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BACK GROUND OF THE INSURANCE SECTOR
Insurance is over one and one-half centuries old in India. The First general
insurance company, Titan Insurance Company Ltd., was established in
1!".Life insurance came to India from the #.$. in 1", with the
establishment of the %riental Life &ssurance Company in Calcutta. 'y 1(),
the insurance mar*et was bu++ing with 1 companies--both life and non-life.
In 1(!, the overnment of India recogni+ed that malpractice had entered the
management of the life insurance. Conse/uently, the life insurance industry
was nationali+ed under the Life Insurance Corporation 0LIC of India.<hough efforts were made to maintain an open mar*et for the general
insurance industry by amending the Insurance &ct of 1() from time to time,
malpractice escalated beyond control. Thus, the general insurance industry
was nationali+ed in 1(2.
RECENT INITIATIVES
3rivati+ation is e4pected to foster competition, innovations and greater
awareness on the need for buying insurance services and variety of products.
The I56& bill 3assed by the parliament was an important development in the
field of Insurance business. The I56& &ct mar*s an end to the monopoly of
the government in the insurance sectors by opening it up to private players. It
gives priority in the #tili+ation of the policyholder7s funds for development of
society and Infrastructure sector.
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INTRODUCTION OF HOME INSURANCE
Home insurance, also commonly called hazar insurance or homeo!ners
insurance 0often abbreviated in the real estate industry as HOI, is the type of
property insurance that covers private homes. It is an insurance policy that combines
various personal insurance protections, which can include losses occurring to one8s
home, its contents, loss of its use 0additional living e4penses, or loss of other
personal possessions of the homeowner, as well as liability insurance for accidents
that may happen at the home. It re/uires that at least one of the named insured
occupies the home. The dwelling policy 063 is similar, but used for residences
which don8t /ualify for various reasons, such as vacancy9non-occupancy,
seasonal9secondary residence, or age. It is a multiple line insurance, meaning that it
includes both property and liability coverage, with an indivisible premium, meaning
that a single premium is paid for all ris*s.
:tandard forms divide coverage into several categories, and the coverage provided
is typically a percentage of Coverage &, which is. The insurance policy itself is a
lengthy contract, and names what will and what will not be paid in the case of
various events. Typically, claims due to floods, or war 0whose definition typically
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includes a nuclear e4plosion from any source are e4cluded. :pecial insurance can be
purchased for these possibilities, including flood insurance. Insurance must be
updated to the present and e4isting value at whatever inflation up or down, and an
appraisal paid by the insurance company will be added on to the policy premium.
Fire insurance will re/uire a special premium charge, plus the addition of smo*e
detectors and on site fire suppression systems to /ualify.
The home insurance policy is usually a term contract;a contract that is in effect
for a fi4ed period of time. The payment the insured ma*es to the insurer is called
the premium. The insured must pay the insurer the premium each term.
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HISTORY
The first homeowners policy perse in the #nited :tates was introduced in
:eptember 1(!", but similar policies had e4isted in reat 'ritain and certain areasof the #nited :tates. In the late forties #: insurance law was reformed and during
this process multiple line statutes were written, allowing homeowners policies to
become legal.
3rior to the 1(!"s, there were separate policies for the various perils that could
affect a home. & homeowner would have had to purchase separate policies
covering fire losses, theft, personal property, and the li*e. 6uring the 1(!"s, policy
forms were developed allowing the homeowner to purchase all the insurance they
needed on one complete policy. >owever, these policies varied by insurance
company, and were difficult to comprehend.
The need for standardi+ation grew so great that a private company based in ?ersey
City, @ew ?ersey, Insurance :ervices %ffice, also *nown as the I:%, was formed in 1(1
to provide ris* information and issued a simplified homeowners policy for resell to
insurance companies. These policies have been amended over the years.
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IM"ORTANCE OF HOME INSURANCE
>ome Insurance has evolved as one of the most enterprising sector in the real
estate scenario in India. &s more and more investments are made in the real estatesector, there has been a rising demand for home finance and home insurance
simultaneously. The importance of home insurance in the protection of your house
and valuable possessions is as importance as protecting your family from any
ha+ards that act as threat to life and property.
The policy provided by the home insurance companies act as a guarantee that
combines insurance of the home, its contents the personal possessions of the
homeowner, ris* attached to burglaryA as well as liability insurance for accidents
that may happen at the house li*e fire and natural calamities. The e4tent of the ris*
covered however depends on the type and content of the policy. & generally
configured home insurance policy usually covers calamities in two categories -
natural and man-made.
>ome insurance is important as it not only provides you with financial protection
against any damage your property might incur - to both your buildings and the
contentsA but it can be considered a small amount of money you pay in lieu of the
peace of mind that brings with it and the content that your property is insured and
protected against all ha+ards. Though the importance of having a home insurance
policy cannot be over emphasi+ed, one cannot predict any disasters or unavoidable
incident that might happen to one8s home.
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>ome insurance not only protects the homeowner from total loss when disaster
occurs, but also protects the home owner in the event that their home is damaged
by acts of od or if a person becomes inBured, the home owner will not be held
solely liable for all of the damages. The home insurance policies usually cover a
home under the all ris*s clause unless otherwise noted in an e4clusion clause. For
instance, a home can be covered for fire damage, earth/ua*e damage, and acts of
vandalism under an all ris*s policy, but if the policy states that the home is not
covered for deluge or say tsunami, than water damage due to the mentioned natural
calamity would not be covered.
To summari+e it, the home insurance policy is important for the homeowner as it
ultimately gives the home owner a sense of security to protect his family and
property against calamities.
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HOME INSURANCE IN INDIA
The >ome insurance sector in India is at a nascent stage as compared to other
insurance sectors in the country. ith the real estate boom at its prime in India,home finance has become an indispensable part of real estate functioning.
FCs are also playing an important
role in the evolvement of the home insurance company in India. 6ue to the new
regulations by the finance companies ma*ing home insurance mandatory for
see*ing home loans in India, the home insurance sector has recently seen massive
revival in business. Industry analyst say that, if the home loans and insurance
sector continue to facilitate each others growth, then the insurance segment is soon
set to achieve a 1""D growth. The latest growth curve shows the home insurance
premium touching the 5s 1!" crore-mar*, registering a growth of 2!D in the last
financial yearA and if the situation prevails, the trend is predicted to continue.
&s the growth curve of investments in Indian real estate sector escalates, more and
more insurance companies are ma*ing their foray into the home insurance sector.
This has also initiated a trend of insurance companies from across the globe
ma*ing their foray into Indian mar*et either as individual entity or in Boint ventures
with the local e4isting insurance companies. >ome insurance and real estate has of
late become conspicuous of the bu++ it has created in the realty industry in India.
&dding to the list of leading and e4isting public sector companies in the home
insurance business li*e @ew India &ssurance, Life Insurance Company of India,
#nited India Insurance, %riental Insurance and @ational Insurance CompanyA is a
list of private insurance companies which are set to play a pivotal role in the
growth of the sector.
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The most thriving amongst those are mostly Boint venture companies li*e ICICI
Lombard eneral Insurance, 'aBaB &llian+ eneral Insurance, Tata &I eneral
Insurance Company Ltd, IFFC%-T%$I% and 5oyal :undaram &lliance to name a
few. Considering the feasibility of a largely huge and growing mar*et, the home
insurance sectors has lately e4panded its business beyond the metros to the Tier I
and II cities where real estate development is e4pected to flare up in the years to
come.The booming real estate sector in India is considered to be one of the most
encouraging factors in the resurgence of the home insurance sector. >owever, apart
from the real estate factor, the recent spate of calamities that has hit the country
li*e the earth/ua*es, tsunami, the consistent flood every year in most parts of the
country and the e4ceptional cases of 8deluge8 in
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T#"ES OF HOME INSURANCE
>ome insurance in India has a *ey role to play in the protection of your house or
building structure and valuable possessions or building content. >ome insurance policy is a guarantee provided by the insurance company that combines insurance
on the home, its contents the personal possessions of the homeowner, as well as
insurance covering accidents that may happen at the house li*e fire and natural
calamities. The coverage of the ris* however depends on the type of policy.
There are mainly two types of home insurance in India.
• 'uilding insurance
• Content insurance
1. Bui$in%s Insurance
'uildings insurance is an important part of property investments. The mandatory
obligation made by the housing finance companies has strengthened the need for
insurance in conBunction with property investments. Insuring the building or
building structure is important since it protects you against inevitable losses in case
your building is destructed and debilitated in any natural or man-made calamities.
The housing finance companies are insisting on building insurance so that in the
event of a disaster it can be repaired or rebuilt, as lenders don8t want to be left
without security for their loan. & home insurance policy should cover e4penditure
to rebuild your home in the event of it being totally destroyed or damaged to the
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point that complete rebuilding is necessary 0in eventualities li*e earth/ua*e, fire
etc.
6ifferent home insurance companies have different specifications for policy
coverage. It is recommended that you chec* the terms and conditions of the policy.
>ome insurance companies in India mostly have home insurance plans that insure
the building structure of your home for its reconstruction value. This is the cost
incurred to reconstruct the home if it is damaged and not for its mar*et value such
as the cost of land etc. :um insured is calculated by multiplying the built up area of
your home with the construction rate per s/. feet
>ome insurance plan for buildings are usually meted out on conditions as per the
policy terms arising out of conditions li*e
• Fire, Lightening, e4plosion of gas in domestic appliances
• 'ursting and overflowing of water tan*s, apparatus or pipes.
• 5iot, :tri*e, urricane, Tornado or Cyclone
• 6amage due to earth/ua*e, subsidence and Landslide 0including 5oc*slide.
• 6amage caused by &ircraft E Impact damage
• Third party liability and personal accident.
2. Con&en& Insurance
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Content insurance may be considered optional but with the threat of burglaries,
natural disasters and fire, content insurance covers are rising in demand. Contents
insurance for home insurance plans includes protection to movable goods,
possessions or contents in the houseA anything that is not a fi4ed parts of your
home, for e4ample your appliances, electronic goods, furniture and clothing.
:imilarly as the modalities adopted in building insurance, different home insurance
companies in India have different policies for content insurance.
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• Cover against all *inds of accidental brea*age of plate glass fi4ed in doors
and window frames.
•
Loss9damage to domestic appliances due to electrical and mechanical brea*down.
>ome insurance can be availed for both building and content combined. >owever,
most home insurance plans in India e4cludes underinsurance of the property value,
willful destruction of property, loss, damage or destruction caused by war perils,
wear and tear and atmospheric conditions etc., damage due to an act of
terrorism0unless specifically covered and losses or damages incurred when
premises are unoccupied beyond " consecutive days.
HOME C'AIM "ROCEDURE
• Inform the call center with policy details.
• 3rovide relevant information, which includes your policy and other details
regarding your claim. Conse/uently, your claim re/uest is authenticated and
is escalated to the company8s claims department.
• Company8s claims department validates and registers the re/uest. They
appoint a surveyor within H hours.
• The insured submits all the relevant documents to the surveyor. The
surveyor submits the Final :urvey 5eport 0F:5 along with the documents
within days.
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• If surveyor is not appointed, the company8s claims department sends a letter
of re/uirement for submitting documents to the insured within 2H hours of
claim intimation.
• %n receipt of documents, the claims department processes the claim within
days. %n approval of the claim, a letter is send to the insured giving the
approved amount of settlement along with the discharge voucher.
• 3ayment che/ue is released on receipt of the signed discharge voucher.
C'AIMS COVERED UNDER HOME INSURANCE
Insurance claim amount is always something creeping up on the mind of both
insurer and the insurance company. It is more evident in case when there is a
possibility of you filing a claim to recover the amount for that claim. If you
provide sufficient proof and necessary documents for your home insurance claim,
there is a fair chance you can get the amount by the >ome Insurance company or
provider. &lso, submitting a claim on your home policy is a relatively /uite simple
process. The steps involve contacting your agent, filling out a claim form and
waiting for an appointed arbiter to verify the facts and Budge the authenticity of the
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damage. If the damage is really worth notice, it8s a matter of few days to get the
claimed amount through chec*. ere are some general tips for handling auto and home insurance claims=
• $now your policy.
• :ta*e your claim /uic*ly.
• &void using the word lawyer.
• $eep a copy of the police report.
• et an estimate or two.
DOCUMENTS RE(UIRED
6ocuments are the most valid and appropriate proof for your home insurance
claims. &lways *eep your documents in place and ready both before you need to
ma*e a claim and when you need to ma*e one. It is always advisable to save the
receipts for items you buy. This will give the indication and estimation of the total
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cost of items and damage claim amount accordingly. 3hotographs and9or
videotapes of your home 0both in pre- and post-disaster form can also be
beneficial. These will help you establish an inventory of your belongings should
the need arise. &lways save photos or videos of the damage before you begin
cleaning up.
'is& o) Documen&s Re*uire
1. 6uly completed and signed claim form
2. Jero4 copy of policy
). Copy of FI5
H. Final 5eport from police
!. Copy of all invoices, price lists, repair estimate
TYPES OF POLICIES AS PER ISO
Currently, the I:% has seven standardi+ed homeowners insurance forms in general
use=
>%1 K 'asic >omeowner 3olicy
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& basic policy form that provides coverage on a home against 11 listed
perilsA contents are generally included in this type of coverage, but must be
e4plicitly enumerated. The perils include fire or lightning, windstorm or hail,
vandalism or malicious mischief, theft, damage from vehicles and aircraft,
e4plosion riot or civil commotion, glass brea*age, smo*e, volcanic eruption,
and personal liability. 4ceptions include floods, earth/ua*es.
>%2 K 'road >omeowner 3olicy
& more advanced form that provides coverage on a home against 1 listed
perils 0including all 11 on the >%1. The coverage is usually a named
perils policy, which lists the events that would be covered.
>%) K &ll 5is* >omeowner 3olicy
The typical, most comprehensive form used for single-family homes. The policy provides all ris* coverage on the home with some perils e4cluded,
such as earth/ua*e and flood. Contents are covered on a named peril basis.
>%H K 5enter8s Insurance
The TenantsM form is for renters. It covers personal property against the
same perils as the >%2.
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>% K Condominium 3olicy
The form for condominium owners.
>% K %lder >ouses
The %) :pecial and (D had the more e4pensive >%! Comprehensive.
'oth of these policies are all ris*s or open perils, meaning that they cover all
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perils e4cept those specifically e4cluded. )D were the >%2 'road, which covers
only specific named perils. %thers include the >%1 'asic and the >% %, also *nown as older home
insurance, is li*ely to pay only actual cash value for damages rather than
replacement.
The remaining 1)D of home insurance policies were covered by renters or
condominium insurance. Two-thirds of these had the >%-H Contents 'road form,
also *nown as renters insurance, which covers the contents of an apartment not
specifically covered in the blan*et policy written for the comple4. This policy can
also cover liabilities arising from accidents and intentional inBuries for guests as
well as passers-by up to 1!"8 of the domicile. Common coverage areas are events
such as lightning, riot, aircraft, e4plosion, vandalism, smo*e, theft, windstorm or
hail, falling obBects, volcanic eruption, snow, sleet, and weight of ice.
The remainder had the >%- #nit-%wners policy, also *nown as a condominium
insurance, which is designed for the owners of condos and includes coverage for
the part of the building owned by the insured and for the property housed therein.
6esigned to span the gap between the coverage provided by the blan*et policy
written for the entire neighborhood or building and the personal property inside the
home. The liability coverage may cover incidents up to 1!" feet from the insured
property, all valuables within the home from theft, fire or water damage or other
forms of loss. The &ssociations 'ylaws determine the total amount of insurance
necessary.
In addition, about 2.HD of homes were covered by a dwelling fire policy which
covers property damage to a structure and is typically sold to noncommercial
owners of rented houses. It may also cover the owner8s personal property 0such as
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appliances and furnishings. The owner8s liability is generally e4tended from their
own primary home insurance, and does not comprise part of the 6welling Fire
policy.
CLASSES OF COVERAGE
For each policy, there are typically si4 classifications of coverage. These are based
on standard Insurance :ervices %ffice or &merican &ssociation of Insurance :ervices forms.
:ection I ; 3roperty Coverage
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Coverage & K 6welling
Covers the value of the dwelling itself 0not including the land. Typically, a
coinsurance clause states that as long as the dwelling is insured to "D of
actual value, it will be replaced. This is in place to give a buffer against
inflation. >%-H 0renter8s insurance typically has no Coverage &, although it
has additional coverage for improvements.
Coverage ' K %ther :tructures
Covers other structure around the property which are not used for business,
e4cept as a private garage. Typically limited at 1"D of the Coverage &.
Coverage C K 3ersonal 3roperty
Covers personal property, with limits for the theft and loss of particular
classes of items 0e.g., N2"" for money, ban*notes, bullion, coins, medals,
etc. Typically !" to "D of coverage & is re/uired for contents, which
means that consumers may pay for much more insurance than necessary.
This has led to some calls for more choices.
Coverage 6 K Loss of #se9&dditional Living 4penses
Covers e4penses associated with additional living e4penses 0i.e. rentale4penses and fair rental value, if part of the residence was rented, however
only the rental income for the actual rent of the space not services provided
such as utilities.
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ADDITIONA' COVERAGES
Covers a variety of e4penses such as debris removal, reasonable repairs,
damage to trees and shrubs for certain named perils 0e4cluding the mostcommon causes of damage, wind and ice, fire department changes, removal
of property, credit card 9 identity theft charges, loss assessment, collapse,
landlord8s furnishing, and some building additions. These vary depending
upon the form.
E+C'USIONS
In an open perils policy, specific e4clusions will be stated in this section.
These generally include earth movement, water damage, power failure,
neglect, war, nuclear ha+ard, intentional loss, and concurrent causation 0for
>%-).
THREE ,A#S TO INSURE HOME-
hen you insure your home, you should insure your home for the total amount it
would cost to rebuild your home if it were destroyed. If you don8t have sufficient
insurance, your insurance company may only pay a portion of the cost of replacing
or repairing damaged items.
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There are three ways to insure the structure of your home=
1. 5eplacement Cost= Insurance that pays the policyholder the cost of replacing
the damaged property without deduction for depreciation, but limited to a
ma4imum dollar amount.
2. uaranteed 5eplacement Cost= Insurance that pays the full cost of replacing
damaged property, without a deduction for depreciation and without a dollar
limit. This coverage is not available in all states and some companies limit
the coverage to 12" percent of the cost of rebuilding your home. This gives
you protection against such things as a sudden increase in construction costsdue to a shortage of building materials.
). &ctual Cash Galue= Insurance under which the policyholder receives an
amount e/ual to the replacement value of damaged property minus an
allowance for depreciation. #nless a homeowner7s policy specifies that
property is covered for its replacement value, the coverage is for actual cash
value.
For a /uic* estimate of the amount to rebuild your home, multiply the local
building costs per s/uare foot by the total s/uare footage of your house. To find out
the building rates in your area, consult your local builders association or real estate
appraiser.
Factors that will determine the cost to rebuild your home=
• Local construction costs
• The s/uare footage of the structure
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• The type of e4terior wall construction= frame, masonry 0bric* or stone or
veneer
•
The style of the house 0ranch, colonial
• The number of bathrooms and other rooms
• The type of roof
• &ttached garages, fireplaces, e4terior trim and other special features li*e
arched windows.
&lso be sure to chec* the value of your insurance policy against rising local
building costs each year. &s* your insurance agent or company representative
about adding an Inflation uard Clause to your policy. This automatically adBusts
the dwelling limit when you renew your policy to reflect current construction costs
in your area. &lso be sure to increase the limit of your policy if you ma*e
improvements or additions to your house.
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COM"ANIES "ROVIDING HOME INSURANCE
ICICI Home Insurance
It is imperative that you secure your home from natural and man-madecatastrophes. 'efore &pplying for >ome Insurance you should *now about
Importance of >ome Insurance. %ur >ome Insurance 3lan ensures you peace of
mind by protecting the structure and the contents of your home.
"o$ic. De&ai$s / Co0era%e
Oou can choose to buy insurance for only the building 0structure of your home, or
only the contents 0belongings or both. The policy covers the losses to the structure
and contents of your home due to any natural and man made calamities.
The calamities covered are=
• Fire
• 5iot, stri*e E malicious damage
• 4plosion E implosion
• arth/ua*e
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• Lightning
• :torm, cyclone, tempest, tornado, hurricane, flood E inundation
• 6amage due to impact by vehicles
•
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if customer buys after 3ow to calculate the sum insured for=
Home S&ruc&ure
The home insurance policy insures the structure of your home for its
reconstruction value 0and not for mar*et value. 5econstruction value is
defined as the cost incurred to reconstruct the home if it is damaged. %n the
other hand mar*et value is a combination of cost of land, demand E supply
scenario, etc.
• :um insured is calculated by multiplying the built up area of your home with
the construction rate per s/. feet, e.g. if your built up area of your home is
1""" s/. feet and the construction rate is 5s. "" per s/. feet, the sum
insured for your home structure is 5s. ,"",""".
• e recommend the rate of construction for your location when you are
buying online. >owever, this value can be revised appropriately if e4pensive
material - li*e marble flooring, etc. - has been used in construction. If your
home has lawn 9 garden surrounded by a perimeter wall, the construction
rate can be revised to include the cost of construction of this wall in home
structure sum insured.
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Ta&a AIG Genera$ Insurance Com4an. 'imi&e
HOME INSURANCE
>ome sweet >ome - a destination, any individual or a family feels very close to
the heart. It is an investment of one8s lifetime savings, emotional dreams and
aspirations to reali+e their ideal home. >ome signifies a set of emotions for any
individual, be it pride, ownership, stability or be it a sense of belonging. It echoes
the owners8 sentiments It8s my houseM. &fter all, one8s >ome including its contentsis the single most important and e4pensive asset that we have created for ourselves.
e have learnt to value life and health sufficiently to understand the importance of
insuring it. 'ut when it comes to applying the same logic to our home 0around
which our lives revolve most of us suffers a blind spot. It is only when a calamity
or catastrophe stri*es that we feel helpless.
HOME SECURE BENEFITS.
>ome Insurance in India provides e4actly the care one needs at such times - to
safeguard against unforeseen eventualities and to preserve one8s lifestyle and that
too at an affordable price. Oou can protect your priceless investment for very little
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• Sec&ion :3 T.G. :et.
• Sec&ion ;3 3edal Cycles.
Sec&ion ouse- >olders8 Insurance policy designed to cover various ris*s and
contingencies faced by householders under a single policy. It provides protection
for property and interests of the insured and his family members who permanently
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reside with the insured. & home insurance0householder8s insurance, protects not
Bust your flat but also your domestic and electronic appliances.
Uni*ue Fea&ures
• Gery competitive premium rates.
• First loss basis option for burglary and Bewelry.
• Fle4ible rating for personal accident of the insured
• @o valuation certificate re/uired for Bewelry upto 5s.2 lacs.
• &ssembled computers can also be covered under I.
Bene)i&s
• @o strain on poc*ets of insured.
• 4:aving on cost.
• Customi+ed cover can be opted by the insured.
• :ave on time while proposing.
• :ame policy addressing varied needs.
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A0an&a%es
• :ingle 3roposal form.
• Complete coverage at reduced premium.
• Client needs being addressed.
• :imple and /uic* documentation.
• 5elated items got covered under respective sections
IFFCOTOKIO Genera$ Insurance
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A Com4$e&e "ro&ec&or
%ur >ome :uvidha Insurance 3olicy gives complete protection to your home
against a wide range of ris*s and perils. It is a simple >ome Insurance 3olicy
wherein there are various categories of :um Insured and you may opt for the
category most suitable to you depending upon the e4tent of ris* perceived and total
value of your assets.
The :um Insured under :ection 1 E 2 represents the First Loss limit which should
be within !"D of the actual
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• Television9Gideo /uipment= This :ection covers loss or damage to your
television9 video e/uipment against fire, theft, accidental damage and
brea*down.
• 3ersonal &ccident= This section covers you and your named family members
against accidental bodily inBury leading to death or disablement 0either
permanent total or permanent partial.
• Fire and &llied 3erils 0'uilding= This :ection covers the residential
building, if owned by you against perils mentioned under the Fire and &llied
3erils 0Contents :ection.
• 3ersonal Computer= This :ection covers loss or damage to your personal
computer against fire, theft, accidental damage and brea*down.
,ho can a44$. )or &his 4o$ic.
This 3olicy is suitable for you as a householder, whether you are a landlord
or a tenant, whether you reside in an independent house or in a
flat9apartment, whether the building is single storied or is a high rise, since
each of the alternatives above would imply different ris* e4posures which
can be covered under this policy.
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(ua$i&. Bui$in%s Insurance )rom Ro.a$ Sunaram
Home Insurance
>omeshield Classic is a comprehensive pac*age of insurance benefits designed to
cover the buildings and contents of your home against all possible *inds of perils
such as fire, earth/ua*e, terrorism, storm, flood, cyclone, burglary and brea*down
of appliances. Oour building cover can be arranged in conBunction with your
contents cover or on its own.
Homeshie$ C$assic Co0era%e
hen it comes to contents of your home, 5oyal :undaram-s >omeshield Classic
will give you complete peace of mind by covering the contents against a range of
ris*s. e also cover building insurance.
Three $e0e$s o) co0er &o choose )rom &o sui& .our $i)es&.$e-
• Oou have the option of insuring your building against fire and allied perils.
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• Oou have an option of payment through credit card with automatic renewal
facility.
•
&ssured Claims service= Claims will be settled within 1" days of receipt of documents.
• e provide you 1! days to review your policy document. If you are not
completely satisfied, simply return your policy for cancellation and 5oyal
:undaram will refund the entire premium paid provided no claim has been
made.
Homeshie$ C$assic Fea&ures
• :imple documentation E customer-friendly pac*age.
• Comprehensive pac*age covering fire, earth/ua*e, terrorism, storm,
• %ption to cover building against Fire E allied perils Q 5s..!9- per lac.
• Covers household contents, appliances, Bewellery E brea*down of
appliances.
• ) levels of cover to choose from = :ilver, old E 3latinum.
• &ssured Claims service= Claims will be settled within 1" days of receipt of
documents.
Oou have an option of payment through credit card with automatic renewal facility.
%ption of &dd-on covers for Computer, &ir-conditioner, &ir Cooler.
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The Ne! Inia Assurance Co- '&-
Househo$ers "o$ic.
Hi%h$i%h&s
This is a pac*age policy specially designed to meet the insurance re/uirements of a
householder by combining under a single policy, a number of our standard policies
usually ta*en by householders. 6iscount in premium is offered depending upon the
number of sections of the policy, opted for, by the proposer.
Sco4e
The policy comprises of 1" sections as given here under
Sec&ion I Fire E &llied 3eril
• Coverage for building
• Covers contents of the dwelling belonging to the proposer and his9her family
members permanently residing with him9her.
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A$$ie "eri$s3
• Fire, Lightening, 4plosion of gas in domestic appliances
• 'ursting and overflowing of water tan*s, apparatus or pipes.
• 6amage caused by &ircraft , 5iot, :tri*e, urricane, Tomado or
Cyclone, Impact damage
Sec&ion II 'urglary E >ouse 'rea*ing including larceny and theft.
Covers contents of the dwelling against loss due to burglary, house brea*ing,
larceny or theft.
Sec&ion III &ll 5is*s 0?ewellery E Galuables
Covers loss or damage to your Bewellery and valuables by accident or misfortune
whilst *ept, worn or carried anywhere in India subBect to the value declared in the
schedule.
Sec&ion IV 3late lass
Loss or damage to fi4ed plate glass in the insured premises by accidental brea*age
subBect to limit of sum insured
Sec&ion V 'rea*down of 6omestic appliances
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Covers domestic appliances against unforeseen and sudden physical damage due to
mechanical or electrical brea*down.
Sec&ion VI T.G. :et including GC39GC5 0&LL 5I:$:
Covers loss or damage to T.G. :et including GC39GC5 by fire and allied perils,
burglary, house brea*ing or theft, brea*age due to accidental e4ternal means,
mechanical or electrical brea*down. &ny legal liability arising out of bodily inBury
or accidental death of any person other than insured8s family members or employee
as also damage to property not belonging to or in the custody of insured , caused
by use of the T.G. :et is also covered up to a limit of 5s.2!,"""9-.
Sec&ion VII 3edal Cycles 0&ll 5is*s
Covers loss or damage to pedal cycles by =-
• Fire E allied perils , 'urglary, housebrea*ing, theft , &ccidental e4ternal
means
•
Third party personal inBury or Third party property damage for 5s.1","""9-
Sec&ion VII 'aggage Insurance
Covers loss or damage to insured8s accompanied baggage by accident or
misfortune whilst the insured is traveling on tour or holiday anywhere in India.
Sec&ion I+ K 3ublic &ccident
Covers 6eath or bodily inBury by accidental, violent, e4ternal and visible means to
the insured person named in the schedule and subBect to limits specified therein.
Sec&ion + - 3ublic liability.
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Covers Insured8s legal liability for bodily inBury or loss of or damage to property of
third party limited to amount specified in the schedule and wor*men8s
compensation liability to domestic servants engaged in insured8s premises. It is
compulsory to opt for :ection I' of the policy. & minimum of three sections
including :ection I' have to be ta*en for issuance of this policy.
Ho! &o se$ec& sum insure
For the insurance of household items, it would be necessary to group the items in a
broad category li*e furniture, clothing , linen, utensils , croc*ery etc. and give a
value e/uivalent to the mar*et value i.e. the value for which this used item could
be bought or sold in the mar*et. :ections I & E ', II, III, IG, GI, GII E GIII should
be insured on mar*et value basis as described above. It is a condition of :ection G
i.e. brea*down of domestic appliances, that the sum insured should represent the
current replacement value of a similar item. For e.g. to insure 1! ltr. odreB fridge
which is ) years old, the sum insured should be e/uivalent to the cost price of a
new 1! ltr. odreB fridge. >owever, the claim amount payable would be the
amount re/uired to bring the damaged item to the same condition as it was prior to
the damage subBect to the ade/uacy of the sum insured. The sum insured under
section IJ i.e. 3ersonal &ccident should not e4ceed 2 months salary from gainful
employment.
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HOME INSURANCE C'AIM
In case of any incident leading to a valid claim under the policy, following steps
should be ta*en=
• Ta*e necessary steps to minimi+e the loss9damage.
•
In case of fire, inform fire brigade immediately.
• In case of theft, larceny or burglary inform the police immediately along
with a list of items stolen and their appro4imate value.
Inform insurance company by phone or fa4 and in writing.
4tend full co-operation to the surveyor appointed by the insurance Co. and
provide necessary documents to the substantiate the loss. & claim form issued by
the company is also to be submitted.
In case any rights of recovery e4ist against any other party responsible for the loss,
your rights of recovery have to be subrogated to the insurance company on
payment of claim.
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CA'CU'ATION OF HOME INSURANCE "REMIUM OR
AMOUNT-
The factors to be *ept in mind while calculating the insurance premium and
accepting the home insurance /uote being offered by the home insurance company
are
• &rea of the >ouse 0calculated in s/.ft.
• Location and neighborhood
• &ppro4imate rate of construction 0calculated in 5s. per s/.ft.
• 3ermanent construction on the land
• The time period offered for the insurance premium 0monthly, /uarterly or si4
monthly depending upon the insurance amount 3roperty more than !" years
old is not covered in home insurance
• The insurance policy offered is standard or fle4i covering
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TEN ,A#S TO CUT THE COST OF #OUR
HOMEO,NERS INSURANCE
>ere are ten ways to minimi+e the cost of your homeowner8s insurance.
5- Raise #our Homeo!ners Insurance Deuc&i$e
Oour deductible is the amount of ris* you agree to accept before the insurance
company starts paying on a claim. ith the cost of homeowner8s insurance
escalating, it no longer ma*es sense to let the insurance company assume all the
ris*. If you have a low deductible of N!" to N1"", consider raising it to at least
N!"" to N1,""". Oou could save up to 2!D on your premiums.
:ome companies are offering deductibles e/ual to 1D of the insured value of
your home 0N1,""" deductible on a N1"",""" home. It that seems li*e a lot of
money to pay in the event of a claim, consider this= the trends in homeowner8s
insurance are for insurance companies to severely penali+e customers who file
one or more small claims. %ften the premiums are Bac*ed way up or the policy
is cancelled, and when the customer loo*s elsewhere for coverage, they may
find it costs them three times what they were paying. e should change our
perception that insurance of any type is intended to cover all of our e4penses
when we incur a claim. Those days are over. Thin* of insurance as ris* sharing.
>ow much ris* are you willing to assumeP
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6- Comine #our Homeo!ners Insurance an Au&o Insurance
"o$icies
Consider buying your homeowner8s and auto insurance policies from acompany that offers both. :ome companies offer discounts of ! to 1!D if you
buy both types of coverage from them. Chec* around and ma*e sure the price is
lower than buying the two policies from two different companies before ma*ing
this move.
). As? Aou& O&her Homeo!ners Insurance Discoun&s
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. Ma?e #our Home a Be&&er Insurance Ris?
&s* your insurance agent what you can do to ma*e your home less e4pensive to
insure.
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(. Im4ro0e #our Crei& Score
Insurance companies are increasingly using credit information to price
insurance policies. 6on8t have too many open credit accounts, don8t chargeclose to the limits on your credit cards, and pay all your bills on time to *eep
your credit score healthy.
1".Sho4 Aroun )or Homeo!ners Insurance
:hop around for homeowner8s insurance rates but *eep in mind that you may be
receiving a longevity discount if you8ve been with your current insurer for
several years. Typical discounts are !D if you8ve been with the company for
three to five years, and 1"D for si4 years or more. et /uotes from three agents,
and ta*e any longevity discounts with your current insurer into consideration
when you compare prices.
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(UESTIONAIRE FOR SURVE#
FOR MANAGER
• hat is the procedure for application of >ome InsuranceP
• hat are the types of >ome InsuranceP
• hat is the eligibility criteriaP
• hat are the documents re/uired for ta*ing >ome InsuranceP
• hat are the terms and conditions for the following=
0I3remium 0II Claim 0III 6efaulters
hat are the damages covered under the >ome Insurance policyP
FOR CUSTOMERS
• hether you *now about >ome insuranceP
• >ave you ta*en this policy from any agent or have you visited company
personallyP
• 6oes Company provide *nowledge on entire product range in its portfolioP
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• hat is your opinion regarding private companiesP hether they provide
same safety and security to public as government companiesP
• &re you satisfied with the services provided by themP
• hat factors do you considered while selecting ICICI Lombard as an
insurance companyP
ANA'#SIS OF SURVE# OF ICICI 'OMBARD
• 35%C6#5 F%5 &33LIC&TI%@ %F >%ome Insurance is filling a proposal form or through internet.
• TO3: %F >%ome
:afe R 3roduct
• LII'ILITO C5IT5I& =
LII'ILITO
C5IT5I&
ICICI L%
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Customers have to fill only proposal form of the company which is
provided by them and this policy is based on the utmost good faith principle
of insurance.
CUSTOMER
&fter detail analysis of 1" customers I found that all the customers are aware about
insurance services.
&s we *now that ICICI is the no 2 private sector organi+ation in I@6I&. :o
according to those 1" customers ICICI7: brand name is the most important factor
for ta*ing insurance policy. %ut of 1" customers only ) customers have ta*en
home insurance policy from ICICI Lombard where as remaining customers are
not aware about home insurance as a concept. Those ) customers have ta*en the
policy from agent and for further procedure they visited personally to the company.
&gents provide entire *nowledge of product such as some assured, features of
policy, premium payable, product coverage, eligibility etc.
hen I spo*e with 1" customers I found that they give same preference to the
private organi+ation as well as public organi+ation. The services provided by ICICI
are as follows=
NO- OF CUSTOMERS VISITED 15>2
CUSTOMERS NOT HAVING
HOME INSURANCE "O'IC# 1;2
CUSTOMERS HAVING HOME
INSURANCE "O'IC# 172
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2H 4 service, Toll free no7s, online application and 'anc assurance. &ll this
factors satisfy the customers need.
The insurance industry is in the silent revolution and the best part is that all of us
are part of this revolution process, contributing to it and influencing shape of
things to emerge. It will be /uite interesting to see an e4cess of distribution system
ta*ing shape and competing with each others.
There is one truth in mar*eting that is different consumers &pproach buying
differently. :tudies have time and again shown that insurance is bought because of
convenience, product features, product placement, and safety of funds, advice, and
not the price.
From the survey of customers I came to conclusion that many of the customers are
not aware about the concept home insurance. &s this policy is generally ta*en by
the businessmen7s, self professionals. e can e4pect from this organi+ation that it
will lead the innovative process with /uality of services that will help the Indian
consumer to ta*e advantage from insurance business.
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INFORMATION CO''ECTED THROUGH SURVE#1ICICI BANK2
.%%L.C%<
.ICICI'OMBARD -COM
http://www.google.com/http://www.icici/http://www.google.com/http://www.icici/