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Definition:
Insurance is a contract between two parties whereby one party
agrees to undertake the risk of another in exchange for
consideration known as premium and promises to pay a fixed
sum of money to the other party on happening of an uncertain
event (death) or after the expiry of a certain period in case of
life insurance or to indemnify the other party on happening of
an uncertain event in case of general insurance.
The party bearing the risk is known as the 'insurer' or 'assurer' and
the party whose risk is covered is known as the 'insured' or 'assured'.
Concept of Insurance
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pool is made by a group of people sharing common risks and collected by
the insurance companies in the form of premiums.
UNDERLYING ASSUMPTION
All 1000 house owners are exposed to a common risk, i.e. fire
PROCEDURE
EFFECT OF INSURANCE
Risk of 5 house owners is spread over 1000 house owners in the village,
thus reducing the burden on any one of the owners.
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UNITED INDIA INSURANCE COMPANY
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INDUSTRIAL PROFILE
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the controller of the Insurance also. In that capacity he has the controlling
authority over the General Insurance and Life Insurance business in India.
In the budget speech of July 1996, the govt formally announced its
plans to open the Insurance Industry and also the intention of bringing an
Insurance Regulatory Authority Bill 1996
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Number Registratio
n
1 102 23.10.2000 Royal Sundaram Alliance Insurance
Company Limited
2 103 23.10.2000 Reliance General Insurance Company
Limited.
3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd
4 108 22.01.2001 TATA AIG General Insurance Company
Ltd.
5 113 02.05.2001 Bajaj Allianz General Insurance
Company Limited.
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1994 -- marine cargo, personal accident, health, banker liability and
aviation
2005-06 -- marine hull segment
2007 -- fire, engineering and motor own damage (OD). However, the
de-tariffing did not immediately allow for free pricing. Instead,
insurers were required to follow the “file and use” method, whereby
they were expected to file a charter of proposed rates, which was
then approved by IRDA.
The only segment that remains under a tariff regime is the third party
motor business, although there has been a large upward revision in this
area’s premium rates by regulators in recent times. Moreover, commercial
third party motor business, which has traditional
Source: www.moodys.com
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Source: www.moodys.com
Given a faster growth rate, the market share of the private sector is
catching that of the public sector and the two will likely converge over the
medium term. In the past, private insurers had aggressively targeted the
more profitable (and tariffed) corporate fire and engineering businesses
by combining them with discounted offers on de-tariffed products, for
example, personal accident & health, marine cargo and hulls.
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Source: www.moodys.com
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COMPANY PROFILE
The solvency margin is pegged at 3.32 and the net profit of the
company for 2008-09 showed a healthy Rs. 745.485 crores. With over
1350 offices spanning the length and breadth of the country they have
been at advantage to serve customers better. Besides this their core
strength lies in their human resources. Having a work force of 17000+
people and an army of 2000 officers committed to the service of their
customers, they are in a position to make light of the fact that they issue
more than 1 crore policies in a year and settle more than 8 lac claims
annually.
United India’s Kerala Region was formed in the year 1984 and at the
time the Premium was only around 12 crores. In 2008-09, this region
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completed a figure of 97 crores. There are 204 officers, 801 staff, 128
development officers and many agents working with them. They have a
wide spread of officers in 16 divisional offices and 49 branch offices.
They are the largest insurers of various Kerala Govt Schemes. Last
year they launched the Kambhenu programme which is probably the
largest mass insurance scheme launched the Rural Insurance.
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BASIC FACTS OF THE COMPANY
LIMITED
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ORGANISATIONL STRUCTURE
HEAD OFFICE
DIVISIONAL OFFICE
Board of Directors
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FINANCIAL STRENGTH
By analysing the premium from 2002 to 2009 it is clear how much it stable
UIIC as well as insurance industry
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Table 3. Profit Analysis (Rs. in crores)
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CORPORATE MISSION
CORPORATE VISION
Andhra Bank
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Indian Bank
Canara Bank
Syndicate Bank
Bank of Maharashtra
Bank of Rajasthan
Federal bank
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Tiesta Uraj Ltd
GVK Industries
Tata Power
Torrent Power
SEPCO
Aviation
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Indian Space Satellites Programme
Infrastructure Sector
GMR Group
Maytas Infrastructure
Pharma Major
Hotels
Oberoi
Hyatt Regency
Park Sheraton
Manufacturing
Ballarpur Industries
MICO
ITC
FACT
Nirma
Asian Paints
Oswal Group
Balco Industries
Hindalco Industries
India Cements
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Vedanta Group
Tata Motors
TVS Group
RESEARCH PROBLEM
RESEARCH METHODOLOGY
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Secondary sources
The secondary sources of data are:
1. Organization documents.
2. Departmental manuals.
3. Annual reports
4. Periodicals, books etc. published by the company.
5. Proposals Forums.
The data collected were edited, coded and processed. The information is
presented through tables, graphs etc.
1. In the given short time it is very difficult to cover all area aspect of
the firm.
2. Only product portfolio is analyzed in the study. The firm’s overall
performance cannot be evaluated in the study.
3. Company keeping some data confidential due to competition.
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PRODUCT PORTFOLIO
PRODUCTS
PERSONAL POLICIES
COMMERCIAL POLICIES
SOCIAL PUBLIC
IAR
MPLP WORKMEN
CARGO BPP RURAL SFSP
LOP PRODUCT
HULL CPM TRAVAL LOP
PACKAGE PROFESSI
MB
ON
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PERSONAL POLICIES
Coverage:
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D Maternity Benefit – ONE CHILD ONLY Rs.2,500/- for normal
(with 12 months waiting period) delivery and Rs.5,000/- for
caesarean delivery.
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Section 2:
SUM INSURED
Section II: (A) Accidental death of earning head of the family Rs.25,000/-
Payment of premium:
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2. HOUSE HOLDER POLICY
Personal Accident
Accidental injury causing death/disablement [total/partial]
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Third Party Liability
Due to injury to third party or damage to third party property.
Exclusions:
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3. PERSONAL ACCIDENT POLICY
Exclusions:
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Any claim in the same period of insurance exceeding the Capital
Sum Insured.
Suicide, attempt there at, criminal breach of law, accidental
death/injury under influence of liquor/drugs.
Pregnancy related claim.
War and nuclear perils.
4. MEDICLAIM POLICY
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Actual hospitalisation expenses of various types listed above subject
to a
maximum of Rs. 15,000/- to Rs. 5,00,000/- depending upon the sum
insured chosen at the inception of the policy ( sum insured is
maximum liability under the policy.)
Actual domiciliary hospitalisation expenses limited to Rs. 3,000/- to
Rs. 50,000/- depending on the sum insured chosen at inception.
Cost of health check up reimbursable at the end of 4 continuously
claim free underwriting years limited to 1% of Average sum insured
of 4 claim free years
The sum insured will be increased by 5 % cumulative bonus for
every claim free year. If there is a claim in a policy with cumulative
bonus 10% of the sum insured will be reduced from the earned
bonus
Exclusions:
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Vaccination, inoculation circumcision or change of life or cosmetic or
aesthetic treatment, plastic surgery, unless dental treatment unless
requiring hospitalisation necessitated due to accident or as a part of
any illness.
Cost of spectacles, contact lenses, hearing aids.
Convalescence, general debility, "run-down" conditions sterility,
venereal disease, intentional self-injury use of intoxicants
Any variation of deficiency syndrome or AIDS.
Hospital / nursing home charges not consistent with or incidental to
the diagnosis and treatment : Vitamins, tonics not forming part of
any treatment.
Any treatment related to pregnancy, child birth and voluntary
medical termination of pregnancy during the first 12 weeks of
pregnancy
Nuclear perils and war group of perils
Naturo pathy treatment.
5. UNI-MEDICARE INSURANCE
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i) Room, Boarding Expenses as
i) Up to 0.5% of Sum
provided by the Hospital / nursing
Insured per day
A home.
Exclusions:
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COMMERCIAL POLICIES
1. MARINE INSURANCE
Cover- Any loss or damage to goods in transit by rail, sea, road, air or
post.
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War and SRCC is specifically covered
Premium Rating
Open Cover
Open Policy
This policy is issued for transit of goods within India. Policy is valid
for one year and all transits during the policy period and declared are
automatically covered by the insurance company subject to the
availability of the overall sum insured.
This policy is valid for a single voyage or transit. The policy will be
issued before the voyage starts. The coverage will cease immediately on
completion of the voyage.
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The specific voyage policy must show complete details of the risk...It
should contain particulars of conveyance/Vessel name/ Bill of Lading or
Way bill and date, sum insured, terms and conditions of cover, voyage,
cargo description etc like all other marine policies
Annual Policy
The various vessels that are covered under this policy are:
Fishing Vessels
Ocean Going Vessels
Sailing Vessels
Other Vessels
Exclusions:
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Deliberate damage/destruction of the vessel by wrongful act
of any person
Use of any weapon of war employing atomic / nuclear fission
and or fusion
Insolvency or financial default of the vessel owner / operators /
charterers
War / civil war · Strike, Riot or Civil Commotion
Any terrorist or person/s acting with political motive
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2. INDUSTRIAL INSURANCE
a) Industrial All Risk Policy
Cover- All the risks other than petro chemical risks having a
minimum sum insured of 100 crores are covered here.
Perils Covered-
Section I
Section II
Excluded causes
Excluded Property
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Property in transit outside premises
Properties or structures in course of erection or demolition unless
specifically covered.
Land , pavements , railway and road lines untill specifically covered
Property damaged as a result of its undergoing some process
Livestock , growing crops or trees
Property removed to other locations exceeding 60 days
Loss payable to the property covered under marine / other policies
Section II
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b) Boiler & Pressure Plant Insurance
Cover- Boilers like fire tube boilers/recovery boilers and unfired pressure
vessels/steam pipes can be covered.
The owners of the boiler/ pressure plant can take insurance can be
insured.
Partial loss
In cases where damage to an item can be repaired, the policy shall pay
expenses necessarily incurred plus the cost of dismantling and re-
erection. No deduction for depreciation but salvage value is deductible.
Total loss
Where an insured item is destroyed, the company pays the actual market
value of the item immediately before the occurrence of loss including
freight and erection cost. The salvage shall be taken into account and
condition of average will apply (i.e. if sum insured is not adequate, claim
will be paid only proportionately).
Exclusions:
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Act of God perils
Gradually developing flaws
Wearing away or wasting of the materials of a boiler like
blockage, corrosion, fracturing, blisters, and lamination.
Failure of individual tubes
War group and nuclear group of perils
Experiments/tests requiring abnormal conditions
Defects, fracture, failure, deformation/bulging not resulting in
explosion
Consequential loss, loss arising out of existing defects known
to insured
Loss/damage for which manufacturer/ repairer is responsible
Wilful act/neglect or gross negligence of insured.
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c) Contractors Plant & Machinery Policy
This policy shall cover any unforeseen and sudden physical damage to the
property by any cause not specially excluded. This policy shall apply to
the insured item whether:
Partial loss
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Total loss
In both cases freight and customs duty are also paid if they are included in
sum insured. Policy excess is deducted from the claim.
Exclusions:
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d) Machinery Breakdown Policy
Basis of Indemnity
Partial Loss
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Full cost of parts plus the labour charges, to and fro freight, customs duty
and charges for dismantling and re-erection. Excess applicable to the
affected item is deducted from claim. Depreciation is applied for items
with limited life.
Total Loss
Exclusions:
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e) Deterioration of Stock
This policy covers the risk of loss or damage to the perishable stock by
deterioration or putrefaction due to
Rise or fall in temperature resulting from breakdown of
refrigeration plant and equipment at the premises.
Damage to the said plant and equipment by an incidental
extraneous cause subject to the perils excluded.
Failure of electric supply
Basis of Indemnity
The insured is indemnified for damage caused to the stocks by
deterioration, contamination or rotting due to an accidental damage to the
plant resulting in a rise in temperature.
The total liability of the company under this policy shall be limited to the
insured value or market value whichever is less.
Provided always that
The insured should possess an unqualified permission in writing of
the competent Licensing Authority to the Cold Storage during the
entire period of insurance.
The damaged stock should be stored at the refrigeration chambers
specified in the policy
The Plant and Machinery used should be covered by Machinery
Insurance.
The insured has to maintain daily stock book, Log books as per the
format prescribed by company
Stock book & log book should be made available for the inspection
of company representative
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- Under insurance, if any
- Excess
- Recovery of rent, if any
Cover-
Policy Cover-
Section 1. Material damage.
Risk covered-
Unforeseen and sudden physical loss or damage from fire and allied perils
breakdown, short circuiting etc.
Basis of Indemnity
Section 1:
Partial loss:
Total loss:
Actual market value immediately before the loss plus ordinary freight,
erection charges, Duty Excess, Salvage are deducted.
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Section 2:
Section 3:
Exclusions:
Section 1:
Section 2:
Section 3:
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3. MOTOR INSURANCE
(a) In case of vehicle not exceeding 5 years of age, the IDV has to be
arrived at by applying the percentage of depreciation specified in the tariff
on the showroom price of the particular make and model of the vehicle.
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Landslide or workslide
None of the above perils can be excluded from the scope of a policy.
The following are payable under Section II of the Package Policy subject to
the limit of liability laid down in the Motor Vehicles Act :
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In case of death of an Insured person, entitled to indemnity for a liability
incurred under this policy, his legal representative will be indemnified in
place of insured, if he observed all conditions as the insured himself.
Discounts
No Claim Bonus :
Ranging from 20% to 50% depending on the number of claim free years.
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50% discount on the OD premium on the vehicle specialy designed /
modified for use of the blind, handicapped and mentally challenged
persons
Additional premium is payable to extend the cover under the Package and
Liability Only policies in case of the following :
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An additional premium of Rs.50/- for OD cover for all vehicles except
Miscellaneous Type of Commercial Vehicles : for Miscellaneous Type of
Commercial Vehicle it is Rs. 100/-.
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Other Information
(I) Transfers :
A vehicle can be substituted by another vehicle for the same class, for the
balance period of a policy subject to adjustment of premium, if any, on
prorata basis from the date of substitution.
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4. MISCELLANEOUS INSURANCE
a) SOCIAL INSURANCE
Death
Permanent total disablement
Total and irrecoverable loss of use of limb
Loss of eye sight
Policy can be availed for an amount of Rs. 25,000/- to Rs. 1,00,000/- sum
insured.
Exclusions:
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Mountaineering or whilst engaged in winter sports or resulting from
the insured committing any breach of law with criminal intent.
War and nuclear perils.
Benefits Provided
In the event of the death of the girl before attaining 18 years, the balance
amount standing to the credit of the girl child will be paid to the surviving
parent/guardian.
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Unique Features
• Relief to the girl child in the event of death of any of the
parents
• Relief to orphaned girl for maintenance and education
• Lumpsum payment on attaining the age of 18
completed years
• Premium - Rs.15/- per child per annum.
• Discounts - Varies from 5 to 30% depending upon the group size.
iii) RajaRajeshwari Mahila Kalyan Yojna Policy
Basic cover
For Death
Additional Cover
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Loss/damage to HouseholdFire, flood, riot,
Up to a limit of Rs.2,000/-
terrorism
Unique Features
Policy provides cover not only for the disablement of women but
also for the death of her husband.
Additional cover provides for Temporary Total Disablement and also
for loss/ damage to household goods.
Premium:
Rs.15/- per woman per annum for the basic cover and Rs.23/- per woman
per annum for both basic and additional cover.
Discounts:
Group discount varies from 5% to 30% based on the group size. Long
Term Discount ranges from 5% to 20% depending upon the period of
insurance.
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iv) Mother Teresa Women & Children Policy
For Death –
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removal of breast due to cancer provided that it occurs within 7 days from
the date of operation.
Premium
Rs.15/- per woman per annum for the basic cover and Rs.23/- per woman
per annum for both basic and additional cover.
Discounts
Group discount varies from 5% to 30% based on the group size. Long
Term Discount ranges from 5% to 20% depending upon the period of
insurance
Unique Features
Policy provides cover not only for the disablement of women but
also for the death of her husband.
Additional cover provides for Temporary Total Disablement and
also for loss/ damage to household goods.
Basic Cover
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In the event of death of the parent(s), Rs.25,000/- will be
deposited in the name of the child with the GIC Asset
Management Co. Ltd. and the benefits will be provided as under –
Benefits provided
Premium
Rs.15/- per child per annum.(coverage limited to two children only
and the premium would be Rs.30/- per annum.)
Discount
Varies from 5 to 30% depending upon the group size.
Unique Features
• Relief to the children in the event of death of any of the
parents
• Relief to orphaned children for maintenance and
education
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Hence the total premium for a comprehensive policy would as follows:
i. Rs.32/- for comprehensive cover to the women inclusive
of husband
ii. Rs.30/- for two children
Totaling Rs.62/- only for the entire family cover.
The insured can either opt –A full family cover for Rs.62/- or Section I -
only for Rs.32 or
Section II - only for Rs.30/- as per their need.
In case the premium is routed through a single source, the applicable
discount would be the highest and the premium at the lowest.
Exclusions-
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Dental treatments/surgery of any kind unless requires
hospitalisation.
Convalescence/general disability/run down condition or rest cure
etc.
Expenses on vitamins and tonics
Treatments arising from or traceable to pregnancy/child birth
inclusion of
caesarian section.
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b) RURAL INSURANCE
Risk covered-
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War perils.
Nuclear perils
Consequential loss
Death of animals due to disease within 15 days from the inception of
policy.
Pleuro pnemonia --- Lakhimpur ----- districts of Assam.
ii) Agricultural Pumpset Insurance
All kinds of pumpsets like centrifugal, jet and submercible (both electrical
and diesel) upto 30 HP of approved makes.
Risk covered-
For total loss of sum insured or market value prior to loss whichever is less
is payable . For replace parts, dpereciation is chargeable in the event of
electrical / mechanical breakdown losses.
Exclusions-
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Loss or damage for which manufacturers or suppliers are
responsible either by law or under contract.
Cost of dismantling, transport, re-erection.
War and nuclear perils.
A Layer birds and hatchery birds in a poultry farm in the age group
of 1 day old to 72 weeks and broilers in the age group of 1 day to 8
weeks.
Ducks and Quails are also insured under the policy.
Own Poultry farmers / financing bank can insure the birds. All the birds in
the
farm should be insured without selection.
Risk covered-
Policy pay-
80% of the value of the bird at the time of loss as per stage wise valuation
Exclusions-
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Malicious / wilful misconduct / negligence.
Transit by any mode of transfer.
Improper management.
Theft and clandestine sale of birds.
Intentional slaughter of birds.
Consequential loss
War and nuclear perils.
Mareks, Ranikhet, Foul Pox and infectious bronchitis unless birds are
Death
Permanent total disablement
Total and irrecoverable loss of use of limb
Exclusions-
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No compensation is payable for any disablement that exists at the
time of taking the policy. No payment will be made in excess of the
sum insured for each individual.
Intentional self-injury
Suicide or attempted suicide
Whilst under the influence of intoxicating liquor or drug
Whilst racing on wheels
Hunting
Big game shooting
Mountaineering or whilst engaged in winter sports or resulting from
the insured committing any breach of law with criminal intent.
War and nuclear perils
v) Plantation Insurance
The input costs or recurring expenses incurred for raising the crop
(establishment and maintenance) upto the date of the loss. Limits of
indemnity on input cost basis are fixed at each stage of the crop. Claims
are subject to Franchise and Excess deductibles.
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Exclusions-
The policy excludes to pay for loss or damage to crop arising due to theft,
malicious damage, negligence, natural mortality, war perils, nuclear perils,
insects, pests and diseases, drought, earthquake, climatic variations,
water logging, inconsequential losses, damage to structures capital items,
irrigation systems, agricultural implements, harvested produce.
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c) TRAVAL INSURANCE
i) Baggage Policy
The policy pays for the contents of the baggage damaged/lost due to any
of the perils stated above on a strict basis of indemnity.
Exclusions-
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ii) Marga Bandhu Policy
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Suicide, attempt there at, VD, Criminal breach of law, influence of
liquor / drugs
Pregnancy related claim
War and nuclear perils
Loss / damage due to cracking, scratching, depreciation, wear and
tear
Loss / damage to money / securities, manuscripts, documents.
iii) Suhana Safar Policy
The policy covers the risks of Personal Accident and loss of Baggage
of the insured, spouse and dependent children covered during the
period of outstation travel with in India from the declared place of
departure(includes places of sojourn).
Policy Covers
Section I
PERSONAL ACCIDENT
Section II
BAGGAGE
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Loss or damage to the personal effects carried as accompanied baggage
due to fire, riots, strike, terrorism, malicious damage , theft , burglary for
the actual value of the articles but not exceeding Rs.500/- per article
unless specifically declared.
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d) PACKAGE INSURANCE
Any loss/damage to
Building and its contents
Jewellery and valuables
Domestic appliances, TV, VCR, Audio Systems, PC etc.
Baggage while on travel
Accidental injury causing death/disability
Liability to third parties
Cover under ten sections with option to choose minimum 4 sections for
availing discount in premium. Cover against contents is compulsory.
Building and contents :Fire, lightning, Acts of God, Riot and Strike,
impact, explosion of gas in domestic appliances, overflow of water
tanks.
Burglary, House breaking and Theft.
Jewellery and Valuables - Any accidental loss/damage Plate Glass
Any accidental loss/damage
Baggage - While on travel Any accidental loss/damage
Domestic Appliances Any accidental loss/damage entirely due to
electrical/mechanical breakdown.
TV, VCR, Audio System
Fire and allied perils, burglary, housebreaking, theft, electrical or
mechanical breakdown
Pedal cycle Fire and related perils, riot,strike, malicious damage,
acts of god, housebreaking, burglary, theft, external accident and
also legal liability to "Public" with a limit of Rs.10,000.
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Personal Accident
Accidental injury causing death/disablement [total/partial]
Policy pay
Exclusions-
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Loss/damage/liability where Insured's family or Insured's employee
are involved as principal/accessory
Intentional act/self injury/ influence of drug/intoxicant.
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Insured’s legal liability as tenants of the insured premises for
damage to the building of the offices and land lord’s fixture and
fittings
Perils Covered
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Till at the insured premises
Cost of replacement or repair of the insured’s safe in the insured
premises in the event of it being damaged by thieves/burglars.
Third Parties
Employees
Section covers Neon sign and/glow sign and/ hoarding belonging to the
insured.
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Storm, Flood and Inundation etc.
Discount Available
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iii) Dukan Mitra Policy
SECTION I
This section also covers the Insured's property when removed to another
premises for custody during his absence and for a temporary period
limited to 90 days in all.
SECTION II
Loss / damage to the contents whilst contained in insured premises by
burglary / housebreaking.
SECTION III
If bodily injury by external violent means and caused accidentally shall,
within 12 months of such injury, by the sole and direct cause of death or
permanent total disablement of the persons specified, the Company will
pay each such person specified amount. Permanent total disablement
would mean total, irrecoverable loss of sight of both eyes / physical loss of
entire hands or entire feet / one foot and one eye or one eye and one
hand / one foot or irrecoverable loss of use of both limbs.
SECTION IV
This section indemnifies the Insured subject to the limit under column 4, in
respect of all sums which the Insured shall become legally liable to pay as
compensation and incur litigation expenses with the Company's written
consent. a. in respect of accidental death or bodily injury to any person
other than a person under the Insured's employment b. accidental
damage to property caused by or through fault or negligence of the
Insured or his employee or a member of Insured's household c.
compensation to Insured's employees as per the WC act for any
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employment injury (including fatal) d. This section excludes liability for
accidents involving Insured's ownership or use of vehicles, vessels of any
kind, aircraft or animals.
SECTION V
Indemnifies the Insured for any direct pecuniary loss, subject to the limit
under column 4, caused by an act of fraud or dishonesty committed by
any salaried employee of the Insured in the course of his duty in the
insured premises, on conviction and prosecution of an employee
responsible for dishonesty / fraud. Withholding of any money due to the
delinquent employee and deduction of such moneys from the claim are
preconditions to settlement of a valid claim.
SECTION VI
Indemnifies the Insured, subject to the limit per carrying (under column 3)
in respect of loss by accident or misfortune while the Insured's money in
his hands of his employees is in transit between any two places within 15
kms from insured premises (only such money of the Insured's business
transactions and entrusted to the permanent employee handling cash is
covered), loss / damage by burglary or housebreaking whilst contained in
a safe, cash box or such place under lock and key, loss / damage whilst
lying in cashier's till or counter in the Insured's premises during business
hours due to violence, assault or threat. It is a policy condition under this
section that a complete and arithmetic account of cash in various places
be kept and that such records / account books be kept in a place other
than where money is kept.
The risk of fire, lightning, storm, earthquake, flood, riot, strike etc
The risk of burglary
The loss of money while it is being carried by the employee from
one place to another due to accident/misfortune
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Any Pecuniary loss arising out of dishonesty or fraud by any
employee
Death or any bodily injury directly or indirectly caused by accidental,
violent, external and visible means applicable for persons aged
between 12 and 70 years.
Exclusions
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5. LIABILITY INSURANCE
The Public Liability Act, 1991 was made effective from 1st April 1991. The
object of this Act is to provide through insurance immediate relief to
persons affected due to “accident” while “handling” “hazardous
substance” by the owners on “no fault liability basis”. This has also been
brought under Tariff. The definition of “Owner” is so comprehensive as to
cover any person who owns or has control over any hazardous substance
at the time of accident. This includes any Firm or its partners. Association
or its members, Company or its Directors and all other persons associated
and responsible to that Company in the conduct of their business.
The various terms like “Accident”, “Hazardous substances” as defined in
the Act are given below.
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human beings, other living creatures, plants, micro-organism, property or
the environment (as per the Environment (Protection) Act, 1986).
Insurance Limits
Any one accident: Minimum equal to Paid up Capital upto a maximum of
Rs.5 crores.
Any one year: 3 times of `Any one accident’ limit subject to a maximum of
Rs.15 crores.
Schedule of Compensation
1. Reimbursement of medical expenses incurred upto a maximum of
Rs.12,500/- in each case.
2. For a fatal accident the relief will be Rs.25,000/- per person in
addition to reimbursement of medical expenses, if any incurred on
the victim upto a maximum of Rs.12,500/-.
3. For permanent total or permanent partial disability or other injury or
sickness, the relief will be :
a. Reimbursement of medical expenses incurred, if any, upto a
maximum of Rs.12,500/- in each case and,
b. Cash relief on the basis of percentage of disablement as
certified by an authorized physician. The relief for total
permanent disability will be Rs.25,000/-.
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4. For loss of wages due to temporary partial disability which reduce
the earning capacity of the victim, there will be a fixed monthly
relief not exceeding Rs.1,000/- per month upto a maximum of 3
months provided the victim has been hospitalized for a period
exceeding 3 days and above 16 years of age.
5. In respect of damage to private property, upto Rs.6,000/- per claim.
Apart from Public liability insurance Act policy, policies are also available
to cover the legal liability of the insured against third parties for claims
arising due to industrial accidents. Two different types of policies are
available to cover accidents in industries like factories etc and non
industries like hotels, schools, exhibitions and storage tanks etc
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Where employment injury results in death, then we pay 40%
of the monthly wages of the deceased multiplied by the relevant
factor or Rs. 20,000/- which ever is more.
Permanent Total Disablement 50% of the monthly wages of
the injured disabled (PTD) workman multiplied by relevant factor or
Rs. 24,000/- which ever is more.
Permanent Partial Disablement
a) For an injury specified in Part II of disablement (PPD) schedule.
The percentage of loss of earning capacity caused applied to
the compensation payable for permanent total disablement
b) For an injury not specified in schedule - the percentage of
permanent loss of earning capacity as assessed by qualified
Medical Practitioners applied to the compensation payable for
permanent total disablement.
Where more than one injury caused by same accident it shall
be aggregate but in any case not to exceed the amount payable for
permanent total disablement
Temporary disablement - A half monthly payment equivalent
to 25 % (total or partial) of monthly wages of the workman to be
paid in accordance with the provisions of Sub section (2) of the WC
Act.
Actual medical expenses incurred in connection with on-duty
accident ranging from Rs.80/- to 2400/- per case as per the option
given at the inception of the policy by the insured and extra
premium paid.
Legal costs and expenses incurred with the Company's
consent.
Exclusions-
Any injury which does not result in fatality or partial
disablement for period exceeding 3 days
First 3 days of disablement where the total disablement is less
than 28 days
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For any non-fatal injury caused by any accident which is
directly attributable to
a) Influence of drinks or drugs.
b) Willful disobedience of an order for securing safety of
the workman.
c) Willful removal or disregard of safety guard device.
War group and nuclear group of perils
Liability to employees of contractors of the insured (unless
specifically declared)
Employee who is not a "workman" as per WC act.
Liability of insured assumed under an agreement
For occupational diseases mentioned in part "C" of schedule III
of WC Act , unless cover is extended on extra premium.
Increase due to any change in statute provisions after policy
had incepted.
Under more than one statute / one forum for the same injury
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c) Product Liability Insurance
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continuous, intermittent or repeated exposures arising out of the
same fortuitous event or circumstances
Special Features
1. Claims made basis
The policy is on `Claims made’ basis. This means that the accident
giving rise to the claim shall occur during the period of insurance and
further that the claim shall be first made against the insured during the
policy period.
2. Retroactive date
This is the date of commencement of the first `Claims made’ product
liability policy. This date will remain unaltered as long as the policy has
been renewed without break and there has been no substantial material
change in the risk.
3. Period of insurance
This is the period commencing from the retroactive date and
terminating on the expiry date of the policy.
4. Policy period
This is the period commencing from the midnight on the inception
date and terminating at midnight on the expiry date of the policy.
Special Exclusions
1. The policy excludes liability for costs in the repair,
reconditioning, modification or replacement of any part of any
product which is or is alleged to be defective.
2. For cost arising out of the recall of any product or part thereof.
3. Arising out of any product which is intended for incorporation
into the structure, machinery or control of any aircraft.
4. Arising out of deliberate, willful or intentional non-compliance
of any statutory provision.
5. Arising out of pure financial loss such as loss of goodwill, loss
of market, etc.
6. Arising out of fines, penalties, punitive and exemplary
damages.
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7. For injury and/or damage occurring prior to the Retroactive
date shown in the schedule.
8. Arising out of deliberate, conscious or intentional disregard of
the insured’s technical or administrative management of the need to
take all reasonable steps to prevent claims.
9. For injury to any person under a contract of employment or
apprenticeship with insured where such injury arises out of the
execution of such contract.
10. Arising out of contractual liability which would not have
existed in the absence of the specific contract.
11. Arising out of any product guarantee.
12. Arising out of claims for failure of the goods or products to
fulfill the purpose for which they were intended
General Exclusions
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d) Professional Indemnity Policy
The cover granted under the policy provide indemnity for legal liability to
third party arising out of errors and omissions or negligence in
professional service rendered by the insured
Exclusions-
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6. FIRE INSURANCE
Cover-
Buildings
Machinery and Accessories
Stock and stock in process
Contents including furniture
Perils Covered
Fire
Lightning
Explosion/Implosion
Aircraft damage
Riot, Strike
Storm, Flood, inundation
Impact damage
Subsidence , landslide
Bursting or overflowing of tanks
Bush fire etc.
Exclusions
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Spontaneous combustion, fermentation
Burning of property by order of any Public Authority
Its undergoing any heating or drying process
Explosion of boilers (other than domestic boilers)
Total or partial cessation of work
Permanent or temporary dispossession by order of Government
Burglary, House breaking, theft
Normal Cracking or settlement or bedding down of new structures
War or war like operations
Defective design, workmanship, defective materials
Pollution or contamination
Over-running, short circuit etc.
Earthquake
Spoilage loss
Add on Covers
Terrorism
Removal Of Debris
Architects, Surveyors, Consulting Engineers fees
Earthquake (Fire and Shock only)
Spontaneous combustion
Startup expenses
Spoilage Material Damage Cover
Leakage and Contamination cover
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b) Fire Loss of Profit Policy
This policy can be taken only if a Standard fire and Special Perils Policy
exists for the risk.
Indemnity Period
The indemnity period commences with the date of damage and lasts till
such a time as the business is restored to its pre damaged level or the
period stipulated policy whichever comes first. The policy insures earnings
of the business lost during the indemnity period.
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FINDINGS
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5. Sales of Social policies are few. It is due to peoples are not known
about these policies.
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SUGGESTIONS
1. The social welfare policies are designed for serve the people these
policies not contributing much profit so they can go for low budget
advertisement, and then only these will reach among peoples.
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5. Once when issuing the policy they can provide information
regarding policy terms, perils covered, discounts available,
procedure for applying claims, how claims are calculating,
conditions regarding claims calculation by talk as well as printed
documents; it will avoids the customers lack of awareness.
7. The company can keep in touch with the customers. They can send
detail regarding the new policy brochures, renewal notices; it will
help to retain the customers.
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10.
CONCLUSIONS
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BIBLIOGRAPHY
Books
Web Pages
http://www.uiic.co.in/products.html
http://www.uiic.co.in/downloads.html
http://www.icra.in/Files/PDF/ArticleFiles/Insurance-ICRA-Moodys-
200704.pdf
http://www.appuonline.com/insurance/basics.html
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