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INTRODUCTION

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

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pool is made by a group of people sharing common risks and collected by
the insurance companies in the form of premiums.

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.

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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.

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INDUSTRIAL PROFILE

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

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the controller of the 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 Date of Name of the Company

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Number Registratio
n
1 102 23.10.2000 Royal Sundaram Alliance Insurance
Company Limited
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. Ltd
Source: 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:

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 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.

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

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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 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-

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Source: www.moodys.com

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COMPANY PROFILE

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

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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.

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.

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BASIC FACTS OF THE COMPANY

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

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ORGANISATIONL STRUCTURE

HEAD OFFICE

REGIONAL OFFICE LEARNING OFFICE

DIVISIONAL OFFICE

BRANCH OFFICE MICRO OFFICE

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

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FINANCIAL STRENGTH

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

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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

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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

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 Indian Bank

 Canara Bank

 Syndicate Bank

 State Bank of Travancore

 State Bank of Indore

 State Bank of Patiala

 Bank of Maharashtra

 Bank of Rajasthan

 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

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 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

 Tata Projects Ltd

Aviation

 National carriers: NACIL (Air India)

 Private carrier: King Fisher / Air Deccan

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 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

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 Vedanta Group

 Tata Motors

 TVS Group

OBJECTIVES AND METHODOLOGY

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.

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 Secondary sources
The secondary sources of data are:
1. Organization documents.
2. Departmental manuals.
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.

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PRODUCT PORTFOLIO

PRODUCTS

PERSONAL POLICIES COMMERCIAL POLICIES

PERSONAL POLICIES

HOUSEHOLD PERSONNEL MEDICLAI UNIMEDIC


UHI
ER ACCIDENT M LAIM

COMMERCIAL POLICIES

MARINE INDUSTRY MOTOR MISC LIABILITY FIRE

SOCIAL PUBLIC
IAR
MPLP WORKMEN
CARGO BPP RURAL SFSP
LOP PRODUCT
HULL CPM TRAVAL LOP
PACKAGE PROFESSI
MB
ON

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PERSONAL POLICIES

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 Up to 0.5% of Sum


by the Hospital / nursing home. Insured per day
If admitted in IC Unit Up to 1% of Sum Insured
per day

B Surgeon, Anaesthetist, Medical Up to 15% of Sum Insured


Practitioner, Consultants, Specialists per illness / Injury
Fees, Nursing Expenses
C Anaesthesia, Blood, Oxygen, Operation
Theatre Charges, surgical appliances, Up to 15% of Sum Insured
Medicines & Drugs, Diagnostic Materials per illness / Injury
and X-ray Dialysis, Chemotherapy,
Radiotherapy Cost of Pacemaker,
Artificial Limbs & Cost of organs and
similar expenses.

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D Maternity Benefit – ONE CHILD ONLY Rs.2,500/- for normal
(with 12 months waiting period) delivery and Rs.5,000/- for
caesarean delivery.

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Section 2:

A. PERSONAL ACCIDENT COVER TO EARNING HEAD

Death of Insured Person (earning head of the family) Rs.25,000/-


solely due to accident

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/-

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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]

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Third Party Liability
Due to injury to third party or damage to third party property.

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.

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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 100 % of Sum Insured

limb and one eye

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.

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 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.
 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

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 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
 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.

Page | 30
 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
 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

Page | 31
i) Room, Boarding Expenses as
i) Up to 0.5% of Sum
provided by the Hospital / nursing
Insured per day
A home.

ii) Insured per da


ii) If admitted in IC Unit
Surgeon, Anasthetist, Medical
Upto 15% of Sum Insured
B Practitioner, Consultants, Specialists
per illness / injury
Fees, Nursing Expenses
Anaesthesia, Blood, Oxygen, Operation
Theatre Charges, Surgical appliances,
Medicines & Drugs, Diagnostic Materials
Upto 15% of Sum Insured
C and X-ray Dialysis, Chemotherapy,
per illness / Injury
Radiotherapy, Cost of Peacemaker,
Artificial Limbs & Cost of organs and
similar expenses.

Exclusions:

 All diseases/injuries which are pre-existing when the cover incepts


for the first time.
 Treatment arising from or traceable to pregnancy ( including
voluntary termination of pregnancy) and childbirth, (including
caesarean section)
 Naturopathy treatment

Page | 32
COMMERCIAL POLICIES

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
 Sea, lake, river water
 Total loss of package lost overboard or dropped in loading or
unloading

Page | 33
 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.

Page | 34
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 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:

Page | 35
 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
 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 | 36
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

 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

Page | 37
 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 | 38
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

Page | 39
 Act of God perils
 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 | 40
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 | 41
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 | 42
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 | 43
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 | 44
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

Appropriate deductions-Shrinkage and rottage


- Value of damaged stock by sale or survey

Page | 45
- 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 | 46
 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 | 47
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
 Flood, cyclone and Inundation etc
 While in transit by rail, road, air, elevator, lift or inland waterways

Page | 48
 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
 Claimant's cost as decided by the court
 All costs and expenses incurred with company's written consent

Page | 49
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 | 50
 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 | 51
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 | 52
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 | 53
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 | 54
 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

Rs.1,200/-per Surviving parent or guardian,


1-5 years annum Surviving provided the expenditure is
parent or guardian incurred for the child's education

Surviving parent or guardian,


Rs.1,200/- per
6-11 years provided the expenditure is
annum
incurred for the child's education

Surviving parent or guardian


Rs.2,400/- per
12-17 years provided the expenditure is
annum
incurred for the child's education

Balance amount to To the girl on attaining the age


18 years
the child's credit 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.

Page | 55
Unique Features
• 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

Rs.500/- per month subject to a


Temporary Total Disablement
maximum of Rs.1,500/

Expenses incurred for legal Divorce


Actual not exceeding Rs.2,000/-
proceeding

Page | 56
Loss/damage to HouseholdFire, flood, riot,
Up to a limit of Rs.2,000/-
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 | 57
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 Rs.25,000/-


eye

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 Actual not exceeding Rs.2,000/-


proceeding
Loss/damage to Household Fire, Up to a limit of Rs.2,000/-
flood, riot, 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

Page | 58
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.

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 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 Amount of Relief Payable to


the
children

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 Rs.2,400/- per annum Surviving parent or guardian


years provided the expenditure is incurred
for the children’s education

18 years Balance amount to the To the children on attaining the age


child’s credit 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

Page | 60
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.
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

Page | 61
 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 | 62
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.

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 War perils.
 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.
 Faults existing at the time of commencement of insurance known to
insured or his representative.

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 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-

Page | 65
 Malicious / wilful misconduct / negligence.
 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 | 66
 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.

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.

Page | 67
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 | 68
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 | 69
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

Page | 70
 Suicide, attempt there at, VD, Criminal breach of law, influence of
liquor / drugs
 Pregnancy related claim
 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

Page | 71
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 | 72
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.

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)

Page | 73
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
 Nuclear group of perils
 Gross and wilful negligence of Insured
 Violation of policy conditions

Page | 74
 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
 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

Page | 75
 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)


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

Page | 76
 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.

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

Page | 77
 Storm, Flood and Inundation etc.

Discount Available

 More sections selected, allows more discount.


 Loyality discount for continuous renewal.

Page | 78
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

Page | 79
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.

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

Page | 80
 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.
 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 | 81
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

Page | 82
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.

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/-.

Page | 83
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 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

Page | 84
 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
 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

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 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

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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

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continuous, intermittent or repeated exposures arising out of the
same fortuitous event or circumstances

Special Features
1. Claims made basis
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.

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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.
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.

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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

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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
 Subsidence , landslide
 Bursting or overflowing of tanks
 Bush fire etc.

Exclusions

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 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)
 Spontaneous combustion
 Startup expenses
 Spoilage Material Damage Cover
 Leakage and Contamination cover

These additional covers are available by payment of additional premium.

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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.

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FINDINGS

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.

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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

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.

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SUGGESTIONS

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.

Page | 96
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.

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 | 97
10.

CONCLUSIONS

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.

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BIBLIOGRAPHY

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

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