Frequently Asked Questions

Insurance is a protection against financial loss arising from the occurrence of unexpected events or possible eventualities. It is an arrangement by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.

Insurance is protection against the occurrence of unforeseen incidents. Insurance products help in not only mitigating risks but also help by providing a financial cushion against adverse financial burdens. Accidents and mishaps can occur anytime and anywhere. It is important to identify the risks faced and insure oneself against these at the earliest possible point.

Accidents, illness, fire and financial losses are the things most people worry about. General Insurance provides the much needed protection against unforeseen events that may impact the above. General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.

It is very important to have an adequate amount of coverage for each insurance policy. For any asset or property insurance, the value of the asset based on market value or reinstatement value should be taken into consideration before deciding the Sum Insured. If the Sum Insured is not adequate, the percentage representing the uncovered portion of the asset is to be borne by the insured.

Almost everything that has a financial value in your life and has a probability of getting lost, stolen or damaged, can be covered through insurance. Property (both movable and immovable), vehicle, cash, household goods, illness, dishonesty and also your liability towards others can be covered.

A Premium is the fixed amount of a sum paid over a specified period by the insured to the insurance company to take out an insurance policy and to complete the contract of insurance.

Insurance is a contract between the insured and the insurer. The proposal form is the basis of the contract and it contains all the required information for the preparation of the policy which is a contract document.

It is the consideration of material fact to asses risk and to take decisions about whether to accept a given risk for an insurance contract and if so at what rate of premium.

The amount, which the insured has to bear in all cases and this amount is first, deducted from the total assessed payable claims amount before determining an insurance company's liability.

Reinsurance is an arrangement by which insurance companies spread their risk with other underwriters or reinsurance companies called Reinsurers.

There are two policies: Motor Liability Only Policy and Motor Package Policy.

As per Motor Vehicle Act, it is mandatory to have Motor Liability Policy for covering Third Party.

The Owners' liability towards Third Party Personal Injury and Property Damage.

This type of policy covers all the risks covered under Motor Liability policy plus loss or damage caused to the vehicle due to: Accident, Fire, Explosion, Self Ignition, Lighting, Burglary, House Breaking, Theft, Riots & Strikes, Earthquakes, Flood, Typhoon, Hurricane, Storm, Cyclones, Malicious Acts, Terrorism, Transit by rail/road, air and waterways and also include towing charges.

Damage caused due to:
Driver being under intoxication, Vehicle being driven by a person not holding an effective valid license, Damage to tyres (unless the vehicle is damaged at the same time), Wear and tear and mechanical breakdown damages.

Copy of claim intimation given to insurer with photocopy of policy and premium receipt, duly filled Claim Form, Driving License, Registration Certificate of Vehicle, Estimate of repairs from repairer and stamped receipt, Bills and Cash Memo of repairs, verification of road tax, Police Report, Permit and Fitness Certificate and any other documents deemed necessary for the situation.

• Yes - In case of Approved Garage
• No - In case of any other Garage

Compulsory excess, Reasonable value of salvage if not surrendered to insurer and depreciation.

Insurance policies like Standard Fire & Special Perils Policy, Marine (Cargo), Marine (Hull), Engineering and Burglary Insurance policies cover various types of properties.

Building, Machinery & Equipment, Furniture, fixture & fittings and Stocks.

Fire, Lightning, Explosion/Implosion, Aircraft Damage, Storm, Cyclone, Riot, Strike, Malicious Damage, Impact Damage, Subsidence, Land Slide, Missile Testing Operation, Bush Fire etc.

The insurance of goods in transit from one place to another by any single mode or combined modes of sea, rail, road, air and inland waterways.

It covers loss/damage suffered to a ship and machinery of vessel.

Two broad groups of Engineering polices are available for industries

• Construction Phase Contractor's All Risk Insurance, Erection All Risk Insurance, Marine-Cum-Erection Insurance, Contracts Works Insurance and Delay in start-up Insurance.
• Operational Phase Machinery Breakdown Insurance, Boiler & Pressure Plant Insurance, Machinery Loss of Profit Insurance, Contractor’s Plant and Machinery Insurance, Civil Engineering Completed Risk, Electronic Equipment and Deterioration of Stock Insurance.

Burglary insurance covers theft of property after actual forcible and violent entry or exit.

The Domestic Insurance Policy is the best suited as it covers most of the risks faced by a household.