Q . 13 Insurance Policy
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Insurance Policy in India
A-There are various types of life Insurance Policy
a. Term Life Policy
b. Whole Life Policy
c. Endowment Policy
d. Money-back Policy
e. Unit Linked Insurance Plan
f. Pension Plan or Annuities
g. Joint Life Policy
Term Life Insurance
For those who are running on a budget, you can opt for a simple life insurance. Term life
insurance allows the beneficiary death benefits for a specific period or 'term'. This term may be 1 or
more years and thebenefits are paid only in the event of death of the policy holder within the term of the
policy. There are certain term life insurance that can be renewed for more than one additional term.
However, if you do so, your premiums may go higher. You may even sometimes be allowed to trade
your term life insurance for a whole life insurance policy.
Whole Life Insurance:
A whole life insurance covers a policy holder for his entire life. There is no date of expiry like in a
term life insurance and the death benefits will be received by the beneficiary mentioned in the policy
only in the event of the death of the policy holder. If you buy a whole life insurance you will have to pay
a higher premium as compared to a term life insurance. The reason for this is that a certain portion of the
premium paid for whole life insurance is put away into a savings program .
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When you compare the total premiums paid for whole life insurance and the total premiums paid
for term life insurance it is seen that whole life insurance is less expensive. Even if you pay higher
premiums for whole life insurance, the fact is that the premiums remain the same throughout the tenure
of the insurance. But in the case of term life insurance, you may be paying lesser premiums in the
beginning, but as you renew your term policy, premiums will increase. Hence, the total value accrued in
term policy is bigger than a whole life insurance.
Certain clauses in a whole life insurance allow you to pay premiums for a lesser period of time.
The greatest advantage in this policy is that the premiums develop cash values that may be claimed or
used for purchasing rider policies for more protection. Few of the whole life insurance benefits are:
Guaranteed death benefits
Guaranteed cash values
Fixed annual premiums
A whole life insurance also known as "straight life" or "ordinary life" insurance, is not just an
investment for your future alone, but also for the future of your family.
Endowment Assurance Plan
This policy not only makes provisions for the family of the Life Assured in event of his early
death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an
annuity during the remainder of his life or in any other way considered suitable at that time.
Premiums are usually payable for the selected term of years or until death if it occurs during the term
period.
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Being an endowment assurance policy, this plan is apt for people of of all ages and social groups
who wish to protect their families from a financial setback that may occur owing to their demise. The
amount assured if not paid by reason of his death earlier will payable at the end of the endowment term
where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way
he may think most suitable at that time.
In short
Covers death & survival benefits
Sum assured paid on death or on maturity of policy
Period of policy at the option of proposer
Most common plan .
Money Back Policy
Money back policy from LIC is a popular insurance policy, as it provides life coverage during the
term of the policy and the maturity benefits are paid in installments by way of survival benefits in every
5 years. The plan is available with 20 years and 25 years term. In true sense, we do not think of
unfortunate death when we are choosing Money back plan, but we like to consider this plan as a savings
instrument that takes care of your insurance needs also and therefore, it also acts as a tax-savings
tool.But, we try to avoid taking higher sized policy due to the incremental increase in monthly premium
rate, although we are capable of paying this small additional amount. We try to save Rs. 250-300 per
month but we do not realize these savings are not worth enough in long run.Having said that, we will
show you here, why you must go for the higher sized policy. We will analyze the investments and
returns between two options.
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In short
Available for different periods
Covers death & survival benefitsLump sum paid periodically
Full sum assured paid on death .
Unit Linked Insurance Policies (ULIP)
unit linked insurance policy is one in which the customer is provided with a life insurance cover
and the premium paid is invested in either debt or equity products or a combination of the two.In other
words, it enables the buyer to secure some protection for his family in the event of his untimely death
and at the same time provides him an opportunity to earn a return on his premium paid.In the event of
the insured person's untimely death, his nominees would normally receive an amount that is the higher
of the sum assured (insurance cover) or the value of the units (investments).However, there are some
schemes in which the policyholder receives the sum assured plus the value of the investments.Every
insurance company has four to five ULIPs with varying investment options, charges and conditions for
withdrawals and surrender. Moreover, schemes have been tailored to suit different customer profiles
and, in that sense, offer a great deal of choice.
The advantage of ULIP is that since the investments are made for long periods, the chances of
earning a decent return are high.Just as in the case of mutual funds, buyers who are risk averse can buy
into debt schemes while those who have an appetite for risk can opt for balanced or equity
schemes.However, the charges paid in these schemes in terms of the entry load, administrative fees,
underwriting fees, buying and selling charges and asset management charges are fairly high and vary
from insurer to insurer in the quantum as also in the manner in which they are charged.
In shortEach premium split into units and risk premium for life cover
Units are priced as per current market value
Sum assured & current value of units paid on death as per policy condition
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Current value of units paid on maturity .
Annuity(Pension) Plans
A pension plan or an annuity is an investment that is made either in a single lump sum payment or
through installments paid over a certain number of years, in return for a specific sum that is received
every year, every half-year or every month, either for life or for a fixed number of years.
Annuities differ from all the other forms of life insurance in that an annuity does not provide any
life insurance cover but, instead, offers a guaranteed income either for life or a certain period.
Typically annuities are bought to generate income during one's retired life, which is why they are also
called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income
throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to the
payments during the annuitant's lifetime.
Pension plans are perfect investment instrument for a person who after retiring from service has
received a large sum as superannuation benefit. He can invest the proceeds in a pension plan as it is
safest way of secured income for the rest of his life. One can pay for a pension plan either through an
annuity or through installments that are annual in most cases.
In short
These are pension plans
Immediate annuity or deferred annuity starts at specified age periodicallySingle premium paid for immediate annuity
Premium in installments paid for deferred annuity
Life cover simultaneously .
Joint Life Policy
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Joint life policies are similar to endowment policies in as much as these policies also offer
maturity benefits to the policyholders, apart form covering the risks as all life insurance policies.But
these are categorized separately as these cover two lives together thus offering a unique advantage in
some cases; notable, for a married couple or for partners in a business firm.
Under a joint life policy the sum assured is payable on the first death and again on the death of the
survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after
the death of the survivor.If one or both the lives survive to the maturity date, the sum assured as well as
the vested bonuses are payable on the maturity date.
The premiums payable cease on the first death or on the expiry of the selected term, whichever is
earlier.Accident benefits equivalent to the sum assured are available under this plan on the first death.
However, if both lives are covered under Double Accident Benefit (DAB), the surviving life is covered
under DAB until the end of the policy year, in which the first life dies under the cover of the
policy.Particularly for couples .
Joint life policies provide dual-purpose income and risk protection for both belonging to every
income group and class of society.Under a joint life plan though the premium payment stops after the
first life's death, bonuses continue to accrue on the basic Sum Assured till Maturity Date or till the death
of the second life, if earlier.A good plan for middle-aged married couples, working couples or
professionals offering financial security for both the lives.
More than 80% of the life insurance business is from .Endowment Policy & Money-back Policy .
New Insurance
1-Bancassurance
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Bancassurance simply means selling of insurance products by banks.It also sometimes known
as Bank Insurance Model [BIM] . India, the bank branch network encompasses nearly 75,000 branches
inclusive of PSU and private banks. Close to 100,000 branches of co-operative, district co-operative and
regional rural banks also exist. Normally, commercial banks act as a corporate agent and tie-up with one
insurance company. Both Axis bank and HDFC bank are tying up with insurance companies vying for
better share of the commissions.
The Bank Insurance Model (BIM), also sometimes known as Bancassurance, is the term used to
describe the partnership or relationship between a bank and an insurance company whereby the
insurance company uses the bank sales channel in order to sell insurance products.BIM allows the
insurance company to maintain smaller direct sales teams as their products are sold through the bank to
bank customers by bank staff.Bank staff and tellers, rather than an insurance salesperson, become the
point of sale/point of contact for the customer. Bank staff are advised and supported by the insurance
company through product information, marketing campaigns and sales training.Both the bank and
insurance company share the commission. Insurance policies are processed and administered by the
insurance company.
2-Credit insurance
Protection against usually large losses from unpaid accounts receivable.Borrowers often fail to
repay debts,loans and mortgages due to certain unavoidable circumstances,credit insurances can be of
great help during such crisis.Credit insurance covers businesses and an individuals family members
against losses resulting from the inability to repay a loan.
A credit insurance policy usually provides a security cover for a specific reason for which a
borrower defaults.The premium for trade credit insurance is calculated on a monthly basis and is
generally taken as a percentage of either sales or outstanding receivables for that month. This insurance
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covers the risks associated with insolvency, nonpayment of bills (should be undisputed), preferential
payments, transfer of assets, work-in-process, contract frustration, inconvertibility of the buyers
currency, embargo, war and natural disasters.
Types of Credit Insurance:
Broadly speaking, credit insurance can be of two types, namely trade credit insurance and credit life
insurance.
Trade Credit Insurance:
This credit insurance policy is a credit risk management product for businesses, and hence is also
known as business credit insurance. Through this insurance, one can secure protection against losses
resulting from the nonpayment for goods or services delivered to clients. This policy lists the buyers of a
policyholder and the insurance company pays the policyholder an agreed percentage of invoices or
account receivables that are left unpaid by any of the buyers in this list in the event of insolvency,
bankruptcy or extended default. Only business entities are eligible for this type of insurance. This policy
can cover both domestic and export businesses.
Credit Life Insurance:
Whenever a person purchases a big-ticket item, such as a car, s/he might need to take a loan for a
specific period. Since injuries and death are unpredictable, there is no guarantee that the person will be
able to repay the loan. In case of untimely death, the entire burden of loan repayment falls on the
surviving members of the family. Credit insurance ensures that the surviving family members are not
burdened by loan liabilities in case of the policyholders death. The policy ensures that the lender
receives the rest of the loan amount.
3- Commercial insurance
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The convincing boom of corporate sector in India has given a new definition to commercial
insurance in the country. Proper risk management against any kind of disaster is the mantra of successful
business and other commercial ventures. The function of risk management is to provide safety against
any kind of internal or external hazard. Commercial insurance companies in India offer products which
suit the business and corporate needs and provide the commercial avenues all kind of safety and
security.
The value of premium for providing coverage to commercial ventures and corporate sectors is
determined on the basis of a few factors which include:
Nature of the commercial venture
Size of the organization
Type of the industry
Strength of the employees
Annual turn over the business
The insurance companies are paid the premium on either monthly, quarterly, half-yearly or annually
basis.There are several renowned business and commercial insurance companies in India. Leading
among them include:
ICICI Lombard
Bajaj Allianz
The New India Assurance Co
United India Insurance Co
4- Labor insurance
This insurance protect labor against accident while working .
There are two types of labor insurance .
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Workers accident compensation insurance -
If an insured person becomes ill, suffers injury or dies while he/she is at work or commuting, the
benefits will be paid to the insured person or his/her family. Any business owners who employ one or
more worker(s) are required to participate in this insurance
Employment insurance-
Employment insurance helps people who have been recently unemployed to find a new job and
also provides them with benefits to help cover their living expenses until they are employed again. This
is called unemployment benefit Eligible applicants for the unemployment benefit are those who were
enrolled in the employment insurance plan for 12 months or longer (11 days or longer in each month) in
the preceding two years*, are willing to be employed again, and are available to work. The application is
handled at the public employment safety offices .
5- Student insurance
A student insurance policy covers a person studying in a school or a college against expenses
arising from ill health, accident and travel, among other things. This type of general insurance covers
personal possessions and the finances of a student, as well as the student himself/herself, in case of an
unexpected event .
Types of Student Insurance:
Student insurance is essential in some countries. There are several types of student insurance that one
could opt for:
Student health insurance:
Through this policy, one can pay his/her doctor and hospital bills. The policy can also cover
preventative checkups, medications, dental care, mental disorders and substance abuse. While selecting
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a health insurance policy, check the maximum medical benefits that the company is offering and your
deductibles.
Student renters insurance:
This policy helps one protect his/her personal property against any damage due to fire, natural
disaster, vandalism, explosion, riots, water and theft.
Student liability insurance:
This covers against losses arising from the policyholder being responsible for hurting someone or
damaging another persons property.
Student car insurance:
Through this insurance, one can receive cover against accidents and theft of the car. Car insurance
for students is usually costly as young drivers tend to make more claims than older, more experienced
drivers. However, keeping your driving records clean can go a long way in getting this insurance policy
at low premiums.
Student travel insurance:
This insurance offers protection when a student encounters emergencies while s/he is away from
home. One might be studying abroad or traveling to return home on holidays. A student travel insurance
policy must offer cover for travel interruptions or cancellations, loss of baggage and injury to a third
party.
6- Flood Insurance
an insurance policy that covers property damage due to natural flooding. Flood insurance is
offered by private insurers but is subsidized by the federal government.
Flood insurance is offered by private insurers but is subsidized by the federal government. National
Flood Insurance Act 1968.
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A regular homeowners policy will not pay for damages caused by flooding. In order to get the
coverage, you have to go to some outfit that writes for the National Flood Insurance Program. Outside
of fire, flooding is the most widespread natural disaster. If your community participates in NFIPs
floodplain management program, you should be eligible to buy the coverage. The only people who may
have trouble finding flood coverage are residents of "coastal barrier resource system" areas and
communities that do not participate in NFIPs programs. Flood insurance is also available to renters,
condominium owners, and co-op owners.
insurance that protects homeowners against losses from a flood; if a home is located in a flood plain, the
lender will require flood insurance before approving a loan.
Flood insurance building and contents damaged by water during storms or other natural flood
situations. It may even provide protection from events such as a sewer line backing up into a house.
Additionally, flood insurance reimburses for preventive actions including sandbagging and for clean-up
expenses. This type of insurance is not included in a standard homeowners policy and must be
purchased separately. Because flood insurance is expensive and the risk is relatively low, most people
do not buy it.
Flood coverage is particularly important for the most expensive costs such as building restoration
and repair, and appliances such as the furnace. Flood insurance also reimburses costs for restoration or
replacement of carpeting, furniture and personal possession .
People who avoid buying flood insurance typically believe they will receive disaster assistance if a flood
does occur, but very few floods are ever officially declared as disasters.Flood insurance is often
purchased to supplement a homeowner's policy in the event that flooding damage occurs.
Which are the Major Flood Prone Areas in India
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One of the most common natural disasters in India is flood. The eastern states, such as Bihar,
West Bengal and Orissa, andhrapradesh,assam are especially susceptible to floods. In 1980, the National
Flood Commission estimated the total flood prone area in India at 34 million hectares. Annually, the
estimated rainfall (including snowfall) amounts to 4,000 billion cubic meters (BCM) in the nation. The
major four zones in India that are comparatively more susceptible to floods include.
The policyholder stands to gain a lot out of Indian flood insurance on financial grounds, since s/he
receives compensation for the loss of property due to flood. Another benefit is that the insured person
can also get his/her personal belongings covered under an India flood insurance policy. Therefore, an
individual will not have to pay for the replacement of all the contents of a building damaged by
flooding. Individuals only have to pay a very reasonable amount in the form of deductibles, which is
decided at the time of obtaining the flood insurance India policy for the first time.
types of coverage available under a Flood Insurance policy
Building Property Coverage:
This type of policy covers the insured building, electrical and plumbing systems, furnaces, water
heaters, centralized air conditioning system, cooking stoves, refrigerators, built-in appliances, window
blinds and debris removal. This coverage indemnifies against permanently installed cabinets, paneling,
bookcases, wallboard and carpeting. Garages outside the building can be covered for up to 10% of the
building property coverage, while a separate policy is required to cover structures outside the building
other than garages, such as gazebos.
Personal Property Coverage:
This type of coverage compensates against the loss of personal belongings, such as furniture,
electronic equipment and clothing. It also covers curtains, air conditioners (both window and portable),
clothes washers and dryers, portable microwave ovens and dishwashers, food freezers, including stored
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food, and carpets that were included in the building coverage. Furs, original artwork and other such
valuable items can also be covered.
7- Wedding Insurance
Wedding insurance policies are designed specifically to offer financial protection to couples
planning a wedding against losses resulting from unforeseen circumstances. This form of general
insurance covers damage to your wedding attire or photographs, expenses related to last minute
bookings and loss of gifts, among other things. Most policies also cover losses due to the cancellation or
postponement of the wedding on account of bad weather, illness, military deployment, sudden death or
acts of terrorism.
Weddings usually involve massive expenses on invites, food, catering, attire, florists, musicians
and other service providers. Most of this money is lost in the event of any delay or cancellation of the
event. This money can be recovered with the help of wedding insurance.
Wedding Insurance: What Does It Covers
Wedding insurance should be bought as soon as you start making preparations for your wedding.
However, at times, insurance companies have limitations on how early one can purchase a wedding
insurance policy.
This policy covers losses resulting due to:
Site: The insurance policy covers the cost of the wedding getting cancelled in case the ceremony and
reception site is shut down, damaged or become inaccessible. The site could become inaccessible if the
way is blocked by an ice storm.
Weather: The policy covers losses resulting from the cancellation of the ceremony due to extremely
bad weather conditions, which prevent the bride, bridegroom or key relatives from reaching the
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wedding premises. In this case, this insurance covers expenses involved in rescheduling the event and
arranging for ceremony flowers, reception food and tent rental.
Sickness or Injury: This policy also covers the cancellation or postponement of the ceremony in case the
bride, bridegroom or key relatives get injured or fall sick.
No Show of Service Providers: A wedding may have to be cancelled or postponed in case some essential
service provider, such as the officiate or the caterer, does not show up.
.8-Dental insurance
If you opt for an Indian dental insurance plan, the costs incurred due to dental care would be paid
for by the insurer. The Indian dental insurance sector is in its nascent stages and currently only a handful
of dental insurance plans are available on a stand alone basis. A dental plan offers cover against sudden
financial hardship due to dental emergencies
Unlike most western countries, specific dental insurance plans are not common in India. In India,
oral health is normally integrated with the general health insurance schemes. However, some popular
tooth care product companies have forged tie ups with general or health insurance companies to produce
dental insurance products. The efforts of the Indian Dental Association to bring out a comprehensive
Indian dental insurance scheme have seen partial success so far.
Types of Indian Dental Insurance Plans
Indian dental insurance plans are mainly of two types:
Stand alone dental insurance plan:
This type of plan covers the expenses related to general dental problems, such as periodontitis and
extraction of permanent teeth due to ailments such as caries. In this plan, the amount of expense to be
reimbursed as well as the period of such cover is fixed. This type of plan is generally provided by the
popular dental care product companies in association with one of the insurance companies.
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Dental insurance cover as part of general health insurance plan:
This type of dental insurance is provided by the general insurance companies as part of their own
general health insurance schemes, such as health advantage policy or student medical policy. Through
this scheme, one can claim dental expenses along with the other kinds of reimbursements, such as the
cost of medicines or hospitalization. This plan also offers tax benefits up to a certain fixed amount under
the income tax act .
Dental insurance is one of the major areas of medical insurance in the western world. Almost all the
developed countries in the western hemisphere have a substantial population of their covered under the
scheme of dental insurance. As a part of the medical coverage, dental insurance in India though is yet to
be widespread. However, in keeping with the increasing awareness of the need for dental insurance and
coverage, the process has started. More and more people today are opting for dental insurance in India.
Similarly, new and new policies are being framed by the medical insurance companies in India who
offer the policy of dental insurance.
Dental insurance in India are nowadays being offered by a number of companies. While each of the
insurance providers has different terms and riders to the dental insurance coverage, broadly the
insurance companies ensure that the insured individuals do not have to make the payments directly to
the medical care institutions. The said member institution or the health center will have to offer a
discount on the dental treatment to the insured ones who are covered under the policy of dental
insurance coverage in India.
9- Reinsurance
The sharing ofinsurance policies among multipleinsurers, to reduce the riskfor each.
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Practice where an insurance company (the insurer)transfers a portion of its risks to another (the
reinsurer).Legal rights of thepolicyholders (insureds) are in no way affected by reinsurance, and the
insurer remains liable to the insureds forinsurance policybenefits and claims.
The General Insurance Corporation of India was incorporated in the year 1972 under the
company's act 1956 as a private company. In November 2000, the company was approved as the "Indian
Reinsurer". Since then the General Insurance Corporation of India has been providing reinsurance
supports to public sector as well as to other private general Insurance Companies.
General Insurance Corporation of India, a reinsurer, provides reinsurance and risk management
solutions. The company offers domestic reinsurance in the areas of property, marine, engineering,
motor, rotor and fixed wing aviation, liability, aviation hull, and spares; and international reinsurance in
the areas of treaty and facultative businesses. It also provides domestic reinsurance in the form of
obligatory cessions, company surplus treaties, market surplus treaties, excess of loss protection to direct
writing companies, and facultative acceptances. The company serves direct general insurance companies
in the Indian market, as well as in SAARC countries, South East Asia, the Middle East, and Africa.
General Insurance Corporation of India was incorporated in 1972 and is based in Mumbai, India with
liaison/representative/branch offices in London, the United Kingdom; and Moscow, the Russian
Federation.
It is a financial management tool.It is always behind the high quality insurance program or a
complex commercial risk of any good insurer.
Reinsurance industries are maintaining upward surge all round growth, both in the domestic and global
fronts in the last few years. The untapped, both in life and non life insurance, particularly in growing
economies like India and china, is the center of attraction to leading players in insurance and
reinsurance, thanks to globalizations and liberalizations of financial services particularly in last decades.
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It is a tool of risk management, mutually support and supplement each other in providing risk
mitigation to the individuals and organizations at micro level and to the country. Reinsurance is
instrument of risk transfer and risk financing
B -Non- life Insurance Policy
1 -Fire Insurance
Types of Fire Insurance Policy
Specific Policy
In this type of policy, the insurance company is liable to pay a sum, which may be less than the
property's real value. The insured is called to bear a part of the loss, as the actual value of the property is
not considered in deciding the amount of indemnity. This is a case of under-insurance of property.
Comprehensive Policy
Known as "all-in-one" policy, the insurance company indemnifies the policyholder for loss arising
out of fire, burglary, theft and third party risks. In this type of policy, the policyholder also gets paid for
loss of profits incurred, due to fire, till the time the business remains shut.
Valued Policy
In this type of policy, the value of the commodity is already set and actual loss is not taken into
consideration. The policy follows a standard contract of indemnity, wherein the policyholder gets paid a
specific amount of indemnity, without considering the actual loss.
Replacement or Re-instatement Policy
As per replacement or re-instatement policy, the insurance company instead of paying the
policyholder the amount of indemnity in cash, replaces the damaged property/commodity with a new
one.
2 - Marine Insurance
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It covers the loss or damage of ships, cargo, terminals, and any transport or property by which
cargo is transferred, acquired, or held between the points of origin and final destination.
Types of Marine Insurance Policy
Marine Cargo Insurance Policy
The policy covers all types of Cargo in respect of your Imports, Exports and Inland Transits
through, Rail, Road, Sea. Air, Government and Private Postal Services etc. . Policy insures physical loss
or damage to the goods in transit by road, rail, air, water caused due to accidents, fire etc.
Marine Inland Transit Insurance Policy
Inland marine insurance is an insurance instrument which is designed to protect property while in
transit, along with high-value mobile items like silverware and tools. Despite the rather peculiar
name, inland marine insurance is actually a very useful type of insurance, and it is commonly
recommended to business owners, especially people who need to travel for work or people who work
with high-value items. Many insurance companies offer this type of policy, and can discuss options with
their clients. This type of insurance is typically purchased as a supplement to an
existing insurance policy.
Marine Hull
Marine Hull Insurance covers loss or damage to hull and machinery. The hull is the structure of
the vessel. Machinery is the equipment that generates the power to move the vessel and control the
lighting and temperature system such as boiler, engine, cooler and electricity generator. Policy insures
marine ships,steamers.
3 - Motor Insurances
Liability only motor policy -
Mandatory motor vehicle policy
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Package motor policy
Motor policy additionally insures loss and damage of the motor vehicle due to theft and
accidents along with third party risk is called a package motor policy.
4 - Engineering Insurances
Machinery Breakdown Insurance
This policy cover's the insured machineries entered in the Schedule, against any unforeseen and
sudden physical loss or damage from causes such as defects in casting and material, faulty design, faults
at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers,
physical explosion, tearing apart on account of centrifugal force, short circuit, storm, or from any other
cause not specifically excluded.
Electronic Equipment Insurance
This policy covers the insured electronic equipment whether are at work or at rest, or being
dismantled for the purpose of cleaning, overhauling or of being shifted within the premises, or in the
course of the aforesaid operations themselves, or during subsequent re-erection, this cover applies after
successful commissioning .
Contractors Plant & Machinery Insurance [CP&M]
This policy is the appropriate cover for heavy machineries/construction Machineries and any other
item entered in the Policy Schedule, against any unforeseen and sudden physical loss or damage from
any cause not specifically excluded whilst at the location or in the geographical area mentioned in the
schedule.
Contractors All Risk Insurance (CAR)-
This type of insurance is the perfect cover for all kinds of construction projects such as buildings,
roads, bridges etc.This Policy will cover the policyholder against any unforeseen and sudden physical
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loss or damage from any cause, other than those specifically excluded, to the project's property
specified in the policy schedule In addition to indemnify the insured in respect of his legal liability
toward third parties for accidental bodily injury to or illness and / or Accidental loss of or damage to
property belonging to third parties occurring in connection with the construction works
Boiler and Pressure Vessel Insurance
This policy will provide the cover for the insured's Boilers and Pressure Vessels against damages
(other than by fire), and the cover is extended to include legal liability of the Insured for damage to
property not belonging to the Insured, in addition to the legal liability of the Insured on account of fatal
or non-fatal injuries to any persons other than the Insureds own employees or workmen or members of
the Insureds family, caused by and solely due to explosion or collapse of the insured items whilst in the
course of ordinary working
Erection All Risk Insurance (EAR ]-
This type of insurance concerning all kinds of Erection projects such as machineries erection,
heavy equipment installation process extended to include testing and commissioning works.This Policy
will cover the policyholder against any unforeseen and sudden physical loss or damage from any cause,
other than those specifically excluded, to the project's property specified in the policy schedule In
addition to indemnify the insured in respect of his legal liability toward third parties for accidental
bodily injury to or illness and / or Accidental loss of or damage to property belonging to third parties
occurring in connection with the erection works.
5 - Health insurance
Catastrophic health insurance -
It is amongst the least expensive forms of health insurance.These policies are only suitable for
individuals with the financial means to handle routine illnesses and hospitalizations
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Short-term health insurance
It is similar to term life insurance in that it can only be purchased for a specific period of time.
Coverage provided by the policies ranges from catastrophic to comprehensive, with the latter
considerably more expensive. Short-term health insurance often comes with strict qualifying procedures
and may not cover pre-existing medical conditions. In particular, pregnancy and childbirth are not
usually covered by these policies.
A Preferred Provider Organization (PPO)
It is a health insurance plan where medical treatment is fully covered if provided by a doctor or
hospital belonging to the PPO's network of health care providers. Treatment performed outside the
network is also covered, but at a reduced rate. Policy holders are liable for any differences if seeking out
of network treatment. PPOs are essentially a group discount form of health insurance; by maintaining
administrative control over a group of doctors and hospitals, PPOs are able to provide medical care at a
discount. PPOs generally require prior approval before allowing majormedical services.
Health Maintenance Organizations (HMOs)
It greatly restricts who a patient may see for non-emergency medical services. The advantage is a
significantly lower premium. HMOs have generated considerable controversy, as in many plans doctors
receive financial incentives for reducing the amount of medical services provided to patients. One
method of doing this has been to pay doctors a fixed monthly fee for each patient, regardless of the
treatment they need. HMOs do tend to cover more preventive procedures such as immunizations,
mammograms and physicals.
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Full-service health insurance
It is also widely available, at considerable expense. These policies cover all illnesses, allow
treatment virtually anywhere, and come with deductibles as high or as low as policy holders are willing
to pay for. At the other end of the health insurance spectrum, Medicare/Medicaidis a form ofpublic
health insuranceavailable to retirees and low-income individuals.
6 - Travel Insurance
Single Trip Travel Insurance
Single trip travel insurance covers you and your family for a single trip or holiday you intend to
travel. It includes the basic cover of trip cancellation/interruption and medical travel insurance for the
period of your travel which is limited by some companies. The additional coverage is offered as a part of
packages or is your choice to include.
Annual Travel Insurance/Multi Trip Travel Insurance
Annual travel insurance policy is for frequent travelers. This is for the traveler who goes on
holidays for more than one trip a year. The lower limit for days of travel and the number of trips are
specified by some companies. Those opting for this policy can avail great discount and other additional
coverage like business cover, golf cover, winter holidaying and sport included in some packages.
Long Stay Travel Insurance
A long stay travel insurance policy which offers a duration of 3 to 18 months is ideal for travelers
who take long vacations and travel extensively. Some go to visit relatives and stay for long periods of
time with them. It offers the basic travel insurance coverage's and you can always choose other
additional cover.
Medical Travel Insurance
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Medical travel insurance policy covers health related items that occur during the term of the
policy and not already existing ailments. The applicant needs to declare pre-existing medical condition
before travel and in case of any pre-existing ailments there is a separate package that involves pre-
existing medical travel insurance. If any information as to a pre-existing situation is concealed you
cannot claim for insurance if any symptom related to the pre-existing ailment occurs.
Cruise Travel Insurance
Are you traveling by sea in a registered cruise liner or any other mode of water transport? Topical
storms or hurricanes can play havoc and may require your trip to be cancelled. If you or your family's
journey is to the Pacific islands or the Caribbean's and you have to travel by a cruise your travel can be
insured by cruise travel insurance. Sometimes you are insured by the company that owns the cruise. You
could also avail the offer by some other travel insurance companies. The travel may be long or just for a
few hours to a few days. The costs would depend on the duration of travel.
Group Travel Insurance
Going as a group is great fun. You could be just friends going for a long vacation or a part of a
pilgrimage or a social club or any other group going on a tour. Each member getting an insurance policy
is cumbersome and involves a lot of paperwork. Group travel insurance is an offer that provides cover
for the entire group. By taking a voluntary/mandatory group travel insurance you can be assured that
those who opt for the travel insurance or all of you are safe from mishaps that occur during your travel.
Business Travel Insurance
If you own a business and your employees need to undertake travel on a regular basis you can
consider going for a business travel insurance policy. Many employers take care of the employees who
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travel through group insurance policy. Employees therefore overlook travel insurance only to have
found later that their travel was not insured and the loss they incurred cannot be compensated. Another
common mistake is not including business travel in the annual travel insurance policy.
7-Rural Insurance
Cattle policy
This policy covers indigenous cross bred and exotic cattle owned by private owners, various
financial institutions, dairy farms, cooperatives, corporate dairies etc. The word cattle includes Milch,
Cows and Buffaloes calves and heifers, stud bulls, bullocks and he-buffaloes and mithuns. Age group is
specified for all the animals. The evaluation of the animal isdone by a veterinary surgeon
Poultry policy
The policy shall provide indemnity against death of birds due to accident (including fire,
lightning, flood, cyclone, strike, riot and civil commotion and terrorism) or diseases contracted or
occurring during the period of insurance. The word Poultry includes layers, broilers and hatchery birds,
which are exotic and cross-bred.Indigenous and non-descript birds will not be insured
KISAN AGRICULTURAL PUMPSET INSURANCE
This policy applies to Centrifugal Pumpsets (Electrical & Diesel) and submersible pumpsets upto
25 H.P. capacity used for Agricultural purposes only. Cover is granted
against fire and/or lightening, theft/burglary (due to violent forcible entry and provided the pumpset is
kept in a locked enclosure), mechanical/electric breakdown, riot, strike,malicious damage, terrorism.
Flood risk can be covered by payment of additional premium.
8-Home insurance
Home insurance policy available in the market covers broadly two things:
a- Building structure b- Contents inside the home
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Insurance Covers for a Building Structure are
1- This is a comprehensive packaged that covers damages to the structure of home due to
Fire
Storm, tempest, flood & inundation
Riot, strike & malicious damage
Lightning
Explosion & implosion
Aircraft damage
Damage due to impact by vehicles
Subsidence, landslides and rockslides
Bursting and/or overflowing of water tanks, apparatus and pipes
Missile testing operation
Leakage from automatic Sprinkler installations
Bush fire
2. Earthquake Cover It Covers damages to the structure of your house due to earthquake .
3. Terrorism Cover It Covers damages to the structure of your house due to acts of terrorism
A home insurance does not cover the market value of the home. The price of the home includes
the cost of the land and the cost of constructing the building structure on this land and the land cannot be
insured. The insurance cover is only for the cost of constructing the building. The