DSPM’S

K. V.PENDHARKAR COLLEGE OF ARTS, SCIENCE &

COMMERCE DOMBIVLI (EAST)

PROJECT REPORT ON

‘ NEW INDIA ASSURANCE CO ’’

PROJECT REPORT SUBMITTED IN PARTIAL FULLFILLMENT

OF REQUIREMENT FOR THE DEGREE OF B.COM (BANKING &

INSURANCE)

UNIVERSITY OF MUMBAI

SUBMITTED BY

KIRTI KISHOR AMBERKAR.

ROLL NO: - 108251

T.Y.B.COM (B&I) SEM-VI

UNDER THE GUIDENCE OF

Omkar Datar

ACADEDMIC YEAR

2010-2011

INDEX

Chapter no

Name Page no

1. Introduction of assurance

2. New India Assurance co

3. Products

4. Various Products & plans

5. Analysis & Review

6. Questions & conclusion

ASSURANCE

Introduction-

Assurance industry has always been a growth-oriented industry

globally. On the Indian scene too, the assurance industry has always

recorded noticeable growth vis-à-vis other Indian industries.

The new India assurance Co. Ltd. was the first general assurance

company to be established in India in 1850, which was a wholly British-

owned company. The new India assurance company to be set up by an

Indian was Indian Mercantile assurance Co. Ltd., which was established in

1907. There emerged many a assurance player on the Indian scene

thereafter. The general assurance business was nationalized after the

promulgation of General Insurance Business (Nationalization) Act, 1972.

The post-nationalization general assurance business was undertaken by the

assurance Corporation of India (GIC) and its 3 subsidiaries:

1. New India Assurance Company Limited

2. National Insurance Company Limited

3. United India Insurance Company Limited

Towards the end of 2000, the relation ceased to exist and the four

companies are, at present, operating as independent companies.

The Life assurance Corporation (AIC) was established on 01.09.1956 and

had been the sole corporation to write the life assurance business in India.

The Indian assurance industry saw a new sun when the assurance

Development Authority invited the applications for registration as assurors

in August, 2000. With the liberalization and opening up of the sector to

private players, the industry has presented promising prospects for the

coming future. The transition has also resulted into introduction of ample

opportunities for the professionals including Chartered Accountants.

The Indian assurance industry is featured by the attributes:

Low market penetration;

Ever-growing middle class component in population.

Growth of consumer

Movement with an increasing demand for better assurance products;

Inadequate application of information technology for business.

Adequate

Fillip from the Government in the form of tax incentives to the assured,

etc.

The industry formations need to keep vigil on these characteristics of

the Indian market and formulate their strategies to entail maximum

contribution to the output of the sector.

The Indian life and non-life assurance business accounted for merely

0.42 percent of the world's life and non-life business in 1997. The figures of

the basic parameters of the industry's performance viz. assurance Density

and assurance Penetration also are evident of the hitherto existing low-yield

Indian market conditions.

The term "assurance Penetration" broadly measures the contribution of

the assurance industry in relation to a nation's entire economic productivity.

The figure of premium vis-à-vis the GDP of 1999 stood at 0.54 percent for

non-life assurance business and 1.39 percent for the life assurance business.

The term "assurance Density" reflects the assurance purchasing power.

The premium per capita in India amounted to US $ 2.40 for assurance and

US $ 6.10 for life assurance in 1999 but with the deregulation of the sector, a

sea change in the scene is most likely.

The assurance sector in India has come a full circle from being an open

competitive market to Nationalization and back to a liberalized market

again. Tracing the developments in the Indian assurance sector reveals the

360- degree turn witnessed over a period of almost two centuries.

STRUCTURE OF THE ASSURANCE INDUSTRY

The structure of the assurance industry comprises of the Operating

department, Administrative department and the finance department. The

Operating Department generally performs the basic functions pertaining to

the designing of products, marketing thereof, servicing the insured, the

insured, management of portfolio, etc.

The Administrative Department looks after the day-to-day affairs of

the company. The Finance Department backs the operations and

administration of the company by accounting for the transactions,

streamlining the flow of funds, materializing the management decisions, etc.

The Administration Department as well as the Finance Department,

usually, functions through in-house setup. The Finance Department

functions in the areas of accounting, financial and management reporting,

budgeting and controlling, etc. and thus renders enormous scope for finance

professionals. The new entrants in the assurance sector are likely to call for

the services of the Chartered Accountants for their financial setup

requirements. The Chartered Accountants have engaged themselves in the

audit of assurance Companies since long. With the transition in the

insurance sector, the horizons for their contribution have broadened.

Contributions have broadened.

There has, emerged a king-size pool of opportunities that the

Chartered Accountants can explore and apply their professional wisdom and

experience to.

BASIC FUNCTIONS OF THE ASSURANCE INDUSTRY

1. Risk Perception and Evaluation:

The fundamental function of an insurer is to provide a cover against

the detriment caused to the insured due to the happening of certain specified

and agreed events. Thus, prior to providing such umbrella through a product,

the insurer has to assess the risk involved in the transaction. The insurer has

to identify the element of risk prevalent in the concerned industry or a

particular unit. The perception of risk requires the study of variables through

various methods including the application of scientific and statistical

techniques and correlation thereof with the industry or unit under study in

light of their basic environmental and infra-structural characteristics.

2. Designing the Insurance Product:

On the basis of the risks perceived, the insurer develops a product to cover

the stipulated risks. While designing an insurance product, an insurer

decides its cost to be charged from the insured in the form of premium,

reduction thereof in certain cases like not lodging any claim during the

previous covered period(s), suggesting the implementation of risk-mitigating

measures, etc.

3. Marketing of the Product:

The core function of the marketing force of an insurance company is

to generate awareness about the insurance products among the target market.

But in the Indian scenario, where the insurance penetration is too low as

compared to the other nations, the marketing force needs to perform the pro-

active role in developing an insurance culture. It is through the efficiency of

the sales force of an insurance company that the desirability and the success

of a product are determined.

Adequate knowledge of the insurance industry, products and the

modalities attached therewith. Further, the marketing personnel should be

adequately backed by the back-office setup.

4. Selling of the Products:

The term selling in the context of Assurance industry connotes the

issuance of policies to the applicant proposer. The Assurance basically

embodies the covenant between the insurer and the insured wherein the

former agrees to indemnify the latter for the loss caused to him on the

happening of the certain agreed events up to a specified limit. The life

insurance policy generally contains the agreement whereby the insurer

agrees to pay to the insured or the beneficiary of the policy an agreed

amount on the expiry of the term of the policy or in the event of the death of

the insured respectively. The additional benefits in the shape of Riders viz.

Accidental Death Benefit, Double Sum Assured, Critical Illness benefits;

Waiver of Premiums, etc. can also be appended with the policy on the

payment of an additional premium.

5. Management of Portfolio:

The management of the portfolio includes the assessment of

requirement of funds, identification of various sources of finance, the

evaluation of the sources in the light of their cost, availability, timing, etc.,

reconciling the features of various sources with the needs of the company

and the selection of appropriate conjunction of sources. The insurer

possesses huge amount of funds, which need proper management. The

management of the portfolio of an insurance company requires the

identification of investment avenues, evaluation thereof and the selection of

the most appropriate mix of alternatives where the funds of the company can

be invested. The selection requires the knowledge of finance related

functions and techniques apart from the in-depth know of the patterns of

requirement of funds in the company as well as in the industry as a whole.

ABOUT US

New India is a leading global insurance group, with offices and

branches throughout India and various countries abroad. The company

services the Indian subcontinent with a network of 1068 offices, comprising

26 Regional offices, 393 Divisional offices and 648 branches. With

approximately 21000 employees, New India has the largest number of

specialist and technically qualified personnel at all levels of management,

who are empowered to underwrite and settle claims of high magnitude.

New India has been rated "A-" (Excellent) by A.M.Best Co., making it the

only Indian insurance company to have been rated by an international rating

agency. Rating based on following factors:

Superior Capital Position

Strong Operating Performance

Only Company to develop significant International operations, long

record of successful trading outside Indi

PROFILE

History

Present Position

International Presence

Our Strengths

Pioneers

Citizens' Charter

History

Incorporated on July 23rd, 1919 Founded by the House of Tata Founder

member - Sir Dorab Tata. Nationalised in 1973 with merger of Indian

companies.

Present Position

Gross Premium (in India) of Rs. 5017.20 crores in the year 2006-2007, as

against Rs. 4791.49crores in the year 2005-2006. Assets Rs. 27444.57crores

as on 31st March 2007. Network of Offices-26 Regional Offices, 393

Divisional Offices, 614 Branches and 34 Direct Agent Branches. Rank No. 1

in the Indian market. Largest Non-Life insurer in Afro-Asia excluding

Japan. First Indian non-life company to cross Rs. 5000 crores Gross

Premium. Global Re-insurance facilities. Over-seas presence in countries

like Japan, U.K, Middle East, Fiji and Australia.

International Presence

Overseas operations commenced in 1920. Operations in 24 countries in the

year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies

and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs.

892.35 crores in the year 2004-05, which accounts for more than 80% of

total overseas premium in India. Pre

Our Strengths

Largest number of Offices - In India and Abroad Trained and technically

qualified staff 1068 fully computerised offices across India. "A-" (Excellent)

rating by A.M.Best & Co (Europe) First domestic company to be rated by an

International Rating Agency Rating based upon following factors: Superior

capital position Strong operating performance Strong market position Only

company to develop significant International operations, long record of

successful trading outside India.

Pioneers

First company to set up an Aviation Insurance Department in 1946.

First company to handle the Hull Insurance requirements of the Indian

Shipping Fleet.

First company to establish its own Training School.

First company to introduce the concept of 'Model Office Training'.

First company to create department in Engineering insurance.

Pioneer in Satellite insurance.

Citizens’ Charter

Our Mission

To develop general insurance business in the best interest of the

community.

To provide financial security to individuals, trade, commerce and all

other segments of the society by offering insurance products and

services of high quality at affordable cost

Our Values

Highest priority to customer needs.

High standards of public conduct.

Transparency in operations.

Our Commitment to the citizens

We will respond to all commercially viable general insurance

requirements of the citizens, including products for weaker sections of

the society at affordable price within three months from the date on

which such a requirement is received.

We will ensure issuance of 100% of documents within a period of

seven days.

We will ensure that prospectus of the various insurance products are

provided to the customers and the extent of coverage is explained for

his choosing the appropriate product. A written proposal will be

obtained from the insured wherever necessary and accordingly the

policy will be prepared.

We will settle all claims within a time schedule envisaged hereunder:

A. Personal life insurance claims within 30 days on completion of all

requirements.

B. Property claims within 30 days on completion of all requirements.

C. Liability claims within 30 days on completion of process of law.

We will promote customer education in general insurance

products/services by holding workshops in various centers.

We will open a customer service cell in all ROs/DOs in addition to the

existing 'May I Help You' counters.

We will set up proper grievance redressal mechanism in every

operating office and will educate the clients about the same including

the system of grievance redressal thorough ombudsman.

On request to the policy issuing office, we will make available to a

customer, the status of his claim and/or claim settlement details within

seven working days.

We will adhere to the IRDA guidelines in protecting the

policyholders' interest.

All the above services and commitments will be honoured without the

citizen having to pay any gratification/bribe.

(This Citizens' Charter was adopted at the board meeting held on

31.12.2003)

FINANCIAL RATING

For the sixth consecutive year, the Company has been rated as "A-"

(Excellent) by M/s. A.M. Best Europe Ltd. The rating reflects Company's

excellent risk adjusted capitalisation, prospective improvement in

underwriting performance and its leading business profile in the direct

insurance market in India. A partially off-setting factor is the Company's

reliance on investment income which counter balances underwriting losses.

But the outlook is stable. A.M. Best believes the Company's risk adjusted

capitalisation is excellent and anticipates that it will remain sufficient to

absorb the likely growth in the net premium. Further it also expects that

there will be a reduction in the combined ratio in the years to come. The

Company is likely to maintain its leading business position as the largest

direct insurer in India, despite increased competition from private players.

PERFORMANCE

New India Assurance Company is the largest non-life insurer in India. The

financial strength of the Company is reflected from the following figures:-

 

(Rs. in Crores)

Year

Gross

Premium

(in India)

Gross

Premium

(Outside

India)

Net Premium

(Global)

Net Profit

(Global)

Total Assets

(Global)

Net Worth

(Global) 

2007-2008 5276.91 874.55 4914.28 1401.13 31944.14 6972.80  

2006-2007 5017.20 919.58 4751.76 1459.95 27444.57 5972.55  

2005-2006 4791.49 884.05 4342.66 716.38 27025.58 4706.87  

2004-2005 4210.81 892.35 3895.11 402.23 19827.19 4161.69  

2003-2004 4045.68 875.79 3634.94 590.21 17510.44 3735.22  

2002-2003 3921.24 891.55 3516.43 255.81 12984.75 3404.00  

2001-2002 3512.33 685.73 3068.23 142.00 12273.02 3189.39  

2000-2001 3041.17 451.88 2671.48 173.54 8292.00 3067.39  

1999-2000 2979.53 327.00 2477.45 287.29 7664.71 2859.86  

1998-1999 2729.48 288.16 2186.92 375.00 6727.72 2524.23  

1997-1998 2433.73 254.04 1945.00 470.94 6071.67 1462.52

WORKFORCE

Employee Strength (as on 31.03.2010) 

Category Total Number of

Employees

Function

Class I 5504 Supervisory

Class II 2574 Development Force

Class III 9032 Clerical/Secretarial

Class IV 2049 Substaff/Drivers

P. T. S. 389

TOTAL 19548

PRODUCTS

PERSONAL

PRODUCTS

1. HOUSEHOLDERS POLICY

This is a package policy specially designed to meet the insurance

requirements of a householder.

Highlights

This is a package policy specially designed to meet the insurance

requirements of a householder by combining under a single policy, a number

of our standard policies usually taken by householders.

Discount in premium is offered depending upon the number of sections of

the policy, opted for, by the proposer.

Scope

The policy comprises of 10 sections as given here under

Section I - Fire & Allied Perils

A - Coverage for building

B - Covers contents of the dwelling belonging to the proposer and his/her

family members permanently residing with him/her.

Allied Perils:

a. Fire, Lightening, Explosion of gas in domestic appliances

b. Bursting and overflowing of water tanks, apparatus or pipes.

c. Damage caused by Aircraft

d. Riot, Strike, Malicious or Terrorist Act

e. Earthquake, Fire and/or Shock, subsidence and Landslide (including

Rockslide) damage

f. Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomado or

Cyclone.

g. Impact damage

Section II - Burglary & House Breaking including larceny and theft.

Covers contents of the dwelling against loss due to burglary, house breaking,

larceny or theft.

Section III - All Risks (Jewellery & Valuables)

Covers loss or damage to your jewellery and valuables by accident or

misfortune whilst kept, worn or carried anywhere in India subject to the

value declared in the schedule.

Section IV - Plate Glass

Loss or damage to fixed plate glass in the insured premises by accidental

breakage subject to limit of sum insured

Section V - Breakdown of Domestic appliances

Covers domestic appliances against unforeseen and sudden physical damage

due to mechanical or electrical breakdown.

Section VI - T.V. Set including VCP/VCR (ALL RISKS)

Covers loss or damage to T.V.Set including VCP/VCR by fire and allied

perils, burglary, house breaking or theft, breakage due to accidental external

means, mechanical or electrical breakdown. Any legal liability arising out of

bodily injury or accidental death of any person other than insured's family

members or employee as also damage to property not belonging to or in the

custody of insured , caused by use of the T.V. Set is also covered upto a

limit of Rs.25,000/-.

How to claim

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

steps should be taken:

1. Take necessary steps to minimize the loss/damage.

2. In case of fire, inform fire brigade immediately.

3. In case of theft, larceny or burglary inform the police immediately

along with a list of items stolen and their approximate value.

4. Inform insurance company by phone or fax and in writing.

5. Extend full co-operation to the surveyor appointed by the insurance

Co. and provide necessary documents to the substantiate the loss. A

claim form issued by the company is also to be submitted.

6. In case any rights of recovery exist against any other party responsible

for the loss, your rights of recovery have to be subrogated to the

insurance company on payment of claim.

2. PERSONAL ACCIDENT POLICY

The insurance provides compensation in the event of death or disability

directly due to accident.

Highlights

This policy offers compensation in case of death or bodily injury to the

insured person, directly and solely as a result of an accident, by external,

visible and violent means.

The policy operates worldwide and is a 24 hours cover.

Different coverages are available ranging from a restricted cover of Death

only; to a comprehensive cover covering death, permanent disablements and

temporary total disablements.

Family Package cover is available to Individuals under Personal Accident

Policy whereby the proposer, spouse and dependent children can be covered

under a single policy with a 10% discount in premium.

Scope

This policy is basically designed to offer some sort of compensation to the

insured person who suffers bodily injury solely as a result of an accident

which is external, violent and visible. Hence death or injury due to any

illness or disease is not covered by the policy.

The following types of coverages are offered under a Personal Accident

policy:-

Table D

1. Death cover wherein 100% of the capital sum insured is payable.

Table C

1. Coverage under Table D

2. Loss of two limbs / both eyes / one limb and one eye wherein 100% of

the capital sum insured is payable.

3. Loss of one limb or one eye wherein 50% of the capital sum insured is

payable.

4. Permanent Total Disablement other than above e.g. paralysis due to an

accident, wherein 100% of the capital sum insured is payable.

Table B

1. Coverage under Table C

2. Permanent Partial Disablement i.e. where a part of the body becomes

permanently disabled due to an accident, e.g. total and irrevocable

loss of use of a finger due to an accident. In such cases, a percentage

of the capital sum insured as specified in the policy is paid.

Table A

1. Coverage under Table B

2. Temporary Total Disablement i.e. where the insured person becomes

temporarily disabled from undertaking any work as a result of an

accident for e.g. fracture of legs. In such cases, a weekly payment of

1% of the capital sum insured subject to a maximum limit, is paid for

the number of weeks or part thereof (maximum 100 weeks), during

which the insured person is totally disabled.

The insured can claim only under any one of these sections as a result of any

one accident.

The policy also covers expenses incurred for carriage of dead body from

place of accident to the residence subject to a limit of 2% of the capital sum

insured or Rs.2, 500 whichever is less. Under an Individual Personal

Accident policy or Family Package Policy, an education fund is payable for

a maximum of 2 dependent school going children, in case of death or

permanent total disablement of the insured person.

We issue several types of personal accident policies such as :-

Individual Personal Accident policy.

Group Personal Accident policy.

Passenger Flight Coupon - Covering personal accident risk whilst

traveling as a passenger on a scheduled flight.

Gramin Personal Accident Policy - for persons residing in rural areas

where benefits as per Table C mentioned above are covered for a

capital sum insured of Rs.10,000/-.

Janata Personal Accident policy - where benefits as per Table C

mentioned above are covered for a maximum sum insured of

Rs.1,00,000/-. Long Term Policies can also be issued upto 5yrs.

Student Safety Insurance - for schools and colleges, covering students

against Personal Accident benefits as per Table B mentioned above

for a capital sum insured of Rs.10,000/-.

Raj Rajeshwari Mahila Kalyan Yojna - for women in the age group of

10 to 75 years. where benefits as per Table C mentioned above are

covered for a capital sum insured for Rs.25,000/-. In case of death of

an unmarried woman due to an accident, Rs.25,000/- is payable to the

nominee or legal heir. In case of a married woman, if the husband dies

due to an accident, Rs.25,000/- is payable to the wife but if the wife or

insured dies no compensation is payable.

Bhagyashree Child Welfare Policy - for girl child in the age group of 0 to 18

years. whose parents age does not exceed 60yrs. In case of death of either or

both parents due to an accident, a sum of Rs.25,000/- is deposited in the

name of the girl child with a financial institution named in the policy which

will disburse amounts as specified for the benefit of the girl child to the

living parent or to the nominated guardian. Group policies can also be

issued.

Add on covers

Individual and group personal accident policies can be extended to cover

medical expenses incurred in the treatment of an accident covered under the

policy, subject to a limit of 10% of the sum insured or 40% of the death /

disability compensation claim payable, on payment of additional premium.

The policy issued to Indian personnel working in foreign countries on

civilian duty can be extended to cover War risk on payment of additional

premium.

The policy can also be restricted to cover Personal Accident risk during duty

hours only or during off-duty hours only with discount in premium. It is also

possible to issue group P.A. policy excluding the death benefit subject to a

group life policy covering death benefit being taken for the same group of

persons for the same policy period.

Who can take the policy

Any adult residing in India can take the policy covering himself / herself and

dependent family members between the ages of 5 and 70yrs.

How to claim

In the event of an accident giving rise to a claim the following steps should

be taken:-

In case of death claim :-

1. Assignee under the policy should immediately notify the policy

issuing office.

2. Submit the claim form along with death certificate, post mortem

report, police report and original policy.

In case of injury claim:-

1. Notify the policy issuing office immediately.

2. Submit Police report if any.

3. Submit claim form along with medical certificate certifying the

disablement.

In case medical expenses extension has been taken, then the prescription

along with bills are to be submitted.

3. MOTOR POLICY

This policy covers all types of vehicles plying on public roads.

Highlights

This policy covers all types of vehicles plying on public roads such as:-

Scooters &Motorcycles

Private cars

All types of commercial vehicles

Motor Trade (vehicles in show rooms and garages)

As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a

vehicle plying on public roads, to take an insurance policy, to cover the

amount, which the owner becomes legally liable to pay as damages to third

parties as a result of accidental death, bodily injury or damage to property. A

Certificate of Insurance must be carried in the vehicle as a proof of such

insurance.

Two types of covers are available:

1. Liability only policy. This covers third party liability for bodily injury

liability and / or death and property damage. Personal Accident cover

for Owner-driver is also included.

2. Package policy. This cover loss or damage to the vehicle insured in

addition to (1) above.

No- claim discounts are available on renewal of policy, ranging from 20% to

50%, depending upon the type of vehicle and the number of years for which

no claim has been made.

Scope

Liability Only policies:

The policy covers the vehicle owner's legal liability to pay compensation

for:

1. Death or bodily injury to a third party person.

2. Damage to third party property.

Liability is covered for an unlimited amount in respect of death or injury and

damage to third party property for Rs.7.5 lacs under Commercial vehicle and

private and Rs. 1 lakh for Scooters / Motor Cycles.

Package Policy

In addition to the coverage under liability only, this policy covers loss or

damage to the insured vehicle and its accessories due to:

1. Fire, explosion, self-ignition or lightning.

2. Burglary, housebreaking or theft.

3. Riot and Strike.

4. Malicious Act.

5. Terrorist Act.

6. Earthquake (Fire and Shock) Damage.

7. Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and

Hailstorm.

8. Accidental external means.

9. Whilst in transit by road, inland waterway, lift, elevator or air.

10.By landslide/Rockslide

The policy also pays for towing charges from the place of accident to the

workshop upto a maximum limit of Rs.300/- for Scooters/Motorcycles and

Rs.1500/- for cars and commercial vehicles. It is also permissible to opt for

higher towing charges subject to payment of extra premium.

A restricted cover is also available covering the risk of Fire and/or Theft

only, in addition to the compulsory cover granted under "Liability Only

Policy". However the same is not available in case of vehicle ratable under

Class D, Tariff for Miscellaneous and special types of vehicles.

The important exclusions under the policies are:

Wear and tear, breakdowns

Consequential loss

Loss when driving with invalid driving license or under the influence

of alcohol.

Loss due to war, civil war, etc.

Claims arising out of contractual liability.

Use of vehicle otherwise than in accordance with `limitations as to use

' (e.g. private car being used as a taxi)

Rating factors Rating depends upon the following factors:

1. IDV.

2. Cubic capacity

3. Geographical zone

4. Age of the vehicle

5. GVW of in case of commercial vehicles

6. Add on Covers

Add on covers

The policy can be extended to cover the following risks on payment of

additional premium:

1. Loss or damage to accessories fitted in the vehicle such as stereos,

fans, air-conditioners etc.

2. Personal accident cover under private car policies for:

o passengers

o paid driver

3. Legal liability to employees.

4. Legal liability to non-fare paying passengers in commercial vehicles.

Who can take the policy

Any vehicle owner whose vehicle is registered in his/her name with the

Regional Transport Authority in India.

How to claim

In the event of an incident giving rise to a claim under the policy, the

following steps should be taken:

In case of accidental damage to the vehicle:

1. Immediate intimation to the nearest office, which will issue a Claim

Form.

2. Claim Form duly filled in to be submitted along with copy of

Registration Certificate and driving license of the driver of the vehicle

at the time of accident as also estimate of repairs.

3. Vehicle will be surveyed by a Surveyor, appointed by the insurance

company, who shall submit his report to the company. In case of a

major damage to the vehicle, a spot survey, at the site of accident,

would also be arranged by the company.

4. Final bills/cash memos are to be submitted duly signed by the insured.

5. Salvage of the damaged parts may be required to be deposited with

the insurance company after approval of the claim.

In case of theft of the vehicle:

1. Lodge an F.I.R. with the police immediately.

2. Inform the policy issuing office with a copy of FIR.

3. Submit the Final Police Report as soon as it is received.

4. Extend full cooperation to the surveyor and/or investigator appointed

by the company.

5. After approval of the claim by the company, get the Registration

Certificate transferred in the name of the company, hand over the keys

of the vehicle, submit a letter of Subrogation and Indemnity on stamp

paper duly notarized.

In case of liability claim:

1. Inform insurance company immediately of any incident likely to give

rise to liability claim.

2. On receipt of summons from Court, the same should be sent to the

company immediately.

Claim Form duly filled in along-with copies of Registration Certificate,

Diving License, FIR are to be submitted.

COMMERCIAL

1. JEWELLERS BLOCK POLICY

This is a package policy specially designed for jewellers & diamontaires i.e.

those establishments dealing solely in diamonds.

Highlights

This is a package policy specially designed for jewellers & diamontaires i.e.

those establishments dealing solely in diamonds.

Jewellers premises are categorized into Class I, II or III depending upon the

type of security provided for the premises.

Discount in premium is available in case the premises have special

protection devices like built-in vaults, strong rooms ,closed circuit T.V. or

armed guards.

Scope

The policy comprises four sections which are optional except for section I

which is compulsory.

Section I : Covers loss or damage to jewellery , gold and silver ornaments or

plates , pearls, precious stones, cash and currency notes whilst contained in

the premises insured, by fire,explosion, lightning,burglary,house breaking,

theft, hold up, robbery, riot, strike and malicious damage and terrorism.

Section II : Covers loss or damage to jewellery, gold etc. as described in

Section I whilst it is in the custody of the insured, his/her partners,

employees, directors, sorters of diamonds or whilst such property (excluding

cash and currency notes) is in the custody of brokers, agents, cutters and

goldsmiths.

Section III : Covers loss or damage to property described in Section I whilst

in transit by registered parcel post, air freight or through angadia.

Section IV : Covers loss or damage to trade and office furniture and fixtures

in insured premises due to fire,explosion, lightning,burglary,house breaking,

theft, hold up, robbery, riot, strike and malicious damage and terrorism.

Who can take the policy

The policy can be taken by jewellers who are wholesalers or retailers. The

policy cannot be given to establishments whose work is predominantly

manufacturing like cutters and goldsmiths. The policy also cannot be given

to angadias , brokers or pawn brokers etc.

How to select the sum insured o How

The sum insured under Section I and II should represent the cost price of the

jewellery items. The sum insured under Section III should represent the

maximum loss likely, arising out of any one incident. The sum insured under

Section IV should represent the market value of the property

How to claim

In case of any incident giving rise to a claim under the policy, the following

steps should be taken:

1. Inform insurance company within 24 hrs.

2. In case of burglary, theft etc. inform police immediately and obtain

FIR

Submit claim form and relevant documents to surveyor appointed by

Insurance Co. to substantiate loss. Test.

2. BANKERS INDEMNITY POLICY

A package policy designed specially to cover the risks related to

banking sector. A single policy covering all branches in India of the

particular bank.

Highlights

A package policy designed specially to cover the risks related to banking

sector. A single policy covering all branches in India of the particular bank.

Retroactive period facility available whereby losses discovered during

policy period due to an incident occurring in earlier period but after

inception of first policy , also become payable, provided the policy has been

continuously renewed with us without break.

Discount in premium available for banks having less than 500 branches.

Scope

The policy comprises of following 7 sections :

A. On Premises : Covers money and/or securities belonging to, or in the

custody of bank, whilst on their own premises or on the premises of

their bankers, against loss or destruction by Fire, Riot & Strike,

Malicious damage, terrorist act, burglary ,theft ,robbery or hold-up.

B. In Transit : Covers money and/or securities if they are lost ,stolen,

mislaid, misappropriated or made away with, whilst in transit in the

hands of its employees whether by negligence or fraud of the

employees.

C. Forgery or Alteration : Covers losses suffered as a result of payment

of bogus, fictious, forged cheques or drafts as also forged

endorsements on genuine cheques or drafts or FDRs.

D. Dishonesty : Covers loss of money and/or securities suffered due to

dishonest or criminal act of its employees.

E. Hypothecated Goods : Covers losses suffered due to fraudulent or

dishonest act of employees in respect of goods or commodities

pledged or hypothecated to the insured bank and under its control.

F. Registered Postal Service : Covers loss of registered postal sending

by robbery,theft or any other cause not specifically excluded,

provided that each post parcel shall be insured with the post office.

G. Appraisers : Covers loss due to infidelity or criminal act on the part

of appraisers, provided that such appraisers are on the bank's approved

list.

H. Janata Agents : Covers loss due to infidelity of criminal acts on the

part of Janata Agents, Chhoti Bachat Yojana Agents/Pygmie

Collectors.

Add on covers

The following additional perils can be covered on payment of an additional

premium:

1. Losses due to flood, inundation, hurricane, typhoon, storm, tempest,

tornado and cyclone.

2. Losses due to earthquake - Fire & Shock

Additional sum insured can be opted for under Section A & B.

Who can take the policy

Any banking company as defined under various Banking Acts like Banking

Regulation Act 1945, State Bank of India Act 1955 etc.

How to select the sum insured

The proposer has to select a basic sum insured which will apply to Sections

A to E of the policies. This sum insured should represent the maximum

amount of loss which could be suffered by the bank due to any single

incident covered under Sections A to E. The sum insured under Section

F,G&H is fixed at a percentage of the basic sum insured.

In addition to the basic sum insured , an additional sum insured can be opted

under Section A and/or B on payment of additional premium. How to claim

How to claim

In case of discovery of any loss falling under the scope of the policy, the

following steps should be taken:

1. Inform insurance co. by phone and/or fax/letter.

2. In case of burglary/robbery/theft/hold-up etc. inform police and get

FIR registered.

3. In case of dishonest act of employee, inform police and initiate

departmental enquiry.

4. Submit claim form and relevant documents to substantiate loss to the

surveyor appointed by the insurance company.

5. Take reasonable steps to prevent further loss due to the same reason.

3. MARINE CARGO POLICY

This policy covers goods,freight and other interests against loss or damage

to goods whilst being transported by rail,road,sea and/or air.

Highlights

This policy covers goods,freight and other interests against loss or

damage to goods whilst being transported by rail,road,sea and/or air.

Different policies are available depending on the type of coverage

required ranging from an ALL RISK cover to a restricted FIRE RISK

ONLY cover.

This policy is freely assignable and is basically an agreed value

policy.

Scope

Transportation of goods can be broadly classified into three categories:

i. Inland Transport

ii. Import

iii. Export

The types of policies issued to cover these transits are:

For Inland Transit

a. Specific Policy - For covering a specific single transit

b. Open Policy -For covering transit of regular consignments over the

same route .The policy can be taken for an amount equivalent to three

months despatches and premium paid in advance.As each

consignment is despatched, a declaration giving details of the

despatch including GR/RR No. is to be sent to the insurer and the sum

insured gets reduced by the amount of the declared despatch.The sum

insured can be increased any number of times during the policy period

of one year;but care should be taken to ensure that adequate sum

insured is available to cover the consignment to be despatched.

c. Special Declaration Policy - For covering inland transit of goods

wherein the value of goods transported during one year exceeds Rs.2

crores.Although the premium for the estimated annual turnover

[i.e.the estimated value of goods likely to be transported during the

year] has to be paid in advance,attractive discounts in premium are

available.

d. Multi-transit Policy - For covering multiple transits of the same

consignment including intermediate storage and processing.For

e.g.covering goods from raw material supplier's warehouse to final

distibuter's godown of final product.

For Import/Export

a. Specific Policy - For covering a specific import/export consignment.

b. Open cover - This policy which is issued for a policy period of one

year indicates the rates, terms and conditions agreed upon by the

insured and insurer to cover the consignments to be imported or

exported.A declaration is to be made to the insurance company as and

when a consignment is to be sent along with the premium at the

agreed rate.The insurance co. will then issue a certificate covering the

declared consignment.

Custom duty cover - This policy covers loss of custom duty paid in

case goods arrive in damaged condition.This policy can be taken even

if the overseas transit has been covered by an insurance company

abroad,but it has to be taken before the goods arrive in India.

Add on covers

Inland transit policies can be extended to cover the following perils on

payment of additional premium :

i. SRCC - Strike, riot and civil commotion (including terrorist act)

ii. FOB - Where the inland transit is required to be extended to cover the

goods till they are loaded on board the vessel , this extension can be

taken.

Export /Import policies can be extended to cover War and /or SRCC

perils on payment of an additional premium.

Who can take the policy

The contract of sale would determine who buys the policy. The most

common contracts are :

FOB (Free on Board)

C & F (Cost & Freight)

CIF (Cost, Insurance & Freight)

In FOB AND C&F contracts, the buyer is responsible for insurance.

Whereas in CIF contracts the seller is responsible for insurance from

his own premises to that of the purchaser.

How to select the sum insured

The sum insured or value of the policy would depend upon the type of

contract. Usually, in addition to the contract value 10/15% is added to

take care of incidental cost.

How to claim

The following steps should be taken in event of a loss or damage to goods

insured:

i. Take immediate steps to minimize loss.

ii. Inform nearest office of the insurance company or claim settling agent

mentioned on the policy.

iii. In case of damage to goods whilst on ship or port , arrange for joint

ship survey or port survey.

iv. Lodge monetary claim with carrier within stipulated time period.

v. Submit duly assigned insurance policy/certificate along with the

original invoice and other documents required to substantiate the

claim such as :

a. Bill of Lading / AWB/GR

b. Packing list

c. Copies of correspondence exchanged with carriers.

d. Copy of notice served on carriers along with

acknowledgment/receipt.

e. Shortage/Damage Certificate issued by carriers.

Vi. Survey fees is to be paid to the surveyor appointed by the insurance

company. This fees will be reimbursed along with the claim if the claim is

otherwise admissible.

INDUSTRIAL

1. CONTRACTORS ALL RISK POLICY

This policy is specially designed to give financial protection to the Civil

Engineering Contractors in the event of an accident to the civil engineering

works under construction.

Highlights

This policy is specially designed to give financial protection to the

Civil Engineering Contractors in the event of an accident to the civil

engineering works under construction.

In case the policy period exceeds 12 months, the premium can be paid

in quarterly installments with the first installment being more by 5% and the

last installment being paid 6 months before expiry of the policy.

Scope

The policy comprises of 2 Sections:

Section I-Material Damage-covering physical loss, damage or

destruction of the property insured by any cause, other than those

specifically excluded in the policy.

Section II-Third Party Liability-covering the legal liability falling on

the insured contractor as a result of bodily injury or property damage

belonging to a third party.

The main exclusions under Section I for which no claim is payable, are loss

or damage due to:

i. faulty design

ii. rectification of aesthetic defects of structure not relating to any

physical loss or damage to the structure due to any accident, or of

material defector of workmanship defect.

The exclusion of defective material / workmanship is limited to the

parts of the structure immediately affected and does not apply to any

consequential loss to correctly executed items, arising out of the

accident due to defective material or workmanship.

iii. Loss or damage due to gradual deterioration, atmospheric condition,

rusting etc.

iv. Loss discovered only at the time of taking inventory.

v. Loss arising out of penalty for delay, non-fulfillment of terms of

contract.

Add on covers

The policy can be extended to cover the following items :-

a. construction equipment like scaffolding, shuttering materials

b. construction equipment like scaffolding, shuttering materials

c. Damage to surrounding property not forming part of the contract

work.

d. maintenance visit / extended maintenance cover to cover accidental

loss or damage whilst carrying out any rectification during

maintenance period and / or any amount incurred for rectification of

such original defects or faults during construction.

Who can take the policy

The policy can be taken by the principal, contractor or sub contractor, jointly

or separately.

How to select the sum insured

The sum insured selected under section I should represent total contract

value including the estimated cost of labour charges and cost of materials

but excluding profit. The cost of materials supplied by the principal is to be

declared separately.

In case of long term contracts, there is bound to be escalation in prices. The

basic policy will pay only as per the original cost and prices. However

escalation clause can be opted for, under which escalation upto 50%, can be

selected to take care of such increase in prices.

The sum insured under section II should represent the per accident limit (the

maximum legal liability that may fall on the insured as a result of an

accident in the insured's site). The limit per policy period should be fixed

taking into account the maximum number of such accidents which can

reasonably be expected to occur.

How to claim

In the event of any loss or damage giving rise to a claim under the policy,

the following steps should be taken:-

take necessary steps to minimise the loss.

inform insurance company immediately.

extend full cooperation to the surveyor deputed by the company.

submit duly filled in claim form along with necessary documents to

substantiate the financial loss suffered as a result of the accident.

Period of Insurance

Unlike other policies where the period of insurance is one year, in this policy

the period of insurance should be equivalent to the period of contract,

commencing from the date of unloading of the first batch of material at the

site of construction and expiring on the date of handing over of the contract

work to the principal.

Although it is possible to extend the policy period in case of delay in

completion of contract, it is always advisable to choose a slightly longer

period of insurance initially, to avoid paying the higher extension premium.

2. Machinery Breakdown Policy

This is a policy which covers financial loss incurred by the insured

due to loss or damage to machinery as a result of accidental electrical and

mechanical breakdown.

Highlights

This is a policy which covers financial loss incurred by the insured due to

loss or damage to machinery as a result of sudden accidental electrical and

mechanical breakdown.

It reimburses the insured for the cost of repairs or replacement of machinery

of like nature.

Who can take this Insurance:This insurance can be taken by the

individual owner of the machine or a person or company having

financial interest in the machine.

What kind of machines can be covered: All types of industrial

machinery like compressors, pumps, turbine etc. as also electrical

machines like transformer, electrical motor, generator etc. can be

covered under this policy.

What is the sum insured or value for which policy is to be taken:

It is a requirement of this policy that the sum insured or value for

which the particular machine is insured should represent the present

day purchase value of a similar new machine including all incidental

expenses like custom duties, taxes, excise, freight, insurance charges,

handling charges etc. In case the sum insured under the policy is less

than as per the above requirement the claim will be paid only in such

proportion as the sum insured bears to the current replacement cost of

similar new machinery.

Scope

The policy covers all kinds of electrical and mechanical breakdown resulting

from the following incidents:

a. Faulty material/workmanship of the machine

b. Action of centrifugal forces contributing to disruption of the rotating

parts

c. Failure of lubrication due to malfunctioning of lubricating oil pumps

or its breakdown.

d. Malfunctioning or failure of safety devices.

e. Electrical short-circuiting including electrical fire originating from

failure of insulation and or over voltage or under voltage conditions.

f. Abrupt and sudden stoppage of other connected machinery.

g. Entry of foreign bodies into running machine.

h. Inexperienced operations causing damage due to error of judgment or

error in operation.

Add on covers

The policy can be extended to include the following risks on payment of

additional premium.

1. Damage to foundation of machinery

2. Damage to oil in electrical apparatus

3. Express freight (excluding air freight), holiday rates, overtime charges

4. Air freight

5. Additional custom duty i.e the additional percentage of duty payable

at the time of reimport for replacement over and above the percentage

of duty included in the original sum insured.

6. Own surrounding property i.e. damage to the insured’s own existing

property or property in his custody or control (not included in the sum

insured of the policy) due to any damage to the insured machines

which is covered under the policy.

7. Third party liability i.e. liability falling on the insured for bodily

injury to any other party other than those covered by the policy or for

property damage belonging to such other party.

How to claim

In case of any such incident which falls under the scope of the policy, the

following steps should be followed:

1. Please inform the insuring office by phone, letter or fax.

2. Take all necessary steps to minimise the loss.

3. Obtain estimate of repair from repairer of your choice.

4. Submit this repair estimate and claim form to the surveyor deputed by

the insurance company.

5. After getting clearance from the surveyor, proceed for repairing

machine or ordering for replacement as the case may be.

Submit actual bills of repair/replacement with proof of payment to the

surveyor.

SOCIAL

1. Universal Health Insurance Scheme

Covers Medical Expenses whilst traveling abroad for business / holiday /

employment / studies.

Benefits

Medical Reimbursement

The policy provides reimbursement of hospitalisation expenses upto

Rs.30,000/- to an individual /family subject to the following sublimits:

A. (i) Room, Boarding expenses upto Rs.150/-

per day

    (ii) If admitted in ICU upto Rs.300/-

per day

B. Surgeon, Anaesthetist, Consultant, specialists fees,

Nursing expenses

upto Rs.4,500/-

per illness/

injury

C. Anaesthesia, Blood, Oxygen, OT charges, Medicines,

Diagnostic material & X-Ray, Dialysis, Radiotherapy,

Chemotherapy, Cost of pacemaker, Artificial limb, etc

upto Rs. 4,500/-

per illness/

injury

D. Total expenses incurred for any one illness upto Rs.

15,000/-

Personal Accident Cover

Coverage for Death of the Earning Head of the family (as named in the

schedule) due to accident: Rs. 25,000/-.

Disability Cover

If the earning head of the family is hospitalized due to an accident / illness

compensation of Rs.50/- per day will be paid per day of hospitalization up to

a maximum of 15 days after a waiting period of 3 days.

For purpose of this policy HOSPITAL means:

Any Hospital/ Nursing home registered with the local authorities and

under the supervision of a registered and qualified Medical

practitioner.

Hospital/ Nursing Home run by Government.

Enlisted hospitals run by NGOS / Trusts / selected private hospitals

with fixed schedule of charges.

It should have minimum 15 beds (10 in case of class 'C' cities having

a population lest than 5 lakhs) with fully equipped OT, fully qualified

nursing staff round the clock and fully qualified doctor should be in

charge round the clock.

Hospitalization should be for a minimum period of 24 hrs. However

this time limit is not applied to some specific treatments and also

where due to technological advancement hospitalization for 24 hrs

may not be required.

Premium

For an individual Rs. 300/- per

annum

For a family upto 5 (including the first3 children) Rs. 450/- per

annum

For a family upto 7 (including the first 3 children and

dependent parents)

Rs. 600/- per

annum

Premium Subsidy For BPL Families

For families below the poverty line the Government will provide a premium

subsidy of Rs.100/- per family.

Main Exclusions

Corrective, cosmetic or aesthetic dental surgery or treatment.

Cost of spectacles, contact lens and hearing aid.

Vaccination, inoculation, change of life or cosmetic treatment or

surgery HIV, AIDS, Sterility, Venereal Disease, Intentional Self

injury, use of Intoxicating Drugs/ Alcohol.

Primarily diagnostic expenses not related to sickness/ injury. 

Claim Settlement

Claim settlement to be done through TPAS mentioned in the schedule or by

the insurance company. To be made cashless as far as possible through listed

hospitals.

Other Features

Any One Illness

will be deemed to mean continuous period of illness and it includes relapse

within 60 days from the date of last consultation with the hospital.

Age Limitations

This Policy covers people between the age of 3 months to 70 years.

Family

means earning head, spouse and up to maximum of three dependent

children. Dependent parents can also be included.

Floater Basis

The benefit of family will operate on floater basis i.e. the total

reimbursement of Rs.30,000/- can be availed of individually or collectively

by members of the family.

2. STUDENT SAFETY INSURANCE

Highlights

This insurance is available to schools, colleges or other educational

institutions. The policy is issued in the name of the Institution. The claim

amount is payable to the parent/guardian as recorded in the school register.

All students are to be covered. Additional students are covered during the

policy period at extra premium. But no deletions are allowed.

Scope

The students will be covered against death, total loss of two limbs or two

eyes, total loss of one limb and one eye, total loss of one limb or one eye and

Permanent total and partial disablement.

Death (Capital Benefit) : Rs 10,000/-

Loss of two limbs, two eyes or one limb and one eye : Rs 10,000/-

Loss of one limb or one eye : Rs 5,000/-

Permanent total disablement from injuries other than those mentioned

above : Rs 10,000/-

Permanent partial disablement (percentage of benefits as given below

on the capital benefit of Rs 10,000/-)

Limit upto Rs 500/- (any one accident, any one year)

Eligibility

The policy provides personal accident benefits to registered students of the

school.

MANAGEMENT

Board of Directors

Name1. Shri M. Ramadoss Chairman cum Managing Director

2. Shri A. R. Sekar, Director and FA

3. Shri I S Phukela, Director

4. Mr. R. Gopalan I.A.S., Secretary,

Department of Financial Services,

Ministry of Finance,

Government of India5. Shri M. D. Mallaya Chairman & Managing Director,

Bank of Baroda

Questioners

1. Which type of product do you sell?

2. What is term &condition of each plan?

3. Which type of special facility you provide to your customer?

4. Which type of marketing strategy you adopt launching new plan?

5. Which benefit are you offered to your employee?

6. Do you have tie up any bank to provide insurance scheme?

7. Which technique you adopt to retain more & more customer?