49538773 Deepak Project on Home Insurance

8/17/2019 49538773 Deepak Project on Home Insurance

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BACK GROUND OF THE INSURANCE SECTOR

Insurance is over one and one-half centuries old in India. The First general

insurance company, Titan Insurance Company Ltd., was established in

1!".Life insurance came to India from the #.$. in 1", with the

establishment of the %riental Life &ssurance Company in Calcutta. 'y 1(),

the insurance mar*et was bu++ing with 1 companies--both life and non-life.

In 1(!, the overnment of India recogni+ed that malpractice had entered the

management of the life insurance. Conse/uently, the life insurance industry

was nationali+ed under the Life Insurance Corporation 0LIC of India.&lthough efforts were made to maintain an open mar*et for the general

insurance industry by amending the Insurance &ct of 1() from time to time,

malpractice escalated beyond control. Thus, the general insurance industry

was nationali+ed in 1(2.

RECENT INITIATIVES

3rivati+ation is e4pected to foster competition, innovations and greater

awareness on the need for buying insurance services and variety of products.

The I56& bill 3assed by the parliament was an important development in the

field of Insurance business. The I56& &ct mar*s an end to the monopoly of

the government in the insurance sectors by opening it up to private players. It

gives priority in the #tili+ation of the policyholder7s funds for development of

society and Infrastructure sector.


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INTRODUCTION OF HOME INSURANCE

Home insurance, also commonly called hazar insurance or homeo!ners

insurance 0often abbreviated in the real estate industry as HOI, is the type of

property insurance that covers private homes. It is an insurance policy that combines

various personal insurance protections, which can include losses occurring to one8s

home, its contents, loss of its use 0additional living e4penses, or loss of other

personal possessions of the homeowner, as well as liability insurance for accidents

that may happen at the home. It re/uires that at least one of the named insured

occupies the home. The dwelling policy 063 is similar, but used for residences

which don8t /ualify for various reasons, such as vacancy9non-occupancy,

seasonal9secondary residence, or age. It is a multiple line insurance, meaning that it

includes both property and liability coverage, with an indivisible premium, meaning

that a single premium is paid for all ris*s.

:tandard forms divide coverage into several categories, and the coverage provided

is typically a percentage of Coverage &, which is. The insurance policy itself is a

lengthy contract, and names what will and what will not be paid in the case of

various events. Typically, claims due to floods, or war 0whose definition typically

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includes a nuclear e4plosion from any source are e4cluded. :pecial insurance can be

purchased for these possibilities, including flood insurance. Insurance must be

updated to the present and e4isting value at whatever inflation up or down, and an

appraisal paid by the insurance company will be added on to the policy premium.

Fire insurance will re/uire a special premium charge, plus the addition of smo*e

detectors and on site fire suppression systems to /ualify.

The home insurance policy is usually a term contract;a contract that is in effect

for a fi4ed period of time. The payment the insured ma*es to the insurer is called

the premium. The insured must pay the insurer the premium each term.


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HISTORY

The first homeowners policy perse in the #nited :tates was introduced in

:eptember 1(!", but similar policies had e4isted in reat 'ritain and certain areasof the #nited :tates. In the late forties #: insurance law was reformed and during

this process multiple line statutes were written, allowing homeowners policies to

become legal.

3rior to the 1(!"s, there were separate policies for the various perils that could

affect a home. & homeowner would have had to purchase separate policies

covering fire losses, theft, personal property, and the li*e. 6uring the 1(!"s, policy

forms were developed allowing the homeowner to purchase all the insurance they

needed on one complete policy. >owever, these policies varied by insurance

company, and were difficult to comprehend.

The need for standardi+ation grew so great that a private company based in ?ersey

City, @ew ?ersey, Insurance :ervices %ffice, also *nown as the I:%, was formed in 1(1

to provide ris* information and issued a simplified homeowners policy for resell to

insurance companies. These policies have been amended over the years.

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IM"ORTANCE OF HOME INSURANCE

>ome Insurance has evolved as one of the most enterprising sector in the real

estate scenario in India. &s more and more investments are made in the real estatesector, there has been a rising demand for home finance and home insurance

simultaneously. The importance of home insurance in the protection of your house

and valuable possessions is as importance as protecting your family from any

ha+ards that act as threat to life and property.

The policy provided by the home insurance companies act as a guarantee that

combines insurance of the home, its contents the personal possessions of the

homeowner, ris* attached to burglaryA as well as liability insurance for accidents

that may happen at the house li*e fire and natural calamities. The e4tent of the ris*

covered however depends on the type and content of the policy. & generally

configured home insurance policy usually covers calamities in two categories -

natural and man-made.

>ome insurance is important as it not only provides you with financial protection

against any damage your property might incur - to both your buildings and the

contentsA but it can be considered a small amount of money you pay in lieu of the

peace of mind that brings with it and the content that your property is insured and

protected against all ha+ards. Though the importance of having a home insurance

policy cannot be over emphasi+ed, one cannot predict any disasters or unavoidable

incident that might happen to one8s home.


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>ome insurance not only protects the homeowner from total loss when disaster

occurs, but also protects the home owner in the event that their home is damaged

by acts of od or if a person becomes inBured, the home owner will not be held

solely liable for all of the damages. The home insurance policies usually cover a

home under the all ris*s clause unless otherwise noted in an e4clusion clause. For

instance, a home can be covered for fire damage, earth/ua*e damage, and acts of

vandalism under an all ris*s policy, but if the policy states that the home is not

covered for deluge or say tsunami, than water damage due to the mentioned natural

calamity would not be covered.

To summari+e it, the home insurance policy is important for the homeowner as it

ultimately gives the home owner a sense of security to protect his family and

property against calamities.


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HOME INSURANCE IN INDIA

The >ome insurance sector in India is at a nascent stage as compared to other

insurance sectors in the country. ith the real estate boom at its prime in India,home finance has become an indispensable part of real estate functioning.

FCs are also playing an important

role in the evolvement of the home insurance company in India. 6ue to the new

regulations by the finance companies ma*ing home insurance mandatory for

see*ing home loans in India, the home insurance sector has recently seen massive

revival in business. Industry analyst say that, if the home loans and insurance

sector continue to facilitate each others growth, then the insurance segment is soon

set to achieve a 1""D growth. The latest growth curve shows the home insurance

premium touching the 5s 1!" crore-mar*, registering a growth of 2!D in the last

financial yearA and if the situation prevails, the trend is predicted to continue.

&s the growth curve of investments in Indian real estate sector escalates, more and

more insurance companies are ma*ing their foray into the home insurance sector.

This has also initiated a trend of insurance companies from across the globe

ma*ing their foray into Indian mar*et either as individual entity or in Boint ventures

with the local e4isting insurance companies. >ome insurance and real estate has of

late become conspicuous of the bu++ it has created in the realty industry in India.

&dding to the list of leading and e4isting public sector companies in the home

insurance business li*e @ew India &ssurance, Life Insurance Company of India,

#nited India Insurance, %riental Insurance and @ational Insurance CompanyA is a

list of private insurance companies which are set to play a pivotal role in the

growth of the sector.


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The most thriving amongst those are mostly Boint venture companies li*e ICICI

Lombard eneral Insurance, 'aBaB &llian+ eneral Insurance, Tata &I eneral

Insurance Company Ltd, IFFC%-T%$I% and 5oyal :undaram &lliance to name a

few. Considering the feasibility of a largely huge and growing mar*et, the home

insurance sectors has lately e4panded its business beyond the metros to the Tier I

and II cities where real estate development is e4pected to flare up in the years to

come.The booming real estate sector in India is considered to be one of the most

encouraging factors in the resurgence of the home insurance sector. >owever, apart

from the real estate factor, the recent spate of calamities that has hit the country

li*e the earth/ua*es, tsunami, the consistent flood every year in most parts of the

country and the e4ceptional cases of 8deluge8 in


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T#"ES OF HOME INSURANCE

>ome insurance in India has a *ey role to play in the protection of your house or

building structure and valuable possessions or building content. >ome insurance policy is a guarantee provided by the insurance company that combines insurance

on the home, its contents the personal possessions of the homeowner, as well as

insurance covering accidents that may happen at the house li*e fire and natural

calamities. The coverage of the ris* however depends on the type of policy.

There are mainly two types of home insurance in India.

• 'uilding insurance

• Content insurance

1. Bui$in%s Insurance

'uildings insurance is an important part of property investments. The mandatory

obligation made by the housing finance companies has strengthened the need for

insurance in conBunction with property investments. Insuring the building or

building structure is important since it protects you against inevitable losses in case

your building is destructed and debilitated in any natural or man-made calamities.

The housing finance companies are insisting on building insurance so that in the

event of a disaster it can be repaired or rebuilt, as lenders don8t want to be left

without security for their loan. & home insurance policy should cover e4penditure

to rebuild your home in the event of it being totally destroyed or damaged to the


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point that complete rebuilding is necessary 0in eventualities li*e earth/ua*e, fire

etc.

6ifferent home insurance companies have different specifications for policy

coverage. It is recommended that you chec* the terms and conditions of the policy.

>ome insurance companies in India mostly have home insurance plans that insure

the building structure of your home for its reconstruction value. This is the cost

incurred to reconstruct the home if it is damaged and not for its mar*et value such

as the cost of land etc. :um insured is calculated by multiplying the built up area of

your home with the construction rate per s/. feet

>ome insurance plan for buildings are usually meted out on conditions as per the

policy terms arising out of conditions li*e

• Fire, Lightening, e4plosion of gas in domestic appliances

• 'ursting and overflowing of water tan*s, apparatus or pipes.

• 5iot, :tri*e, urricane, Tornado or Cyclone

• 6amage due to earth/ua*e, subsidence and Landslide 0including 5oc*slide.

• 6amage caused by &ircraft E Impact damage

• Third party liability and personal accident.

2. Con&en& Insurance


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Content insurance may be considered optional but with the threat of burglaries,

natural disasters and fire, content insurance covers are rising in demand. Contents

insurance for home insurance plans includes protection to movable goods,

possessions or contents in the houseA anything that is not a fi4ed parts of your

home, for e4ample your appliances, electronic goods, furniture and clothing.

:imilarly as the modalities adopted in building insurance, different home insurance

companies in India have different policies for content insurance.


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• Cover against all *inds of accidental brea*age of plate glass fi4ed in doors

and window frames.

•

Loss9damage to domestic appliances due to electrical and mechanical brea*down.

>ome insurance can be availed for both building and content combined. >owever,

most home insurance plans in India e4cludes underinsurance of the property value,

willful destruction of property, loss, damage or destruction caused by war perils,

wear and tear and atmospheric conditions etc., damage due to an act of

terrorism0unless specifically covered and losses or damages incurred when

premises are unoccupied beyond " consecutive days.

HOME C'AIM "ROCEDURE

• Inform the call center with policy details.

• 3rovide relevant information, which includes your policy and other details

regarding your claim. Conse/uently, your claim re/uest is authenticated and

is escalated to the company8s claims department.

• Company8s claims department validates and registers the re/uest. They

appoint a surveyor within H hours.

• The insured submits all the relevant documents to the surveyor. The

surveyor submits the Final :urvey 5eport 0F:5 along with the documents

within days.


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• If surveyor is not appointed, the company8s claims department sends a letter

of re/uirement for submitting documents to the insured within 2H hours of

claim intimation.

• %n receipt of documents, the claims department processes the claim within

days. %n approval of the claim, a letter is send to the insured giving the

approved amount of settlement along with the discharge voucher.

• 3ayment che/ue is released on receipt of the signed discharge voucher.

C'AIMS COVERED UNDER HOME INSURANCE

Insurance claim amount is always something creeping up on the mind of both

insurer and the insurance company. It is more evident in case when there is a

possibility of you filing a claim to recover the amount for that claim. If you

provide sufficient proof and necessary documents for your home insurance claim,

there is a fair chance you can get the amount by the >ome Insurance company or

provider. &lso, submitting a claim on your home policy is a relatively /uite simple

process. The steps involve contacting your agent, filling out a claim form and

waiting for an appointed arbiter to verify the facts and Budge the authenticity of the


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damage. If the damage is really worth notice, it8s a matter of few days to get the

claimed amount through chec*. ere are some general tips for handling auto and home insurance claims=

• $now your policy.

• :ta*e your claim /uic*ly.

• &void using the word lawyer.

• $eep a copy of the police report.

• et an estimate or two.

DOCUMENTS RE(UIRED

6ocuments are the most valid and appropriate proof for your home insurance

claims. &lways *eep your documents in place and ready both before you need to

ma*e a claim and when you need to ma*e one. It is always advisable to save the

receipts for items you buy. This will give the indication and estimation of the total


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cost of items and damage claim amount accordingly. 3hotographs and9or

videotapes of your home 0both in pre- and post-disaster form can also be

beneficial. These will help you establish an inventory of your belongings should

the need arise. &lways save photos or videos of the damage before you begin

cleaning up.

'is& o) Documen&s Re*uire

1. 6uly completed and signed claim form

2. Jero4 copy of policy

). Copy of FI5

H. Final 5eport from police

!. Copy of all invoices, price lists, repair estimate

TYPES OF POLICIES AS PER ISO

Currently, the I:% has seven standardi+ed homeowners insurance forms in general

use=

>%1 K 'asic >omeowner 3olicy


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& basic policy form that provides coverage on a home against 11 listed

perilsA contents are generally included in this type of coverage, but must be

e4plicitly enumerated. The perils include fire or lightning, windstorm or hail,

vandalism or malicious mischief, theft, damage from vehicles and aircraft,

e4plosion riot or civil commotion, glass brea*age, smo*e, volcanic eruption,

and personal liability. 4ceptions include floods, earth/ua*es.

>%2 K 'road >omeowner 3olicy

& more advanced form that provides coverage on a home against 1 listed

perils 0including all 11 on the >%1. The coverage is usually a named

perils policy, which lists the events that would be covered.

>%) K &ll 5is* >omeowner 3olicy

The typical, most comprehensive form used for single-family homes. The policy provides all ris* coverage on the home with some perils e4cluded,

such as earth/ua*e and flood. Contents are covered on a named peril basis.

>%H K 5enter8s Insurance

The TenantsM form is for renters. It covers personal property against the

same perils as the >%2.


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>% K Condominium 3olicy

The form for condominium owners.

>% K %lder >ouses

The %) :pecial and (D had the more e4pensive >%! Comprehensive.

'oth of these policies are all ris*s or open perils, meaning that they cover all


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perils e4cept those specifically e4cluded. )D were the >%2 'road, which covers

only specific named perils. %thers include the >%1 'asic and the >% %, also *nown as older home

insurance, is li*ely to pay only actual cash value for damages rather than

replacement.

The remaining 1)D of home insurance policies were covered by renters or

condominium insurance. Two-thirds of these had the >%-H Contents 'road form,

also *nown as renters insurance, which covers the contents of an apartment not

specifically covered in the blan*et policy written for the comple4. This policy can

also cover liabilities arising from accidents and intentional inBuries for guests as

well as passers-by up to 1!"8 of the domicile. Common coverage areas are events

such as lightning, riot, aircraft, e4plosion, vandalism, smo*e, theft, windstorm or

hail, falling obBects, volcanic eruption, snow, sleet, and weight of ice.

The remainder had the >%- #nit-%wners policy, also *nown as a condominium

insurance, which is designed for the owners of condos and includes coverage for

the part of the building owned by the insured and for the property housed therein.

6esigned to span the gap between the coverage provided by the blan*et policy

written for the entire neighborhood or building and the personal property inside the

home. The liability coverage may cover incidents up to 1!" feet from the insured

property, all valuables within the home from theft, fire or water damage or other

forms of loss. The &ssociations 'ylaws determine the total amount of insurance

necessary.

In addition, about 2.HD of homes were covered by a dwelling fire policy which

covers property damage to a structure and is typically sold to noncommercial

owners of rented houses. It may also cover the owner8s personal property 0such as

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appliances and furnishings. The owner8s liability is generally e4tended from their

own primary home insurance, and does not comprise part of the 6welling Fire

policy.

CLASSES OF COVERAGE

For each policy, there are typically si4 classifications of coverage. These are based

on standard Insurance :ervices %ffice or &merican &ssociation of Insurance :ervices forms.

:ection I ; 3roperty Coverage

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Coverage & K 6welling

Covers the value of the dwelling itself 0not including the land. Typically, a

coinsurance clause states that as long as the dwelling is insured to "D of

actual value, it will be replaced. This is in place to give a buffer against

inflation. >%-H 0renter8s insurance typically has no Coverage &, although it

has additional coverage for improvements.

Coverage ' K %ther :tructures

Covers other structure around the property which are not used for business,

e4cept as a private garage. Typically limited at 1"D of the Coverage &.

Coverage C K 3ersonal 3roperty

Covers personal property, with limits for the theft and loss of particular

classes of items 0e.g., N2"" for money, ban*notes, bullion, coins, medals,

etc. Typically !" to "D of coverage & is re/uired for contents, which

means that consumers may pay for much more insurance than necessary.

This has led to some calls for more choices.

Coverage 6 K Loss of #se9&dditional Living 4penses

Covers e4penses associated with additional living e4penses 0i.e. rentale4penses and fair rental value, if part of the residence was rented, however

only the rental income for the actual rent of the space not services provided

such as utilities.

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ADDITIONA' COVERAGES

Covers a variety of e4penses such as debris removal, reasonable repairs,

damage to trees and shrubs for certain named perils 0e4cluding the mostcommon causes of damage, wind and ice, fire department changes, removal

of property, credit card 9 identity theft charges, loss assessment, collapse,

landlord8s furnishing, and some building additions. These vary depending

upon the form.

E+C'USIONS

In an open perils policy, specific e4clusions will be stated in this section.

These generally include earth movement, water damage, power failure,

neglect, war, nuclear ha+ard, intentional loss, and concurrent causation 0for

>%-).

THREE ,A#S TO INSURE HOME-

hen you insure your home, you should insure your home for the total amount it

would cost to rebuild your home if it were destroyed. If you don8t have sufficient

insurance, your insurance company may only pay a portion of the cost of replacing

or repairing damaged items.


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There are three ways to insure the structure of your home=

1. 5eplacement Cost= Insurance that pays the policyholder the cost of replacing

the damaged property without deduction for depreciation, but limited to a

ma4imum dollar amount.

2. uaranteed 5eplacement Cost= Insurance that pays the full cost of replacing

damaged property, without a deduction for depreciation and without a dollar

limit. This coverage is not available in all states and some companies limit

the coverage to 12" percent of the cost of rebuilding your home. This gives

you protection against such things as a sudden increase in construction costsdue to a shortage of building materials.

). &ctual Cash Galue= Insurance under which the policyholder receives an

amount e/ual to the replacement value of damaged property minus an

allowance for depreciation. #nless a homeowner7s policy specifies that

property is covered for its replacement value, the coverage is for actual cash

value.

For a /uic* estimate of the amount to rebuild your home, multiply the local

building costs per s/uare foot by the total s/uare footage of your house. To find out

the building rates in your area, consult your local builders association or real estate

appraiser.

Factors that will determine the cost to rebuild your home=

• Local construction costs

• The s/uare footage of the structure


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• The type of e4terior wall construction= frame, masonry 0bric* or stone or

veneer

•

The style of the house 0ranch, colonial

• The number of bathrooms and other rooms

• The type of roof

• &ttached garages, fireplaces, e4terior trim and other special features li*e

arched windows.

&lso be sure to chec* the value of your insurance policy against rising local

building costs each year. &s* your insurance agent or company representative

about adding an Inflation uard Clause to your policy. This automatically adBusts

the dwelling limit when you renew your policy to reflect current construction costs

in your area. &lso be sure to increase the limit of your policy if you ma*e

improvements or additions to your house.


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COM"ANIES "ROVIDING HOME INSURANCE

ICICI Home Insurance

It is imperative that you secure your home from natural and man-madecatastrophes. 'efore &pplying for >ome Insurance you should *now about

Importance of >ome Insurance. %ur >ome Insurance 3lan ensures you peace of

mind by protecting the structure and the contents of your home.

"o$ic. De&ai$s / Co0era%e

Oou can choose to buy insurance for only the building 0structure of your home, or

only the contents 0belongings or both. The policy covers the losses to the structure

and contents of your home due to any natural and man made calamities.

The calamities covered are=

• Fire

• 5iot, stri*e E malicious damage

• 4plosion E implosion

• arth/ua*e


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• Lightning

• :torm, cyclone, tempest, tornado, hurricane, flood E inundation

• 6amage due to impact by vehicles

•


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if customer buys after 3ow to calculate the sum insured for=

Home S&ruc&ure

The home insurance policy insures the structure of your home for its

reconstruction value 0and not for mar*et value. 5econstruction value is

defined as the cost incurred to reconstruct the home if it is damaged. %n the

other hand mar*et value is a combination of cost of land, demand E supply

scenario, etc.

• :um insured is calculated by multiplying the built up area of your home with

the construction rate per s/. feet, e.g. if your built up area of your home is

1""" s/. feet and the construction rate is 5s. "" per s/. feet, the sum

insured for your home structure is 5s. ,"",""".

• e recommend the rate of construction for your location when you are

buying online. >owever, this value can be revised appropriately if e4pensive

material - li*e marble flooring, etc. - has been used in construction. If your

home has lawn 9 garden surrounded by a perimeter wall, the construction

rate can be revised to include the cost of construction of this wall in home

structure sum insured.


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Ta&a AIG Genera$ Insurance Com4an. 'imi&e

HOME INSURANCE

>ome sweet >ome - a destination, any individual or a family feels very close to

the heart. It is an investment of one8s lifetime savings, emotional dreams and

aspirations to reali+e their ideal home. >ome signifies a set of emotions for any

individual, be it pride, ownership, stability or be it a sense of belonging. It echoes

the owners8 sentiments It8s my houseM. &fter all, one8s >ome including its contentsis the single most important and e4pensive asset that we have created for ourselves.

e have learnt to value life and health sufficiently to understand the importance of

insuring it. 'ut when it comes to applying the same logic to our home 0around

which our lives revolve most of us suffers a blind spot. It is only when a calamity

or catastrophe stri*es that we feel helpless.

HOME SECURE BENEFITS.

>ome Insurance in India provides e4actly the care one needs at such times - to

safeguard against unforeseen eventualities and to preserve one8s lifestyle and that

too at an affordable price. Oou can protect your priceless investment for very little


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• Sec&ion :3 T.G. :et.

• Sec&ion ;3 3edal Cycles.

Sec&ion ouse- >olders8 Insurance policy designed to cover various ris*s and

contingencies faced by householders under a single policy. It provides protection

for property and interests of the insured and his family members who permanently


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reside with the insured. & home insurance0householder8s insurance, protects not

Bust your flat but also your domestic and electronic appliances.

Uni*ue Fea&ures

• Gery competitive premium rates.

• First loss basis option for burglary and Bewelry.

• Fle4ible rating for personal accident of the insured

• @o valuation certificate re/uired for Bewelry upto 5s.2 lacs.

• &ssembled computers can also be covered under I.

Bene)i&s

• @o strain on poc*ets of insured.

• 4:aving on cost.

• Customi+ed cover can be opted by the insured.

• :ave on time while proposing.

• :ame policy addressing varied needs.


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A0an&a%es

• :ingle 3roposal form.

• Complete coverage at reduced premium.

• Client needs being addressed.

• :imple and /uic* documentation.

• 5elated items got covered under respective sections

IFFCOTOKIO Genera$ Insurance


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A Com4$e&e "ro&ec&or

%ur >ome :uvidha Insurance 3olicy gives complete protection to your home

against a wide range of ris*s and perils. It is a simple >ome Insurance 3olicy

wherein there are various categories of :um Insured and you may opt for the

category most suitable to you depending upon the e4tent of ris* perceived and total

value of your assets.

The :um Insured under :ection 1 E 2 represents the First Loss limit which should

be within !"D of the actual


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• Television9Gideo /uipment= This :ection covers loss or damage to your

television9 video e/uipment against fire, theft, accidental damage and

brea*down.

• 3ersonal &ccident= This section covers you and your named family members

against accidental bodily inBury leading to death or disablement 0either

permanent total or permanent partial.

• Fire and &llied 3erils 0'uilding= This :ection covers the residential

building, if owned by you against perils mentioned under the Fire and &llied

3erils 0Contents :ection.

• 3ersonal Computer= This :ection covers loss or damage to your personal

computer against fire, theft, accidental damage and brea*down.

,ho can a44$. )or &his 4o$ic.

This 3olicy is suitable for you as a householder, whether you are a landlord

or a tenant, whether you reside in an independent house or in a

flat9apartment, whether the building is single storied or is a high rise, since

each of the alternatives above would imply different ris* e4posures which

can be covered under this policy.


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(ua$i&. Bui$in%s Insurance )rom Ro.a$ Sunaram

Home Insurance

>omeshield Classic is a comprehensive pac*age of insurance benefits designed to

cover the buildings and contents of your home against all possible *inds of perils

such as fire, earth/ua*e, terrorism, storm, flood, cyclone, burglary and brea*down

of appliances. Oour building cover can be arranged in conBunction with your

contents cover or on its own.

Homeshie$ C$assic Co0era%e

hen it comes to contents of your home, 5oyal :undaram-s >omeshield Classic

will give you complete peace of mind by covering the contents against a range of

ris*s. e also cover building insurance.

Three $e0e$s o) co0er &o choose )rom &o sui& .our $i)es&.$e-

• Oou have the option of insuring your building against fire and allied perils.


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• Oou have an option of payment through credit card with automatic renewal

facility.

•

&ssured Claims service= Claims will be settled within 1" days of receipt of documents.

• e provide you 1! days to review your policy document. If you are not

completely satisfied, simply return your policy for cancellation and 5oyal

:undaram will refund the entire premium paid provided no claim has been

made.

Homeshie$ C$assic Fea&ures

• :imple documentation E customer-friendly pac*age.

• Comprehensive pac*age covering fire, earth/ua*e, terrorism, storm,

• %ption to cover building against Fire E allied perils Q 5s..!9- per lac.

• Covers household contents, appliances, Bewellery E brea*down of

appliances.

• ) levels of cover to choose from = :ilver, old E 3latinum.

• &ssured Claims service= Claims will be settled within 1" days of receipt of

documents.

Oou have an option of payment through credit card with automatic renewal facility.

%ption of &dd-on covers for Computer, &ir-conditioner, &ir Cooler.


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The Ne! Inia Assurance Co- '&-

Househo$ers "o$ic.

Hi%h$i%h&s

This is a pac*age policy specially designed to meet the insurance re/uirements of a

householder by combining under a single policy, a number of our standard policies

usually ta*en by householders. 6iscount in premium is offered depending upon the

number of sections of the policy, opted for, by the proposer.

Sco4e

The policy comprises of 1" sections as given here under

Sec&ion I Fire E &llied 3eril

• Coverage for building

• Covers contents of the dwelling belonging to the proposer and his9her family

members permanently residing with him9her.


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A$$ie "eri$s3

• Fire, Lightening, 4plosion of gas in domestic appliances

• 'ursting and overflowing of water tan*s, apparatus or pipes.

• 6amage caused by &ircraft , 5iot, :tri*e, urricane, Tomado or

Cyclone, Impact damage

Sec&ion II 'urglary E >ouse 'rea*ing including larceny and theft.

Covers contents of the dwelling against loss due to burglary, house brea*ing,

larceny or theft.

Sec&ion III &ll 5is*s 0?ewellery E Galuables

Covers loss or damage to your Bewellery and valuables by accident or misfortune

whilst *ept, worn or carried anywhere in India subBect to the value declared in the

schedule.

Sec&ion IV 3late lass

Loss or damage to fi4ed plate glass in the insured premises by accidental brea*age

subBect to limit of sum insured

Sec&ion V 'rea*down of 6omestic appliances


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Covers domestic appliances against unforeseen and sudden physical damage due to

mechanical or electrical brea*down.

Sec&ion VI T.G. :et including GC39GC5 0&LL 5I:$:

Covers loss or damage to T.G. :et including GC39GC5 by fire and allied perils,

burglary, house brea*ing or theft, brea*age due to accidental e4ternal means,

mechanical or electrical brea*down. &ny legal liability arising out of bodily inBury

or accidental death of any person other than insured8s family members or employee

as also damage to property not belonging to or in the custody of insured , caused

by use of the T.G. :et is also covered up to a limit of 5s.2!,"""9-.

Sec&ion VII 3edal Cycles 0&ll 5is*s

Covers loss or damage to pedal cycles by =-

• Fire E allied perils , 'urglary, housebrea*ing, theft , &ccidental e4ternal

means

•

Third party personal inBury or Third party property damage for 5s.1","""9-

Sec&ion VII 'aggage Insurance

Covers loss or damage to insured8s accompanied baggage by accident or

misfortune whilst the insured is traveling on tour or holiday anywhere in India.

Sec&ion I+ K 3ublic &ccident

Covers 6eath or bodily inBury by accidental, violent, e4ternal and visible means to

the insured person named in the schedule and subBect to limits specified therein.

Sec&ion + - 3ublic liability.


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Covers Insured8s legal liability for bodily inBury or loss of or damage to property of

third party limited to amount specified in the schedule and wor*men8s

compensation liability to domestic servants engaged in insured8s premises. It is

compulsory to opt for :ection I' of the policy. & minimum of three sections

including :ection I' have to be ta*en for issuance of this policy.

Ho! &o se$ec& sum insure

For the insurance of household items, it would be necessary to group the items in a

broad category li*e furniture, clothing , linen, utensils , croc*ery etc. and give a

value e/uivalent to the mar*et value i.e. the value for which this used item could

be bought or sold in the mar*et. :ections I & E ', II, III, IG, GI, GII E GIII should

be insured on mar*et value basis as described above. It is a condition of :ection G

i.e. brea*down of domestic appliances, that the sum insured should represent the

current replacement value of a similar item. For e.g. to insure 1! ltr. odreB fridge

which is ) years old, the sum insured should be e/uivalent to the cost price of a

new 1! ltr. odreB fridge. >owever, the claim amount payable would be the

amount re/uired to bring the damaged item to the same condition as it was prior to

the damage subBect to the ade/uacy of the sum insured. The sum insured under

section IJ i.e. 3ersonal &ccident should not e4ceed 2 months salary from gainful

employment.


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HOME INSURANCE C'AIM

In case of any incident leading to a valid claim under the policy, following steps

should be ta*en=

• Ta*e necessary steps to minimi+e the loss9damage.

•

In case of fire, inform fire brigade immediately.

• In case of theft, larceny or burglary inform the police immediately along

with a list of items stolen and their appro4imate value.

Inform insurance company by phone or fa4 and in writing.

4tend full co-operation to the surveyor appointed by the insurance Co. and

provide necessary documents to the substantiate the loss. & claim form issued by

the company is also to be submitted.

In case any rights of recovery e4ist against any other party responsible for the loss,

your rights of recovery have to be subrogated to the insurance company on

payment of claim.


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CA'CU'ATION OF HOME INSURANCE "REMIUM OR

AMOUNT-

The factors to be *ept in mind while calculating the insurance premium and

accepting the home insurance /uote being offered by the home insurance company

are

• &rea of the >ouse 0calculated in s/.ft.

• Location and neighborhood

• &ppro4imate rate of construction 0calculated in 5s. per s/.ft.

• 3ermanent construction on the land

• The time period offered for the insurance premium 0monthly, /uarterly or si4

monthly depending upon the insurance amount 3roperty more than !" years

old is not covered in home insurance

• The insurance policy offered is standard or fle4i covering


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TEN ,A#S TO CUT THE COST OF #OUR

HOMEO,NERS INSURANCE

>ere are ten ways to minimi+e the cost of your homeowner8s insurance.

5- Raise #our Homeo!ners Insurance Deuc&i$e

Oour deductible is the amount of ris* you agree to accept before the insurance

company starts paying on a claim. ith the cost of homeowner8s insurance

escalating, it no longer ma*es sense to let the insurance company assume all the

ris*. If you have a low deductible of N!" to N1"", consider raising it to at least

N!"" to N1,""". Oou could save up to 2!D on your premiums.

:ome companies are offering deductibles e/ual to 1D of the insured value of

your home 0N1,""" deductible on a N1"",""" home. It that seems li*e a lot of

money to pay in the event of a claim, consider this= the trends in homeowner8s

insurance are for insurance companies to severely penali+e customers who file

one or more small claims. %ften the premiums are Bac*ed way up or the policy

is cancelled, and when the customer loo*s elsewhere for coverage, they may

find it costs them three times what they were paying. e should change our

perception that insurance of any type is intended to cover all of our e4penses

when we incur a claim. Those days are over. Thin* of insurance as ris* sharing.

>ow much ris* are you willing to assumeP


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6- Comine #our Homeo!ners Insurance an Au&o Insurance

"o$icies

Consider buying your homeowner8s and auto insurance policies from acompany that offers both. :ome companies offer discounts of ! to 1!D if you

buy both types of coverage from them. Chec* around and ma*e sure the price is

lower than buying the two policies from two different companies before ma*ing

this move.

). As? Aou& O&her Homeo!ners Insurance Discoun&s


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. Ma?e #our Home a Be&&er Insurance Ris?

&s* your insurance agent what you can do to ma*e your home less e4pensive to

insure.


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(. Im4ro0e #our Crei& Score

Insurance companies are increasingly using credit information to price

insurance policies. 6on8t have too many open credit accounts, don8t chargeclose to the limits on your credit cards, and pay all your bills on time to *eep

your credit score healthy.

1".Sho4 Aroun )or Homeo!ners Insurance

:hop around for homeowner8s insurance rates but *eep in mind that you may be

receiving a longevity discount if you8ve been with your current insurer for

several years. Typical discounts are !D if you8ve been with the company for

three to five years, and 1"D for si4 years or more. et /uotes from three agents,

and ta*e any longevity discounts with your current insurer into consideration

when you compare prices.


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(UESTIONAIRE FOR SURVE#

FOR MANAGER

• hat is the procedure for application of >ome InsuranceP

• hat are the types of >ome InsuranceP

• hat is the eligibility criteriaP

• hat are the documents re/uired for ta*ing >ome InsuranceP

• hat are the terms and conditions for the following=

0I3remium 0II Claim 0III 6efaulters

hat are the damages covered under the >ome Insurance policyP

FOR CUSTOMERS

• hether you *now about >ome insuranceP

• >ave you ta*en this policy from any agent or have you visited company

personallyP

• 6oes Company provide *nowledge on entire product range in its portfolioP


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• hat is your opinion regarding private companiesP hether they provide

same safety and security to public as government companiesP

• &re you satisfied with the services provided by themP

• hat factors do you considered while selecting ICICI Lombard as an

insurance companyP

ANA'#SIS OF SURVE# OF ICICI 'OMBARD

• 35%C6#5 F%5 &33LIC&TI%@ %F >%ome Insurance is filling a proposal form or through internet.

• TO3: %F >%ome

:afe R 3roduct

• LII'ILITO C5IT5I& =

LII'ILITO

C5IT5I&

ICICI L%


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Customers have to fill only proposal form of the company which is

provided by them and this policy is based on the utmost good faith principle

of insurance.

CUSTOMER

&fter detail analysis of 1" customers I found that all the customers are aware about

insurance services.

&s we *now that ICICI is the no 2 private sector organi+ation in I@6I&. :o

according to those 1" customers ICICI7: brand name is the most important factor

for ta*ing insurance policy. %ut of 1" customers only ) customers have ta*en

home insurance policy from ICICI Lombard where as remaining customers are

not aware about home insurance as a concept. Those ) customers have ta*en the

policy from agent and for further procedure they visited personally to the company.

&gents provide entire *nowledge of product such as some assured, features of

policy, premium payable, product coverage, eligibility etc.

hen I spo*e with 1" customers I found that they give same preference to the

private organi+ation as well as public organi+ation. The services provided by ICICI

are as follows=

NO- OF CUSTOMERS VISITED 15>2

CUSTOMERS NOT HAVING

HOME INSURANCE "O'IC# 1;2

CUSTOMERS HAVING HOME

INSURANCE "O'IC# 172


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2H 4 service, Toll free no7s, online application and 'anc assurance. &ll this

factors satisfy the customers need.

The insurance industry is in the silent revolution and the best part is that all of us

are part of this revolution process, contributing to it and influencing shape of

things to emerge. It will be /uite interesting to see an e4cess of distribution system

ta*ing shape and competing with each others.

There is one truth in mar*eting that is different consumers &pproach buying

differently. :tudies have time and again shown that insurance is bought because of

convenience, product features, product placement, and safety of funds, advice, and

not the price.

From the survey of customers I came to conclusion that many of the customers are

not aware about the concept home insurance. &s this policy is generally ta*en by

the businessmen7s, self professionals. e can e4pect from this organi+ation that it

will lead the innovative process with /uality of services that will help the Indian

consumer to ta*e advantage from insurance business.


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INFORMATION CO''ECTED THROUGH SURVE#1ICICI BANK2

.%%L.C%<

.ICICI'OMBARD -COM
http://www.google.com/http://www.icici/http://www.google.com/http://www.icici/

49538773 Deepak Project on Home Insurance

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Transcript of 49538773 Deepak Project on Home Insurance