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Bajaj Allianz General Insurance Company Limited

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Bajaj Allianz General Insurance Company Limited

RISK FUNDAMENTALS

Risk :Chances of loss-Property risk, loss of income, liability risk etc.


Perils : Cause of loss like Fire,theft/Burglary, Flood, Storm, Inundation etc. Hazards : Condition that increases
(being less prudent) risk-Physical hazard, Moral hazard & Morale hazards

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Bajaj Allianz General Insurance Company Limited

TYPE OF RISKS Pure Risk-that cannot result in the possibility of gain.

Speculative Risk-launching marketing campaign


Fundamental risk-likely to affect the entire economy, War, inflation, unemployment etc. Particular Risk-Stem from Individual event or affect an individual or small group. Personal risk Personal- Risk of Premature death, insufficient income during Retirement, Accident,
Sickness ,Poor health unemployment etc.

Property Direct & Indirect losses.


Liability-due to negligence, lack of due care, intentional damage & injury.
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Bajaj Allianz General Insurance Company Limited

HANDLING OF RISKS 1. Risk Avoidance

2. Risk Prevention
3. Risk Retention 4. Risk Reduction 5. Risk Transfer- through Insurance contracts or other means.

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Bajaj Allianz General Insurance Company Limited

PROCESS OF RISK MANAGEMENT


Risk Identifications. Evaluation of Risk- Severity & Frequency. Risk Response. Implementation and monitoring of Risk Response Management of Change, changing business trend, each change bring in new
exposures.

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Bajaj Allianz General Insurance Company Limited

INSURANCE PRIORITIES Essential Coverage Mandated by Law, Banks & Financial institutions Other high Priority Area-Business affected due to Fire, Acts of God or any other catastrophic event which may lead to business go bankrupt, loss of business income etc.

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Bajaj Allianz General Insurance Company Limited

INSURANCE PRIORITIES Important Coverage May not cause bankruptcy or mandated by Law but that the individual or business cannot easily pay from their liquid assets. Credit Risk -Non payment due insolvency , unwillingness or inability to pay.

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Bajaj Allianz General Insurance Company Limited

INSURANCE PRIORITIES Non Essential Coverage Those which can be absorbed and may not cause financial harm.

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Bajaj Allianz General Insurance Company Limited

UNINSURABLE RISKS

Speculative risk
Indefinable Risk Incalculable

Intentional/willful acts
Catastrophic- War, Nuclear, Radioactive etc.

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Bajaj Allianz General Insurance Company Limited

INSURANCE CONTRACTS

1. Consideration-Bank Guarantee /advance payment of Premium


2. Agreement or assent of the parties (Mutual Consent) 3. Competent Parties

4. Legal purpose or legal subject matter.

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Bajaj Allianz General Insurance Company Limited

COMMERIAL PACKAGE POLICIES

1. Mega Risk Package polices for SI exceeding Rs 10,000 Crores.


2. Industrial All Risks- for SI exceeding Rs 100 Crores in one or more locations. 3. Small medium enterprises package. 4. Office package policy ** Package polices are combinations of Fire group of perils, natural perils, burglary, machinery breakdowns & business interruption due to fire or breakdown.
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Bajaj Allianz General Insurance Company Limited

INSURANCE POLICIES AT A GLANCE


1. 2. 3. 4. 5. 6. 7. 8. 9. Fire & Special perils policy. Burglary & Housebreaking. Business Interruption policy Inland Marine policies for goods in transit within India. Marine policies for export,imports & duty insurance. General public liability Professional Indemnity, error or omission policy for professional like Engineers, architects etc. Directors & Officer Liability-Managerial error/omission, lack of supervision. Machinery Breakdown

10. Mediclaim policy 11. Group Personal Accident. 12. Fidelity Guarantee 13. Money polices- Cash in transit
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Bajaj Allianz General Insurance Company Limited

INSURANCE POLICIES DURING CONSTRUCTION / ERECTION


1. 2. 3. Erection All Risks Contractors All Risk Marine cum Erection

4.
5. 6.

Advance loss of Profits /Delay in start up.


Construction Plant & Machinery Workmen compensation policy.

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Bajaj Allianz General Insurance Company Limited

IMPORTANT CONCEPT IN PROPERTY INSURANCE


1.
2. 3. 4.

Insurable Interest,Utmost good faith, contribution, subrogation , Indemnity etc.


Covered Property Covered Perils Excluded Perils.

5.
6.

Limit of Insurance- Market Value /New Replacement Cost.


Common conditions 1. 2. 3. 4. Changes to the Property Fraud Subrogation Cancellation
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