Transcript
DSPM’S
K. V.PENDHARKAR COLLEGE OF ARTS, SCIENCE &
COMMERCE DOMBIVLI (EAST)
PROJECT REPORT ON
‘ NEW INDIA ASSURANCE CO ’’
PROJECT REPORT SUBMITTED IN PARTIAL FULLFILLMENT
OF REQUIREMENT FOR THE DEGREE OF B.COM (BANKING &
INSURANCE)
UNIVERSITY OF MUMBAI
SUBMITTED BY
KIRTI KISHOR AMBERKAR.
ROLL NO: - 108251
T.Y.B.COM (B&I) SEM-VI
UNDER THE GUIDENCE OF
Omkar Datar
ACADEDMIC YEAR
2010-2011
INDEX
Chapter no
Name Page no
1. Introduction of assurance
2. New India Assurance co
3. Products
4. Various Products & plans
5. Analysis & Review
6. Questions & conclusion
ASSURANCE
Introduction-
Assurance industry has always been a growth-oriented industry
globally. On the Indian scene too, the assurance industry has always
recorded noticeable growth vis-à-vis other Indian industries.
The new India assurance Co. Ltd. was the first general assurance
company to be established in India in 1850, which was a wholly British-
owned company. The new India assurance company to be set up by an
Indian was Indian Mercantile assurance Co. Ltd., which was established in
1907. There emerged many a assurance player on the Indian scene
thereafter. The general assurance business was nationalized after the
promulgation of General Insurance Business (Nationalization) Act, 1972.
The post-nationalization general assurance business was undertaken by the
assurance Corporation of India (GIC) and its 3 subsidiaries:
1. New India Assurance Company Limited
2. National Insurance Company Limited
3. United India Insurance Company Limited
Towards the end of 2000, the relation ceased to exist and the four
companies are, at present, operating as independent companies.
The Life assurance Corporation (AIC) was established on 01.09.1956 and
had been the sole corporation to write the life assurance business in India.
The Indian assurance industry saw a new sun when the assurance
Development Authority invited the applications for registration as assurors
in August, 2000. With the liberalization and opening up of the sector to
private players, the industry has presented promising prospects for the
coming future. The transition has also resulted into introduction of ample
opportunities for the professionals including Chartered Accountants.
The Indian assurance industry is featured by the attributes:
Low market penetration;
Ever-growing middle class component in population.
Growth of consumer
Movement with an increasing demand for better assurance products;
Inadequate application of information technology for business.
Adequate
Fillip from the Government in the form of tax incentives to the assured,
etc.
The industry formations need to keep vigil on these characteristics of
the Indian market and formulate their strategies to entail maximum
contribution to the output of the sector.
The Indian life and non-life assurance business accounted for merely
0.42 percent of the world's life and non-life business in 1997. The figures of
the basic parameters of the industry's performance viz. assurance Density
and assurance Penetration also are evident of the hitherto existing low-yield
Indian market conditions.
The term "assurance Penetration" broadly measures the contribution of
the assurance industry in relation to a nation's entire economic productivity.
The figure of premium vis-à-vis the GDP of 1999 stood at 0.54 percent for
non-life assurance business and 1.39 percent for the life assurance business.
The term "assurance Density" reflects the assurance purchasing power.
The premium per capita in India amounted to US $ 2.40 for assurance and
US $ 6.10 for life assurance in 1999 but with the deregulation of the sector, a
sea change in the scene is most likely.
The assurance sector in India has come a full circle from being an open
competitive market to Nationalization and back to a liberalized market
again. Tracing the developments in the Indian assurance sector reveals the
360- degree turn witnessed over a period of almost two centuries.
STRUCTURE OF THE ASSURANCE INDUSTRY
The structure of the assurance industry comprises of the Operating
department, Administrative department and the finance department. The
Operating Department generally performs the basic functions pertaining to
the designing of products, marketing thereof, servicing the insured, the
insured, management of portfolio, etc.
The Administrative Department looks after the day-to-day affairs of
the company. The Finance Department backs the operations and
administration of the company by accounting for the transactions,
streamlining the flow of funds, materializing the management decisions, etc.
The Administration Department as well as the Finance Department,
usually, functions through in-house setup. The Finance Department
functions in the areas of accounting, financial and management reporting,
budgeting and controlling, etc. and thus renders enormous scope for finance
professionals. The new entrants in the assurance sector are likely to call for
the services of the Chartered Accountants for their financial setup
requirements. The Chartered Accountants have engaged themselves in the
audit of assurance Companies since long. With the transition in the
insurance sector, the horizons for their contribution have broadened.
Contributions have broadened.
There has, emerged a king-size pool of opportunities that the
Chartered Accountants can explore and apply their professional wisdom and
experience to.
BASIC FUNCTIONS OF THE ASSURANCE INDUSTRY
1. Risk Perception and Evaluation:
The fundamental function of an insurer is to provide a cover against
the detriment caused to the insured due to the happening of certain specified
and agreed events. Thus, prior to providing such umbrella through a product,
the insurer has to assess the risk involved in the transaction. The insurer has
to identify the element of risk prevalent in the concerned industry or a
particular unit. The perception of risk requires the study of variables through
various methods including the application of scientific and statistical
techniques and correlation thereof with the industry or unit under study in
light of their basic environmental and infra-structural characteristics.
2. Designing the Insurance Product:
On the basis of the risks perceived, the insurer develops a product to cover
the stipulated risks. While designing an insurance product, an insurer
decides its cost to be charged from the insured in the form of premium,
reduction thereof in certain cases like not lodging any claim during the
previous covered period(s), suggesting the implementation of risk-mitigating
measures, etc.
3. Marketing of the Product:
The core function of the marketing force of an insurance company is
to generate awareness about the insurance products among the target market.
But in the Indian scenario, where the insurance penetration is too low as
compared to the other nations, the marketing force needs to perform the pro-
active role in developing an insurance culture. It is through the efficiency of
the sales force of an insurance company that the desirability and the success
of a product are determined.
Adequate knowledge of the insurance industry, products and the
modalities attached therewith. Further, the marketing personnel should be
adequately backed by the back-office setup.
4. Selling of the Products:
The term selling in the context of Assurance industry connotes the
issuance of policies to the applicant proposer. The Assurance basically
embodies the covenant between the insurer and the insured wherein the
former agrees to indemnify the latter for the loss caused to him on the
happening of the certain agreed events up to a specified limit. The life
insurance policy generally contains the agreement whereby the insurer
agrees to pay to the insured or the beneficiary of the policy an agreed
amount on the expiry of the term of the policy or in the event of the death of
the insured respectively. The additional benefits in the shape of Riders viz.
Accidental Death Benefit, Double Sum Assured, Critical Illness benefits;
Waiver of Premiums, etc. can also be appended with the policy on the
payment of an additional premium.
5. Management of Portfolio:
The management of the portfolio includes the assessment of
requirement of funds, identification of various sources of finance, the
evaluation of the sources in the light of their cost, availability, timing, etc.,
reconciling the features of various sources with the needs of the company
and the selection of appropriate conjunction of sources. The insurer
possesses huge amount of funds, which need proper management. The
management of the portfolio of an insurance company requires the
identification of investment avenues, evaluation thereof and the selection of
the most appropriate mix of alternatives where the funds of the company can
be invested. The selection requires the knowledge of finance related
functions and techniques apart from the in-depth know of the patterns of
requirement of funds in the company as well as in the industry as a whole.
ABOUT US
New India is a leading global insurance group, with offices and
branches throughout India and various countries abroad. The company
services the Indian subcontinent with a network of 1068 offices, comprising
26 Regional offices, 393 Divisional offices and 648 branches. With
approximately 21000 employees, New India has the largest number of
specialist and technically qualified personnel at all levels of management,
who are empowered to underwrite and settle claims of high magnitude.
New India has been rated "A-" (Excellent) by A.M.Best Co., making it the
only Indian insurance company to have been rated by an international rating
agency. Rating based on following factors:
Superior Capital Position
Strong Operating Performance
Only Company to develop significant International operations, long
record of successful trading outside Indi
PROFILE
History
Present Position
International Presence
Our Strengths
Pioneers
Citizens' Charter
History
Incorporated on July 23rd, 1919 Founded by the House of Tata Founder
member - Sir Dorab Tata. Nationalised in 1973 with merger of Indian
companies.
Present Position
Gross Premium (in India) of Rs. 5017.20 crores in the year 2006-2007, as
against Rs. 4791.49crores in the year 2005-2006. Assets Rs. 27444.57crores
as on 31st March 2007. Network of Offices-26 Regional Offices, 393
Divisional Offices, 614 Branches and 34 Direct Agent Branches. Rank No. 1
in the Indian market. Largest Non-Life insurer in Afro-Asia excluding
Japan. First Indian non-life company to cross Rs. 5000 crores Gross
Premium. Global Re-insurance facilities. Over-seas presence in countries
like Japan, U.K, Middle East, Fiji and Australia.
International Presence
Overseas operations commenced in 1920. Operations in 24 countries in the
year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies
and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs.
892.35 crores in the year 2004-05, which accounts for more than 80% of
total overseas premium in India. Pre
Our Strengths
Largest number of Offices - In India and Abroad Trained and technically
qualified staff 1068 fully computerised offices across India. "A-" (Excellent)
rating by A.M.Best & Co (Europe) First domestic company to be rated by an
International Rating Agency Rating based upon following factors: Superior
capital position Strong operating performance Strong market position Only
company to develop significant International operations, long record of
successful trading outside India.
Pioneers
First company to set up an Aviation Insurance Department in 1946.
First company to handle the Hull Insurance requirements of the Indian
Shipping Fleet.
First company to establish its own Training School.
First company to introduce the concept of 'Model Office Training'.
First company to create department in Engineering insurance.
Pioneer in Satellite insurance.
Citizens’ Charter
Our Mission
To develop general insurance business in the best interest of the
community.
To provide financial security to individuals, trade, commerce and all
other segments of the society by offering insurance products and
services of high quality at affordable cost
Our Values
Highest priority to customer needs.
High standards of public conduct.
Transparency in operations.
Our Commitment to the citizens
We will respond to all commercially viable general insurance
requirements of the citizens, including products for weaker sections of
the society at affordable price within three months from the date on
which such a requirement is received.
We will ensure issuance of 100% of documents within a period of
seven days.
We will ensure that prospectus of the various insurance products are
provided to the customers and the extent of coverage is explained for
his choosing the appropriate product. A written proposal will be
obtained from the insured wherever necessary and accordingly the
policy will be prepared.
We will settle all claims within a time schedule envisaged hereunder:
A. Personal life insurance claims within 30 days on completion of all
requirements.
B. Property claims within 30 days on completion of all requirements.
C. Liability claims within 30 days on completion of process of law.
We will promote customer education in general insurance
products/services by holding workshops in various centers.
We will open a customer service cell in all ROs/DOs in addition to the
existing 'May I Help You' counters.
We will set up proper grievance redressal mechanism in every
operating office and will educate the clients about the same including
the system of grievance redressal thorough ombudsman.
On request to the policy issuing office, we will make available to a
customer, the status of his claim and/or claim settlement details within
seven working days.
We will adhere to the IRDA guidelines in protecting the
policyholders' interest.
All the above services and commitments will be honoured without the
citizen having to pay any gratification/bribe.
(This Citizens' Charter was adopted at the board meeting held on
31.12.2003)
FINANCIAL RATING
For the sixth consecutive year, the Company has been rated as "A-"
(Excellent) by M/s. A.M. Best Europe Ltd. The rating reflects Company's
excellent risk adjusted capitalisation, prospective improvement in
underwriting performance and its leading business profile in the direct
insurance market in India. A partially off-setting factor is the Company's
reliance on investment income which counter balances underwriting losses.
But the outlook is stable. A.M. Best believes the Company's risk adjusted
capitalisation is excellent and anticipates that it will remain sufficient to
absorb the likely growth in the net premium. Further it also expects that
there will be a reduction in the combined ratio in the years to come. The
Company is likely to maintain its leading business position as the largest
direct insurer in India, despite increased competition from private players.
PERFORMANCE
New India Assurance Company is the largest non-life insurer in India. The
financial strength of the Company is reflected from the following figures:-
(Rs. in Crores)
Year
Gross
Premium
(in India)
Gross
Premium
(Outside
India)
Net Premium
(Global)
Net Profit
(Global)
Total Assets
(Global)
Net Worth
(Global)
2007-2008 5276.91 874.55 4914.28 1401.13 31944.14 6972.80
2006-2007 5017.20 919.58 4751.76 1459.95 27444.57 5972.55
2005-2006 4791.49 884.05 4342.66 716.38 27025.58 4706.87
2004-2005 4210.81 892.35 3895.11 402.23 19827.19 4161.69
2003-2004 4045.68 875.79 3634.94 590.21 17510.44 3735.22
2002-2003 3921.24 891.55 3516.43 255.81 12984.75 3404.00
2001-2002 3512.33 685.73 3068.23 142.00 12273.02 3189.39
2000-2001 3041.17 451.88 2671.48 173.54 8292.00 3067.39
1999-2000 2979.53 327.00 2477.45 287.29 7664.71 2859.86
1998-1999 2729.48 288.16 2186.92 375.00 6727.72 2524.23
1997-1998 2433.73 254.04 1945.00 470.94 6071.67 1462.52
WORKFORCE
Employee Strength (as on 31.03.2010)
Category Total Number of
Employees
Function
Class I 5504 Supervisory
Class II 2574 Development Force
Class III 9032 Clerical/Secretarial
Class IV 2049 Substaff/Drivers
P. T. S. 389
TOTAL 19548
PRODUCTS
PERSONAL
PRODUCTS
1. HOUSEHOLDERS POLICY
This is a package policy specially designed to meet the insurance
requirements of a householder.
Highlights
This is a package policy specially designed to meet the insurance
requirements of a householder by combining under a single policy, a number
of our standard policies usually taken by householders.
Discount in premium is offered depending upon the number of sections of
the policy, opted for, by the proposer.
Scope
The policy comprises of 10 sections as given here under
Section I - Fire & Allied Perils
A - Coverage for building
B - Covers contents of the dwelling belonging to the proposer and his/her
family members permanently residing with him/her.
Allied Perils:
a. Fire, Lightening, Explosion of gas in domestic appliances
b. Bursting and overflowing of water tanks, apparatus or pipes.
c. Damage caused by Aircraft
d. Riot, Strike, Malicious or Terrorist Act
e. Earthquake, Fire and/or Shock, subsidence and Landslide (including
Rockslide) damage
f. Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomado or
Cyclone.
g. Impact damage
Section II - Burglary & House Breaking including larceny and theft.
Covers contents of the dwelling against loss due to burglary, house breaking,
larceny or theft.
Section III - All Risks (Jewellery & Valuables)
Covers loss or damage to your jewellery and valuables by accident or
misfortune whilst kept, worn or carried anywhere in India subject to the
value declared in the schedule.
Section IV - Plate Glass
Loss or damage to fixed plate glass in the insured premises by accidental
breakage subject to limit of sum insured
Section V - Breakdown of Domestic appliances
Covers domestic appliances against unforeseen and sudden physical damage
due to mechanical or electrical breakdown.
Section VI - T.V. Set including VCP/VCR (ALL RISKS)
Covers loss or damage to T.V.Set including VCP/VCR by fire and allied
perils, burglary, house breaking or theft, breakage due to accidental external
means, mechanical or electrical breakdown. Any legal liability arising out of
bodily injury or accidental death of any person other than insured's family
members or employee as also damage to property not belonging to or in the
custody of insured , caused by use of the T.V. Set is also covered upto a
limit of Rs.25,000/-.
How to claim
In case of any incident leading to a valid claim under the policy, following
steps should be taken:
1. Take necessary steps to minimize the loss/damage.
2. In case of fire, inform fire brigade immediately.
3. In case of theft, larceny or burglary inform the police immediately
along with a list of items stolen and their approximate value.
4. Inform insurance company by phone or fax and in writing.
5. Extend full co-operation to the surveyor appointed by the insurance
Co. and provide necessary documents to the substantiate the loss. A
claim form issued by the company is also to be submitted.
6. In case any rights of recovery exist against any other party responsible
for the loss, your rights of recovery have to be subrogated to the
insurance company on payment of claim.
2. PERSONAL ACCIDENT POLICY
The insurance provides compensation in the event of death or disability
directly due to accident.
Highlights
This policy offers compensation in case of death or bodily injury to the
insured person, directly and solely as a result of an accident, by external,
visible and violent means.
The policy operates worldwide and is a 24 hours cover.
Different coverages are available ranging from a restricted cover of Death
only; to a comprehensive cover covering death, permanent disablements and
temporary total disablements.
Family Package cover is available to Individuals under Personal Accident
Policy whereby the proposer, spouse and dependent children can be covered
under a single policy with a 10% discount in premium.
Scope
This policy is basically designed to offer some sort of compensation to the
insured person who suffers bodily injury solely as a result of an accident
which is external, violent and visible. Hence death or injury due to any
illness or disease is not covered by the policy.
The following types of coverages are offered under a Personal Accident
policy:-
Table D
1. Death cover wherein 100% of the capital sum insured is payable.
Table C
1. Coverage under Table D
2. Loss of two limbs / both eyes / one limb and one eye wherein 100% of
the capital sum insured is payable.
3. Loss of one limb or one eye wherein 50% of the capital sum insured is
payable.
4. Permanent Total Disablement other than above e.g. paralysis due to an
accident, wherein 100% of the capital sum insured is payable.
Table B
1. Coverage under Table C
2. Permanent Partial Disablement i.e. where a part of the body becomes
permanently disabled due to an accident, e.g. total and irrevocable
loss of use of a finger due to an accident. In such cases, a percentage
of the capital sum insured as specified in the policy is paid.
Table A
1. Coverage under Table B
2. Temporary Total Disablement i.e. where the insured person becomes
temporarily disabled from undertaking any work as a result of an
accident for e.g. fracture of legs. In such cases, a weekly payment of
1% of the capital sum insured subject to a maximum limit, is paid for
the number of weeks or part thereof (maximum 100 weeks), during
which the insured person is totally disabled.
The insured can claim only under any one of these sections as a result of any
one accident.
The policy also covers expenses incurred for carriage of dead body from
place of accident to the residence subject to a limit of 2% of the capital sum
insured or Rs.2, 500 whichever is less. Under an Individual Personal
Accident policy or Family Package Policy, an education fund is payable for
a maximum of 2 dependent school going children, in case of death or
permanent total disablement of the insured person.
We issue several types of personal accident policies such as :-
Individual Personal Accident policy.
Group Personal Accident policy.
Passenger Flight Coupon - Covering personal accident risk whilst
traveling as a passenger on a scheduled flight.
Gramin Personal Accident Policy - for persons residing in rural areas
where benefits as per Table C mentioned above are covered for a
capital sum insured of Rs.10,000/-.
Janata Personal Accident policy - where benefits as per Table C
mentioned above are covered for a maximum sum insured of
Rs.1,00,000/-. Long Term Policies can also be issued upto 5yrs.
Student Safety Insurance - for schools and colleges, covering students
against Personal Accident benefits as per Table B mentioned above
for a capital sum insured of Rs.10,000/-.
Raj Rajeshwari Mahila Kalyan Yojna - for women in the age group of
10 to 75 years. where benefits as per Table C mentioned above are
covered for a capital sum insured for Rs.25,000/-. In case of death of
an unmarried woman due to an accident, Rs.25,000/- is payable to the
nominee or legal heir. In case of a married woman, if the husband dies
due to an accident, Rs.25,000/- is payable to the wife but if the wife or
insured dies no compensation is payable.
Bhagyashree Child Welfare Policy - for girl child in the age group of 0 to 18
years. whose parents age does not exceed 60yrs. In case of death of either or
both parents due to an accident, a sum of Rs.25,000/- is deposited in the
name of the girl child with a financial institution named in the policy which
will disburse amounts as specified for the benefit of the girl child to the
living parent or to the nominated guardian. Group policies can also be
issued.
Add on covers
Individual and group personal accident policies can be extended to cover
medical expenses incurred in the treatment of an accident covered under the
policy, subject to a limit of 10% of the sum insured or 40% of the death /
disability compensation claim payable, on payment of additional premium.
The policy issued to Indian personnel working in foreign countries on
civilian duty can be extended to cover War risk on payment of additional
premium.
The policy can also be restricted to cover Personal Accident risk during duty
hours only or during off-duty hours only with discount in premium. It is also
possible to issue group P.A. policy excluding the death benefit subject to a
group life policy covering death benefit being taken for the same group of
persons for the same policy period.
Who can take the policy
Any adult residing in India can take the policy covering himself / herself and
dependent family members between the ages of 5 and 70yrs.
How to claim
In the event of an accident giving rise to a claim the following steps should
be taken:-
In case of death claim :-
1. Assignee under the policy should immediately notify the policy
issuing office.
2. Submit the claim form along with death certificate, post mortem
report, police report and original policy.
In case of injury claim:-
1. Notify the policy issuing office immediately.
2. Submit Police report if any.
3. Submit claim form along with medical certificate certifying the
disablement.
In case medical expenses extension has been taken, then the prescription
along with bills are to be submitted.
3. MOTOR POLICY
This policy covers all types of vehicles plying on public roads.
Highlights
This policy covers all types of vehicles plying on public roads such as:-
Scooters &Motorcycles
Private cars
All types of commercial vehicles
Motor Trade (vehicles in show rooms and garages)
As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a
vehicle plying on public roads, to take an insurance policy, to cover the
amount, which the owner becomes legally liable to pay as damages to third
parties as a result of accidental death, bodily injury or damage to property. A
Certificate of Insurance must be carried in the vehicle as a proof of such
insurance.
Two types of covers are available:
1. Liability only policy. This covers third party liability for bodily injury
liability and / or death and property damage. Personal Accident cover
for Owner-driver is also included.
2. Package policy. This cover loss or damage to the vehicle insured in
addition to (1) above.
No- claim discounts are available on renewal of policy, ranging from 20% to
50%, depending upon the type of vehicle and the number of years for which
no claim has been made.
Scope
Liability Only policies:
The policy covers the vehicle owner's legal liability to pay compensation
for:
1. Death or bodily injury to a third party person.
2. Damage to third party property.
Liability is covered for an unlimited amount in respect of death or injury and
damage to third party property for Rs.7.5 lacs under Commercial vehicle and
private and Rs. 1 lakh for Scooters / Motor Cycles.
Package Policy
In addition to the coverage under liability only, this policy covers loss or
damage to the insured vehicle and its accessories due to:
1. Fire, explosion, self-ignition or lightning.
2. Burglary, housebreaking or theft.
3. Riot and Strike.
4. Malicious Act.
5. Terrorist Act.
6. Earthquake (Fire and Shock) Damage.
7. Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and
Hailstorm.
8. Accidental external means.
9. Whilst in transit by road, inland waterway, lift, elevator or air.
10.By landslide/Rockslide
The policy also pays for towing charges from the place of accident to the
workshop upto a maximum limit of Rs.300/- for Scooters/Motorcycles and
Rs.1500/- for cars and commercial vehicles. It is also permissible to opt for
higher towing charges subject to payment of extra premium.
A restricted cover is also available covering the risk of Fire and/or Theft
only, in addition to the compulsory cover granted under "Liability Only
Policy". However the same is not available in case of vehicle ratable under
Class D, Tariff for Miscellaneous and special types of vehicles.
The important exclusions under the policies are:
Wear and tear, breakdowns
Consequential loss
Loss when driving with invalid driving license or under the influence
of alcohol.
Loss due to war, civil war, etc.
Claims arising out of contractual liability.
Use of vehicle otherwise than in accordance with `limitations as to use
' (e.g. private car being used as a taxi)
Rating factors Rating depends upon the following factors:
1. IDV.
2. Cubic capacity
3. Geographical zone
4. Age of the vehicle
5. GVW of in case of commercial vehicles
6. Add on Covers
Add on covers
The policy can be extended to cover the following risks on payment of
additional premium:
1. Loss or damage to accessories fitted in the vehicle such as stereos,
fans, air-conditioners etc.
2. Personal accident cover under private car policies for:
o passengers
o paid driver
3. Legal liability to employees.
4. Legal liability to non-fare paying passengers in commercial vehicles.
Who can take the policy
Any vehicle owner whose vehicle is registered in his/her name with the
Regional Transport Authority in India.
How to claim
In the event of an incident giving rise to a claim under the policy, the
following steps should be taken:
In case of accidental damage to the vehicle:
1. Immediate intimation to the nearest office, which will issue a Claim
Form.
2. Claim Form duly filled in to be submitted along with copy of
Registration Certificate and driving license of the driver of the vehicle
at the time of accident as also estimate of repairs.
3. Vehicle will be surveyed by a Surveyor, appointed by the insurance
company, who shall submit his report to the company. In case of a
major damage to the vehicle, a spot survey, at the site of accident,
would also be arranged by the company.
4. Final bills/cash memos are to be submitted duly signed by the insured.
5. Salvage of the damaged parts may be required to be deposited with
the insurance company after approval of the claim.
In case of theft of the vehicle:
1. Lodge an F.I.R. with the police immediately.
2. Inform the policy issuing office with a copy of FIR.
3. Submit the Final Police Report as soon as it is received.
4. Extend full cooperation to the surveyor and/or investigator appointed
by the company.
5. After approval of the claim by the company, get the Registration
Certificate transferred in the name of the company, hand over the keys
of the vehicle, submit a letter of Subrogation and Indemnity on stamp
paper duly notarized.
In case of liability claim:
1. Inform insurance company immediately of any incident likely to give
rise to liability claim.
2. On receipt of summons from Court, the same should be sent to the
company immediately.
Claim Form duly filled in along-with copies of Registration Certificate,
Diving License, FIR are to be submitted.
COMMERCIAL
1. JEWELLERS BLOCK POLICY
This is a package policy specially designed for jewellers & diamontaires i.e.
those establishments dealing solely in diamonds.
Highlights
This is a package policy specially designed for jewellers & diamontaires i.e.
those establishments dealing solely in diamonds.
Jewellers premises are categorized into Class I, II or III depending upon the
type of security provided for the premises.
Discount in premium is available in case the premises have special
protection devices like built-in vaults, strong rooms ,closed circuit T.V. or
armed guards.
Scope
The policy comprises four sections which are optional except for section I
which is compulsory.
Section I : Covers loss or damage to jewellery , gold and silver ornaments or
plates , pearls, precious stones, cash and currency notes whilst contained in
the premises insured, by fire,explosion, lightning,burglary,house breaking,
theft, hold up, robbery, riot, strike and malicious damage and terrorism.
Section II : Covers loss or damage to jewellery, gold etc. as described in
Section I whilst it is in the custody of the insured, his/her partners,
employees, directors, sorters of diamonds or whilst such property (excluding
cash and currency notes) is in the custody of brokers, agents, cutters and
goldsmiths.
Section III : Covers loss or damage to property described in Section I whilst
in transit by registered parcel post, air freight or through angadia.
Section IV : Covers loss or damage to trade and office furniture and fixtures
in insured premises due to fire,explosion, lightning,burglary,house breaking,
theft, hold up, robbery, riot, strike and malicious damage and terrorism.
Who can take the policy
The policy can be taken by jewellers who are wholesalers or retailers. The
policy cannot be given to establishments whose work is predominantly
manufacturing like cutters and goldsmiths. The policy also cannot be given
to angadias , brokers or pawn brokers etc.
How to select the sum insured o How
The sum insured under Section I and II should represent the cost price of the
jewellery items. The sum insured under Section III should represent the
maximum loss likely, arising out of any one incident. The sum insured under
Section IV should represent the market value of the property
How to claim
In case of any incident giving rise to a claim under the policy, the following
steps should be taken:
1. Inform insurance company within 24 hrs.
2. In case of burglary, theft etc. inform police immediately and obtain
FIR
Submit claim form and relevant documents to surveyor appointed by
Insurance Co. to substantiate loss. Test.
2. BANKERS INDEMNITY POLICY
A package policy designed specially to cover the risks related to
banking sector. A single policy covering all branches in India of the
particular bank.
Highlights
A package policy designed specially to cover the risks related to banking
sector. A single policy covering all branches in India of the particular bank.
Retroactive period facility available whereby losses discovered during
policy period due to an incident occurring in earlier period but after
inception of first policy , also become payable, provided the policy has been
continuously renewed with us without break.
Discount in premium available for banks having less than 500 branches.
Scope
The policy comprises of following 7 sections :
A. On Premises : Covers money and/or securities belonging to, or in the
custody of bank, whilst on their own premises or on the premises of
their bankers, against loss or destruction by Fire, Riot & Strike,
Malicious damage, terrorist act, burglary ,theft ,robbery or hold-up.
B. In Transit : Covers money and/or securities if they are lost ,stolen,
mislaid, misappropriated or made away with, whilst in transit in the
hands of its employees whether by negligence or fraud of the
employees.
C. Forgery or Alteration : Covers losses suffered as a result of payment
of bogus, fictious, forged cheques or drafts as also forged
endorsements on genuine cheques or drafts or FDRs.
D. Dishonesty : Covers loss of money and/or securities suffered due to
dishonest or criminal act of its employees.
E. Hypothecated Goods : Covers losses suffered due to fraudulent or
dishonest act of employees in respect of goods or commodities
pledged or hypothecated to the insured bank and under its control.
F. Registered Postal Service : Covers loss of registered postal sending
by robbery,theft or any other cause not specifically excluded,
provided that each post parcel shall be insured with the post office.
G. Appraisers : Covers loss due to infidelity or criminal act on the part
of appraisers, provided that such appraisers are on the bank's approved
list.
H. Janata Agents : Covers loss due to infidelity of criminal acts on the
part of Janata Agents, Chhoti Bachat Yojana Agents/Pygmie
Collectors.
Add on covers
The following additional perils can be covered on payment of an additional
premium:
1. Losses due to flood, inundation, hurricane, typhoon, storm, tempest,
tornado and cyclone.
2. Losses due to earthquake - Fire & Shock
Additional sum insured can be opted for under Section A & B.
Who can take the policy
Any banking company as defined under various Banking Acts like Banking
Regulation Act 1945, State Bank of India Act 1955 etc.
How to select the sum insured
The proposer has to select a basic sum insured which will apply to Sections
A to E of the policies. This sum insured should represent the maximum
amount of loss which could be suffered by the bank due to any single
incident covered under Sections A to E. The sum insured under Section
F,G&H is fixed at a percentage of the basic sum insured.
In addition to the basic sum insured , an additional sum insured can be opted
under Section A and/or B on payment of additional premium. How to claim
How to claim
In case of discovery of any loss falling under the scope of the policy, the
following steps should be taken:
1. Inform insurance co. by phone and/or fax/letter.
2. In case of burglary/robbery/theft/hold-up etc. inform police and get
FIR registered.
3. In case of dishonest act of employee, inform police and initiate
departmental enquiry.
4. Submit claim form and relevant documents to substantiate loss to the
surveyor appointed by the insurance company.
5. Take reasonable steps to prevent further loss due to the same reason.
3. MARINE CARGO POLICY
This policy covers goods,freight and other interests against loss or damage
to goods whilst being transported by rail,road,sea and/or air.
Highlights
This policy covers goods,freight and other interests against loss or
damage to goods whilst being transported by rail,road,sea and/or air.
Different policies are available depending on the type of coverage
required ranging from an ALL RISK cover to a restricted FIRE RISK
ONLY cover.
This policy is freely assignable and is basically an agreed value
policy.
Scope
Transportation of goods can be broadly classified into three categories:
i. Inland Transport
ii. Import
iii. Export
The types of policies issued to cover these transits are:
For Inland Transit
a. Specific Policy - For covering a specific single transit
b. Open Policy -For covering transit of regular consignments over the
same route .The policy can be taken for an amount equivalent to three
months despatches and premium paid in advance.As each
consignment is despatched, a declaration giving details of the
despatch including GR/RR No. is to be sent to the insurer and the sum
insured gets reduced by the amount of the declared despatch.The sum
insured can be increased any number of times during the policy period
of one year;but care should be taken to ensure that adequate sum
insured is available to cover the consignment to be despatched.
c. Special Declaration Policy - For covering inland transit of goods
wherein the value of goods transported during one year exceeds Rs.2
crores.Although the premium for the estimated annual turnover
[i.e.the estimated value of goods likely to be transported during the
year] has to be paid in advance,attractive discounts in premium are
available.
d. Multi-transit Policy - For covering multiple transits of the same
consignment including intermediate storage and processing.For
e.g.covering goods from raw material supplier's warehouse to final
distibuter's godown of final product.
For Import/Export
a. Specific Policy - For covering a specific import/export consignment.
b. Open cover - This policy which is issued for a policy period of one
year indicates the rates, terms and conditions agreed upon by the
insured and insurer to cover the consignments to be imported or
exported.A declaration is to be made to the insurance company as and
when a consignment is to be sent along with the premium at the
agreed rate.The insurance co. will then issue a certificate covering the
declared consignment.
Custom duty cover - This policy covers loss of custom duty paid in
case goods arrive in damaged condition.This policy can be taken even
if the overseas transit has been covered by an insurance company
abroad,but it has to be taken before the goods arrive in India.
Add on covers
Inland transit policies can be extended to cover the following perils on
payment of additional premium :
i. SRCC - Strike, riot and civil commotion (including terrorist act)
ii. FOB - Where the inland transit is required to be extended to cover the
goods till they are loaded on board the vessel , this extension can be
taken.
Export /Import policies can be extended to cover War and /or SRCC
perils on payment of an additional premium.
Who can take the policy
The contract of sale would determine who buys the policy. The most
common contracts are :
FOB (Free on Board)
C & F (Cost & Freight)
CIF (Cost, Insurance & Freight)
In FOB AND C&F contracts, the buyer is responsible for insurance.
Whereas in CIF contracts the seller is responsible for insurance from
his own premises to that of the purchaser.
How to select the sum insured
The sum insured or value of the policy would depend upon the type of
contract. Usually, in addition to the contract value 10/15% is added to
take care of incidental cost.
How to claim
The following steps should be taken in event of a loss or damage to goods
insured:
i. Take immediate steps to minimize loss.
ii. Inform nearest office of the insurance company or claim settling agent
mentioned on the policy.
iii. In case of damage to goods whilst on ship or port , arrange for joint
ship survey or port survey.
iv. Lodge monetary claim with carrier within stipulated time period.
v. Submit duly assigned insurance policy/certificate along with the
original invoice and other documents required to substantiate the
claim such as :
a. Bill of Lading / AWB/GR
b. Packing list
c. Copies of correspondence exchanged with carriers.
d. Copy of notice served on carriers along with
acknowledgment/receipt.
e. Shortage/Damage Certificate issued by carriers.
Vi. Survey fees is to be paid to the surveyor appointed by the insurance
company. This fees will be reimbursed along with the claim if the claim is
otherwise admissible.
INDUSTRIAL
1. CONTRACTORS ALL RISK POLICY
This policy is specially designed to give financial protection to the Civil
Engineering Contractors in the event of an accident to the civil engineering
works under construction.
Highlights
This policy is specially designed to give financial protection to the
Civil Engineering Contractors in the event of an accident to the civil
engineering works under construction.
In case the policy period exceeds 12 months, the premium can be paid
in quarterly installments with the first installment being more by 5% and the
last installment being paid 6 months before expiry of the policy.
Scope
The policy comprises of 2 Sections:
Section I-Material Damage-covering physical loss, damage or
destruction of the property insured by any cause, other than those
specifically excluded in the policy.
Section II-Third Party Liability-covering the legal liability falling on
the insured contractor as a result of bodily injury or property damage
belonging to a third party.
The main exclusions under Section I for which no claim is payable, are loss
or damage due to:
i. faulty design
ii. rectification of aesthetic defects of structure not relating to any
physical loss or damage to the structure due to any accident, or of
material defector of workmanship defect.
The exclusion of defective material / workmanship is limited to the
parts of the structure immediately affected and does not apply to any
consequential loss to correctly executed items, arising out of the
accident due to defective material or workmanship.
iii. Loss or damage due to gradual deterioration, atmospheric condition,
rusting etc.
iv. Loss discovered only at the time of taking inventory.
v. Loss arising out of penalty for delay, non-fulfillment of terms of
contract.
Add on covers
The policy can be extended to cover the following items :-
a. construction equipment like scaffolding, shuttering materials
b. construction equipment like scaffolding, shuttering materials
c. Damage to surrounding property not forming part of the contract
work.
d. maintenance visit / extended maintenance cover to cover accidental
loss or damage whilst carrying out any rectification during
maintenance period and / or any amount incurred for rectification of
such original defects or faults during construction.
Who can take the policy
The policy can be taken by the principal, contractor or sub contractor, jointly
or separately.
How to select the sum insured
The sum insured selected under section I should represent total contract
value including the estimated cost of labour charges and cost of materials
but excluding profit. The cost of materials supplied by the principal is to be
declared separately.
In case of long term contracts, there is bound to be escalation in prices. The
basic policy will pay only as per the original cost and prices. However
escalation clause can be opted for, under which escalation upto 50%, can be
selected to take care of such increase in prices.
The sum insured under section II should represent the per accident limit (the
maximum legal liability that may fall on the insured as a result of an
accident in the insured's site). The limit per policy period should be fixed
taking into account the maximum number of such accidents which can
reasonably be expected to occur.
How to claim
In the event of any loss or damage giving rise to a claim under the policy,
the following steps should be taken:-
take necessary steps to minimise the loss.
inform insurance company immediately.
extend full cooperation to the surveyor deputed by the company.
submit duly filled in claim form along with necessary documents to
substantiate the financial loss suffered as a result of the accident.
Period of Insurance
Unlike other policies where the period of insurance is one year, in this policy
the period of insurance should be equivalent to the period of contract,
commencing from the date of unloading of the first batch of material at the
site of construction and expiring on the date of handing over of the contract
work to the principal.
Although it is possible to extend the policy period in case of delay in
completion of contract, it is always advisable to choose a slightly longer
period of insurance initially, to avoid paying the higher extension premium.
2. Machinery Breakdown Policy
This is a policy which covers financial loss incurred by the insured
due to loss or damage to machinery as a result of accidental electrical and
mechanical breakdown.
Highlights
This is a policy which covers financial loss incurred by the insured due to
loss or damage to machinery as a result of sudden accidental electrical and
mechanical breakdown.
It reimburses the insured for the cost of repairs or replacement of machinery
of like nature.
Who can take this Insurance:This insurance can be taken by the
individual owner of the machine or a person or company having
financial interest in the machine.
What kind of machines can be covered: All types of industrial
machinery like compressors, pumps, turbine etc. as also electrical
machines like transformer, electrical motor, generator etc. can be
covered under this policy.
What is the sum insured or value for which policy is to be taken:
It is a requirement of this policy that the sum insured or value for
which the particular machine is insured should represent the present
day purchase value of a similar new machine including all incidental
expenses like custom duties, taxes, excise, freight, insurance charges,
handling charges etc. In case the sum insured under the policy is less
than as per the above requirement the claim will be paid only in such
proportion as the sum insured bears to the current replacement cost of
similar new machinery.
Scope
The policy covers all kinds of electrical and mechanical breakdown resulting
from the following incidents:
a. Faulty material/workmanship of the machine
b. Action of centrifugal forces contributing to disruption of the rotating
parts
c. Failure of lubrication due to malfunctioning of lubricating oil pumps
or its breakdown.
d. Malfunctioning or failure of safety devices.
e. Electrical short-circuiting including electrical fire originating from
failure of insulation and or over voltage or under voltage conditions.
f. Abrupt and sudden stoppage of other connected machinery.
g. Entry of foreign bodies into running machine.
h. Inexperienced operations causing damage due to error of judgment or
error in operation.
Add on covers
The policy can be extended to include the following risks on payment of
additional premium.
1. Damage to foundation of machinery
2. Damage to oil in electrical apparatus
3. Express freight (excluding air freight), holiday rates, overtime charges
4. Air freight
5. Additional custom duty i.e the additional percentage of duty payable
at the time of reimport for replacement over and above the percentage
of duty included in the original sum insured.
6. Own surrounding property i.e. damage to the insured’s own existing
property or property in his custody or control (not included in the sum
insured of the policy) due to any damage to the insured machines
which is covered under the policy.
7. Third party liability i.e. liability falling on the insured for bodily
injury to any other party other than those covered by the policy or for
property damage belonging to such other party.
How to claim
In case of any such incident which falls under the scope of the policy, the
following steps should be followed:
1. Please inform the insuring office by phone, letter or fax.
2. Take all necessary steps to minimise the loss.
3. Obtain estimate of repair from repairer of your choice.
4. Submit this repair estimate and claim form to the surveyor deputed by
the insurance company.
5. After getting clearance from the surveyor, proceed for repairing
machine or ordering for replacement as the case may be.
Submit actual bills of repair/replacement with proof of payment to the
surveyor.
SOCIAL
1. Universal Health Insurance Scheme
Covers Medical Expenses whilst traveling abroad for business / holiday /
employment / studies.
Benefits
Medical Reimbursement
The policy provides reimbursement of hospitalisation expenses upto
Rs.30,000/- to an individual /family subject to the following sublimits:
A. (i) Room, Boarding expenses upto Rs.150/-
per day
(ii) If admitted in ICU upto Rs.300/-
per day
B. Surgeon, Anaesthetist, Consultant, specialists fees,
Nursing expenses
upto Rs.4,500/-
per illness/
injury
C. Anaesthesia, Blood, Oxygen, OT charges, Medicines,
Diagnostic material & X-Ray, Dialysis, Radiotherapy,
Chemotherapy, Cost of pacemaker, Artificial limb, etc
upto Rs. 4,500/-
per illness/
injury
D. Total expenses incurred for any one illness upto Rs.
15,000/-
Personal Accident Cover
Coverage for Death of the Earning Head of the family (as named in the
schedule) due to accident: Rs. 25,000/-.
Disability Cover
If the earning head of the family is hospitalized due to an accident / illness
compensation of Rs.50/- per day will be paid per day of hospitalization up to
a maximum of 15 days after a waiting period of 3 days.
For purpose of this policy HOSPITAL means:
Any Hospital/ Nursing home registered with the local authorities and
under the supervision of a registered and qualified Medical
practitioner.
Hospital/ Nursing Home run by Government.
Enlisted hospitals run by NGOS / Trusts / selected private hospitals
with fixed schedule of charges.
It should have minimum 15 beds (10 in case of class 'C' cities having
a population lest than 5 lakhs) with fully equipped OT, fully qualified
nursing staff round the clock and fully qualified doctor should be in
charge round the clock.
Hospitalization should be for a minimum period of 24 hrs. However
this time limit is not applied to some specific treatments and also
where due to technological advancement hospitalization for 24 hrs
may not be required.
Premium
For an individual Rs. 300/- per
annum
For a family upto 5 (including the first3 children) Rs. 450/- per
annum
For a family upto 7 (including the first 3 children and
dependent parents)
Rs. 600/- per
annum
Premium Subsidy For BPL Families
For families below the poverty line the Government will provide a premium
subsidy of Rs.100/- per family.
Main Exclusions
Corrective, cosmetic or aesthetic dental surgery or treatment.
Cost of spectacles, contact lens and hearing aid.
Vaccination, inoculation, change of life or cosmetic treatment or
surgery HIV, AIDS, Sterility, Venereal Disease, Intentional Self
injury, use of Intoxicating Drugs/ Alcohol.
Primarily diagnostic expenses not related to sickness/ injury.
Claim Settlement
Claim settlement to be done through TPAS mentioned in the schedule or by
the insurance company. To be made cashless as far as possible through listed
hospitals.
Other Features
Any One Illness
will be deemed to mean continuous period of illness and it includes relapse
within 60 days from the date of last consultation with the hospital.
Age Limitations
This Policy covers people between the age of 3 months to 70 years.
Family
means earning head, spouse and up to maximum of three dependent
children. Dependent parents can also be included.
Floater Basis
The benefit of family will operate on floater basis i.e. the total
reimbursement of Rs.30,000/- can be availed of individually or collectively
by members of the family.
2. STUDENT SAFETY INSURANCE
Highlights
This insurance is available to schools, colleges or other educational
institutions. The policy is issued in the name of the Institution. The claim
amount is payable to the parent/guardian as recorded in the school register.
All students are to be covered. Additional students are covered during the
policy period at extra premium. But no deletions are allowed.
Scope
The students will be covered against death, total loss of two limbs or two
eyes, total loss of one limb and one eye, total loss of one limb or one eye and
Permanent total and partial disablement.
Death (Capital Benefit) : Rs 10,000/-
Loss of two limbs, two eyes or one limb and one eye : Rs 10,000/-
Loss of one limb or one eye : Rs 5,000/-
Permanent total disablement from injuries other than those mentioned
above : Rs 10,000/-
Permanent partial disablement (percentage of benefits as given below
on the capital benefit of Rs 10,000/-)
Limit upto Rs 500/- (any one accident, any one year)
Eligibility
The policy provides personal accident benefits to registered students of the
school.
MANAGEMENT
Board of Directors
Name1. Shri M. Ramadoss Chairman cum Managing Director
2. Shri A. R. Sekar, Director and FA
3. Shri I S Phukela, Director
4. Mr. R. Gopalan I.A.S., Secretary,
Department of Financial Services,
Ministry of Finance,
Government of India5. Shri M. D. Mallaya Chairman & Managing Director,
Bank of Baroda
Questioners
1. Which type of product do you sell?
2. What is term &condition of each plan?
3. Which type of special facility you provide to your customer?
4. Which type of marketing strategy you adopt launching new plan?
5. Which benefit are you offered to your employee?
6. Do you have tie up any bank to provide insurance scheme?
7. Which technique you adopt to retain more & more customer?
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