Embed Size (px)
Citation preview
Page | 1
Insurance provides financial protection against a loss arising out of happening of
an uncertain event. A person can avail this protection by paying premium to an
insurance company.
A pool is created through contributions made by persons seeking to protect
themselves from common risk. Premium is collected by insurance companies which also
act as trustee to the pool. Any loss to the insured in case of happening of an uncertain
event is paid out of this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of
insurance is that it spreads the risk of a few people over a large group of people exposed
to risk of similar type.
Definition:
Insurance is a contract between two parties whereby one party agrees to
undertake the risk of another in exchange for consideration known as
premium and promises to pay a fixed sum of money to the other party on
happening of an uncertain event (death) or after the expiry of a certain
period in case of life insurance or to indemnify the other party on
happening of an uncertain event in case of general insurance.
-Insurance Act 1938
The party bearing the risk is known as the 'insurer' or 'assurer' and the party
whose risk is covered is known as the 'insured' or 'assured'.
Concept of Insurance
The concept behind insurance is that a group of people exposed to similar risk
come together and make contributions towards formation of a pool of funds. In case a
person actually suffers a loss on account of such risk, he is compensated out of the same
pool of funds. Contribution to the pool is made by a group of people sharing common
risks and collected by the insurance companies in the form of premiums.
INTRODUCTION
Page | 2
Lets take an example to understand how general insurance actually works:
SUPPOSE Houses in a village = 1000 Value of 1 House = Rs. 40,000/-
Houses burning in a year = 5
Total annual loss due to fire = Rs. 2,00,000/-
Contribution of each house owner = Rs. 300/-UNDERLYING ASSUMPTION
All 1000 house owners are exposed to a common risk, i.e. fire
PROCEDURE
All owners contribute Rs. 300/- each as premium to the pool of funds
Total value of the fund = Rs. 3,00,000 (i.e. 1000 houses * Rs. 300)
5 houses get burnt during the year
Insurance company pays Rs. 40,000/- out of the pool to all 5 house owners whose house got burnt
EFFECT OF INSURANCE
Risk of 5 house owners is spread over 1000 house owners in the village, thus reducing the burden on any one of the owners.
Page | 3
UNITED INDIA INSURANCE COMPANY
Solutions that bring back smiles... real fast
United India Insurance Company Limited was incorporated as a Company on
18th February 1938. General Insurance Business in India was nationalized in 1972. 12
Indian Insurance Companies, 4 Cooperative Insurance Societies and Indian operations
of 5 Foreign Insurers, besides General Insurance operations of southern region of Life
Insurance Corporation of India were merged with United India Insurance Company
Limited. After Nationalization United India has grown by leaps and bounds and has
18300 work force spread across 1340 offices providing insurance cover to more than 1
Crore policy holders. The Company has variety of insurance products to provide
insurance cover from bullock carts to satellites.
United India has been in the forefront of designing and implementing complex
covers to large customers, as in cases of ONGC Ltd, GMR- Hyderabad International
Airport Ltd, and Mumbai International Airport Ltd Tirumala-Tirupati Devasthanam etc.
They have been also the pioneer in taking Insurance to rural masses with large level
implementation of Universal Health Insurance Programme of Government of India &
Vijaya Raji Janani Kalyan Yojana ( covering 45 lakhs women in the state of Madhya
Pradesh) , Tsunami Jan Bima Yojana (in 4 states covering 4.59 lakhs of families) ,
National Livestock Insurance and many such schemes.
Page | 4
The control on general insurance business started with the insurance act 1938,
setting up the government control. In 1968 it was amended to add more provisions to
and also Add Tariff Advisory Committee. This Tariff Advisory Committee now fixes the
rates terms and conditions for many branches of general insurance like Fire,
Engineering, Marine, Hull and Workmen compensation insurance.
In 1972, the General Insurance (Business Nationalisation) Act was passed. It set
up GIC and its subsidiaries. 107 private companies were merged into GIC and its
subsidiaries and these companies included both Indian and foreign companies. General
Insurance Corporation was formed as company under the Companies Act unlike LIC,
which was setup as corporation. The GIC has only one office in Mumbai and is the
holding companies for all the subsidiaries. It formulates general policy guidelines for
general insurance industry and control the investment and reinsurance policy of the
companies.
GIC had four subsidiary companies, namely (with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as independent
insurance companies.
1. The Oriental Insurance Company Limited
2. The New India Assurance Company Limited
3. National Insurance Company Limited
4. United India Insurance Company Limited.
In April 1993, the govt setup a high power committee headed by R. N. Malhotra,
former Governor of Reserve Bank of India. The committee submitted its report to the
ministry on 7th January 1994.
On 23rd January 1996, The Insurance Regulatory Authority was set up by a
Government order. N. Rangachari has taken over the function of the controller of the
INDUSTRIAL PROFILE
Page | 5
Insurance also. In that capacity he has the controlling authority over the General
Insurance and Life Insurance business in India.
In the budget speech of July 1996, the govt formally announced its plans to open
the Insurance Industry and also the intention of bringing an Insurance Regulatory
Authority Bill 1996
Insurance Regulatory and Development Authority Act 1999
An Act to provide for the establishment of an Authority to protect the interest of the
policy holders of insurance policies, to regulate, promote and ensure orderly growth of
the insurance industry and for matters concerned there with or incidental thereto and
further to amend Insurance Act 1938, and General Insurance Business (Nationalisation)
Act 1972.
On 26th August 1998 the Reddressal of public Grievances Rules 1998 was issued
by the Insurance Division, Ministry of Finance by which the Govt of India setup the
Insurance ombudsman scheme for GIC and LIC. This will handle cases against Industry
from the public and would take over a large part of the consumer forums. The scope
limited to personnel lineses of insurance i.e. Policies taken on individual capacity.
Insurance Industry has Ombudsmen in 12 cities. Each Ombudsman is empowered to
redress customer grievances in respect of insurance contracts on personal lines where
the insured amount is less than Rs. 20 lakhs, in accordance with the Ombudsman
Scheme.
General Insurance Corporation of India
GIC and its subsidiaries have completed a Gross Premium of Rs. 8086 crores as
on 31-03-2009. The industry registered an underwriting loss of 384.20 crores, but it
because of its investment income of Rs. 2056 crores, it recorded a net profit after tax of
Rs. 1255 arores. The consolidated result of 2008-2009. The total asset as on 31-03-2009
stood at 21,563 crores.
Private General Insurance Company Includes-
S.No. Registration Number
Date of Registration
Name of the Company
1 102 23.10.2000 Royal Sundaram Alliance Insurance Company Limited
Page | 6
2 103 23.10.2000 Reliance General Insurance Company Limited.
3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd
4 108 22.01.2001 TATA AIG General Insurance Company Ltd.
5 113 02.05.2001 Bajaj Allianz General Insurance Company Limited.
6 115 03.08.2001 ICICI Lombard General Insurance Company Limited.
7 131 03-08-2007 Apollo DKV Insurance Company Limited
8 132 04-09-2007 Future Generali India Insurance Company Limited
9 134 16-11-2007 Universal Sompo General Insurance Company Ltd.
10 123 15.07.2002 Cholamandalam General Insurance Company Ltd.
11 124 27.08.2002 Export Credit Guarantee Corporation Ltd.
12 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.
13 139 27.06.2008 Bharti Axa General Insurance Company Ltd.
14 141 15.12.2008 Raheja QBE General Insurance Co. LtdSource: www.irdaindia.org.html
Insurance is a federal subject in India. The primary legislation that deals with insurance
business in India is:
Insurance Act 1938, and Insurance Regulatory & Development Authority Act 1999.
Three Phases of De-Tariffing
India’s general insurance industry has undergone de-tariffing in three phases:
1994 -- marine cargo, personal accident, health, banker liability and aviation
2005-06 -- marine hull segment
2007 -- fire, engineering and motor own damage (OD). However, the de-tariffing
did not immediately allow for free pricing. Instead, insurers were required to
follow the “file and use” method, whereby they were expected to file a charter of
proposed rates, which was then approved by IRDA.
Page | 7
The restrictions on price discounts during the initial periods were intended to
ensure orderly price adjustments. They were removed in January 2008.
The only segment that remains under a tariff regime is the third party motor
business, although there has been a large upward revision in this area’s premium rates
by regulators in recent times. Moreover, commercial third party motor business, which
has traditional
Chart 1: Premium – Public vs Private by segment before removal of tariff
Source: www.moodys.com
Chart 2: Premium – Public vs Private by segment after removal of tariff
Source: www.moodys.com
Charts 1 and 2 compare the premium income of the private and public sectors.
Before the removal of tariffs, fire, engineering and motor own damage (OD) contributed
Page | 8
a much greater proportion of business for private players than was the case for public
firms.
Market Share – Redistribution
Due to the effectiveness of private marketing strategies, the market share of public
insurers has consistently declined. Chart 3 depicts the trend over the last five years.
Given a faster growth rate, the market share of the private sector is catching that of the
public sector and the two will likely converge over the medium term. In the past, private
insurers had aggressively targeted the more profitable (and tariffed) corporate fire and
engineering businesses by combining them with discounted offers on de-tariffed
products, for example, personal accident & health, marine cargo and hulls.
Chart 3: Premium & Volume, Public versus Private-
Source: www.moodys.com
Page | 9
UNITED INDIA INSURANCE CO
United India Insurance co is formed as a subsidiary of General Insurance
Corporation of India. Their quarters is in Chennai. Now they are the second largest
insurer in India and the largest in Rural insurance and Insurance of major power plants.
They have carved a niche for themselves in this segment because of their deep rooted
commitment combined with experience and expertise over 7 decades. Investment
Information and Credit Rating Agency of India Limited (ICRA) has awarded them with
‘iAAA’ rating indicating sound financial position and highest claims paying capacity.
The solvency margin is pegged at 3.32 and the net profit of the company for
2008-09 showed a healthy Rs. 745.485 crores. With over 1350 offices spanning the
length and breadth of the country they have been at advantage to serve customers
better. Besides this their core strength lies in their human resources. Having a work
force of 17000+ people and an army of 2000 officers committed to the service of their
customers, they are in a position to make light of the fact that they issue more than 1
crore policies in a year and settle more than 8 lac claims annually.
They have 25 Regional Offices, 1 Regional Cell, 2 Large Corporate Brokers Unit,
362 Divisional Offices, 684 Branch Offices and 288 Micro Offices spread around the
country. They have 17488 personnel working with them. There are 4451 officers (Class
I) 2013 Development Officers (Class II) 8508 Staff Senior Assistant and Assistant (Class
III),2516 Sub staff, Drivers, Peons and thousands of agents.
UNITED INDIA IN KERALA
United India’s Kerala Region was formed in the year 1984 and at the time the
Premium was only around 12 crores. In 2008-09, this region completed a figure of 97
crores. There are 204 officers, 801 staff, 128 development officers and many agents
working with them. They have a wide spread of officers in 16 divisional offices and 49
branch offices.
COMPANY PROFILE
Page | 10
United India in Kerala has the largest number of Corporate clients with them.
FACT Ltd. Hindustan Newsprint Ltd. Cochin Shipyard Ltd. Appollo Tyres Ltd. BPL, ITI,
Instrumentation Ltd. Etc are all their clients
They are the largest insurers of various Kerala Govt Schemes. Last year they
launched the Kambhenu programme which is probably the largest mass insurance
scheme launched the Rural Insurance.
At present they are launching a large core insurance plan to equip our offices to
meet the requirements. The Regional Office has setup a risk management cell, A
grievance cell and a Customer Service Cell for responding to the demand of the
customers. The Customer Service Cell is set up in all the Divisional offices.
One of their most successful policy which launched in Kerala is Rashtriya
Swasthya Bhima Yogana they insured from 2008 to 2010 more than ten lakhs people
who are in below poverty line and above poverty line.
Page | 11
Name : UNITED INDIA INSURANCE COMPANY
LIMITED
Address : Br Office P.B. No. 97, Ashiqua Towers,
Narangapuram, Thalassery – 670101
Kannur Dt. Kerala.
Activity : General Insurance
Sr. Branch Manager : P. K. Anil Kumar
Administrative Officer : Harish Kumar
Regd. & Head Office : 24, Whites Road, Chennai – 600014
Net income : 520 Crore INR
Total employees : 21000
Web site : www.uiic.in
Chairman-cum-Managing Director : G. Srinivasan
Director & General Manager : Milind Kharat
General Manager : V. Harshavardhan
General Manager : P C James
General Manager & Financial Advisor : S K Gosh
General Manager : K Sanath Kumar
General Manager : P J Joseph
Chief Vigilance Officer : S P Sinha
BASIC FACTS OF THE COMPANY
Page | 12
Board of Directors
1. Shri G.Srinivasan , Chairman Cum Managing Director
2. Smt. Sukriti Likhi, Director, Govt of India
3. Shri M. S. Sundara Rajan,Chairman & Managing Director, Indian Bank
4. Shri. Milind. A. Kharat , Director & General Manager , UIIC
5. Shri.V.Harshavardhan , Director & General Manager , UIIC
6. Shri A V Ratnam ,Director
7. Shri Abhijit Bandyopadhyay ,Director
BRANCH OFFICE MICRO OFFICE
REGIONAL OFFICE
DIVISIONAL OFFICE
LEARNING OFFICE
HEAD OFFICE
ORGANISATIONL STRUCTURE
Page | 13
Table 2. Premium Analysis (Rs. in crores)
Year Gross Net
2002-03 2969.63 2092.43
2003-04 3063.47 2151.36
2004-05 2944.46 2172.66
2005-06 3154.78 2225.85
2006-07 3498.77 2529.53
2007-08 3739.56 2880.65
2008-09 4277.77 3510.41*Source- Annual Reports
By analysing the premium from 2002 to 2009 it is clear how much it stable UIIC as well as insurance industry
FINANCIAL STRENGTH
Page | 14
Table 3. Profit Analysis (Rs. in crores)
Year Before Tax After Tax
2002-03 214.16 170.99
2003-04 393.39 380.44
2004-05 318.30 307.71
2005-06 452.74 425.23
2006-07 520.34 528.86
2007-08 658.13 631.62
2008-09 502.91 476.05*Source- Annual Reports
Profit analysis showing a satisfactory positive growth from 2002 to 2009
Page | 15
CORPORATE MISSION
To provide insurance protection to all.
To ensure customer satisfaction.
To function on sound business principles.
To help minimise national waste and to help develop the Indian economy.
CORPORATE VISION
The most preferred insurer in India, with global footprint & recognition
Trusted brand admired by all stakeholders
The best-in-class customer service provider leveraging technology & multiple
channels
The provider of a broad range of innovative products to meet the needs of all
customer segments
Great place to work with highly motivated and empowered employees
Recognized for its contribution to the society
Their Bancassurance tie-ups
Andhra Bank
State Bank of Hyderabad
Indian Bank
Canara Bank
Syndicate Bank
State Bank of Travancore
State Bank of Indore
State Bank of Patiala
Bank of Maharashtra
Bank of Rajasthan
Page | 16
Federal bank
Their Corporate Clients
Oil and Petro-Chemical Majors
Oil and Natural Gas Corporation Ltd.
Indian Oil Corporation
Hindustan Petroleum Corporation Ltd.
Haldia Petrochemicals Ltd
Gujarat State Fertilizer Corporation
Gujarat Narmada Valley Fertilizer Corporation.
Power and Energy Sector
Nuclear Power Corporation Kaiga, Kudankulam
Karnataka State Electricity Board, Bellary
Punjab State Electricity Board
Tiesta Uraj Ltd
Chattisgarh State Electricity Board
National Hydro Power Corporation
National Thermal Power Corporation
BHEL Power Projects: Chandrapura, Bakreshwar, Jaindal Super Power Plant
Raigarh, Sudan, Dadri
GVK Industries
Tata Power
Neyveli Lignite Corporation
Damodar Valley Corporation
Tanir Bavi Power Company Pvt. Ltd
Tehri Hydro Development Corporation
Subansiri Lower Hydro Electric Project
Torrent Power
SEPCO
IOC Panipat Naphtha Cracker Project
IOC Haldia Hydro Cracker Project
Page | 17
Tata Projects Ltd
Aviation
National carriers: NACIL (Air India)
Private carrier: King Fisher / Air Deccan
Indian Space Satellites Programme
Infrastructure Sector
Larsen and Toubro
GMR Group
Maytas Infrastructure
Pharma Major
Dr. Reddy’s Laboratories
Hotels
Oberoi
Hyatt Regency
Park Sheraton
Manufacturing
Ballarpur Industries
MICO
ITC
FACT
Nirma
Asian Paints
Oswal Group
Balco Industries
Hindalco Industries
India Cements
Vedanta Group
Page | 18
Tata Motors
TVS Group
RESEARCH PROBLEM
To study the product portfolio of UNITED INDIA INSURANCE COMPANY
LIMITED.
OBJECTIVES OF THE STUDY
1. To analyse the product portfolio in detail.
2. Put forth some suitable suggestions to improve performance of the Company on
the basis of findings of the study.
3. To analyze the attitude of the customers towards companies products.
4. To make suggestions and recommendations to the management.
RESEARCH METHODOLOGY
1. Methodology of data collection:-
To conduct the studies different methodologies have been adopted. Both
primary and secondary data are used. Primary data were collected by conducting
personal interviews with the departmental heads, casual talks with workers and
secondary data were collected from the organization manuals.
Primary sources
Direct interview with the departmental heads , detailed interview with the
divisional heads and by interaction with workers and customers of the company .
The data is also collected by observing the functions of the organization.
Secondary sources
The secondary sources of data are:
1. Organization documents.
2. Departmental manuals.
OBJECTIVES AND METHODOLOGY
Page | 19
3. Annual reports
4. Periodicals, books etc. published by the company.
5. Proposals Forums.
2. Methodology of data analysis:-
The data collected were edited, coded and processed. The information is presented
through tables, graphs etc.
SCOPE OF THE STUDY
This study is restricted to the analysis Product portfolio of United India
Insurance Co Ltd. For the purpose of the study the data relating various products
benefits premium risk covered are used.
LIMITATION OF THE STUDY
1. In the given short time it is very difficult to cover all area aspect of the firm.
2. Only product portfolio is analyzed in the study. The firm’s overall performance
cannot be evaluated in the study.
3. Company keeping some data confidential due to competition.
Page | 20
PRODUCTS
PERSONAL POLICIES COMMERCIAL POLICIES
U H I HOUSEHOLDER PERSONNEL ACCIDENT MEDICLAIM UNIMEDICLAIM
PERSONAL POLICIES
COMMERCIAL POLICIES
MARINE INDUSTRY MOTOR MISC LIABILITY FIRE
CARGO
HULL
I A R
B P P
C P M
M B
M P L P
L O PSOCIAL
RURAL
TRAVAL
PACKAGE
PUBLIC
WORKMEN
PRODUCT
PROFESSION
S F S P
L O P
PRODUCT PORTFOLIO
Page | 21
1. UNIVERSAL HEALTH INSURANCE SCHEME for BPL FAMILIES
The UNIVERSAL HEALTH INSURANCE policy will be available to both
Individuals as well as in Group.
Each Insured should cover all eligible members (insured persons) under one
group policy only. In other words different categories of eligible members shall not be
allowed to be covered under different group policies. It is not permissible to issue any
unnamed group policy.
The Individual Policy will be issued in the name of the earning head of family
with details of insured family members. The Group policy will be issued in the name of
the Group/Association/Institution (called insured) with a schedule of names of the
members including his/her eligible family members(called Insured persons) forming
part of the policy.
Coverage:
Section 1: Hospitalisation Expenses
Hospitalisation Benefits Limits
A Room, Boarding Expenses as provided by the Hospital / nursing home.
If admitted in IC Unit
Up to 0.5% of Sum Insured per day
Up to 1% of Sum Insured per day
B Surgeon, Anaesthetist, Medical Practitioner, Consultants, Specialists Fees, Nursing Expenses
Up to 15% of Sum Insured per illness / Injury
C Anaesthesia, Blood, Oxygen, Operation Theatre Charges, surgical appliances, Medicines & Drugs, Diagnostic Materials and X-ray Dialysis, Chemotherapy, Radiotherapy Cost of Pacemaker, Artificial Limbs & Cost of organs and similar expenses.
Up to 15% of Sum Insured per illness / Injury
PERSONAL POLICIES
Page | 22
D Maternity Benefit – ONE CHILD ONLY
(with 12 months waiting period)
Rs.2,500/- for normal delivery and Rs.5,000/- for caesarean delivery.
Page | 23
Section 2:
A. PERSONAL ACCIDENT COVER TO EARNING HEAD
Death of Insured Person (earning head of the family) solely due
to accident
Rs.25,000/-
B. DISABILITY COMPENSATION FOR EARNING HEAD AND / OR SPOUSE OF THE
FAMILY
SUM INSURED
Section I: Hospitalisation Benefit : Rs.30,000/- per family – per policy period
(Rs.30,000/- is inclusive of Maternity benefit of Rs. 2500/- for normal and Rs.5000/- for
caesarean delivery)
(Total expenses incurred for any one illness is limited to Rs.15,000/- (other than
Maternity Benefit) )
Section II: (A) Accidental death of earning head of the family Rs.25,000/-
Section II: (B) Disability compensation payable due to hospitalisation of earning head
and or spouse at the rate of Rs.50/- per day upto maximum of period of 15days in a
policy tear with a time excess of 3 days . Maximum compensation is restricted to
Rs.750/- in one policy year.
This insurance is available to persons between the age of 5 to 70 years. Children
between the age of 3 months and 5 years of age can be covered provided one or both
parents are covered concurrently.
Payment of premium:
Coverage Premium Insured’s share GOI Subsidy
Individual Rs.300/- Rs.100/- Rs.200/-
Family upto 5 Members Rs.450/- Rs.150/- Rs.300/-
Family upto 7 Members Rs.600/- Rs.200/- Rs.400/-
Page | 24
2. HOUSE HOLDER POLICY
Cover any loss/damage to:
Building and its contents
Jewellery and valuables
Domestic appliances, TV, VCR, Audio Systems, PC etc.
Baggage while on travel
Accidental injury causing death/disability
Liability to third parties
Any householder exposed to any of the above contingencies. Benefits under four
(minimum) or more sections can be chosen. P.A Cover available for insured's spouse
and children (Age: 12 to 70) can insure.
Cover under ten sections with option to choose minimum 4 sections for availing
discount in premium. Cover against contents is compulsory.
Building and contents: Fire, lightning, Acts of God, Riot and Strike, impact,
explosion of gas in domestic appliances, overflow of water tanks.
Burglary, House breaking and Theft.
Jewellery and Valuables - Any accidental loss/damage Plate Glass Any
accidental loss/damage
Baggage - While on travel Any accidental loss/damage
Domestic Appliances any accidental loss/damage entirely due to
electrical/mechanical breakdown.
TV, VCR, Audio System
Fire and allied perils, burglary, housebreaking, theft, electrical or mechanical
breakdown
Pedal cycle Fire and related perils, riot, strike, malicious damage, acts of god,
housebreaking, burglary, theft, external accident and also legal liability to
"Public" with a limit of Rs.10, 000.
Personal Accident
Accidental injury causing death/disablement [total/partial]
Third Party Liability
Due to injury to third party or damage to third party property.
Page | 25
Policy will pay:
Actual extent of loss/damage to property under respective sections
chosen;
Sum Insured is the limit of maximum liability under respective sections;
Limit of liability to third party for Personal injury/Property damage is
upto Rs.25,000 / Rs.10,000 / Rs.3000 under TV/Pedal Cycle/TV Antenna
sections respectively.
Exclusions:
War and war like perils
Wear and tear, depreciation, consequential loss
Nuclear group of perils
Gross and wilful negligence of Insured
Violation of policy conditions
Loss/damage/liability where Insured's family or Insured's employee are
involved as principal/accessory
Intentional act/self injury/ influence of drug/intoxicant.
Page | 26
3. PERSONAL ACCIDENT POLICY
Cover-Physical loss to an individual due to an accidental injury (including fatal)
Any individual or group of individuals (through employer, association, and institution
etc) aged between 12 and 70. Subject to medical examination at 70, a person can be
covered up to 80 can be insured.
Insured against the risk of death or disablement from accidental bodily injury
(anywhere in the world).
When an accidental injury being the sole and direct cause results ( during the period of insurance) in:
Death 100 % of Sum Insured
Permanent Total Disablement 100 % of Sum Insured
Loss of two limbs/ Two eyes or one limb
and one eye
100 % of Sum Insured
Loss of one limb or one eye 50 % of Sum Insured
Permanent Partial Disablement Varying % of Sum Insured as per policy
Temporary Total Disablement 1 % of Capital Sum Insured per week ,
Subject to a maximum of Rs 3000 per week,
for a maximum period of 100 weeks
Exclusions:
Compensation under more than one clause for same period of disability not
exceeding capital sum insured.
Any payment after admission of a claim for 50 % / 100 % of Capital Sum Insured.
Any claim in the same period of insurance exceeding the Capital Sum Insured.
Suicide, attempt there at, criminal breach of law, accidental death/injury under
influence of liquor/drugs.
Pregnancy related claim.
Page | 27
War and nuclear perils.
4. MEDICLAIM POLICY
Cover-Expenses incurred by the insured for hospitalisation for illness / diseases or
injury sustained (domiciliary hospitalisation also payable as per policy). These include
Hospital charges ( Room, Boarding & Operation theatre) fees for surgeon, Anaesthetist
Nursing, specialist etc., diagnostic tests, cost of medicines, blood, oxygen etc., cost of
appliances like pacemaker, artificial limbs etc.,
The following can be insured
Any person in the age group of 5 to 75 years Children between 3 months and 5
years can be covered only along with parent/s.
Institutions ( Government or Private ) for their employees
Clubs / association for their members in the said age group.
Group schemes for homogenous groups of more than 50 persons.
This policy covers risk of Illness / disease, accidental injury
Other benefits includes
Domiciliary hospitalisation benefits can be excluded under group mediclaim
policy and a premium discount can be availed
Exemption under income tax (80D of Income Tax Act) for Premium paid by
cheque
A discount of 10% of total premium for coverage of family under a single policy
The policy will pay
Actual hospitalisation expenses of various types listed above subject to a
maximum of Rs. 15,000/- to Rs. 5,00,000/- depending upon the sum insured
chosen at the inception of the policy ( sum insured is maximum liability under
the policy.)
Actual domiciliary hospitalisation expenses limited to Rs. 3,000/- to Rs. 50,000/-
depending on the sum insured chosen at inception.
Cost of health check up reimbursable at the end of 4 continuously claim free
underwriting years limited to 1% of Average sum insured of 4 claim free years
Page | 28
The sum insured will be increased by 5 % cumulative bonus for every claim free
year. If there is a claim in a policy with cumulative bonus 10% of the sum insured
will be reduced from the earned bonus
Exclusions:
Broadly there would be no claim under policy under following circumstances
DOMICILLARY HOSPITALISATION: Pre and post hospitalisation treatment,
treatment of Asthma, Chronic Nephritis and Nephritis Syndrome, Gastro-
enteritis, diabetes mellitus and insipidus, epilepsy, hypertension, influenza,
cough and cold, all psychiatric or psychosomatic disorder, pyrexia of unknown
origin for less than 10 days, tonsilitis and URTI, arthritis, rheumatism ( the list is
not exhaustive) Any treatment relating to any illness / disease already in
existence at the time of proposal
Any disease / injury during first 30 days of commencement of policy. ( accidental
injury is not an exclusion )
During first year of cover of cataract, Benign prostatic Hypertrophy,
Hysterectomy for menorrhagia on fibromyoma, Hernia, Hydrocele, Congenital
internal disease, Fistula in anus, sinusitis and related disorder.
Any pre-existing disease / illness is not covered during renewal also.
Vaccination, inoculation circumcision or change of life or cosmetic or aesthetic
treatment, plastic surgery, unless dental treatment unless requiring
hospitalisation necessitated due to accident or as a part of any illness.
Cost of spectacles, contact lenses, hearing aids.
Convalescence, general debility, "run-down" conditions sterility, venereal
disease, intentional self-injury use of intoxicants
Any variation of deficiency syndrome or AIDS.
Hospital / nursing home charges not consistent with or incidental to the
diagnosis and treatment : Vitamins, tonics not forming part of any treatment.
Any treatment related to pregnancy, child birth and voluntary medical
termination of pregnancy during the first 12 weeks of pregnancy
Page | 29
Nuclear perils and war group of perils
Naturo pathy treatment.
5. UNI-MEDICARE INSURANCE
Cover-Reimbursement of Hospitalisation expenses of illness/diseases or injury
sustained.
The insurance scheme also provides for
Family discount in premium
Cumulative Bonus
Cost of Health Check-up
Hospitalisation Benefits Limits
A
i) Room, Boarding Expenses as provided by the
Hospital / nursing home.
ii) If admitted in IC Unit
i) Up to 0.5% of Sum Insured per
day
ii) Insured per da
BSurgeon, Anasthetist, Medical Practitioner,
Consultants, Specialists Fees, Nursing Expenses
Upto 15% of Sum Insured per
illness / injury
C
Anaesthesia, Blood, Oxygen, Operation Theatre
Charges, Surgical appliances, Medicines &
Drugs, Diagnostic Materials and X-ray Dialysis,
Chemotherapy, Radiotherapy, Cost of
Peacemaker, Artificial Limbs & Cost of organs
and similar expenses.
Upto 15% of Sum Insured per
illness / Injury
Exclusions:
All diseases/injuries which are pre-existing when the cover incepts for the first
time.
Page | 30
Treatment arising from or traceable to pregnancy ( including voluntary
termination of pregnancy) and childbirth, (including caesarean section)
Naturopathy treatment
Page | 31
1. MARINE INSURANCE
a) Marine Cargo Insurance
Cover- Any loss or damage to goods in transit by rail, sea, road, air or post.
Owners or bankers of goods in transit/shipment can be insure. And the following can be
insured:
export and import shipments
goods in transit by rail, sea, road, air or post
goods carried by coastal vessels plying between the various ports within the
country
cargo transported by small vessels or country craft over inland waters
goods moved from place to place by river transport
The policy covers loss/damage to the property insured due to:
Fire or explosion; stranding, sinking etc.
Overturning, derailment ( of land conveyance)
Collision
Discharge of cargo at port of distress
Jettison
General average sacrifice, salvage charges
Earthquake, lightning
Washing overboard
COMMERCIAL POLICIES
Page | 32
Sea, lake, river water
Total loss of package lost overboard or dropped in loading or unloading
War and SRCC is specifically covered
Premium Rating
The normal basis of valuation for ocean/air consignment will be CIF + incidentals
up to a percentage which is agreed upon at the inception of the policy (normally this is
10 %)
Open Cover
Open cover is usually issued for import/export. The open cover is a contract
effected for a period of 12 months, whereby the insurance company agrees to provide
insurance cover to all shipments coming within the scope of the open cover. Open cover
is not a policy. It is an unstamped agreement. As and when shipments are declared,
specific policies are issued as evidence of the contract and on collection of premium.
Open Policy
This policy is issued for transit of goods within India. Policy is valid for one year
and all transits during the policy period and declared are automatically covered by the
insurance company subject to the availability of the overall sum insured.
It is a stamped document. In this case specific policies are not issued for each
consignment. Premium can be collected in advance for the entire estimated value during
the policy period. Stamp duty is collected in advance along with premium for
despatches to be declared periodically.
Specific Voyage Policy
This policy is valid for a single voyage or transit. The policy will be issued before
the voyage starts. The coverage will cease immediately on completion of the voyage.
The specific voyage policy must show complete details of the risk...It should
contain particulars of conveyance/Vessel name/ Bill of Lading or Way bill and date, sum
Page | 33
insured, terms and conditions of cover, voyage, cargo description etc like all other
marine policies
Annual Policy
This policy may be issued to cover goods in transit by road or rail or sea from
specified depots or processing units owned or hired by the insured. The goods covered
must belong to or held in trust by the insured. These policies cannot be issued to
transport operators, clearing , forwarding and commission agents or freight forwarders
or in joint names.. They cannot be assigned or transferred. For such policies the sum
insured should not be less than Rs 5000/-.
b) Marine Hull Insurance
Cover- Any loss or damage to ships, tankers, bulk carriers, smaller vessels, fishing boats
and sailing vessels.
Owners or bankers of ships or vessels can be insured.
The various vessels that are covered under this policy are:
Fishing Vessels
Ocean Going Vessels
Sailing Vessels
Other Vessels
Cover the following risks:
Fire or explosion; stranding, sinking etc.
Overturning, derailment ( of land conveyance)
Collision
General average sacrifice, salvage charges
Exclusions:
Deliberate damage/destruction of the vessel by wrongful act of any person
Use of any weapon of war employing atomic / nuclear fission and or fusion
Page | 34
Insolvency or financial default of the vessel owner / operators / charterers
War / civil war · Strike, Riot or Civil Commotion
Any terrorist or person/s acting with political motive
Page | 35
2. INDUSTRIAL INSURANCE
a) Industrial All Risk Policy
Cover- All the risks other than petro chemical risks having a minimum sum insured of
100 crores are covered here.
Perils Covered-
Section I
Fire & all covers
burglary and theft
Machinery breakdown / Boiler explosion / Electronic Equipment Insurance
Section II
Consequential Loss following Fire ( FLOP )
Machinery Loss of Profit
Excluded causes
Faulty design, materials , workmanship and construction
Interruption loss due to failure of gas , electricity and water supply
Collapse or cracking of buildings
larceny, fraud or dishonesty
wilfull negligence on the part of insured
war group of perils
nuclear group of perils
destruction of property by public order
Excluded Property
Page | 36
Money , cheques , securities of any description , jewellery , works of art , goods
held in trust or on commision , computer system records
Vehicles licensed for road use
Property in transit outside premises
Properties or structures in course of erection or demolition unless specifically
covered.
Land , pavements , railway and road lines untill specifically covered
Property damaged as a result of its undergoing some process
Livestock , growing crops or trees
Property removed to other locations exceeding 60 days
Loss payable to the property covered under marine / other policies
Section II
Insured's lack of sufficient capital
Any restrictions imposed by any public authorities
Loss of business due to cancellation of order / Lease
Damage to boilers , machinery , economizers and data equipment
Page | 37
b) Boiler & Pressure Plant Insurance
Cover- Boilers like fire tube boilers/recovery boilers and unfired pressure
vessels/steam pipes can be covered.
The owners of the boiler/ pressure plant can take insurance can be insured.
This policy affords protection against
Damage to the boilers and/or pressure vessels
Damage to the surrounding property of the insured
Liability of the insured by law to any third party on account of
o death or bodily injury
o Damage to property (not held in trust or in commission) caused by and
solely due to explosion or collapse occuring in the course of ordinary
working.
Partial loss
In cases where damage to an item can be repaired, the policy shall pay expenses
necessarily incurred plus the cost of dismantling and re-erection. No deduction for
depreciation but salvage value is deductible.
Total loss
Where an insured item is destroyed, the company pays the actual market value of the
item immediately before the occurrence of loss including freight and erection cost. The
salvage shall be taken into account and condition of average will apply (i.e. if sum
insured is not adequate, claim will be paid only proportionately).
Exclusions:
Fire related losses including extinguishment
Act of God perils
Page | 38
Gradually developing flaws
Wearing away or wasting of the materials of a boiler like blockage, corrosion,
fracturing, blisters, and lamination.
Failure of individual tubes
War group and nuclear group of perils
Experiments/tests requiring abnormal conditions
Defects, fracture, failure, deformation/bulging not resulting in explosion
Consequential loss, loss arising out of existing defects known to insured
Loss/damage for which manufacturer/ repairer is responsible
Wilful act/neglect or gross negligence of insured.
Page | 39
c) Contractors Plant & Machinery Policy
Cover- Various types of mobile equipments like earthmovers, excavators, cranes in
particular location are covered. The policy is restricted to a particular location.
The owners of the plant and machinery can be insured.
CPM Policy can be issued by covering equipment on Anywhere in India basis with the
following provisions:
a. Full description with identification no. of each and every equipment with
valuation should be declared.
b. Transit risks from site to site will be excluded.
c. Loading of 10% on the basic CPM rate shall be charged to cover floater
risks.
This policy shall cover any unforeseen and sudden physical damage to the property by
any cause not specially excluded. This policy shall apply to the insured item whether:
They are at work
or at rest
or being dismantled for the purpose of cleaning or overhauling
or when being shifted within the premises
or subsequent re-erection.
Partial loss
Full cost of replacement of parts plus repair charges, cost of dismantling and re-
erection. Depreciation is applied only for the parts with limited life. If the repair works
are undertaken by the insured, actual material and labour costs plus a reasonable
quantum of overheads is payable. Salvage is deducted. If the sum insured is not
adequate, policy pays only proportionately.
Page | 40
Total loss
The actual market value of item immediately before the occurrence of loss, less salvage
and depreciation subject to adequacy of sum insured
In both cases freight and customs duty are also paid if they are included in sum insured.
Policy excess is deducted from the claim.
Exclusions:
1. Electrical or mechanical breakdown or boiler explosion .
2. Replaceable parts like bits, knives, ropes & bolts, chains etc., wear and tear,
corrosion, damage whilst in transit, war and nuclear perils.
3. When undergoing test or while used for a purpose different from what was
originally intended .
4. Damage due to accidents to carrying vehicle /train/vessel/and craft.
5. Damage to plant&machinery working underground .
6. Contractual liability, consequential loss, existing defect, inventory loss.
Page | 41
d) Machinery Breakdown Policy
Cover- Various types of machinery, plant and equipment (mechanical/electrical) can be
insured. Any type of installed machinery with an option to insure/to cover only selected
equipments.
The following persons can be insured-
The owner of the machinery.
In case of any financier’s interest eg. Bank, IDBI etc. machinery can be insured in
the joint names.
The sum insured should represent:
Present day replacement value which includes
- Basic cost + customs duty
- Incidental cost
Covers the following risks
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 heating, centrifugal force, short circuit.
Basis of Indemnity
The sum insured representing the present replacement cost of the machinery.
Partial Loss
Page | 42
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 deducted from
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.
Exclusions:
Fire and allied perils
War and War like operations, Nuclear perils
Wilful act or gross negligence, existing defects, normal wear and tear and
consequential loss
Loss or damage falling under manufacturer’s warranty
Page | 43
e) Deterioration of Stock
Usually this policy is issued to cold storages.
There should be Machinery Breakdown Insurance for the machineries of concerned cold
storage units.
This policy covers the risk of loss or damage to the perishable stock by deterioration or
putrefaction due to
Rise or fall in temperature resulting from breakdown of refrigeration plant
and equipment at the premises.
Damage to the said plant and equipment by an incidental extraneous cause
subject to the perils excluded.
Failure of electric supply
Basis of Indemnity
The insured is indemnified for damage caused to the stocks by deterioration,
contamination or rotting due to an accidental damage to the plant resulting in a rise in
temperature.
The total liability of the company under this policy shall be limited to the insured value
or market value whichever is less.
Provided always that
The insured should possess an unqualified permission in writing of the
competent Licensing Authority to the Cold Storage during the entire period of
insurance.
The damaged stock should be stored at the refrigeration chambers specified in
the policy
The Plant and Machinery used should be covered by Machinery Insurance.
The insured has to maintain daily stock book, Log books as per the format
prescribed by company
Stock book & log book should be made available for the inspection of company
representative
Page | 44
Appropriate deductions-Shrinkage and rottage
- Value of damaged stock by sale or survey
- Under insurance, if any
- Excess
- Recovery of rent, if any
f) Electronic Equipment Insurance
Cover-
Electronic equipments such as Computers, Medical, Bio-Medical, Micro Processors,
Audio-visual equipments etc.
The owner of the equipment. Interest of any financier may be protected by issuing a
policy in the joint names can be insured.
Policy Cover-
Section 1. Material damage.
Section 2. External data Media.
Section 3. Increased cost of working.
Risk covered-
Unforeseen and sudden physical loss or damage from fire and allied perils breakdown,
short circuiting etc.
Basis of Indemnity
Section 1:
Partial loss:
Actual expenses incurred to restore it to its former state plus cost of dismantling, re-
erection, ordinary freight, Duty (Depreciation only on parts with limited life).
Total loss:
Actual market value immediately before the loss plus ordinary freight, erection charges,
Duty Excess, Salvage are deducted.
Page | 45
Section 2:
Expenses incurred within 12 months and strictly necessary for restoring the data media
to its pre-accident condition would alone be payable.
Section 3:
1. Rental expenses incurred for substitute equipments on hourly basis.
2. Personal expenses.
3. Transportation charges.
Exclusions:
Section 1:
Excess specified in policy, wear and tear, existing faults, loss/damage to exchangeable
parts and consumables.
Section 2:
Excess specified, intrinsic value, consequential loss, Programming error - data media
Section 3:
Expenses due to: restrictions imposed by public authorities, non-availability of funds.
Page | 46
3. MOTOR INSURANCE
Motor Package and Liability only Policies
Cover-Motor vehicle which includes private cars, Motorised Two wheelers and
Commercial vehicles excluding vehicles running on rails.
Owners of the vehicle, Financiers or Lessee, who have insurable interest in a motor
vehicle can be insure.
Insured's Declared Value
(a) In case of vehicle not exceeding 5 years of age, the IDV has to be arrived at by
applying the percentage of depreciation specified in the tariff on the showroom price of
the particular make and model of the vehicle.
(b) In case of vehicles exceeding 5 years of age and Obsolete models (manufacture of
those vehicles which have been stopped by the manufacturers), they have to be insured
for the prevailing market value of the same as agreed to between the insurer and the
insured.
(a) Package Policy - Section I
Section I (Own Damage - OD) of Package Policy :
Section I of package policy covers loss or damage to the vehicle and / or accessories due
to
Accidental external means
Fire, Self ignition, lightning
Burglary, house breaking or theft
Terrorist activity
Riot, Strike and Malicious Damage
Earthquake
Page | 47
Flood, cyclone and Inundation etc
While in transit by rail, road, air, elevator, lift or inland waterways
Landslide or workslide
None of the above perils can be excluded from the scope of a policy.
Loss or damage to accessories by burglary/house breaking/theft
1. For private car it is covered
2. In case of Motorised Two Wheelers this can be covered on payment of an
additional premium at 3% of the IDV of such accessories
3. Loss or damage to Lamp, Tyres, mudguard and / or bonner side parts, bumpers
etc., can be covered on payment of additional premium. This is applicatble only
to Commercial Vehicles.
If the vehicle is disabled in an accident, cover is provided for the reasonable cost of the
following:
Its removal to nearest repairers
The cost of reasonable repairs immediately necessary
subject to the limit provided for.
(a) Package Policy - Section II
Section II (Liability) of Package Policy :
1. Liability to third parties bodily injury and or death and property damage
2. Personal accident cover for the owner driver for a specified sum insured
The following are payable under Section II of the Package Policy subject to the limit of
liability laid down in the Motor Vehicles Act :
The insured's legal liability for death / disability of third party
Loss or damage to third party property
Page | 48
Claimant's cost as decided by the court
All costs and expenses incurred with company's written consent
In case of death of an Insured person, entitled to indemnity for a liability incurred under
this policy, his legal representative will be indemnified in place of insured, if he
observed all conditions as the insured himself.
(b) Liability Only Policy
As per Section II of the package policy
Discounts
The following are the discounts available on the premium payable.
Vintage Cars - Cars manufactured prior to 31.12.40 and duly certified by the
Vintage and Classic Cars Club of India :
A discount of 25% on the OD rates is available. Policies issued covering these
vehicles are Agreed Value Policies.
No Claim Bonus :
Ranging from 20% to 50% depending on the number of claim free years.
Automobile Association Membership Discount :
Discount of 5% on the Own Damage premium subject to a maximum of Rs. 200/- for
private cars and Rs. 50/- for Motorised Two wheelers only.
Discount for Anti Theft Devices :
A discount of 2.5% on the OD component of premium subject to a maximum of Rs.
200/-. Device approved by the ARAI, Pune - installation of the same in vehicle certified
by the Automobile Association of India.
Concession for vehicles laid up for continuous periods exceeding 2 months
Page | 49
50% discount on the OD premium on the vehicle specialy designed / modified
for use of the blind, handicapped and mentally challenged persons
Use of vehicles withing Insured's premises/sites :
A discount of 33 1/1 % on the tariff rates is permissible.
Extension of Cover on payment of additional premium
Additional premium is payable to extend the cover under the Package and Liability Only
policies in case of the following :
The Geographical area may be extended to include
a) Bangladesh b) Bhutan c) Nepal d) Pakistan e) Sri Lanka f) Maldives by charging
additional premium of Rs. 500/- per vehicle in case of package policy and Rs.100/- per
vehicle in case of Liability only Policy.
Personal Accident covers are available to names and unnamed persons travelling
in the Motor Vehicles including employees.
In case of vehicles belonging to Embassies / Consulates etc., where the "import
duty" element is not included in the IDV the premium for Own Damage shall be
loaded by 30%.
Electrical / Electronic Fittings :
Electrical / Electronic Fittings which do not form part of the vehicle manufactured and
imported have to be specifically covered separately by paying additional premium of
4% on the value of such fittings.
CNG / LPG-Bi-fuel Kits :
Vehicles fitted with CNG/LPG Bi-fuel kits have to be separately declared and premium is
chargeable at 4% on the value of such kit.
Fibre Glass Fuel Tanks :
Page | 50
An additional premium of Rs.50/- for OD cover for all vehicles except Miscellaneous
Type of Commercial Vehicles : for Miscellaneous Type of Commercial Vehicle it is Rs.
100/-.
Page | 51
Other Information
(I) Transfers :
In case of change of ownership, please ensure to effect the transfer of Insurance policy
within 14 days from the date of transfers of ownership.
(II) Change of Vehicles :
A vehicle can be substituted by another vehicle for the same class, for the balance
period of a policy subject to adjustment of premium, if any, on prorata basis from the
date of substitution.
Page | 52
4. MISCELLANEOUS INSURANCE
a) SOCIAL INSURANCE
i) Janata Personal Accident
Cover- Any Individual aged between 10 -70.
Accident resulting in,
Death
Permanent total disablement
Total and irrecoverable loss of use of limb
Loss of eye sight
Policy can be availed for an amount of Rs. 25,000/- to Rs. 1,00,000/- sum insured.
In the event of accidental injury, it provides compensation as follows
Death or permanent total disablement - 100% of sum insured.
Loss of two limbs or two eyes or one limb and one eye - 100% of sum insured.
Loss of one limb or one eye - 50% of sum insured.
Exclusions:
No compensation is payable for any disablement that exists at the time of taking
the policy. No payment will be made in excess of the sum insured for each
individual.
Intentional self-injury
Suicide or attempted suicide
Whilst under the influence of intoxicating liquor or drug
Whilst racing on wheels
Hunting
Big game shooting
Page | 53
Mountaineering or whilst engaged in winter sports or resulting from the insured
committing any breach of law with criminal intent.
War and nuclear perils.
ii) Bhagyashree Child Welfare Policy
Cover- Cover is applicable to girl child in the age group of 0 to 18 years whose neither
parents' age should be greater than 60 years.
Cover is to provide relief to insured girl in the case of death of either/both of the
parents arising out of accident.
In the event of death of the parent(s), Rs.25,000/- will be deposited in the name of the
child in any of the nationalised banks and the benefits will be provided as under.
Benefits Provided
Age of the child Amount of relief Payable to
1-5 years
Rs.1,200/-per annum
Surviving parent or
guardian
Surviving parent or guardian,
provided the expenditure is incurred
for the child's education
6-11 years Rs.1,200/- per annum
Surviving parent or guardian,
provided the expenditure is incurred
for the child's education
12-17 years Rs.2,400/- per annum
Surviving parent or guardian
provided the expenditure is incurred
for the child's education
18 yearsBalance amount to the
child's credit
To the girl on attaining the age of 18
completed years
In the event of the death of the girl before attaining 18 years, the balance amount
standing to the credit of the girl child will be paid to the surviving parent/guardian.
Unique Features
Page | 54
Relief to the girl child in the event of death of any of the parents
Relief to orphaned girl for maintenance and education
Lumpsum payment on attaining the age of 18 completed years
Premium - Rs.15/- per child per annum.
Discounts - Varies from 5 to 30% depending upon the group size.
iii) RajaRajeshwari Mahila Kalyan Yojna Policy
This scheme provides economic security to women. All sections of women in the
age group of 10 - 75 years irrespective of their income, vocation or occupation can be
covered in this policy.
Basic cover
For Disablement of Insured women –
Permanent total disablement Rs.25,000/-
Loss of two limb/both eyes/one limb and one eye Rs.25,000/-
Loss of one limb/one eye - Rs.12,500/
For Death
For married women - Policy provides compensation of Rs.25, 000/- in the event
of death of husband due to accident.
For unmarried women - Policy provides compensation of Rs. 25,000/-in the
event of death of the insured to the nominee/legal heir.
Additional Cover
Temporary Total Disablement Rs.500/- per month subject to a
maximum of Rs.1,500/
Expenses incurred for legal Divorce proceeding Actual not exceeding Rs.2,000/-
Loss/damage to HouseholdFire, flood, riot, Up to a limit of Rs.2,000/-
Page | 55
terrorism
Death/Disablement would mean not only Death/Disablement arising out of
accident, but also include death during child birth at hospital and surgical operation
such as sterilisation, caesarean, hysterectomy and removal of breast due to cancer
provided that it occurs within 7 days from the date of operation.
Unique Features
Policy provides cover not only for the disablement of women but also for the
death of her husband.
Additional cover provides for Temporary Total Disablement and also for loss/
damage to household goods.
Premium:
Rs.15/- per woman per annum for the basic cover and Rs.23/- per woman per annum
for both basic and additional cover.
Discounts:
Group discount varies from 5% to 30% based on the group size. Long Term Discount
ranges from 5% to 20% depending upon the period of insurance.
Page | 56
iv) Mother Teresa Women & Children Policy
All sections of women in the age group 10 to 75 years irrespective of their income,
occupation or vocation can be covered under the policy.
Section i : economic security scheme to women
Basic Cover-For Disablement of Insured women –
Permanent total disablement Rs.25,000/-
Loss of two limb/both eyes/one limb and one eye Rs.25,000/-
Loss of one limb/one eye Rs.12,500/-
For Death –
For married women – Policy provides compensation of Rs.25,000/- in the event
of death of husband due to accident.
For unmarried women – Policy provides compensation of Rs. 25,000/-in the
event of death of the insured to the nominee/legal heir.
Additional Cover For Women
Temporary Total Disablement Rs.500/- per month subject to a maximum of
Rs.1,500/
Expenses incurred for legal Divorce
proceeding
Actual not exceeding Rs.2,000/-
Loss/damage to Household Fire, flood, riot,
terrorism
Up to a limit of Rs.2,000/-
Death/Disablement would mean not only Death/Disablement arising out of accident,
but also include death during child birth at hospital, and surgical operation such as
Page | 57
sterilisation, caesarean, hysterectomy and removal of breast due to cancer provided
that it occurs within 7 days from the date of operation.
Premium
Rs.15/- per woman per annum for the basic cover and Rs.23/- per woman per annum
for both basic and additional cover.
Additional Accident Cover for Wife
As a special case we can consider in the event death due to accident of married women,
husband gets the compensation of Rs.25,000/- with an additional premium of Rs.9/-.
This cover is only death due to accident and disablement is not considered under the
policy.
Discounts
Group discount varies from 5% to 30% based on the group size. Long Term Discount
ranges from 5% to 20% depending upon the period of insurance
Unique Features
Policy provides cover not only for the disablement of women but also for the
death of her husband.
Additional cover provides for Temporary Total Disablement and also for
loss/ damage to household goods.
Section ii - insurance cover applicable to children
Basic Cover
Cover is applicable to two children in the age group of 0 to 18 years whose
parents’ age does not exceed 60 years.
Cover is to provide relief to insured children in the case of death of
either/both of the parents arising out of accident.
Page | 58
In the event of death of the parent(s), Rs.25,000/- will be deposited in the
name of the child with the GIC Asset Management Co. Ltd. and the benefits
will be provided as under –
Benefits provided
Age of the children
Amount of Relief Payable to
1-5 years Rs.1,200/-per annum Surviving parent or guardian
6-11 years Rs.1,200/- per annum Surviving parent or guardian, provided the expenditure is incurred for the children’s education
12-17 years Rs.2,400/- per annum Surviving parent or guardian provided the expenditure is incurred for the children’s education
18 years Balance amount to the child’s credit
To the children on attaining the age of 18 completed years
In the event of the death of the children before attaining 18 years, the balance amount
standing to the credit of the children will be paid to the surviving parent/guardian.
Premium
Rs.15/- per child per annum.(coverage limited to two children only and the
premium would be Rs.30/- per annum.)
Discount
Varies from 5 to 30% depending upon the group size.
Unique Features
Relief to the children in the event of death of any of the parents
Relief to orphaned children for maintenance and education
Lump-sum payment on attaining the age of 18 completed years
Hence the total premium for a comprehensive policy would as follows:
i. Rs.32/- for comprehensive cover to the women inclusive of husband
ii. Rs.30/- for two children
Totaling Rs.62/- only for the entire family cover.
Page | 59
The insured can either opt –A full family cover for Rs.62/- or Section I - only for Rs.32 or
Section II - only for Rs.30/- as per their need.
In case the premium is routed through a single source, the applicable discount would be
the highest and the premium at the lowest.
v) Jan Arogya Bima Policy
Any Individual aged between 5 -70. Children between 3 months and 5 years can be
covered provided one or both parents are covered concurrently.
Hospitalisation/Domiciliary hospitalisation expenses incurred for medical or surgical
treatment for illness/disease (contracted after 30 days from commencement of risk)
and injury.
Reimbursement of hospitalisation/domiciliary hospitalisation expenses incurred by an
insured person for treatment of illness/disease/injury as an inpatient in a Nursing
Home. The limit of liability under the policy per year per person is Rs.5,000/-.
Risk Covered-Any sudden illness like heart attack, jaundice, pneumonia, appendicitis,
paralytic, food poisoning or accidents and the same require hospitalisation/domiciliary
hospitalisation
Exclusions-
Any disease contracted within 30 days from commencement of risk.
Injury/disease caused by war perils/nuclear perils
Circumcision
Routine eye examination
Dental treatments/surgery of any kind unless requires hospitalisation.
Convalescence/general disability/run down condition or rest cure etc.
Expenses on vitamins and tonics
Treatments arising from or traceable to pregnancy/child birth inclusion of
caesarian section.
Page | 60
Page | 61
b) RURAL INSURANCE
i) Cattle & Livestock Insurance
All indigenous/cross breed/exotic animals in the prescribed age groups duly fixing the
value and certifying the health of the proposed animal by a qualified Veterinary Doctor.
Animal owners / private dairies / cooperative dairies / NDDB owned dairies can be
insured.
Risk covered-
a. Death due to accidents including fire, lightning, flood and cyclone or disease
contracted or occurred during the currency of the policy period.
b. Permanent Total Disability due to total incapacity to conceive or yield milk by
paying extra premium.
Sum insured or market value prior to illness subject to production of following
documents.
a) Duly completed claim form.
b) Death certificate from a qualified veterinary surgeon.
c) Policy / Certificate.
d) Ear tag.
Exclusions-
Malicious or wilful misconduct or neglect, over loading, unskilled treatment or
use of the animal for the purpose other than stated in the policy without the
consent of the company in writing.
Accidents occurred or diseases contracted prior to commencement of risk.
Intentional slaughter.
Transport by air / sea and road beyond 80 kms.
Theft / clandestine sale, missing of insured animal.
Partial disablement of any type.
War perils.
Page | 62
Nuclear perils
Consequential loss
Death of animals due to disease within 15 days from the inception of policy.
Pleuro pnemonia --- Lakhimpur ----- districts of Assam.
ii) Agricultural Pumpset Insurance
All kinds of pumpsets like centrifugal, jet and submercible (both electrical and diesel)
upto 30 HP of approved makes.
Owners of pumpset or financing banks and manufacturers of pumpset can insure under
Pumpset Package Policy.
Risk covered-
Fire and lightning
Theft/burglary
Mechanical/Electrical breakdown
RSMD and Terrorism
Flood
For total loss of sum insured or market value prior to loss whichever is less is payable .
For replace parts, dpereciation is chargeable in the event of electrical / mechanical
breakdown losses.
The rewinding charges are reimbursable subject to maximum limits specified in the
policy. There will be due deduction for salvage and excess
Exclusions-
Normal wear and tear, gradual deterioration due to atmospheric condition or
otherwise.
Wilful or gross negligence of insured or his representative.
Page | 63
Faults existing at the time of commencement of insurance known to insured or
his representative.
Loss or damage for which manufacturers or suppliers are responsible either by
law or under contract.
Cost of dismantling, transport, re-erection.
War and nuclear perils.
iii) Poultry Insurance
A Layer birds and hatchery birds in a poultry farm in the age group of 1 day old
to 72 weeks and broilers in the age group of 1 day to 8 weeks.
Ducks and Quails are also insured under the policy.
Own Poultry farmers / financing bank can insure the birds. All the birds in the
farm should be insured without selection.
Risk covered-
Policy provides indemnity against death of birds due to accidents including
fire, lightning, flood, cyclone, strike, riot, civil commotion, terrorism,
earthquake and disease contracted or occurred during the policy period (a fewer
specified diseases are however excluded and can be covered subject to
vaccination.
Policy pay-
80% of the value of the bird at the time of loss as per stage wise valuation
table attached to the policy subject to deduction of a specified policy excess.
Exclusions-
Malicious / wilful misconduct / negligence.
Page | 64
Transit by any mode of transfer.
Improper management.
Theft and clandestine sale of birds.
Intentional slaughter of birds.
Consequential loss
War and nuclear perils.
Mareks, Ranikhet, Foul Pox and infectious bronchitis unless birds are
successfully protected against them.
Loss of production, mall nutrition, under growth, cannibalism, loss due to
huddling and piling of birds.
iv) Gramin Accident Policy
Any Individual aged between 10 -70.
Policy can be availed for an amount of Rs.5,000/- sum insured.
Death
Permanent total disablement
Total and irrecoverable loss of use of limb
Loss of eye sight due to accidental injury.
In the event of accidental injury, it provides compensation as follows-
Death or permanent total disablement - 100% of sum insured.
Loss of two limbs or two eyes or one limb and one eye - 100% of sum insured.
Loss of one limb or one eye - 50% of sum insured.
Exclusions-
Page | 65
No compensation is payable for any disablement that exists at the time of taking
the policy. No payment will be made in excess of the sum insured for each
individual.
Intentional self-injury
Suicide or attempted suicide
Whilst under the influence of intoxicating liquor or drug
Whilst racing on wheels
Hunting
Big game shooting
Mountaineering or whilst engaged in winter sports or resulting from the insured
committing any breach of law with criminal intent.
War and nuclear perils
v) Plantation Insurance
Trees/plants/shoot/vegetative part only for crop duration or 12 months whichever is
shorter.
Farm owners/lessees cultivating the plantations /horticulture.
Coverage and indemnity to insured to the extent of loss or damage to the crop by
operation of any one of the following perils –
a) Fire including forest fire and bush fire.
b) Lightning
c) Riot, strike, acts of terrorism
d) Storm, hailstorm, cyclone, hurricane, flood and inundation.
Page | 66
The input costs or recurring expenses incurred for raising the crop (establishment and
maintenance) upto the date of the loss. Limits of indemnity on input cost basis are fixed
at each stage of the crop. Claims are subject to Franchise and Excess deductibles.
Exclusions-
The policy excludes to pay for loss or damage to crop arising due to theft, malicious
damage, negligence, natural mortality, war perils, nuclear perils, insects, pests and
diseases, drought, earthquake, climatic variations, water logging, inconsequential losses,
damage to structures capital items, irrigation systems, agricultural implements,
harvested produce.
Page | 67
c) TRAVAL INSURANCE
i) Baggage Policy
Baggage Insurance Policy covers all accompanied baggage during a journey like
suitcases, trunks etc., containing the baggage and additions during the journey.
It covers accompanied baggage(not dealers', stock or travellers samples) during
a specified journey (including air travel).Suitcases, trunks etc., containing the
baggage and additions can also be insured provided they are declared
specifically before the commencement of the journey.
The policy provides cover against loss or damage to accompanied personal
baggage due to fire, riot and strike, terrorist activity or theft or accident during
the course of journey including stoppages en route anywhere in India.
Insured and insured’s family members in respect of their baggage as specified
above.
The policy pays for the contents of the baggage damaged/lost due to any of the perils
stated above on a strict basis of indemnity.
Exclusions-
To articles of consumable nature, cash, securities, jewellery, precious stones,
furs, watches etc.
To any property conveyed/transported by a carrier under receipt
Due to depreciation, wear and tear, consequential loss, legal liability, theft from
unsecured car
Due to war perils, nuclear perils, moth, vermin or while cleaning, repairing.
Page | 68
ii) Marga Bandhu Policy
This policy covers persons whilst on a tour or a pilgrimage.Groups of individuals who go
on study tour, educational trips or pilgrimage. Educational institutions, tour operators,
travel agents, clubs, associations etc., who arrange tours, picnics, yatras etc can avail
this cover for persons going on tour.
a) Death or disablement ( Permanent Total or Permanent Partial ) due to accident,
hospitalisation expenses
b) Additional expenses towards alternative travel arrangement due to detour or
cancellation caused by accident to carrying vehicle / train and c) loss / damage to
baggage whilst on tour.
Basic cover:
Death, PTD 100 % Capital Sum Insured ( CSI )
Loss of one limb or one eye 50% of Capital Sum Insured
Permanent Partial disablement varying percentages of CSI as per policy
Extensions:
Following covered at an additional premium
Medical expenses incurred up to 25% of claim or 10 % of sum insured which
ever is lower Loss / damage to accompanied baggage subject to limits of Rs.
1,000/- or Rs. 2,000/- (depending on CSI chosen).
Additional expenses incurred towards alternative travel arrangement on account
of detour / cancellation subject to a limit of Rs. 1,000/- or Rs. 2,000/- (depending
on CSI chosen) - if detour arises by loss / damage to mode of transport by Act of
God.
Exclusions-
Compensation under more than one clause for same period of disability
Any payment after admission of a claim for 50% / 100% of CSI
Any claim in the same period of insurance exceeding the CSI
Suicide, attempt there at, VD, Criminal breach of law, influence of liquor / drugs
Pregnancy related claim
Page | 69
War and nuclear perils
Loss / damage due to cracking, scratching, depreciation, wear and tear
Loss / damage to money / securities, manuscripts, documents.
iii) Suhana Safar Policy
The policy covers the risks of Personal Accident and loss of Baggage of the
insured, spouse and dependent children covered during the period of outstation
travel with in India from the declared place of departure(includes places of
sojourn).
Coverage available for a single round of travel to the places declared up to the
scheduled date of return . Cover available for journeys less than 60 days.
Policy Covers
Section I
PERSONAL ACCIDENT
Risk Up to Rs.1 lakh per head with reimbursement of reasonable actual emergency
incidental expenses up to Rs.1000/- per head both as defined in the policy.
Bodily injury sustained by the insured arising out of an accident resulting in death or
disablement within 12 calendar months of the accident will be indemnified.
Section II
BAGGAGE
Loss or damage to the personal effects carried as accompanied baggage due to fire,
riots, strike, terrorism, malicious damage , theft , burglary for the actual value of the
articles but not exceeding Rs.500/- per article unless specifically declared.
Page | 70
d) PACKAGE INSURANCE
i) House Holders Policy
Any loss/damage to
Building and its contents
Jewellery and valuables
Domestic appliances, TV, VCR, Audio Systems, PC etc.
Baggage while on travel
Accidental injury causing death/disability
Liability to third parties
Cover under ten sections with option to choose minimum 4 sections for
availing discount in premium. Cover against contents is compulsory.
Building and contents :Fire, lightning, Acts of God, Riot and Strike, impact,
explosion of gas in domestic appliances, overflow of water tanks.
Burglary, House breaking and Theft.
Jewellery and Valuables - Any accidental loss/damage Plate Glass Any accidental
loss/damage
Baggage - While on travel Any accidental loss/damage
Domestic Appliances Any accidental loss/damage entirely due to
electrical/mechanical breakdown.
TV, VCR, Audio System
Fire and allied perils, burglary, housebreaking, theft, electrical or mechanical
breakdown
Pedal cycle Fire and related perils, riot,strike, malicious damage, acts of god,
housebreaking, burglary, theft, external accident and also legal liability to
"Public" with a limit of Rs.10,000.
Page | 71
Any householder exposed to any of the above contingencies. Benefits under
four (minimum) or more sections can be chosen. P.A Cover available for
insured's spouse and children (Age: 12 to 70)
Personal Accident
Accidental injury causing death/disablement [total/partial]
Third Party Liability
Due to injury to third party or damage to third party property.
Policy pay
Actual extent of loss/damage to property under respective sections
chosen;
Sum Insured is the limit of maximum liability under respective sections;
Limit of liability to third party for Personal injury/Property damage is
upto Rs.25,000 / Rs.10,000 / Rs.3000 under TV/Pedal Cycle/TV Antenna
sections respectively.
Personal Accident Section
If injury directly/solely causes within 12 months of its occurrence:
Death / loss of two limbs / eyes / Total permanent disablement : Full
Sum Insured
Loss of a hand / foot / eye / use of hand / foot : 50% Sum Insured
Specified Percentage (%) of Sum Insured in other cases of permanent
disablement [partial]
Weekly benefits (Rs.3000/- max.) upto 100 weeks payable for Temporary Total
Disability.
Exclusions-
War and war like perils
Wear and tear, depreciation, consequential loss
Page | 72
Nuclear group of perils
Gross and wilful negligence of Insured
Violation of policy conditions
Loss/damage/liability where Insured's family or Insured's employee are
involved as principal/accessory
Intentional act/self injury/ influence of drug/intoxicant.
ii) Compact Policy
The policy covers offices and Establishments (non manufacturing). Generally this policy
does not cover shops, godowns, ware houses etc. There are different sections of the
policy.
Section I - Fire & Allied Perils
Sub Section 1A (Building)
Covers building above plinth and foundation with connected utilities, sanitory fittings
etc.External walls of the building should be made of stone/bricks/RCC etc
Sub Section I B (Contents including incidental stock)
Contents of insured premises described in the schedule of policy, belonging to
insured
Contents belonging to insured when temporarily removed to some place with in
India from insured premises for a period not exceeding 60 days only for an
amount not exceeding 5 % of the total sum inured for contents subject to
maximum of Rs.20,000/-
Stock incidental to the trade for an amount not exceeding 10% of total sum
insured under this section
Page | 73
Cost of removal of debris of insured property affected subject to maximum 10%
of sum insured for this sub section if it is specifically declared for insurance and
additional premium paid
Sub Section IC (Tenants Legal Liability)
This is applicable only if insured is a tenant of the building
Insured’s legal liability as tenants of the insured premises for damage to the
building of the offices and land lord’s fixture and fittings
Perils Covered
Fire, Lightning, Explosion/implosion
Bursting & overflowing of water tanks
Riot, Strike, malicious damage
Earth quake, Fire and /or Shock, subsidence and land slide
Flood, inundation, cyclone etc
Impact damage by rail/road vehicle or animal by direct contact
Aircraft or articles dropped from them
Section II (Contents - Burglary & Housebreaking)
Deals with the loss or damage of the contents of the insured premises as a result of
burglary and house breaking.
Section III(Mechanical & Electrical Appliances)
All electrical & mechanical appliances other than Diesel Generator sets pertaining to
insured’s business/trade
Perils covered loss or damage due to unforeseen and sudden accidental physical
damage caused by and /or solely due to the mechanical and / or electrical break down.
Section IV (Electronic Appliances)
Page | 74
Deals with loss or damage of electronic appliances, portable computers , cellular
phones, data carrying materials etc due to any cause other than the exclusions specified
in the policy.
Section V (Money Insurance)
Money relating to profession or business while in
Transit from and to the insured premises described in the schedule
Safe installed at the insured premises
Till at the insured premises
Cost of replacement or repair of the insured’s safe in the insured premises in the
event of it being damaged by thieves/burglars.
Perils Covered Loss due to accident or misfortune
Section VI (Personal Accident)
Provides accident cover to the insured or any Director or employee of the insured aged
between 18 years and 70 years . The person should be a permanent employee of the
insured at the office as stated in the Schedule.
Section VII (Legal Liability)
Deals with legal liability towards
Third Parties
Employees
Section VIII (Fixed Glass / Sanitary Fittings)
This section covers loss or damage due to accidental breakage of
Fixed Plate Glasses and Sanitary fittings
Frames of frame work
Lettering consequent upon the breakage of glasses.
Page | 75
Section IX (Neon Sign / Glow Sign / Hoarding)
Section covers Neon sign and/glow sign and/ hoarding belonging to the insured.
Perils Covered - Loss or damage due to
Accidental external means
Fire, Lightning, explosion
Theft
Riot , Strike. Malicious damage
Storm, Flood and Inundation etc.
Discount Available
More sections selected, allows more discount.
Loyality discount for continuous renewal.
Page | 76
iii) Dukan Mitra Policy
The Dukan Mitra policy is a modified version of the shopkeeper's policy which can be
issued to smaller establishments. The main features of this policy are (a) there is a fixed
sum insured (b) condition of average need not be applied.
SECTION I
This section also covers the Insured's property when removed to another premises for
custody during his absence and for a temporary period limited to 90 days in all.
SECTION II
Loss / damage to the contents whilst contained in insured premises by burglary /
housebreaking.
SECTION III
If bodily injury by external violent means and caused accidentally shall, within 12
months of such injury, by the sole and direct cause of death or permanent total
disablement of the persons specified, the Company will pay each such person specified
amount. Permanent total disablement would mean total, irrecoverable loss of sight of
both eyes / physical loss of entire hands or entire feet / one foot and one eye or one eye
and one hand / one foot or irrecoverable loss of use of both limbs.
SECTION IV
This section indemnifies the Insured subject to the limit under column 4, in respect of
all sums which the Insured shall become legally liable to pay as compensation and incur
litigation expenses with the Company's written consent. a. in respect of accidental death
or bodily injury to any person other than a person under the Insured's employment b.
accidental damage to property caused by or through fault or negligence of the Insured
or his employee or a member of Insured's household c. compensation to Insured's
employees as per the WC act for any employment injury (including fatal) d. This section
excludes liability for accidents involving Insured's ownership or use of vehicles, vessels
of any kind, aircraft or animals.
Page | 77
SECTION V
Indemnifies the Insured for any direct pecuniary loss, subject to the limit under column
4, caused by an act of fraud or dishonesty committed by any salaried employee of the
Insured in the course of his duty in the insured premises, on conviction and prosecution
of an employee responsible for dishonesty / fraud. Withholding of any money due to the
delinquent employee and deduction of such moneys from the claim are preconditions to
settlement of a valid claim.
SECTION VI
Indemnifies the Insured, subject to the limit per carrying (under column 3) in respect of
loss by accident or misfortune while the Insured's money in his hands of his employees
is in transit between any two places within 15 kms from insured premises (only such
money of the Insured's business transactions and entrusted to the permanent employee
handling cash is covered), loss / damage by burglary or housebreaking whilst contained
in a safe, cash box or such place under lock and key, loss / damage whilst lying in
cashier's till or counter in the Insured's premises during business hours due to violence,
assault or threat. It is a policy condition under this section that a complete and
arithmetic account of cash in various places be kept and that such records / account
books be kept in a place other than where money is kept.
The Policy covers
The risk of fire, lightning, storm, earthquake, flood, riot, strike etc
The risk of burglary
The loss of money while it is being carried by the employee from one place to
another due to accident/misfortune
Any Pecuniary loss arising out of dishonesty or fraud by any employee
Death or any bodily injury directly or indirectly caused by accidental, violent,
external and visible means applicable for persons aged between 12 and 70 years.
Exclusions
Loss or damage to fragile articles such as chinaware, articles made of glass or
materials of brittle nature due to impact.
Page | 78
Loss or damage due to war and/or warlike perils, nuclear and/or atomic
radiation.
Loss or damage due to wear and tear, gradual deterioration or slowly developing
flaws.
Consequential loss of any kind.
Loss of or damage caused by or due to action of any lawfully constituted
authority or Government body.
Loss or damage to cash, securities, bullion, stamps, deeds, documents,
manuscripts and articles of antique value.
Loss of valuables due to theft from unattended vehicles.
Loss or damage for which the manufacturer or supplier or repairer or
transporter or any other third party is responsible either by law or by contract.
Page | 79
5. LIABILITY INSURANCE
a) Public Liability Insurance
The Public Liability Act, 1991 was made effective from 1st April 1991. The object of this
Act is to provide through insurance immediate relief to persons affected due to
“accident” while “handling” “hazardous substance” by the owners on “no fault liability
basis”. This has also been brought under Tariff. The definition of “Owner” is so
comprehensive as to cover any person who owns or has control over any hazardous
substance at the time of accident. This includes any Firm or its partners. Association or
its members, Company or its Directors and all other persons associated and responsible
to that Company in the conduct of their business.
The various terms like “Accident”, “Hazardous substances” as defined in the Act are
given below.
“Accident” means an accident involving a fortuitous, sudden or unintentional
occurrence while handling any hazardous substance resulting in continuous,
intermittent or repeated exposure to death of, or injury to any person or damage to any
property but does not include an accident by reason only of war or radioactivity.
“Handling” in relation to any hazardous substance, means the manufacture, processing,
treatment, package, storage, transportation by vehicle, use, collection, destruction,
conversion, offering for sale, transfer or the like of such hazardous substance.
“Hazardous Substance” means any substance or preparation which is defined as
hazardous substance under the Environment (Protection) Act, 1986 and exceeding such
quantity as may be specified by notification by the Central Government.
“Hazardous Substance” means any substance or preparation which, by reason of its
chemical properties or handling is liable to cause harm to human beings, other living
creatures, plants, micro-organism, property or the environment (as per the
Environment (Protection) Act, 1986).
Insurance Limits
Any one accident: Minimum equal to Paid up Capital upto a maximum of Rs.5 crores.
Any one year: 3 times of `Any one accident’ limit subject to a maximum of Rs.15 crores.
Page | 80
Liability beyond Insurance
In case of claim/s exceeding the above statutory limit/s, it is to be met by the
Environmental Relief Fund to be set up under Section 7A of the Act and managed by the
Authority appointed by the Central Government
The liability beyond the total of the insurance and the Relief / Fund is to be borne by the
“Owner”.
Contribution to the relief fund
An amount equal to the insurance premium chargeable is to be paid simultaneously by
every owner with the insurance premium to the underwriting Company.
Schedule of Compensation
1. Reimbursement of medical expenses incurred upto a maximum of Rs.12,500/- in
each case.
2. For a fatal accident the relief will be Rs.25,000/- per person in addition to
reimbursement of medical expenses, if any incurred on the victim upto a
maximum of Rs.12,500/-.
3. For permanent total or permanent partial disability or other injury or sickness,
the relief will be :
a. Reimbursement of medical expenses incurred, if any, upto a maximum of
Rs.12,500/- in each case and,
b. Cash relief on the basis of percentage of disablement as certified by an
authorized physician. The relief for total permanent disability will be
Rs.25,000/-.
4. For loss of wages due to temporary partial disability which reduce the earning
capacity of the victim, there will be a fixed monthly relief not exceeding
Rs.1,000/- per month upto a maximum of 3 months provided the victim has been
hospitalized for a period exceeding 3 days and above 16 years of age.
5. In respect of damage to private property, upto Rs.6,000/- per claim.
Apart from Public liability insurance Act policy, policies are also available to cover the
legal liability of the insured against third parties for claims arising due to industrial
Page | 81
accidents. Two different types of policies are available to cover accidents in industries
like factories etc and non industries like hotels, schools, exhibitions and storage tanks
etc
b) Workmen Compensation Insurance
Liability of an employer for employment injury (including death) of any of his
employees who is a ‘workman’ as defined under Workmen Compensation Act.
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
Risk covered-
Indemnity to insured against his liability as an ‘employer’ to accidental injuries
(including fatal) sustained by the ‘workman’ whilst at work.
On extra premium-medical, surgical, and hospital expenses including the cost of
transport to hospital for accidental employment injuries
Liability in respect of diseases mentioned in Part C / schedule III of WC Act, on
additional premium; which arise out of and in the course of employment
The Policy pay
Where employment injury results in death, then we pay 40% of the monthly
wages of the deceased multiplied by the relevant factor or Rs. 20,000/- which
ever is more.
Permanent Total Disablement 50% of the monthly wages of the injured
disabled (PTD) workman multiplied by relevant factor or Rs. 24,000/- which
ever is more.
Permanent Partial Disablement
a) For an injury specified in Part II of disablement (PPD) schedule. The
percentage of loss of earning capacity caused applied to the compensation
payable for permanent total disablement
b) For an injury not specified in schedule - the percentage of permanent loss
of earning capacity as assessed by qualified Medical Practitioners applied
to the compensation payable for permanent total disablement.
Where more than one injury caused by same accident it shall be aggregate but
in any case not to exceed the amount payable for permanent total disablement
Page | 82
Temporary disablement - A half monthly payment equivalent to 25 % (total or
partial) of monthly wages of the workman to be paid in accordance with the
provisions of Sub section (2) of the WC Act.
Actual medical expenses incurred in connection with on-duty accident ranging
from Rs.80/- to 2400/- per case as per the option given at the inception of the
policy by the insured and extra premium paid.
Legal costs and expenses incurred with the Company's consent.
Exclusions-
Any injury which does not result in fatality or partial disablement for period
exceeding 3 days
First 3 days of disablement where the total disablement is less than 28 days
For any non-fatal injury caused by any accident which is directly attributable to
a) Influence of drinks or drugs.
b) Willful disobedience of an order for securing safety of the workman.
c) Willful removal or disregard of safety guard device.
War group and nuclear group of perils
Liability to employees of contractors of the insured (unless specifically
declared)
Employee who is not a "workman" as per WC act.
Liability of insured assumed under an agreement
For occupational diseases mentioned in part "C" of schedule III of WC Act ,
unless cover is extended on extra premium.
Increase due to any change in statute provisions after policy had incepted.
Under more than one statute / one forum for the same injury
Page | 83
c) Product Liability Insurance
This insurance is intended to provide an indemnity to the insured (upto the limit of
liability) in the event of a claim being brought against him. This may be caused by
anything harmful or defective in the products sold or supplied by the insured in
connection with the business specified. The Company in addition will reimburse all
costs and expenses incurred with its written consent defending such a claim for
compensation. The insurance will however not cover the cost of removing, replacing or
repairing defective products or loss of use thereof.
Liability Covered
The policy seeks to indemnify the insured against his legal liability to pay
compensation (including claimants costs, fees and expenses) in respect of injury
damage or pollution for third parties for claims arising out of accidents due to any
defects in the products specified in the policy during the period of the insurance and
first made against the insured during the policy period. For the purpose of determining
the indemnity granted:
1. Injury shall mean death, bodily injury, illness or disease of or to any person
2. Damage shall mean actual and / or physical damage to the atmosphere or of any
water, land or other tangible property
3. Pollution shall mean pollution or contamination of the atmosphere or of any
water, land or other tangible property
4. Product shall mean any tangible property after it has left the custody or control
of the Insured which has been designed, specified, formulated, manufactured,
constructed, installed, sold, supplied, distributed, treated, serviced, altered or
repaired by on behalf of the Insured
5. Accident shall mean a fortuitous event or circumstance which is sudden,
unexpected and unintentional including resultant continuous, intermittent or
repeated exposures arising out of the same fortuitous event or circumstances
Special Features
1. Claims made basis
Page | 84
The policy is on `Claims made’ basis. This means that the accident giving rise to the
claim shall occur during the period of insurance and further that the claim shall be first
made against the insured during the policy period.
2. Retroactive date
This is the date of commencement of the first `Claims made’ product liability policy.
This date will remain unaltered as long as the policy has been renewed without break
and there has been no substantial material change in the risk.
3. Period of insurance
This is the period commencing from the retroactive date and terminating on the
expiry date of the policy.
4. Policy period
This is the period commencing from the midnight on the inception date and
terminating at midnight on the expiry date of the policy.
Special Exclusions
1. The policy excludes liability for costs in the repair, reconditioning, modification
or replacement of any part of any product which is or is alleged to be defective.
2. For cost arising out of the recall of any product or part thereof.
3. Arising out of any product which is intended for incorporation into the structure,
machinery or control of any aircraft.
4. Arising out of deliberate, willful or intentional non-compliance of any statutory
provision.
5. Arising out of pure financial loss such as loss of goodwill, loss of market, etc.
6. Arising out of fines, penalties, punitive and exemplary damages.
7. For injury and/or damage occurring prior to the Retroactive date shown in the
schedule.
8. Arising out of deliberate, conscious or intentional disregard of the insured’s
technical or administrative management of the need to take all reasonable steps to
prevent claims.
9. For injury to any person under a contract of employment or apprenticeship with
insured where such injury arises out of the execution of such contract.
10. Arising out of contractual liability which would not have existed in the absence of
the specific contract.
11. Arising out of any product guarantee.
Page | 85
12. Arising out of claims for failure of the goods or products to fulfill the purpose for
which they were intended
General Exclusions
War and war like perils
Wear and tear, depreciation, consequential loss
Nuclear group of perils
Gross and wilful negligence of Insured
Violation of policy conditions
Loss/damage/liability where Insured’s family or Insured’s employee are
involved as principal/accessory
Intentional act/self injury/ influence of drug/intoxicant.
Page | 86
d) Professional Indemnity Policy
The cover granted under the policy provide indemnity for legal liability to third party
arising out of errors and omissions or negligence in professional service rendered by
the insured
The following professionals can be insured-
Doctors
Medical Establishments
Engineers
Architects
Chartered Accountants
Lawyers
Exclusions-
Any criminal act or violation of any Act of Statute
Services rendered under the influence of intoxicants or narcotics
Performance by Dentists under general anesthesia or any procedures carried out
under general anesthesia unless performed in a hospital.
Willful neglect or deliberate act
Third Party Public Liability
Pure financial loss due to loss of goodwill or loss of market
Page | 87
6. FIRE INSURANCE
a) Standard Fire and Special Perils Policy
Cover-
Buildings
Machinery and Accessories
Stock and stock in process
Contents including furniture
The following can be insured-
Dwellings, Offices, Shops, Hospitals(Located outside the compounds of
industrial/manufacturing risks)
Industrial / Manufacturing Risks
Utilities located outside industrial/manufacturing risks
Machinery and Accessories
Storage Risks outside the compound of industrial risks
Tank farms / Gas holders located outside the compound of industrial risks
Perils Covered
Fire
Lightning
Explosion/Implosion
Aircraft damage
Riot, Strike
Storm, Flood, inundation
Impact damage
Page | 88
Subsidence , landslide
Bursting or overflowing of tanks
Bush fire etc.
Exclusions
Spontaneous combustion, fermentation
Burning of property by order of any Public Authority
Its undergoing any heating or drying process
Explosion of boilers (other than domestic boilers)
Total or partial cessation of work
Permanent or temporary dispossession by order of Government
Burglary, House breaking, theft
Normal Cracking or settlement or bedding down of new structures
War or war like operations
Defective design, workmanship, defective materials
Pollution or contamination
Over-running, short circuit etc.
Earthquake
Spoilage loss
Add on Covers
Terrorism
Removal Of Debris
Architects, Surveyors, Consulting Engineers fees
Earthquake (Fire and Shock only)
Page | 89
Spontaneous combustion
Startup expenses
Spoilage Material Damage Cover
Leakage and Contamination cover
These additional covers are available by payment of additional premium.
Page | 90
b) Fire Loss of Profit Policy
Pre-Requisite for the Policy
This policy can be taken only if a Standard fire and Special Perils Policy exists for the
risk.
The following can be insured-
Net profit due to the stoppage of business as a result of an insured peril
Standing charges which continue to accrue in spite of stoppage of business
Additional expenditure incurred by the insured to maintain normal business
activity, during the period in which the normal business is affected.
Indemnity Period
The indemnity period commences with the date of damage and lasts till such a time as
the business is restored to its pre damaged level or the period stipulated policy
whichever comes first. The policy insures earnings of the business lost during the
indemnity period.
Page | 91
1. As a public sector company they having lot of social welfare plans were the
private corporates are not interested such as;
Universal Health Insurance Scheme For BPL Families,
Janata Personal Accident,
Bhagyashree Child Welfare Policy,
RajaRajeshwari Mahila Kalyan Yojna Policy,
Mother Teresa Women & Children Policy,
Jan Arogya Bima Policy, Cattle & Livestock Insurance,
Agricultural Pumpset Insurance,
Poultry Insurance,
Gramin Accident Policy,
Plantation Insurance.
In these policies they charging only nominal premium and in some policies they
are providing subsidies from Govt of India.
2. The company’s marketing activities are much focussed on personnel policies.
3. This Thalassery Branch is located in coastal area but there are no ports, due to
this the sales of marine insurance policies is very few. Only for inland and rail
transit marine policies are issuing.
4. Majority portion of the policies issuing from this branch includes Mediclaim,
Motor insurance, Standard Fire and Special Peril Policy.
5. Sales of Social policies are few. It is due to peoples are not known about these
policies.
6. Peoples in this area were not involved in farming so there is no scope for
Agricultural Pump set Insurance, Poultry Insurance, Plantation Insurance
FINDINGS
Page | 92
7. The company facing cutthroat competition from both private and public sector
companies. Their major competitors include
The New India Assurance Company Limited,
National Insurance Company Limited,
Reliance General Insurance Company Limited,
Bajaj Allianz General Insurance Company Limited,
ICICI Lombard General Insurance Company Limited.
8. Lack of awareness existing among the customers regarding policy terms, perils
covered, discounts available, procedure for applying claims.
9. Customers doesn’t having much idea regarding how claims are calculating,
conditions regarding claims calculation, due to this reason some customers are
complaining that the insurance companies are good in collecting premium but
not good in paying claims.
Page | 93
1. The social welfare policies are designed for serve the people these policies not
contributing much profit so they can go for low budget advertisement, and then
only these will reach among peoples.
2. The company can also focus on the marketing of commercial policies because it
will contribute more premium and profit.
3. The company can go for awareness programme regarding to the social policies,
because they can serve the community in better manner by these policies.
4. For meeting the competition they can-
Rather than try to satisfy everyone, marketers start with market
segmentation and develop a market offering that is positioned in the minds
of the target market.
The company must analyze the patterns of segmentation in a market to get a
sense of their positioning alternatives and that of the competitors,
Targeting strategies can the company use to select and enter the most
attractive market segments,
The company can update their portfolio timely with reference to competitors
products.
5. Once when issuing the policy they can provide information regarding policy
terms, perils covered, discounts available, procedure for applying claims, how
claims are calculating, conditions regarding claims calculation by talk as well as
printed documents; it will avoids the customers lack of awareness.
6. This branch having lot of agents; by motivation rewards and appreciation,
practical oriented training by expertise will help to procure more business.
SUGGESTIONS
Page | 94
7. The company can keep in touch with the customers. They can send detail
regarding the new policy brochures, renewal notices; it will help to retain the
customers.
8. The company can effectively utilize technology platforms to retain customers.
Almost every clerical work such as issuing of new policy, renewal of policy,
underwriting, claims settlement are doing with the help of computer but they
don’t have customer interacting technology.
9. It is not compulsory to every staff in the organisation have good knowledge
regarding whole functional area; but they must have ample knowledge regarding
their own department.
Page | 95
10.
This study is mainly focused on the study of product portfolio of the company.
The secondary data from various sources is used for this study. As a leading private
sector insurance company they have their own foot prints in the industry. The
company providing variety of products to the peoples which start from insurance
cover for pedal cycle to satellites. Their social welfare policies are really a protecting
hand to backward and typical middleclass peoples. Peoples in India receiving a lot of
advantage from those policies which offering tie-ups with Govt of India. The company
is much interested national development that we can understand by analysing their
social and rural insurance policies.
The study has enabled to arrive at the conclusion regarding product portfolio.
Majority of the customers are satisfied with the products offered by this organisation.
Any effort in the part of the company to develop the product portfolio will definitely
improve the present position. I hope in the coming days they would be the largest
insurer in India by all means.
CONCLUSIONS
Page | 96
Books
IC 34 General Insurance, Insurance Institute of India, 2007, 1-23, 30-176
Philip Kotler, Marketing Management Millenium Edition, PEARSON CUSTOM
PUBLISHING 75 Arlington Street, Suite 300, Boston, MA 02116 A Pearson
Education Company 2001, 4-16, 143-158
E. P. Kurian Kuzhiveli, Agents Manual, United India Insurance Co Regional Office
Kochi, 1999, 7-12, 21-275
Web Pages
http://www.uiic.co.in/products.html
Date of access: 12 January 2010
http://www.uiic.co.in/downloads.html
Date of access: 12 January 2010
http://www.icra.in/Files/PDF/ArticleFiles/Insurance-ICRA-Moodys-200704.pdf
Date of access: 15 January 2010
http://www.appuonline.com/insurance/basics.html
Date of access: 24 January 2010
BIBLIOGRAPHY
