How to Comply with complexities in General Insurance Policies & Practices - Part 1 discussed by CA. Saripalli Venkata Raman.
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Certain fundamental aspects of general insurance:-
1. Insurable Interest.
2. Insurance is not to make profits.
3. Insurance is generally at Cost except a few exceptions.
4. Subrogation rights vest with insurance.
5. Utmost good faith.
6. Principle of Indemnity of losses.
7. Disclosure of all material facts.
Certain terminology for understanding insurance contracts :-
1. INSURANCE PREMIUM
(a) Underwriting risk assessment.
(b) No claim bonus – reduction in premium.
© Factors reducing risk, reduces the premium
2. INSURANCE CLAIM.
3. INSURANCE LOSS ASSESSOR.
4. IN CLAIM SETTLEMENT TEMINOLOGY
(a) EXCESS – amount born by the insured.
(b) Salvage value.
TYPES OF INSURANCE POLICES :-
FIRE POLICY COVERING ALL ASSETS.
BURGLARY POLICY
MONEY POLICY
FIDELITY POLICY
GOODS IN TRANSIT POLICY
OFFICE CONTENTS POLICY
BUSINESS ALL RISKS COVER
ELECTRONIC EQUIPMENT POLICY
SHOP KEEPERS POLICY
LOSS OF PROFITS COVER
WORKMAN’S COMPENSATION COVER
PUBLIC LIABILITY COVER
MOTOR INSURANCE POLICY
HOUSEHOLDERS INSURANCE POLICY
CONTRACTORS ALL RISK POLICY.
MACHINERY POLICES.
Insurance coverage of assets:-
FIRE Policy is an important policy to insure all the business assets. Buildings, Plant & Machinery, Furniture & other assets, stocks., Computers Equipments, etc of any business undertaking can be insured against fire perils. It covers a specific location.
BURGLARY Policy is also important for business undertakings. It covers a specific location.
NOTE : If you are insured against fire perils, you are NOT at all covered for Burglary and vice versa.
So you need both these covers.
FIDELITY INSURANCE COVER – This covers misappropriation of goods and money by the so called trusted employees of the business undertaking. Remember that Burglary is done by outsiders and not by staff.
MARINE CARGO POLICY : This policy is a must for all business undertakings for the goods transported into the factory and also for goods transported out of the factory either by rail, bus, truck, ship, boat , or by flight.
ELECTRONIC EQUIPMENT POLICY : is necessary for all computers and accessories. They cannot be covered under office equipments. Premium varies.
OFFICE CONTENTS POLICY : Covering at a specified location all office equipments and office furniture excluding COMPUTER equipments. Risk insured against fire and burglary (if requested upon and additional premium is paid).
BUSINESS ALL RISKS : This cover is required for all electronic equipments which are carried from place to place.
BUSINESS ALL RISKS COVER : Under this cover, all risks of loss or damage to any of the assets insured under this category anywhere in the world are insured. Risk location is “ANY WHERE IN THE WORLD”.
PUBLIC LIABILITY COVER : To cover risks to the customers of the business or anyone working in the office. For example , a customer slips and falls in your shop . He files a suit for damages.
CONTRACTORS ALL RISK COVER : For Building contractors, builders , Sub Contractors , this cover is very essential. During construction / after construction, a certain portion of building collapses, you can claim compensation only under this policy.
WORKMAN INSURANCE POLICY : To compensate injured workman during work in the factory or work place.
MOTOR INSURANCE POLICY : For all motor vehicles used in business. Coverage is as under :
MACHINERY POLICIES : Specific policies with additional coverages available for industries.
LOSS OF PROFITS COVER : Due to devastating fire, factory is burnt, production stopped. Obviously, there is loss of sales and loss of profits. This of loss profits can be covered for maximum of 6 months or till the factory commences operations.
DISCLAIMER :-
This Video is for the purposes of information / knowledge and shall not be treated as solicitation in any manner or of for any other purposes whatsoever.
It shall not to be used for any legal advice /opinion and shall not to be used to rendering any professional opinion. Viewers are advised to kindly go through to original Government publications / notifications and published case laws or judicial pronouncements.
The statements and opinions expressed in video are those of the speaker and do not necessarily reflect those of the CA Sansaar or any of its employees. CASansaar Team does not take any responsibility for the views of the Speaker.
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