Insurance in India

Research and Methodology:

Research methodology is a methodology for collecting all sorts

of information and data pertaining to the subject in question. The

objective is to examine all the issues involved and conduct situational

analysis. The methodology includes the overall research design,

sampling procedure and finally the analysis procedure.

The methodology used in the study consistent of sample survey

using both primary and secondary data. The primary data has been

collected with the help of questionnaire as well as personal

observation book, magazine; journals have been referred for

secondary data. The questionnaire has been drafted and presented

by the researcher himself

Objective of study:

This project gives a practical exposure and helps in acquiring the on road

skills. The objectives of study are as follows:

a. To know about the industrial insurance in India

b. To know the type of industrial insurance policy

c. To know the Role of reinsurance in industry

d. To know the need of industrial insurance

OVERVIEW OF INDIAN INSURANCE SECTOR   

INTRODUCTION

The Insurance sector in India governed by Insurance Act, 1938, the Life

Insurance Corporation Act, 1956 and General Insurance Business

(Nationalization) Act, 1972, Insurance Regulatory and Development

Authority (IRDA) Act, 1999 and other related Acts. With such a large

population and the untapped market area of this population Insurance

happens to be a very big opportunity in India. Today it stands as a business

growing at the rate of 15-20 per cent annually. Together with banking

services, it adds about 7 per cent to the country’s GDP .In spite of all this

growth the statistics of the penetration of the insurance in the country is very

poor. Nearly 80% of Indian populations are without Life insurance cover

and the Health insurance. This is an indicator that growth potential for the

insurance sector is immense in India. It was due to this immense growth that

the regulations were introduced in the insurance sector and in continuation

“Malhotra Committee” was constituted by the government in 1993 to

examine the various aspects of the industry. The key element of the reform

process was Participation of overseas insurance companies with 26% capital.

Creating a more efficient and competitive financial system suitable for the

requirements of the economy was the main idea behind this reform.  

Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to the

existence of LIC .since the liberalization of the industry the insurance

industry has never looked back and today stand as the one of the most

competitive and exploring industry in India. The entry of the private players

and the increased use of the new distribution are in the limelight today. The

use of new distribution techniques and the IT tools has increased the scope

of the industry in the longer run. 

MARKET SHARE OF INDIAN INSURANCE INDUSTRY

The introduction of private players in the industry has added value to the

industry. The initiatives taken by the private players are very competitive

and have given immense competition to the on time monopoly of the market

LIC. Since the advent of the private players in the market the industry has

seen new and innovative steps taken by the players in this sector. The new

players have improved the service quality of the insurance. As a result LIC

down the years have seen the declining phase in its career. The market share

was distributed among the private players. Though LIC still holds the 75%

of the insurance sector but the upcoming natures of these private players are

enough to give more competition to LIC in the near future. LIC market share

has decreased from 95% (2002-03) to 81 %( 2004-05).The following

companies has the rest of the market share of the insurance industry. Table 3

shows the mane of the player in the market.

NAME OF THE INSURANCE COMPANY AND THE SHARE HOLDING

PATTEN

Name of the Insurance Company Shareholding

Agricultural Insurance Co Bank and Public Ins

Co

Bajaj Allianz General Insurance Co. Ltd. Privately Held

Cholamandalam MS General Insurance Co. Ltd. Privately Held

Export Credit Guarantee Company Public Sector

HDFC Chubb General Insurance Co. Ltd. Privately Held

ICICI Lombard General Insurance Co. Ltd. Privately Held

IFFCO-Tokyo General Insurance Co. Ltd. Privately Held

National Insurance Co. Ltd. Public Sector

New India Assurance Co. Ltd. Public Sector

Oriental Insurance Co. Ltd. Public Sector

Reliance General Insurance Co. Ltd. Privately Held

Royal Sundaram Alliance General Insurance Co.

Ltd.

Privately Held

Tata AIG General Insurance Co. Ltd. Privately Held

United India Insurance Co. Ltd. Public Sector

There are a total of 13 life insurance companies operating in India, of which

one is a Public Sector Undertaking and the balance 12 are Private Sector

Enterprises.

What is mean by insurance?

        Whenever there is uncertainty there is risk. We do not have any control

over uncertainties which involves financial losses. The risk may be certain

events like death, pension, retirement or uncertain events like theft, fire,

accident, etc.

         Insurance is financial service for collecting the saving of the public and

providing them with risk coverage. The main function of insurance is to

provide protection against the possible chances of generating losses. It

elements worries and miseries of losses by destruction of property and death.

It also provides capital to the society as the funds accumulated are invested

in productive heads.

          Insurance comes under the services sector and while marketing this

service due care is to be taken in quality product and customers satisfaction.

While marketing the services, it is also patients that they think about the

innovative promotional measures. It is not sufficient that you perform well

but it is also important that you let others know about the quality of yours

positive contributions.

        The creativity in the promotional measures is the need of the

hour. The advertisement, public relation world of mouth

communication need due care and personal selling requires our

intensive care.

        The insurance business is based on the skill and excellence of

agents and this makes a strong case in favor of personal selling. 

HISTORY OF INSURANCE

            Forms of insurance were known to the Romans and to some extent

were practiced among the Collegial. In certain respects these bodies

resembled our benefit societies. For example, they provided for burial and

also made some form of provision for promotion among the soldiers in their

organizations. In reality, then, they were based on the insurance principle

since they accepted from their members a certain stipulated sum and in

return agreed to perform certain services. Demosthenes describes marine

loans made to the ancient Greeks; we also have record that insurance existed

among the Chinese 2500 years ago. In none of these early instances,

however, did insurance reach anything like large proportions. In fact, so far

as we know, it entirely disappeared, many centuries passing before there was

a revival. It is true that certain laws among the Romans governing annuities

necessitated a mortality table, but it was, however, for this sole purpose and

apparently not in any sense an insurance matter.  

The business of insurance is divided into four main branches: marine

insurance, fire insurance, life insurance and casualty insurance. The first

three state the form of disaster against which insurance is provided. The

fourth—originally accident insurance—includes all forms not embraced in

the other three .An idea of the variety of events against which insurance is

offered.  

Marine insurance antedates every other form, its history dating back over

seven centuries. It appears to have been practiced in the Mediterranean, and

at least one old policy has come down from the thirteenth century, proving

that marine insurance was an established practice among the commercial

countries of that time. A broad gap exists between that period and the

continuous history running back now some four hundred years, but since

that time insurance has been an established business among those engaged in

maritime adventures.  

Fire insurance, the second oldest form to become permanently established,

dates from the great London fire of 1666.  

Life insurance followed a little later, although not until 1760 was a company

founded on a modern basis.  

Casualty insurance owes its origin to the application of steam to railway

travel; its more common name of accident insurance was due to the fact that

the first events to be insured against were those of accidents to the person on

a railway journey. It originated in England in the first half of the nineteenth

century.

DEFINITION   of insurance

A promise of compensation for specific potential future losses in exchange

for a periodic payment. Insurance is designed to protect the financial well-

being of an individual, company or other entity in the case of unexpected

loss. In exchange for payments from the insured (called premiums), the

insurer agrees to pay the policy holder a sum of money upon the occurrence

of a specific event. In most cases, the policy holder pays part of the loss

(called the deductible), and the insurer pays the rest.  

Insurance can also be defined as:-Insurance is a provision for the distribution

of risks; that is to say, it is a financial provision against loss from

unavoidable disasters. The protection which it affords takes the form of a

guaranty to indemnify the insured if certain specified losses occur.The

insurer, in accepting risks, so distributes them that the sum total of all the

amounts paid for this insurance protection will be sufficient to meet the

losses that occur.  

Insurance, then, indicates divided responsibility. This principle is introduced

in most stores where a division is made between the sales clerk and the

cashier's department, the arrangement dividing the risk of loss. The

insurance principle is similarly applied in many other cases of divided

responsibility. As a business, however, insurance is usually recognized as

some form of securing a promise of indemnity by the payment of a premium

and the fulfillment of certain other stipulations. 

DEFINATION OF INDUSTRY

As per Section 2(j) of Industrial Disputes Act, 1947 “Industry” means any

systematic activity carried on by co-operation between an employer and his

workmen (whether such workmen are employed by such employer directly

or by or through any agency, including a contractor) for the production,

supply or distribution of goods or services with a view to satisfy human

wants or wishes (not being wants or wishes which are merely spiritual or

religious in nature), whether or not,-  

i. any capital has been invested for the purpose of carrying on

such activity; or

ii. such activity is carried on with a motive to make any gain or

profit, and includes-

a. any activity of the Dock Labors Board established under

section 5-A of the Dock Workers ( Regulation of

Employment)Act,1948( 9 of 1948);

b. any activity relating to the promotion of sales or business

or both carried on by an establishment,

But does not include-

1. Any agricultural operation except where such agricultural

operation is carried on in an integrated manner with any

other activity (being any such activity as is referred to in

the foregoing provisions of this clause) and such other

activity is the predominant one.

Explanation:- For the purposes of this sub-clause ,” agricultural operation”

does not include any activity carried on in a plantation as defined in clause

(f) of section 2 of the Plantation Labor Act,1951; or 

2. hospitals or dispensaries; or

3. educational, scientific, research to training institutions ;

or

4. institutions owned or managed by organizations wholly

or substantially engaged in any charitable ,social or

philanthropic service; or

5. khadi or village industries ; or

6. any activity of the Government relatable to the sovereign

functions of the Government including all the activities

carried on by the departments of the Central

Governments dealing with defense research , atomic

energy and space ; or

7. any domestic service ;or

8. any activity ,being a profession practiced by an

individual or body of individuals ,if the number  of

persons employed by the individuals or body of

individuals in relation to such profession is less than ten;

or

9. any activity , being an activity carried on by a co-

operative society or a club or any other like body of

individuals , if the number of persons employed by the 

co-operative society ,club or other like body of

individuals in relation to such activity is less than ten;

Definition of Industrial Dispute

As per Section 2(k) of ID Act,1947 

“industrial dispute” means any dispute or difference between employers and

employers ,or between employers and workmen, or between workmen and

workmen , which is connected with the employment or non-employment or

the terms of employment or with the conditions of labour , of any person; 

Definition of Workman

As per Section 2(s) of ID Act,1947

“workman” means any person (including an apprentice) employed in any

industry to do any manual ,unskilled ,skilled ,technical ,operational ,clerical

or supervisory work for hire or reward ,whether the terms of employment be

express or implied ,and for the purposes of any proceeding under this Act in

relation to an industrial dispute ,includes any such person who has been

dismissed ,discharged or retrenched in connection with ,or as a  consequence

of ,that dispute ,or whose dismissal ,discharge or retrenchment  has led to

that dispute ,but does not include any such person- 

i. who is subject to the Air Force Act,1950 (45 of 1950),or the Army

Act,1950(46 of 1950), or the Navy Act,1957(62 of 1957); or

ii. who is employed in the police service or as an officer or other

employee of a prison; or

iii. who is employed mainly in a managerial or administrative capacity; or

Who, being employed in a supervisory capacity, draws wages exceeding one

thousand six hundred rupees per menses or exercises, either by the nature of

the duties attached to the office or by reason of the powers vested in him,

functions mainly of a managerial nature.

What is Industrial Insurance?

Whether an injured worker is covered by L&I’s Washington State Fund, or a

self-insured employer, he or she is entitled to no-fault accident and disability

coverage. This “industrial insurance” covers medical expenses and pays a

portion of wages lost while a worker recovers from a workplace injury

Insurance premiums paid by both workers and employers finance these

benefits.

Unlike other types of insurance, L&I can cover injuries only if they happen

at a definite time and place at work. Also, claims for occupational diseases

are accepted only if your work and medical history shows you have an

illness or infection that was directly caused by the work you do, and not by

something else.

We all work hard to prevent accidents that result in injuries or exposure to

hazardous substances that may cause occupational diseases. Still, nearly

175,000 work-related injuries and occupational diseases are reported to L&I

each year. Another 64,000 on-the-job injuries and diseases are reported each

year to self-insure companies.

If you suffer an on-the-job injury or occupational disease, we encourage you

to maintain contact with your employer. Let your employer know how you

are doing. If you are unable to return to your old job for a while, talk to your

employer about lighter-duty work you may be able to do during your

recovery. Many return-to-work options may be pursued. Some are outlined

in this guide. Read it and know your rights.

Need and importance of industrial insurance

Running a business today involves a certain amount of risk;

I. Many unforeseen events can occur that present challenges to the

modern business owner. Accidents in the workplace, employee

illness, mechanical failure of plant and equipment, even lawsuits

from disgruntled clients:

II. All of these may have to be dealt with at one time or another. Since

the cost of dealing with any one of these could be enough to force

closure of the business, it is essential that insurance is purchased

that will adequately protect against any such events the business

may face.

III. Industrial insurance (also known as commercial insurance or

business insurance) is the collective name for the various types of

insurance that pertain to business and industry.

IV. It Depending on the laws of the countries in which the business

operates, some of these types of insurance are likely to be

compulsory, while some may only be optional. Whichever of these

is the case, it is advisable to purchase as much insurance as can be

reasonably afforded: though doing so may be expensive,

V. It would be much more costly – in time and to the company’s

reputation as well as in monetary terms – to have to deal with an

accident or lawsuit while uninsured One type of insurance that is

usually compulsory is public liability insurance

VI. It is a key part of the insurance protection needed by any business

as it protects against claims made as a result of accidents and

problems resulting from the company’s interaction with the public.

VII. Examples of this are, for instance, if material from a building site

falls and damages a vehicle parked nearby or if a member of the

public slips and falls during a visit to premises owned and operated

by the company

VIII. Variations of this, professional indemnity insurance and product

liability insurance protect those providing services to the public

(for example lawyers and accountants) and protect against claims

on faulty products supplied to the public respectively.

IX. Another type of insurance that is compulsory in many countries is

employers’ liability insurance which indemnifies a business

against claims made by employees

X. Without such insurance a business would be vulnerable to claims

resulting from accidents, alleged discrimination, constructive

dismissal and a variety of other employee grievances

XI. Though there can be exemptions to the compulsory need for this

insurance (for instance government departments and family

businesses where all employees are related to the owner), in

general it is required for all businesses that are not sole traders.

XII. Aside from compulsory insurance there are many other types of

insurance that it is advisable for businesses to purchase. Common

types include motor insurance health insurance and buildings

Insurance but there are some types that are specific to certain

industries.

XIII. Tradesmen’s Insurance Cover, for example, covers traders using

tools and equipment in the course of their business, while print

companies, couriers and construction firms are just a few of the

types of company that have insurance tailored to them. All

specialized businesses should research if there is insurance that

suits their particular needs.

Role of reinsurance

 Comprehensive US reinsurance regulatory reform: An imperative for

sustained industry performance

An important contribution from a strong and viable insurance industry is to

help foster a sound economy. Insurers and their reinsures have a shared

responsibility to sustained, solid financial performance in order to be able to

protect critical assets for years to come.

This is why Swiss Re believes it is in everyone’s best interest to take a

comprehensive approach to reinsurance regulation consistent with today’s

realities and the global nature of the reinsurance business. The existing U.S.

regulatory system has served the industry well in an environment where

reinsurance regulation as well as accounting and reporting systems varied

widely. Historically, it struck a good balance between competing interests.

But the world has changed, as reflected by the global nature of reinsuranc

capacity and enhancements in regulatory oversight in other parts of the

world.

Swiss Re is a global reinsure and seeks to manage its capital and risk on a

global basis. In doing so, we can ensure that the capital we hold is

commensurate with our worldwide risks and make sure that the funds we

need to support our clients are accessible when and where they are most

needed.

To provide this necessary fungibility of capital while at the same time

providing strong financial support to our clients so that they can fulfill their

obligations to policyholders, we must recognize that:

We need to strive for “best practices” in risk management techniques.

This includes the use of internal models which enable companies to

assess their internal risk landscape in the most accurate manner and,

consequently, to determine more accurately company-specific

solvency capital requirements;

Diversification is a fundamental part of value creation in the insurance

sector and ultimately provides efficient and effective policyholder

protection. Diversification is achieved by spreading risks across

different geographical regions and lines of business in order to

increase the number of mutually independent risks. As a result, loss

events within product lines or local markets can be absorbed by the

return on other policies not affected by those events;

Capital requirements should be reduced for risk mitigation techniques,

including not only traditional but non-traditional instruments. This is

particularly necessary to ensure that sufficient capacity exists for

natural catastrophes and other major risks that we face;

Reinsures need to be active globally to be able to balance their

portfolio. If this were not the case, reinsures would not be able to

absorb peak risks. A prerequisite for global scope is the ability of

reinsures to operate on a cross-border basis. For international

diversification to work, reinsures need the ability to use their

worldwide premium income to pay local claims. Restrictions on the

free flow of capital results in reinsures’ inability to move capital to

cover major events, making reinsurance coverage more expensive.

A global business must be supported by a strong, centralized

regulator. Swiss Re believes that these objectives can best be achieved

through an optional federal charter for reinsures. A move to a more

effective and efficient US regulatory system for reinsures will

ultimately make the US a more competitive and more responsive

jurisdiction and result in lowering regulatory costs while maintaining,

or enhancing, the safety and soundness of the industry.

Types of industrial insurance  

1) Boiler and pressure plant insurance policy

Scope of cover

         The policy broadly covers boilers and other pressure vessels, both fired

and unfired against losses due to explosion or collapse.

Sum insured

      Sum insured should be reinstatement cost of the boiler.

Premium

     Premium chargeable depends on the type of boiler, type of fuel and the

age of equipment. Discount is allowed for seasonal factories and stand by

facilities

Significant exclusions

The policy does not cover loss and/or damage arising from

Fire and allied perils

War and nuclear perils

Loss arising out of overload experiments

Gradual wear and tear of parts

Failure of individual tubes, loss due to chemical reactions

Willful acts or gross negligence

Loss which is manufacturer's or repairer's responsibility

Consequential loss from explosion or collapse

Main extension

Surrounding property of the Insured (including the property held in

trust or on commission)

Legal liability for third party bodily injury and property damage

Express freight, air freight and additional customs duty can also be

covered by payment

2) Electronic equipment insurance policy   

Introduction

Covers loss or damage to the contractor's property due to any cause that is

accidental and external in nature.

Scope of cover

Cover operates when the insured property is at work or at rest or being

dismantled for the purpose of cleaning/overhauling or during subsequent re-

erection.

 The policy broadly covers:

Material damage to electronic equipment (which can include systems

software) due to sudden and unforeseen events, under Section I

Cost of external data media, including cost of reconstruction of data

under Section II, as also increased cost of working under Section III.

While Section I is compulsory, Section II and Section III are optional.

Sum insured

Section I: New replacement cost of the insured property including

freight, erection cost, and customs duty, if any.

Section II: Cost of restoring the external data media by replacing lost

or damaged data media by new material and lost information.

Section III: Sum Insured should represent the hiring charges per hour

for substitute equipment for ensuring continued data processing for the

period of indemnity specified, including personnel and transportation

charges.

Premium

Rate of premium: 1 % For equipments valued more than Rs 1, 00,000, a valid

maintenance agreement is required to be in force, failing which 100 %

loading is attracted.

Significant exclusions

The policy does not cover losses/ damages due to:

Wear & tear

War, willful act or willful negligence

Aesthetic defects and consequential loss.

3) Machinery breakdown insurance policy

Scope of cover

           The insurance policy broadly covers loss due to all kinds of accidental,

electrical and mechanical breakdowns due to internal and external causes.

Cover is granted during the time the machinery is in operation or rest or in the

process of dismantling, overhauls or during subsequent re-erection at the

same premises.

Sum insured

         Value proposed for insurance should be equal to new replacement cost

including freight, erection cost, and customs duty, if any.

Premium

            Rate of premium depends upon the type of machinery. Discounts are

offered in respect of stand-by facility, availability of spares and favorable

claims experience, subject to rules laid down in the tariff.

Significant exclusions

The insurance policy does not cover loss and/or damage from fire and allied

perils, theft, overloading experiments, willful acts or gross negligence,

gradually developing flaws and deterioration from normal use.

Main extension

Air freight

Express freight (excluding air freight) overtime & holiday wages

Insured's own surrounding property

Third party liability

4) Machinery loss Of profits insurance policy   

Scope of cover

        All perils under the machinery breakdown policy can be covered under

MLOP. Hence the main perils covered are electrical/mechanical breakdown,

voltage surge, impact damage etc.

            The amount payable as indemnity is in respect of reduction in

turnover/output is the gross profits lost on account of the shortage in turnover

or output during the indemnity period in consequence of the material damage

under machinery breakdown policy.

Sum insured

         The sum insured is to be declared as annual gross profits estimated

during the policy period.  

This can be arrived at by either considering gross profits on difference basis

which is revenue - variable expenses or additions basis which is net profit +

standing charges.

Premium

The premium will depend on the following factors:

Replenishment time required for equipment's

Availability of spare equipment

Criticality of the equipment

Your contractual arrangements with Suppliers

Replacement time

Ability to make up for the loss

Your profit forecasting pattern

Significant exclusions

             The underlying material damage policy for this MLOP cover would be

machinery breakdown policy. Hence all the exclusions of the machinery

breakdown policy would be applicable for MLOP cover. The major exclusions

would be fire and allied perils, theft & burglary, nuclear perils,

radioactive/ionization perils wear & tear.

5) Erection all risk   

Covers plant and machinery under erection

          Erection all risks (EAR) policy is designed to cover plant and

machinery under erection. Interest of suppliers/manufacturers, contractors,

subcontractors can be recorded in the policy

Scope of cover

          This policy covers risks associated with storage, assembly/erection

and testing of plant and machinery. EAR insurance provides comprehensive

cover. All perils are covered unless specifically excluded. Cover incepts

from the time of unloading of the first consignment at the project site and

terminates on completion of testing or handing over of the project to the

Principal, or the period chosen, whichever is earlier.

 Sum insured

Sum to be insured is the completely erected value of the plant and

machinery inclusive of freight, custom duty and cost of erection.

Premium

Premium depends on type, value, and duration of the project and the period

of testing

Main extension

Policy can be extended on payment of additional premium to cover

Escalation

Maintenance

Clearance and removal of debris

Damage to owner's surrounding property

Third party liability

Additional customs duty

Express freight

Holiday and overtime rates and wages

 6) Contractor's plant & machinery

Introduction

This is an annual policy designed to cover construction equipment like

bulldozers, cranes, excavators, compressors, etc.

Scope of cover

This Policy broadly covers loss or damage to the contractor's property due to

any cause that is accidental and external in nature. Cover operates when the

insured property is at work or at rest or being dismantled for the purpose of

cleaning/overhauling or during subsequent re-erection.

Sum insured

Sum Insured of each item of machinery shall be the present day replacement

cost. Sum insured is computed from replacement cost including freight, cost

of erection and custom duty, if any.

Premium

Premium depends on the type of equipment and the location of operation.

Main extension

Main policy can be extended on payment of additional premium to cover:

Third party liability.

Owner's surrounding property.

Clearance and removal of debris

Overtime, express freight.

Additional customs duty.

7) Contractor's all risk policy    

Covers all types of civil engineering projects

            Contractors all risk (CAR) policy is designed to cover all types of

civil engineering projects like buildings, dams, flyovers, etc. It is possible to

record the interest of principal, contractors and subcontractors in the policy.

Scope of cover

            This policy broadly covers the risk of accidental physical loss or

damage in respect of the contract works, during the execution of a civil

project. CAR insurance provides an 'all risk 'cover. All perils are covered

unless specifically excluded. 

Cover incepts from the commencement of work or after unloading of first

consignment at project site, whichever is earlier and terminates on handing

over of works to the principal or expiry of policy, whichever is earlier.

Sum insured

The sum insured shall be the fully completed value of the contract works

inclusive of all materials, wages, freights, and custom duty and materials or

items supplied by the principal.

Industry Specific Insurance

Although industrial companies and businesses are broadly defined as

belonging to a sector that is involved in technical production, manufacturing

and construction, in reality these companies can be so diverse that the

insurance industry has had to develop several different types of policies in

order to adequately cover their unique requirements. Some insurance

companies offer job-specific policies (for instance courier insurance), whilst

others offer customized combinations of the many different types of cover

available. Finding the right policy for your business may be as simple as

matching the job with the relevant polic

1) Tradesman Insurance

Tradesmen are a particular type of industrial professional that many insurance

companies offer specialized plans for. Generally known as 'Tradesman

Insurance' or 'Tradesman's Insurance Cover', these policies include the

necessary public liability and employers liability policies but can be extended

to also include tools and equipment. Depending on the nature of the job the

tradesman carries out, it may also be necessary to include motor vehicle

insurance for the van or vehicle used, and professional indemnity insurance.

Another factor to bear in mind is that often insurance companies will not cover

tools when they are stored in vehicles so this may also have to be asked for

specifically in any new 'Tradesman Insurance' policy.

2) Manufacturing Sector

The manufacturing sector is another which has its own type of cover offered

by most insurance companies. This policy will include public and employers'

liability but will also cover product liability, business contents, business

interruption and loss of accounts receivable. Some policies can be extended to

include cover of goods in transit, engineering insurance, machinery and plant

inspection and even deterioration of stock.

 3) Printing Companies

Printing companies may also want to look for specialized policies, such as

those offered by most of the major commercial insurers. Because printing

companies can be both commercial and industrial and can suffer from

machinery break-down, such companies should look for cover for business

contents and business interruption as well as cover for product liability, public

and employers' liability and loss of accounts receivable. If possible cover for

computer repair and data retrieval should also be organized as this may not be

included in the 'business interruption' element of the policy.

4) Other Specific Industries

Other industry specific policies include construction liability insurance,

wholesale insurance, courier insurance and contractors combined insurance.

Each offer basic cover with additional elements such as van insurance, cover

for goods in transit and cover for loss or damage to tools and machinery.

Courier insurance is especially popular due to the high demand for effective

couriers.

Industrial Insurance

Industrial and commercial business insurance is a major sector of the

insurance industry, and it is becoming ever more important: with increases in

public liability claims, a greater responsibility of employers to employees, and

a wider awareness of the myriad of damages, losses and costs claimable on

insurance policies, having a comprehensive policy is one of the most crucial

elements of any successful business. Industrial insurance can be divided up

into several key areas, with each area having separate policies and often

needing to be included individually on a business' insurance package. It is

important that business owners and employees are aware of the many different

areas of industrial insurance so that full compliance can be achieved and

maintained with minimal hassle. After all, the last thing any successful

business wants is to find it uninsured in a key area of operations.

Types Of Cover Available

Although by law there are really only three types of compulsory insurance that

are of relevance to industry, there are many non-compulsory types of cover

that are highly recommended. Employers' liability insurance is the main

compulsory cover of importance, though businesses that supply products will

also have to have product liability insurance and companies that rely on

commercial fleets will, of course, have to ensure that each vehicle has third

party insurance. Although not strictly compulsory, public liability insurance is

a wise investment, as is professional liability cover for businesses that offer a

professional product or service.

1. commercial insurance

2. business insurance

1) Commercial Insurance

There are often also certain types of commercial insurance cover available or

even recommended for specific industries. Individual tradesmen,

manufacturers, print companies, construction companies, couriers and many

others have insurance tailored to their needs. Any company involved in such

an industry should look at this type of insurance rather than settling for

generic, cross-industry cover as the latter can leave the company exposed to

unnecessary risk.

2) Business Insurance

There are many types of business insurance cover available to businesses that

though not compulsory are certainly advisable. Property and contents

insurance falls into this category, indemnifying against a base of operations

being out of action in the event of any serious incident, as does the insurance

of tools and equipment: this protects against crime and accidental damage and

minimizes costly downtime when no goods or services can be produced.

Similarly, any company that uses motor vehicles in its operations should

consider the type of motor insurance needed: the wrong insurance policy can

be either too costly or not give the cover needed.

Health cover may also be worth considering, for both the business owner and

the staff. Not only can it reduce time off due to sickness, but a competitive

healthcare package can help attract staff to the company in the first place

What to Do if You Are Injured at Work

1. Report your injury or exposure to your employer as soon as possible. Your

employer needs to know about your condition and what caused it.

Otherwise, he or she may ask us to deny your claim.

2. File your claim with L&I by completing a Washington State Fund Report

of Industrial Injury or Occupational Disease. Usually, a doctor will help you

fill out this form when you are first seen for your workplace injury or

condition. Still, it is your responsibility to make sure it is filed. You

complete the first section. After examining you, the doctor will

complete the second section and send copies to L&I. Injury claims must be

filed within one year. Occupational disease claims must be filed within two

years of receiving written notice from a doctor that the condition exists and

is work-related.

3. Stay in touch with your employer. Let your employer know how you are

doing and when you expect to return to work. If you are unable to do your

old job, discuss the possibility of other work you may be able to do during

your recovery.

4. Communicate with your doctor. Good communication between your doctor

and your claim manager is essential to the smooth delivery of benefits. You

can help by making sure your doctor regularly sends in the paperwork we

require verifying you cannot work because of your injury. Your doctor must

clearly explain the medical findings and restrictions that keep you from

working. Your claim manager also needs medical reports from your doctor

with a current treatment plan.

5. Work closely with your claim manager. Your claim manager will be

responsible for seeing that you get all benefits to which you are entitled. Your

claim manager’s name and phone number will appear on the notice enclosed

with your first time-loss compensation check. For best service, always include

your claim number when you write to us and have it ready when you call. Let

us know immediately if you move, change phone numbers, change doctors or

cannot keep a claim-related appointment.

APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE

SECTOR  

There is an evolutionary change in the technology that has revolutionized the

entire insurance sector. Insurance industry is a data-rich industry, and thus,

there is a need to use the data for trend analysis and personalization.

With increased competition among insurers, service has become a key issue.

Moreover, customers are getting increasingly sophisticated and tech-savvy.

People today don’t want to accept the current value propositions, they want

personalized interactions and they look for more and more features and add

ones and better service

The insurance companies today must meet the need of the hour for more and

more personalized approach for handling the customer. Today managing the

customer intelligently is very critical for the insurer especially in the very

competitive environment. Companies need to apply different set of rules and

treatment strategies to different customer segments. However, to personalize

interactions, insurers are required to capture customer information in an

integrated system.

With the explosion of Website and greater access to direct product or policy

information, there is a need to developing better techniques to give customers

a truly personalized experience. Personalization helps organizations to reach

their customers with more impact and to generate new revenue through cross

selling and up selling activities. To ensure that the customers are receiving

personalized information, many organizations are incorporating knowledge

database-repositories of content that typically include a search engine and let

the customers locate the all document and information related to their queries

of request for services. Customers can hereby use the knowledge database to

mange their products or the company information and invoices, claim records,

and histories of the service inquiry. These products also may be able to learn

from the customer’s previous knowledge database and to use their information

when determining the relevance to the customers search request. 

Primary data

ICICI Ltd

1. What is role of re-insurance in industrial insurance?

Ans-: role of reinsurance is to analysis the risk insurance company and give

the support to main or primary insurance company

2. Which type of policy industrial normally taken?

Ans-: I) Boiler and pressure insurance policy

ii) Electronic insurance policy

iii) machinery equipment insurance policy

iv) machinery loss of profitable insurance policy

v) erection of all risk

vi) contractor all risk policy

3. Is there any special policy introduce for the industries?

Ans-: yes, group mediclaim policy

4. Are the policy provided to the industries beneficial to the company?

Ans-: yes this policy helps to company to their cover risk partially or fully.

5. Impact of recession industrial insurance?

Ans-: there is no huge impact on recession, on these policy as it is affecting

on the company point of view

6. How industrial insurance work?

Ans-: industrial insurance has many policy group insurance policy, group

mediclaim or labour policy insurance employee pay the premium for

employee. It also give addition cover to company employee and health

secure

7. Are there policies in your company which have been crafted only as per

company actual value?

Ans-: not really are protecting as it cover almost each and every part of it.

8. Who are the players in industries insurance sector?

Ans-: ICICI Lombard, Bajaj alliance New Life Insurance etc.