering professional service. Legal cost and

expenses incurred in defence of the case, with the prior consent of the insurancecompany, are also payable, subject to the overall limit ofindemnity selected.

Only civil liability claims are covered. Any liability arising out of any criminal act

or act committed in violation of any law or ordinance is not covered.

Who can take the policy The policy is meant for professionals. We issue

'Professional Indemnity' policies to the following group of professionals:-

Doctors and medical practitioners - which covers registered medical practitioners

like physicians, surgeons, cardiologists, pathologists etc.

Medical establishments - which covers legal liability falling on the medical

establishment such as hospitals and nursing homes, as a result of error or

omission committed by any named professional or qualified assistants engaged

by the medical establ

ishment.

Engineers, architects and interior decorators.

Lawyers, advocates, solicitors and counsels.

Chartered accountants, financial accountants, management consultants.


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How to select the sum insured In Professional Indemnity Policy, the sum

insured is referred to as Limit of Indemnity. This limit is fixed per

accident and per policy period which is called Any One Accident (AOA)limit and Any One Year (AOY) limit respectively. The ratio of AOA limit to

AOY limit can be chosen from the following:

a. 1:1 b. 1:2 c. 1:3 d. 1:4

The AOA limit, which is the maximum amount payable for each accident,should be fixed taking into account the nature of activity of the insured

and the maximum number of people who could be affected and

maximum property damage that could occur, in the worst possible

accident.

In the case of Professional Indemnity policy issued to engineers,

architects, interior decorators, lawyers, advocates, solicitors, counsels,

chartered accountants, financial accountants and management

consultants, the Any One Accident (AOA) limit is restricted to 25% of the

Any One Year (AOY) limit.


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How to claim The term "liability" means responsibility and "legal

liability" means responsibilities which can be enforced by law. Legal

Liability may be classified into Criminal Liability and Civil Liability. OnlyCivil Liability claims are payable.

Civil Liability claims will arise if there is prima facie evidence of

negligence by the insured resulting in injury or death to any third party

or resulting in damage to property belonging to a person other than

insured.

Negligence will be proved only when following conditions are satisfied:

Existence of duty of care

Breach of this duty

Injury suffered by a person or property damaged as a result of that

breach. In case of any event likely to give rise to a liability claim as described

above, insurance company should be informed immediately. In case any

legal notice or summons is received, it should be sent to the insurance

company. The company has the option of arranging the defence of the

case.


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The event giving rise to the claim should have occured during the period

ofinsurance or retroactive period and the claim first made in writing

against the insured during the policy period. The maximum amountpayable including defence cost will be the AOA limit selected. The Any

One Year limit will get reduced by the amount of claim or indemnity paid

for any one accident. Any number of such claims made during the policy

period will be covered subject to the total indemnity not exceeding the

Any One Year limit.

The policy will not pay for claims arising out of contractual liability,

intentional non-compliance of any statutory provision, loss of goodwill,

slander , fines ,penalties , libel , false arrest , defamation , mental injury

etc.


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Liability insurance-public liability Policy covers theamount which the insured becomes legally liable to pay

as damages to third parties as a result of accidental

death, bodily injury, loss or damage to the property

belonging to a third party.


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Liability Insurance

This policy covers the amount which the insured becomes

legally liable to pay as damages to third parties as a result ofaccidental death, bodily injury, loss or damage to the

property belonging to a third party. The legal cost and

expenses incurred in defending the case with prior consent

of the insurance company are also payable subject to certain

terms and conditions.

One can insure more than one unit situated in different

locations under a single policy.

The policy offers a benefit of Retroactive period on

continuous renewal of policy whereby claims reported insubsequent renewal but pertaining to earlier period after

first inception of the policy, also become payable.


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Public Liability Insurance..

Scope We issue three types of Public Liability Policies.

Public Liability Non Industrial Risk - For offices, hotels, cinema houses,

hospitals, schools etc.

Public Liability Industrial Risk - For godowns , warehouses and factories.

Public Liability Insurance Act 1991 - This is a mandatory policy to be

taken by owners ,users or transporters of hazardous substance as

defined under Environment (Protection) Act 1986 in excess of the

minimum quantity specified under the Public Liability Insurance Act

1991.

Add on covers The Public Liability Policy can be extended to cover the

following risks on payment of an additional premium.

Natural calamities like flood, earthquake etc.

Pollution Risk subject to NOC from Pollution Control Board

Transportation Risk


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Public Liability Insurance.. How to select the sum insured In Public Liability Policy, the sum insured is

referred to as Limit of Indemnity. This limit is fixed per accident and per policy

period which is called Any One Accident (AOA) limit and Any One Year (AOY) limitrespectively. The ratio of AOA limit to AOY limit can be chosen from the following

:

a.1:1 b.1:2 c.1:3 d.1:4

The AOA limit which is the maximum amount payable for each accident should

be fixed taking into account the nature of activity of the insured and the

maximum number of people who could be affected and maximum propertydamage that could occur, in the worst possible accident in the insured's premises.

In the case of Public Liability Insurance Act 1991, the AOA limit should represent

the paid up capital of the company subject to maximum of Rs.5 crores. The AOY

limit is fixed at 3 times the AOA limit (Max.Rs.15 Crores).

P bli Li bilit I


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How to claim Legal liability under the Law of Tort ,can arise under several

circumstances in insured's premises such as

Collapse of building structure

Accidental falling of fixtures

Bad maintenance or poor housekeeping resulting in accident to visitors

on the premises

Accidental leakage of toxic substance which pollutes the atmosphere and

injures or kills people

The term "liability" means responsibility and "legal liability" means

responsibilities which can be enforced by law. Legal Liability may be

classified into Criminal Liability and Civil Liability. Only Civil Liability

claims are payable.

Civil Liability claims will arise if there is prima facie evidence of

negligence by the insured resulting in injury or death to any third partyor resulting in damage to property belonging to a person other than

insured, or in insured's custody.

Negligence will be proved only when following conditions are satisfied:

Existence of duty of care Breach of this duty Injury suffered by a person

or property damaged as a result of that breach.


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In case of any event likely to give rise to a liability claim as described above,

insurance company should be informed immediately. In case any legal notice or

summons is received, it should be sent to the insurance company. The companyhas the option of arranging the defence of the case.

The event giving rise to the claim should have occured during the period of

insurance or retroactive period and the claim first made in writing against the

insured during the policy period. The maximum amount payable including

defence cost will be the AOA limit selected. The any one year limit will get

reduced by the amount of claim or indemnity paid for any one accident. Anynumber of such claims made during the policy period will be covered subject to

the total indemnity not exceeding the Any One Year limit.

In case of Public Liability Insurance Act 1991 Policy, any award which exceeds the

AOA limit will be paid by the government through Environment Relief Fund to

which the insured has to contribute an amount equivalent to the premium paid

under the Public Liability Insurance Act Policy. The policy will not pay for claims arising out of contractual liability, intentional

non-compliance of any statutory provision, loss of good-will, slander ,fines

,penalties , libel , false arrest , defamation , mental injury etc.


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Product Liability Insurance- covers all sums(inclusive of defence costs) which the insured becomes

legally liable to pay as damages as a consequence


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Product Liability Insurance.

This policy covers all sums (inclusive of defence costs) which

the insured becomes legally liable to pay as damages as aconsequence of:

accidental death/ bodily injury or disease to any third party.

accidental damage to property belonging to a third party.

arising out of any defect in the product manufactured by theinsured and specifically mentioned in the policy after such

product has left the insured's premises.

The policy offers the benefit of retroactive period on

continuous renewal of policy whereby claims reported in

subsequent renewal but pertaining to earlier period after

first inception of policy, also become payable.


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Scope: The defect in the product may be a manufacturing

defect or may even be due to faulty packaging, delivery

specifications or instructions as to use of the product.

The policy covers the sales turnover of the company- both

domestic and/or exports.

The policy is on a claims made basis i.e. the claims must

arise and be made in writing on the insurance companyduring the policy period.

The policy does not cover any liability for product recall,

product guarantee, pure financial loss such as loss of

goodwill or loss of market. The policy also does not pay forthe cost incurred for repairing or reconditioning or modifying

the defective part of the product.


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Add on covers The policy can be extended to cover liability

arising out of judgments or settlements made in countries

which operate under the laws of U.S.A or Canada (which is

an exclusion under the policy) by opting for the North

American Jurisdiction Clause.

The policy can also be extended to cover Limited Vendors

Liability for named or unnamed vendors. Limited vendorsliability means liability arising out of the sale and

distribution of named insured products by vendors with

original warranties and instructions of use of the product

specified by the manufacturers.

Who can take the policy The policy can be taken by the

manufacturer of any product whether it be the final product

or part of the final product.

d b l


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Claim : In case of any event likely to give rise to a liability

claim as described above, insurance company should be

informed immediately. In case any legal notice or summonsis received, it should be sent to the insurance company. The

company has the option of arranging the defence of the

case.

The event giving rise to the claim should have occurredduring the period ofinsurance or retroactive period and the

claim first made in writing against the insured during the

policy period. The maximum amount payable including

defence cost will be the AOA limit selected. The Any One

Year limit will get reduced by the amount of claim orindemnity paid for any one accident. Any number of such

claims made during the policy period will be covered subject

to the total indemnity not exceeding the Any One Year limit.

Directors and Officers Liability Insurance Thi


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Directors and Officers Liability Insurance- Thiscover is suitable for those Directors & key officers who

are in a decision -making position. These directors and

officers in pursuance of their duties may take someactions which may be in violation of certain statutes or

Indian Laws.

Directors and officers Liability


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Directors and officers Liability..

Cover: Against any loss that the Organization may incur, on account of

mistaken actions taken in their individual capacity as Directors & Officers

in pursuance of their duties under Memorandum and Articles ofAssociation.

Against loss arising from claims made against them by reason of any

wrongful Act in their Official capacity.

Legal costs & expenses incurred with the written consent of the insurers

arising out of prosecution (criminal or otherwise) of any Director /officer and attendance at any investigation, examination, inquiry or

other proceedings by the authority empowered to do so.

Expenses incurred by any shareholder of the Company in pursuance of a

claim against any Director / Officer, which the Company is legally obliged

to pay, pursuant to an order of a Court. Provide indemnity to the estate of, legal heirs or legal representatives of

the Director / officer in the event of the Director / officer becoming

insolvent.

Directors and officers Liability


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Directors and officers Liability..

Exclusion Any bodily injury ,sickness, disease or death of any

person or any damage to tangible property Dishonest, fraudulent, criminal or malicious act.

Personal guarantee.

Libel and slander

Personal injury and damage to property.

Pollution damage

Directly resulting from goods or products manufacture or

sold by the company

Fines, penalties, punitive or exemplary damages.

Any circumstances existing prior to inception date of policy


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Aviation Insurance- The policy covers all physical loss ordamage sustained by the insured aircraft including total loss,

disappearance. All losses are paid subject to deductibles.


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Plate Glass Insurance- covers all kinds of accidentalbreakages of the plate glass fixed to display windows or

show cases of commercial establishments.


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For rural areas

Different Insurance Policies required.

Cattle & LiveStock Policy

Agricultural pumpset Policy

Poultry Insurance Policy

Aquaculture(Fishery) Insurance

Sericulture(Silk Worm) Insurance

Honey Bee Insurance

Gramin Accident Policy

Plantation Insurance

Animal Driven cart / Tonga Policy


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Cattle Insurance- Indemnity under the policy will

be the sum insured or market value prior to illnesswhichever is less. The indemnity is limited to 75% of

Sum Insured in case of a PTD claim.

P i i b h


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Precaution is better than cure- I have amediclaim insurance policy to get the best treatment


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Is the claim payable ?All the dos. & don'ts. Come into action

h


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Is there any insurance ?

R l f I


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Role of Insurance

practice of general insurance. 5

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