Q . 13 Insurance Policy

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Insurance Policy in India

A-There are various types of life Insurance Policy

a. Term Life Policy

b. Whole Life Policy

c. Endowment Policy

d. Money-back Policy

e. Unit Linked Insurance Plan

f. Pension Plan or Annuities

g. Joint Life Policy

Term Life Insurance

For those who are running on a budget, you can opt for a simple life insurance. Term life

insurance allows the beneficiary death benefits for a specific period or 'term'. This term may be 1 or

more years and thebenefits are paid only in the event of death of the policy holder within the term of the

policy. There are certain term life insurance that can be renewed for more than one additional term.

However, if you do so, your premiums may go higher. You may even sometimes be allowed to trade

your term life insurance for a whole life insurance policy.

Whole Life Insurance:

A whole life insurance covers a policy holder for his entire life. There is no date of expiry like in a

term life insurance and the death benefits will be received by the beneficiary mentioned in the policy

only in the event of the death of the policy holder. If you buy a whole life insurance you will have to pay

a higher premium as compared to a term life insurance. The reason for this is that a certain portion of the

premium paid for whole life insurance is put away into a savings program .

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When you compare the total premiums paid for whole life insurance and the total premiums paid

for term life insurance it is seen that whole life insurance is less expensive. Even if you pay higher

premiums for whole life insurance, the fact is that the premiums remain the same throughout the tenure

of the insurance. But in the case of term life insurance, you may be paying lesser premiums in the

beginning, but as you renew your term policy, premiums will increase. Hence, the total value accrued in

term policy is bigger than a whole life insurance.

Certain clauses in a whole life insurance allow you to pay premiums for a lesser period of time.

The greatest advantage in this policy is that the premiums develop cash values that may be claimed or

used for purchasing rider policies for more protection. Few of the whole life insurance benefits are:

Guaranteed death benefits

Guaranteed cash values

Fixed annual premiums

A whole life insurance also known as "straight life" or "ordinary life" insurance, is not just an

investment for your future alone, but also for the future of your family.

Endowment Assurance Plan

This policy not only makes provisions for the family of the Life Assured in event of his early

death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an

annuity during the remainder of his life or in any other way considered suitable at that time.

Premiums are usually payable for the selected term of years or until death if it occurs during the term

period.

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Being an endowment assurance policy, this plan is apt for people of of all ages and social groups

who wish to protect their families from a financial setback that may occur owing to their demise. The

amount assured if not paid by reason of his death earlier will payable at the end of the endowment term

where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way

he may think most suitable at that time.

In short

Covers death & survival benefits

Sum assured paid on death or on maturity of policy

Period of policy at the option of proposer

Most common plan .

Money Back Policy

Money back policy from LIC is a popular insurance policy, as it provides life coverage during the

term of the policy and the maturity benefits are paid in installments by way of survival benefits in every

5 years. The plan is available with 20 years and 25 years term. In true sense, we do not think of

unfortunate death when we are choosing Money back plan, but we like to consider this plan as a savings

instrument that takes care of your insurance needs also and therefore, it also acts as a tax-savings

tool.But, we try to avoid taking higher sized policy due to the incremental increase in monthly premium

rate, although we are capable of paying this small additional amount. We try to save Rs. 250-300 per

month but we do not realize these savings are not worth enough in long run.Having said that, we will

show you here, why you must go for the higher sized policy. We will analyze the investments and

returns between two options.

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In short

Available for different periods

Covers death & survival benefitsLump sum paid periodically

Full sum assured paid on death .

Unit Linked Insurance Policies (ULIP)

unit linked insurance policy is one in which the customer is provided with a life insurance cover

and the premium paid is invested in either debt or equity products or a combination of the two.In other

words, it enables the buyer to secure some protection for his family in the event of his untimely death

and at the same time provides him an opportunity to earn a return on his premium paid.In the event of

the insured person's untimely death, his nominees would normally receive an amount that is the higher

of the sum assured (insurance cover) or the value of the units (investments).However, there are some

schemes in which the policyholder receives the sum assured plus the value of the investments.Every

insurance company has four to five ULIPs with varying investment options, charges and conditions for

withdrawals and surrender. Moreover, schemes have been tailored to suit different customer profiles

and, in that sense, offer a great deal of choice.

The advantage of ULIP is that since the investments are made for long periods, the chances of

earning a decent return are high.Just as in the case of mutual funds, buyers who are risk averse can buy

into debt schemes while those who have an appetite for risk can opt for balanced or equity

schemes.However, the charges paid in these schemes in terms of the entry load, administrative fees,

underwriting fees, buying and selling charges and asset management charges are fairly high and vary

from insurer to insurer in the quantum as also in the manner in which they are charged.

In shortEach premium split into units and risk premium for life cover

Units are priced as per current market value

Sum assured & current value of units paid on death as per policy condition

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Current value of units paid on maturity .

Annuity(Pension) Plans

A pension plan or an annuity is an investment that is made either in a single lump sum payment or

through installments paid over a certain number of years, in return for a specific sum that is received

every year, every half-year or every month, either for life or for a fixed number of years.

Annuities differ from all the other forms of life insurance in that an annuity does not provide any

life insurance cover but, instead, offers a guaranteed income either for life or a certain period.

Typically annuities are bought to generate income during one's retired life, which is why they are also

called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income

throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to the

payments during the annuitant's lifetime.

Pension plans are perfect investment instrument for a person who after retiring from service has

received a large sum as superannuation benefit. He can invest the proceeds in a pension plan as it is

safest way of secured income for the rest of his life. One can pay for a pension plan either through an

annuity or through installments that are annual in most cases.

In short

These are pension plans

Immediate annuity or deferred annuity starts at specified age periodicallySingle premium paid for immediate annuity

Premium in installments paid for deferred annuity

Life cover simultaneously .

Joint Life Policy

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Joint life policies are similar to endowment policies in as much as these policies also offer

maturity benefits to the policyholders, apart form covering the risks as all life insurance policies.But

these are categorized separately as these cover two lives together thus offering a unique advantage in

some cases; notable, for a married couple or for partners in a business firm.

Under a joint life policy the sum assured is payable on the first death and again on the death of the

survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after

the death of the survivor.If one or both the lives survive to the maturity date, the sum assured as well as

the vested bonuses are payable on the maturity date.

The premiums payable cease on the first death or on the expiry of the selected term, whichever is

earlier.Accident benefits equivalent to the sum assured are available under this plan on the first death.

However, if both lives are covered under Double Accident Benefit (DAB), the surviving life is covered

under DAB until the end of the policy year, in which the first life dies under the cover of the

policy.Particularly for couples .

Joint life policies provide dual-purpose income and risk protection for both belonging to every

income group and class of society.Under a joint life plan though the premium payment stops after the

first life's death, bonuses continue to accrue on the basic Sum Assured till Maturity Date or till the death

of the second life, if earlier.A good plan for middle-aged married couples, working couples or

professionals offering financial security for both the lives.

More than 80% of the life insurance business is from .Endowment Policy & Money-back Policy .

New Insurance

1-Bancassurance

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Bancassurance simply means selling of insurance products by banks.It also sometimes known

as Bank Insurance Model [BIM] . India, the bank branch network encompasses nearly 75,000 branches

inclusive of PSU and private banks. Close to 100,000 branches of co-operative, district co-operative and

regional rural banks also exist. Normally, commercial banks act as a corporate agent and tie-up with one

insurance company. Both Axis bank and HDFC bank are tying up with insurance companies vying for

better share of the commissions.

The Bank Insurance Model (BIM), also sometimes known as Bancassurance, is the term used to

describe the partnership or relationship between a bank and an insurance company whereby the

insurance company uses the bank sales channel in order to sell insurance products.BIM allows the

insurance company to maintain smaller direct sales teams as their products are sold through the bank to

bank customers by bank staff.Bank staff and tellers, rather than an insurance salesperson, become the

point of sale/point of contact for the customer. Bank staff are advised and supported by the insurance

company through product information, marketing campaigns and sales training.Both the bank and

insurance company share the commission. Insurance policies are processed and administered by the

insurance company.

2-Credit insurance

Protection against usually large losses from unpaid accounts receivable.Borrowers often fail to

repay debts,loans and mortgages due to certain unavoidable circumstances,credit insurances can be of

great help during such crisis.Credit insurance covers businesses and an individuals family members

against losses resulting from the inability to repay a loan.

A credit insurance policy usually provides a security cover for a specific reason for which a

borrower defaults.The premium for trade credit insurance is calculated on a monthly basis and is

generally taken as a percentage of either sales or outstanding receivables for that month. This insurance

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covers the risks associated with insolvency, nonpayment of bills (should be undisputed), preferential

payments, transfer of assets, work-in-process, contract frustration, inconvertibility of the buyers

currency, embargo, war and natural disasters.

Types of Credit Insurance:

Broadly speaking, credit insurance can be of two types, namely trade credit insurance and credit life

insurance.

Trade Credit Insurance:

This credit insurance policy is a credit risk management product for businesses, and hence is also

known as business credit insurance. Through this insurance, one can secure protection against losses

resulting from the nonpayment for goods or services delivered to clients. This policy lists the buyers of a

policyholder and the insurance company pays the policyholder an agreed percentage of invoices or

account receivables that are left unpaid by any of the buyers in this list in the event of insolvency,

bankruptcy or extended default. Only business entities are eligible for this type of insurance. This policy

can cover both domestic and export businesses.

Credit Life Insurance:

Whenever a person purchases a big-ticket item, such as a car, s/he might need to take a loan for a

specific period. Since injuries and death are unpredictable, there is no guarantee that the person will be

able to repay the loan. In case of untimely death, the entire burden of loan repayment falls on the

surviving members of the family. Credit insurance ensures that the surviving family members are not

burdened by loan liabilities in case of the policyholders death. The policy ensures that the lender

receives the rest of the loan amount.

3- Commercial insurance

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The convincing boom of corporate sector in India has given a new definition to commercial

insurance in the country. Proper risk management against any kind of disaster is the mantra of successful

business and other commercial ventures. The function of risk management is to provide safety against

any kind of internal or external hazard. Commercial insurance companies in India offer products which

suit the business and corporate needs and provide the commercial avenues all kind of safety and

security.

The value of premium for providing coverage to commercial ventures and corporate sectors is

determined on the basis of a few factors which include:

Nature of the commercial venture

Size of the organization

Type of the industry

Strength of the employees

Annual turn over the business

The insurance companies are paid the premium on either monthly, quarterly, half-yearly or annually

basis.There are several renowned business and commercial insurance companies in India. Leading

among them include:

ICICI Lombard

Bajaj Allianz

The New India Assurance Co

United India Insurance Co

4- Labor insurance

This insurance protect labor against accident while working .

There are two types of labor insurance .

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Workers accident compensation insurance -

If an insured person becomes ill, suffers injury or dies while he/she is at work or commuting, the

benefits will be paid to the insured person or his/her family. Any business owners who employ one or

more worker(s) are required to participate in this insurance

Employment insurance-

Employment insurance helps people who have been recently unemployed to find a new job and

also provides them with benefits to help cover their living expenses until they are employed again. This

is called unemployment benefit Eligible applicants for the unemployment benefit are those who were

enrolled in the employment insurance plan for 12 months or longer (11 days or longer in each month) in

the preceding two years*, are willing to be employed again, and are available to work. The application is

handled at the public employment safety offices .

5- Student insurance

A student insurance policy covers a person studying in a school or a college against expenses

arising from ill health, accident and travel, among other things. This type of general insurance covers

personal possessions and the finances of a student, as well as the student himself/herself, in case of an

unexpected event .

Types of Student Insurance:

Student insurance is essential in some countries. There are several types of student insurance that one

could opt for:

Student health insurance:

Through this policy, one can pay his/her doctor and hospital bills. The policy can also cover

preventative checkups, medications, dental care, mental disorders and substance abuse. While selecting

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a health insurance policy, check the maximum medical benefits that the company is offering and your

deductibles.

Student renters insurance:

This policy helps one protect his/her personal property against any damage due to fire, natural

disaster, vandalism, explosion, riots, water and theft.

Student liability insurance:

This covers against losses arising from the policyholder being responsible for hurting someone or

damaging another persons property.

Student car insurance:

Through this insurance, one can receive cover against accidents and theft of the car. Car insurance

for students is usually costly as young drivers tend to make more claims than older, more experienced

drivers. However, keeping your driving records clean can go a long way in getting this insurance policy

at low premiums.

Student travel insurance:

This insurance offers protection when a student encounters emergencies while s/he is away from

home. One might be studying abroad or traveling to return home on holidays. A student travel insurance

policy must offer cover for travel interruptions or cancellations, loss of baggage and injury to a third

party.

6- Flood Insurance

an insurance policy that covers property damage due to natural flooding. Flood insurance is

offered by private insurers but is subsidized by the federal government.

Flood insurance is offered by private insurers but is subsidized by the federal government. National

Flood Insurance Act 1968.

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A regular homeowners policy will not pay for damages caused by flooding. In order to get the

coverage, you have to go to some outfit that writes for the National Flood Insurance Program. Outside

of fire, flooding is the most widespread natural disaster. If your community participates in NFIPs

floodplain management program, you should be eligible to buy the coverage. The only people who may

have trouble finding flood coverage are residents of "coastal barrier resource system" areas and

communities that do not participate in NFIPs programs. Flood insurance is also available to renters,

condominium owners, and co-op owners.

insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the

lender will require flood insurance before approving a loan.

Flood insurance building and contents damaged by water during storms or other natural flood

situations. It may even provide protection from events such as a sewer line backing up into a house.

Additionally, flood insurance reimburses for preventive actions including sandbagging and for clean-up

expenses. This type of insurance is not included in a standard homeowners policy and must be

purchased separately. Because flood insurance is expensive and the risk is relatively low, most people

do not buy it.

Flood coverage is particularly important for the most expensive costs such as building restoration

and repair, and appliances such as the furnace. Flood insurance also reimburses costs for restoration or

replacement of carpeting, furniture and personal possession .

People who avoid buying flood insurance typically believe they will receive disaster assistance if a flood

does occur, but very few floods are ever officially declared as disasters.Flood insurance is often

purchased to supplement a homeowner's policy in the event that flooding damage occurs.

Which are the Major Flood Prone Areas in India

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One of the most common natural disasters in India is flood. The eastern states, such as Bihar,

West Bengal and Orissa, andhrapradesh,assam are especially susceptible to floods. In 1980, the National

Flood Commission estimated the total flood prone area in India at 34 million hectares. Annually, the

estimated rainfall (including snowfall) amounts to 4,000 billion cubic meters (BCM) in the nation. The

major four zones in India that are comparatively more susceptible to floods include.

The policyholder stands to gain a lot out of Indian flood insurance on financial grounds, since s/he

receives compensation for the loss of property due to flood. Another benefit is that the insured person

can also get his/her personal belongings covered under an India flood insurance policy. Therefore, an

individual will not have to pay for the replacement of all the contents of a building damaged by

flooding. Individuals only have to pay a very reasonable amount in the form of deductibles, which is

decided at the time of obtaining the flood insurance India policy for the first time.

types of coverage available under a Flood Insurance policy

Building Property Coverage:

This type of policy covers the insured building, electrical and plumbing systems, furnaces, water

heaters, centralized air conditioning system, cooking stoves, refrigerators, built-in appliances, window

blinds and debris removal. This coverage indemnifies against permanently installed cabinets, paneling,

bookcases, wallboard and carpeting. Garages outside the building can be covered for up to 10% of the

building property coverage, while a separate policy is required to cover structures outside the building

other than garages, such as gazebos.

Personal Property Coverage:

This type of coverage compensates against the loss of personal belongings, such as furniture,

electronic equipment and clothing. It also covers curtains, air conditioners (both window and portable),

clothes washers and dryers, portable microwave ovens and dishwashers, food freezers, including stored

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food, and carpets that were included in the building coverage. Furs, original artwork and other such

valuable items can also be covered.

7- Wedding Insurance

Wedding insurance policies are designed specifically to offer financial protection to couples

planning a wedding against losses resulting from unforeseen circumstances. This form of general

insurance covers damage to your wedding attire or photographs, expenses related to last minute

bookings and loss of gifts, among other things. Most policies also cover losses due to the cancellation or

postponement of the wedding on account of bad weather, illness, military deployment, sudden death or

acts of terrorism.

Weddings usually involve massive expenses on invites, food, catering, attire, florists, musicians

and other service providers. Most of this money is lost in the event of any delay or cancellation of the

event. This money can be recovered with the help of wedding insurance.

Wedding Insurance: What Does It Covers

Wedding insurance should be bought as soon as you start making preparations for your wedding.

However, at times, insurance companies have limitations on how early one can purchase a wedding

insurance policy.

This policy covers losses resulting due to:

Site: The insurance policy covers the cost of the wedding getting cancelled in case the ceremony and

reception site is shut down, damaged or become inaccessible. The site could become inaccessible if the

way is blocked by an ice storm.

Weather: The policy covers losses resulting from the cancellation of the ceremony due to extremely

bad weather conditions, which prevent the bride, bridegroom or key relatives from reaching the

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wedding premises. In this case, this insurance covers expenses involved in rescheduling the event and

arranging for ceremony flowers, reception food and tent rental.

Sickness or Injury: This policy also covers the cancellation or postponement of the ceremony in case the

bride, bridegroom or key relatives get injured or fall sick.

No Show of Service Providers: A wedding may have to be cancelled or postponed in case some essential

service provider, such as the officiate or the caterer, does not show up.

.8-Dental insurance

If you opt for an Indian dental insurance plan, the costs incurred due to dental care would be paid

for by the insurer. The Indian dental insurance sector is in its nascent stages and currently only a handful

of dental insurance plans are available on a stand alone basis. A dental plan offers cover against sudden

financial hardship due to dental emergencies

Unlike most western countries, specific dental insurance plans are not common in India. In India,

oral health is normally integrated with the general health insurance schemes. However, some popular

tooth care product companies have forged tie ups with general or health insurance companies to produce

dental insurance products. The efforts of the Indian Dental Association to bring out a comprehensive

Indian dental insurance scheme have seen partial success so far.

Types of Indian Dental Insurance Plans

Indian dental insurance plans are mainly of two types:

Stand alone dental insurance plan:

This type of plan covers the expenses related to general dental problems, such as periodontitis and

extraction of permanent teeth due to ailments such as caries. In this plan, the amount of expense to be

reimbursed as well as the period of such cover is fixed. This type of plan is generally provided by the

popular dental care product companies in association with one of the insurance companies.

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Dental insurance cover as part of general health insurance plan:

This type of dental insurance is provided by the general insurance companies as part of their own

general health insurance schemes, such as health advantage policy or student medical policy. Through

this scheme, one can claim dental expenses along with the other kinds of reimbursements, such as the

cost of medicines or hospitalization. This plan also offers tax benefits up to a certain fixed amount under

the income tax act .

Dental insurance is one of the major areas of medical insurance in the western world. Almost all the

developed countries in the western hemisphere have a substantial population of their covered under the

scheme of dental insurance. As a part of the medical coverage, dental insurance in India though is yet to

be widespread. However, in keeping with the increasing awareness of the need for dental insurance and

coverage, the process has started. More and more people today are opting for dental insurance in India.

Similarly, new and new policies are being framed by the medical insurance companies in India who

offer the policy of dental insurance.

Dental insurance in India are nowadays being offered by a number of companies. While each of the

insurance providers has different terms and riders to the dental insurance coverage, broadly the

insurance companies ensure that the insured individuals do not have to make the payments directly to

the medical care institutions. The said member institution or the health center will have to offer a

discount on the dental treatment to the insured ones who are covered under the policy of dental

insurance coverage in India.

9- Reinsurance

The sharing ofinsurance policies among multipleinsurers, to reduce the riskfor each.

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Practice where an insurance company (the insurer)transfers a portion of its risks to another (the

reinsurer).Legal rights of thepolicyholders (insureds) are in no way affected by reinsurance, and the

insurer remains liable to the insureds forinsurance policybenefits and claims.

The General Insurance Corporation of India was incorporated in the year 1972 under the

company's act 1956 as a private company. In November 2000, the company was approved as the "Indian

Reinsurer". Since then the General Insurance Corporation of India has been providing reinsurance

supports to public sector as well as to other private general Insurance Companies.

General Insurance Corporation of India, a reinsurer, provides reinsurance and risk management

solutions. The company offers domestic reinsurance in the areas of property, marine, engineering,

motor, rotor and fixed wing aviation, liability, aviation hull, and spares; and international reinsurance in

the areas of treaty and facultative businesses. It also provides domestic reinsurance in the form of

obligatory cessions, company surplus treaties, market surplus treaties, excess of loss protection to direct

writing companies, and facultative acceptances. The company serves direct general insurance companies

in the Indian market, as well as in SAARC countries, South East Asia, the Middle East, and Africa.

General Insurance Corporation of India was incorporated in 1972 and is based in Mumbai, India with

liaison/representative/branch offices in London, the United Kingdom; and Moscow, the Russian

Federation.

It is a financial management tool.It is always behind the high quality insurance program or a

complex commercial risk of any good insurer.

Reinsurance industries are maintaining upward surge all round growth, both in the domestic and global

fronts in the last few years. The untapped, both in life and non life insurance, particularly in growing

economies like India and china, is the center of attraction to leading players in insurance and

reinsurance, thanks to globalizations and liberalizations of financial services particularly in last decades.

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It is a tool of risk management, mutually support and supplement each other in providing risk

mitigation to the individuals and organizations at micro level and to the country. Reinsurance is

instrument of risk transfer and risk financing

B -Non- life Insurance Policy

1 -Fire Insurance

Types of Fire Insurance Policy

Specific Policy

In this type of policy, the insurance company is liable to pay a sum, which may be less than the

property's real value. The insured is called to bear a part of the loss, as the actual value of the property is

not considered in deciding the amount of indemnity. This is a case of under-insurance of property.

Comprehensive Policy

Known as "all-in-one" policy, the insurance company indemnifies the policyholder for loss arising

out of fire, burglary, theft and third party risks. In this type of policy, the policyholder also gets paid for

loss of profits incurred, due to fire, till the time the business remains shut.

Valued Policy

In this type of policy, the value of the commodity is already set and actual loss is not taken into

consideration. The policy follows a standard contract of indemnity, wherein the policyholder gets paid a

specific amount of indemnity, without considering the actual loss.

Replacement or Re-instatement Policy

As per replacement or re-instatement policy, the insurance company instead of paying the

policyholder the amount of indemnity in cash, replaces the damaged property/commodity with a new

one.

2 - Marine Insurance

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It covers the loss or damage of ships, cargo, terminals, and any transport or property by which

cargo is transferred, acquired, or held between the points of origin and final destination.

Types of Marine Insurance Policy

Marine Cargo Insurance Policy

The policy covers all types of Cargo in respect of your Imports, Exports and Inland Transits

through, Rail, Road, Sea. Air, Government and Private Postal Services etc. . Policy insures physical loss

or damage to the goods in transit by road, rail, air, water caused due to accidents, fire etc.

Marine Inland Transit Insurance Policy

Inland marine insurance is an insurance instrument which is designed to protect property while in

transit, along with high-value mobile items like silverware and tools. Despite the rather peculiar

name, inland marine insurance is actually a very useful type of insurance, and it is commonly

recommended to business owners, especially people who need to travel for work or people who work

with high-value items. Many insurance companies offer this type of policy, and can discuss options with

their clients. This type of insurance is typically purchased as a supplement to an

existing insurance policy.

Marine Hull

Marine Hull Insurance covers loss or damage to hull and machinery. The hull is the structure of

the vessel. Machinery is the equipment that generates the power to move the vessel and control the

lighting and temperature system such as boiler, engine, cooler and electricity generator. Policy insures

marine ships,steamers.

3 - Motor Insurances

Liability only motor policy -

Mandatory motor vehicle policy

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Package motor policy

Motor policy additionally insures loss and damage of the motor vehicle due to theft and

accidents along with third party risk is called a package motor policy.

4 - Engineering Insurances

Machinery Breakdown Insurance

This policy cover's the insured machineries entered in the Schedule, against any unforeseen and

sudden physical loss or damage from causes such as defects in casting and material, faulty design, faults

at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers,

physical explosion, tearing apart on account of centrifugal force, short circuit, storm, or from any other

cause not specifically excluded.

Electronic Equipment Insurance

This policy covers the insured electronic equipment whether are at work or at rest, or being

dismantled for the purpose of cleaning, overhauling or of being shifted within the premises, or in the

course of the aforesaid operations themselves, or during subsequent re-erection, this cover applies after

successful commissioning .

Contractors Plant & Machinery Insurance [CP&M]

This policy is the appropriate cover for heavy machineries/construction Machineries and any other

item entered in the Policy Schedule, against any unforeseen and sudden physical loss or damage from

any cause not specifically excluded whilst at the location or in the geographical area mentioned in the

schedule.

Contractors All Risk Insurance (CAR)-

This type of insurance is the perfect cover for all kinds of construction projects such as buildings,

roads, bridges etc.This Policy will cover the policyholder against any unforeseen and sudden physical

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loss or damage from any cause, other than those specifically excluded, to the project's property

specified in the policy schedule In addition to indemnify the insured in respect of his legal liability

toward third parties for accidental bodily injury to or illness and / or Accidental loss of or damage to

property belonging to third parties occurring in connection with the construction works

Boiler and Pressure Vessel Insurance

This policy will provide the cover for the insured's Boilers and Pressure Vessels against damages

(other than by fire), and the cover is extended to include legal liability of the Insured for damage to

property not belonging to the Insured, in addition to the legal liability of the Insured on account of fatal

or non-fatal injuries to any persons other than the Insureds own employees or workmen or members of

the Insureds family, caused by and solely due to explosion or collapse of the insured items whilst in the

course of ordinary working

Erection All Risk Insurance (EAR ]-

This type of insurance concerning all kinds of Erection projects such as machineries erection,

heavy equipment installation process extended to include testing and commissioning works.This Policy

will cover the policyholder against any unforeseen and sudden physical loss or damage from any cause,

other than those specifically excluded, to the project's property specified in the policy schedule In

addition to indemnify the insured in respect of his legal liability toward third parties for accidental

bodily injury to or illness and / or Accidental loss of or damage to property belonging to third parties

occurring in connection with the erection works.

5 - Health insurance

Catastrophic health insurance -

It is amongst the least expensive forms of health insurance.These policies are only suitable for

individuals with the financial means to handle routine illnesses and hospitalizations

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Short-term health insurance

It is similar to term life insurance in that it can only be purchased for a specific period of time.

Coverage provided by the policies ranges from catastrophic to comprehensive, with the latter

considerably more expensive. Short-term health insurance often comes with strict qualifying procedures

and may not cover pre-existing medical conditions. In particular, pregnancy and childbirth are not

usually covered by these policies.

A Preferred Provider Organization (PPO)

It is a health insurance plan where medical treatment is fully covered if provided by a doctor or

hospital belonging to the PPO's network of health care providers. Treatment performed outside the

network is also covered, but at a reduced rate. Policy holders are liable for any differences if seeking out

of network treatment. PPOs are essentially a group discount form of health insurance; by maintaining

administrative control over a group of doctors and hospitals, PPOs are able to provide medical care at a

discount. PPOs generally require prior approval before allowing majormedical services.

Health Maintenance Organizations (HMOs)

It greatly restricts who a patient may see for non-emergency medical services. The advantage is a

significantly lower premium. HMOs have generated considerable controversy, as in many plans doctors

receive financial incentives for reducing the amount of medical services provided to patients. One

method of doing this has been to pay doctors a fixed monthly fee for each patient, regardless of the

treatment they need. HMOs do tend to cover more preventive procedures such as immunizations,

mammograms and physicals.

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Full-service health insurance

It is also widely available, at considerable expense. These policies cover all illnesses, allow

treatment virtually anywhere, and come with deductibles as high or as low as policy holders are willing

to pay for. At the other end of the health insurance spectrum, Medicare/Medicaidis a form ofpublic

health insuranceavailable to retirees and low-income individuals.

6 - Travel Insurance

Single Trip Travel Insurance

Single trip travel insurance covers you and your family for a single trip or holiday you intend to

travel. It includes the basic cover of trip cancellation/interruption and medical travel insurance for the

period of your travel which is limited by some companies. The additional coverage is offered as a part of

packages or is your choice to include.

Annual Travel Insurance/Multi Trip Travel Insurance

Annual travel insurance policy is for frequent travelers. This is for the traveler who goes on

holidays for more than one trip a year. The lower limit for days of travel and the number of trips are

specified by some companies. Those opting for this policy can avail great discount and other additional

coverage like business cover, golf cover, winter holidaying and sport included in some packages.

Long Stay Travel Insurance

A long stay travel insurance policy which offers a duration of 3 to 18 months is ideal for travelers

who take long vacations and travel extensively. Some go to visit relatives and stay for long periods of

time with them. It offers the basic travel insurance coverage's and you can always choose other

additional cover.

Medical Travel Insurance

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Medical travel insurance policy covers health related items that occur during the term of the

policy and not already existing ailments. The applicant needs to declare pre-existing medical condition

before travel and in case of any pre-existing ailments there is a separate package that involves pre-

existing medical travel insurance. If any information as to a pre-existing situation is concealed you

cannot claim for insurance if any symptom related to the pre-existing ailment occurs.

Cruise Travel Insurance

Are you traveling by sea in a registered cruise liner or any other mode of water transport? Topical

storms or hurricanes can play havoc and may require your trip to be cancelled. If you or your family's

journey is to the Pacific islands or the Caribbean's and you have to travel by a cruise your travel can be

insured by cruise travel insurance. Sometimes you are insured by the company that owns the cruise. You

could also avail the offer by some other travel insurance companies. The travel may be long or just for a

few hours to a few days. The costs would depend on the duration of travel.

Group Travel Insurance

Going as a group is great fun. You could be just friends going for a long vacation or a part of a

pilgrimage or a social club or any other group going on a tour. Each member getting an insurance policy

is cumbersome and involves a lot of paperwork. Group travel insurance is an offer that provides cover

for the entire group. By taking a voluntary/mandatory group travel insurance you can be assured that

those who opt for the travel insurance or all of you are safe from mishaps that occur during your travel.

Business Travel Insurance

If you own a business and your employees need to undertake travel on a regular basis you can

consider going for a business travel insurance policy. Many employers take care of the employees who

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travel through group insurance policy. Employees therefore overlook travel insurance only to have

found later that their travel was not insured and the loss they incurred cannot be compensated. Another

common mistake is not including business travel in the annual travel insurance policy.

7-Rural Insurance

Cattle policy

This policy covers indigenous cross bred and exotic cattle owned by private owners, various

financial institutions, dairy farms, cooperatives, corporate dairies etc. The word cattle includes Milch,

Cows and Buffaloes calves and heifers, stud bulls, bullocks and he-buffaloes and mithuns. Age group is

specified for all the animals. The evaluation of the animal isdone by a veterinary surgeon

Poultry policy

The policy shall provide indemnity against death of birds due to accident (including fire,

lightning, flood, cyclone, strike, riot and civil commotion and terrorism) or diseases contracted or

occurring during the period of insurance. The word Poultry includes layers, broilers and hatchery birds,

which are exotic and cross-bred.Indigenous and non-descript birds will not be insured

KISAN AGRICULTURAL PUMPSET INSURANCE

This policy applies to Centrifugal Pumpsets (Electrical & Diesel) and submersible pumpsets upto

25 H.P. capacity used for Agricultural purposes only. Cover is granted

against fire and/or lightening, theft/burglary (due to violent forcible entry and provided the pumpset is

kept in a locked enclosure), mechanical/electric breakdown, riot, strike,malicious damage, terrorism.

Flood risk can be covered by payment of additional premium.

8-Home insurance

Home insurance policy available in the market covers broadly two things:

a- Building structure b- Contents inside the home

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Insurance Covers for a Building Structure are

1- This is a comprehensive packaged that covers damages to the structure of home due to

Fire

Storm, tempest, flood & inundation

Riot, strike & malicious damage

Lightning

Explosion & implosion

Aircraft damage

Damage due to impact by vehicles

Subsidence, landslides and rockslides

Bursting and/or overflowing of water tanks, apparatus and pipes

Missile testing operation

Leakage from automatic Sprinkler installations

Bush fire

2. Earthquake Cover It Covers damages to the structure of your house due to earthquake .

3. Terrorism Cover It Covers damages to the structure of your house due to acts of terrorism

A home insurance does not cover the market value of the home. The price of the home includes

the cost of the land and the cost of constructing the building structure on this land and the land cannot be

insured. The insurance cover is only for the cost of constructing the building. The