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Non-Life Insurance

Products

Non-Life Products are widely divided into :

- Business Solutions

- Project Solutions

- Export Solutions

- Personal Solutions

- Travel Insurance

- Liability Solutions- Rural Solutions

- Motor Insurance

- Home Insurance

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Business Solutions

Burglary Insurance

Industrial all risk

Consequential Loss

(Fire Insurance) Electronic

Equipment

Insurance

Fidelity Insurance

Marine Export

Import

Machinery

Boiler Insurance Fire & Special perils

Tea crop Insurance

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Project Solutions

Contractor’s all risk

Contractor’s Plant & Machinery

Erection all risk

Performance Guarantee

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Liability Solutions

Director’s & Officer’s Liability

Event Insurance

Product Liability

Public Liability

Workmen’s Compensation

Professional Indemnity

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Export & Rural Solutions

Export Import

Transit

Export Credit

Weather Insurance

Janata Personal

Accident

Tractor

Farmer’s Package

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Personal Solutions & Motor

Insurance Health Insurance

Personal Accident

Group Personal

Accident

Group Health

Two-wheeler

Four-wheeler

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Travel & Home Insurance

Domestic Travel

Individual over-seas

Travel

Student over-seasTravel

Senior-citizen over-

seas Travel

Corporate over-seasTravel

Home Insurance

House-holder’s

Insurance

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Fire Insurance

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Fire policy

It is named as Standard Fire &

Special Peri ls Po lic y W.E.F 01-05-

2000

**** From 01-04-2002, Terro rism is an

add -on / op t ional cover (no t part of

RSMD)

Acc idental ign i t ion w ith f lame is a pre-

requisite.

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Tariff

Rates shown in tariff are minimumrates.

Insurer may charge higher rate than

those shown in tariff. Any risk which has not been provided

in the tariff shall be referred to

committee for rating. Valued policies may be issued only

to those properties whose MARKET

VALUE can not be ascertained.

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Other Conditions

Fire Policy can not be issued for more than12 months except in case of DWELLINGS.

Premiums shall be paid in full at inception.

Minimum premium under Fire Policy shall beRs. 100/-

A building can be covered in full ; not in

portions. (only Plinth & foundation can be

excluded)

Similarly, specified machinery or part of

machine housed in the same block alone,

can not be covered.

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More Conditions

Policies for less than 12 months can be

issued by applying short period scale.

Sum-assured can be increased or

decreased during the mid-term of thepolicy.

Increase in Sum-assured – on pro-rata

basis. Decrease in Sum-assured – on short

period basis.

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Different Types of Fire Policies

Floater Policy : This is issued for stocks at

various locations under one sum-assured.

Declaration Policy : This is issued to take

care of frequent fluctuations in stocks / stock

values

General Exclusions under Fire Policy are as per the

Insurer’s practices; usually 5% of the claim amount

subject to minimum of Rs 10,000 for each & every claim.

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Basis of Sum-assured

Either on Market Value or Reinstatement

Value basis.

Market Value = Replacement cost (-)

Depreciation

Reinstatement Value = Replacement

value without considering depreciation.

(New for Old)

Under Insurance = Sum-assured *

Loss amount / Market-value or

reinstatement value

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Marine Insurance

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Coverage & other details

(i) Marine cargo (ii) Marine Hull

Both are Insured as AGREED VALUE POLICIES.

The important sales contracts under Marine :(a) FOB : Free on Board

(b) FOR : Free on Rail

(C) C & F : Cost & Freight

(d) C.I.F : Cost, Insurance & Freight

( Note : The seller will take the Insurance for the

entire transit and CIF contracts)

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Risks covered under Marine

Insurance

As per the clause attached :

(i) ICC (Institute Cargo Clauses)

one applicable for Export / Import

shipment.

They are drafted by Institute of London

Under-writers.

(ii) Inland Transit Rail / Road clauses are

applicable for Inland transit only.

(They are drafted by TAC)

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Types of Policies

Open Policy : Used for Inland Transit

Open Cover : For regular Import /Export

Duty Insurance

Increased Value Insurance

Both Duty Insurance & Increased Value

Insurance cover are effective only if theyare taken before the arrival of the vesselat the port of destination ; applicableonly on imports.

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Duration of Cover (Transit Cover)

Risk attaches when the goods leave the

ware-house of the seller and continues

until delivery at the final destinationnamed in the policy or until expiry of 7

days / 30 days / 60 days after arrival by

Rail / Air / Ship as the case may be,

whichever is earlier.

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Some more coverage

War risk can be covered under Export /

Import Policies (War & SRCC Risks) at

extra premium

War risk cover is operative only whenthe goods are waterborne and not on

land.

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Rating of vehiclesThree categories:-

a)Private cars

b) Motorised two wheelers

c) Commercial vehicles:-

i) Goods carrying

ii) Passenger carrying

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(iii) Miscellaneous type of vehicles include

Mobile library

Mobile Dispensary

Ambulance

Cinema Recording

Van

Hearses.

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There are two types of policies

1) Liability only policy: covers 3rd partyliability for bodily injury and /or death andproperty damage, PA cover for owner-driver.

As per M.V. Act, 1939 and amended in 1988and 1994, no motor vehicle can ply in a publicplace without insurance of third party liability.

2) Package Policy: covers loss or damageto the vehicle insured (own damage), in additionto liability cover; known as comprehensive policy.

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Limits of liability towards third party

a) Personal injury / Death: Unlimited

b) Property damage:

2 wheelers…………………Rs 1 lakh

All other class of vehicles...Rs 7.5 lakhs

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Vintage Cars

Any car manufactured prior to 31-12-

1940 and duly certified by the Vintage

and Classic Club of India.

Classic Cars

Any car manufactured after 31-12-1940

but before 31-12 1970

Valued Policies can be issued.

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Vehicles up to 5 years, schedule of age-wise

depreciation is provided.

Vehicles beyond 5 years I.D.V is arrived at onmutual understanding between the Insured

and the Insurer.

I.D.V is the Sum Insured for the purpose ofsettlement of total loss and constructive total

loss claims; if the aggregate cost of retrieval

and/or repairs and return exceeds 75% of the

I.D.V, it will be treated as constructive total loss

Insured’s Declared

Value (I.D.V)

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Premium

Minimum Premium: As per the Insurer’s

practice.

Generally, Rs 100/= per vehicle.

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No Claim Bonus

• Allowed for each claim free year.

• Allowed only on “Own damage” section ofpolicies covering all classes of vehicles.

• Maximum percentage of No Claim Bonus for allclasses of vehicles is 50%.

• Follows the fortune of the original insured and notthe vehicle or the policy.

• Earned NCB will be applicable for substituted

vehicles of the same class.

• Vehicle is sold and not replaced immediately, theearned NCB is available for a period of 3 years.

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Discounts

For valid membership of recognizedAutomobile Associations.

For fitted with Anti-theft Devices

Vintage cars.Extra Premium Chargeable

Electrical / Electronic Fittings.

Use of CNG / LPG Fuel. Fibre glass Fuel Tank.

Vehicles used for driving tuitions.

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No-Fault Liability

Section 140 of the M V Act 1988 providesfor liability of the owner of the vehicle to

pay a compensation of Rs 50000/= for deathand Rs 25000/= for permanent disablementdue to an accident involving the Insuredvehicle; the claimant need not prove the

negligence on the part of the motorist.

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Solatium Scheme

Sec 161 of the M.V.Act, 1988 provides for

compensations to the victims of “Hit and Run”motor accidents.

Contributions to the Fund by………… Central

Government, State Government and G.I.C

Compensation payable is Rs 25,000/= for death

and Rs 12,500/= for grievous hurt.

Claimant should approach the Claims Enquiry

Officer of the concerned district within 6months from the date of accident.

Payments by the Claims Settlement

Commissioner of the concerned district.

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Personal Accident

Insurance

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Features

Fixed Compensation is paid for

death or disablement

resulting from accidental bodily injury.

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Amount of Compensation

payable

o Death : 100% of Capital Sum-Insured

o Loss of two limbs or both eyes or one limb and

one eye : 100% of Capital Sum-Insured.

o Loss of one limb or one eye : 50% of Capital Sum-

Insured.

o Permanent Total disablement other than the

above : 100% of Capital Sum-Insured

o Permanent Partial disablement and Temporary

Total disablement : as per Insurer’s rules

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Additional Benefits without extra Premium

Expenses for carriage of dead-body . Educational Grant : For dependent Children

below the age of 25 years

Additional Benefits with extra Premium

Medical Expenses

War risks cover for Indian personnel /experts working in foreign countries on

civilian duties

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Rating

Rating factor : Occupation classified into

three groups

Simple Risk

e.g. Accountants, Architects, Doctors….Moderate Risk e.g. Builders, Engineers, Veterinary Doctors,

Paid Drivers of Motor cars ….High Risk

e.g. Miners, Blowers, Jockeys ..........

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Cumulative Bonus

For each claim-free year, Bonus of 5% ofCSI allowed.

Maximum cumulative bonus is 50% or for 10

policy years

Not lost, if renewed within 30 days of theexpiry of the existing policy.

Available for Individual Personal AccidentPolicies only.

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Group Personal Accident policies

Issued covering group of employees, groupsidentified by State or Central government, members

of a Registered Co-operative Society/Club, holders of

bank credit cards, bank deposit certificates etc.

Sum Assured would be fixed separately after

negotiation.

Group Janata Personal Accident Policies specially

designed for the weaker sections of the society andcan be given on long-term basis up to 5 years.

In this case sum insured – Rs.25,000 to Rs.100,000.

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MEDICLAIM

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MEDICLAIM

• Covers hospitalisation expenses due to

disease(s) or accident.• Expenses are paid without ‘Cap’ on individual

head of expenses like Room-charge, O.T

charges…..; limit being the Sum Insured.

• Waiting period: normally 30 days from the date

of issue of the policy.

• Cumulative bonus: allowed for claim free years

@5% of the C S I which can be accumulated.Maximum cumulative bonus allowed is 50% of

the C.S.I or for 10 policy years

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MEDICLAIM

• Provision of Pre-hospitalisation expenses up to

30 days and Post-hospitalisation expenses up

to 60 days is available.

• Family Package: Insured, spouse,dependent children below 25 years

of age and dependent parents.

• Group Mediclaim policy available . • Cover is on “Cash less” basis; claim

to be routed through TPAs.

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Building & Contents

This Insurance provides coverage for loss or

damage to the building / contents, while

contained in the Insured premises, due to

Fire, Lightening, Explosion of gas indomestic appliances, bursting & overflowing

water tanks, apparatus or pipes, riot, strike,

malicious act, earth-quake, storm, tempest,

flood, inundation & impact damages like loss

or damage to fixed plate glass in the insured

premises.

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Coverage

Some Insurers extend the coverage

during temporary removal of contents up

to one-tenth of the total sum-insured for

a period, not exceeding in aggregate120 days in any one period of

Insurance.

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Money, Security, Bullion etc., will not be

covered unless specifically declared.

Under all-risk policy cover, Insured or any

member of the Insured’s family will be

indemnified in respect of loss or damage to

jewellery and valuables caused by accident

or misfortune whilst anywhere in India. [ upto the limit of the sum-insured]

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Insurers provide Indemnity against

unforeseen and sudden physical damagecaused by or solely due to mechanical and /

or electrical breakdown of domestic electric,

electronic or mechanical appliances,apparatus or gadgets whilst contained in the

insured premises.

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Loss or Damage to the T.V Apparatus, Accessories forming the part of the set,

Antenna both External & Internal and Pedal

cycle and also legal liability to any third party

arising out of breakage or any defect alsocovered by most of the Insurers.

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