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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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    Professional Indemnity insurance..

    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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    Professional Indemnity insurance..

    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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    Professional Indemnity insurance..

    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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    Public Liability Insurance..

    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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    Public Liability Insurance..

    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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    Product Liability Insurance.

    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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    Product Liability Insurance.

    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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    Product Liability Insurance.

    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