practice of general insurance. 5
TRANSCRIPT
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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