GENERAL
1WHAT IS INSURANCE?
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.
2WHY DO I NEED INSURANCE?
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.
3WHAT DOES GENERAL INSURANCE DO FOR ME?
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.
4HOW MUCH INSURANCE DO I NEED?
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.
5WHAT CAN I GET COVERED UNDER INSURANCE?
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.
6WHAT IS A PREMIUM?
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.
7WHY DO I NEED TO FILL OUT A PROPOSAL FORM FOR BUYING 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.
8WHAT IS UNDERWRITING?
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.
9WHAT IS A DEDUCTIBLE?
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.
10WHAT IS REINSURANCE?
Reinsurance is an arrangement by which insurance companies spread their risk with other underwriters or reinsurance companies called Reinsurers.
VEHICLES
1WHAT ARE THE POLICIES AVAILABLE FOR COVERING THE VEHICLES?
There are two policies: Motor Liability Only Policy and Motor Package Policy.
2IS IT MANDATORY TO HAVE INSURANCE FOR VEHICLES OPERATING ON PUBLIC ROADS?
As per Motor Vehicle Act, it is mandatory to have Motor Liability Policy for covering Third Party.
3WHAT IS COVERED UNDER LIABILITY ONLY POLICY?
The Owners' liability towards Third Party Personal Injury and Property Damage.
4WHAT DOES MOTOR PACKAGE POLICY COVER?
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.
5WHAT ARE THE EXCLUSIONS UNDER THE MOTOR PACKAGE POLICY?
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.
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.
6WHAT DOCUMENTS ARE REQUIRED AT THE TIME OF MAKING A CLAIM?
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.
7CAN THE AMOUNT BE PAID DIRECTLY TO THE REPAIRER?
- Yes - In case of Approved Garage
- No - In case of any other Garage
8WHAT IS THE AMOUNT I HAVE TO BEAR?
Compulsory excess, Reasonable value of salvage if not surrendered to insurer and depreciation.
PROPERTY
1WHAT ARE THE INSURANCE POLICIES THAT COVER PROPERTY?
Insurance policies like Standard Fire & Special Perils Policy, Marine (Cargo), Marine (Hull), Engineering and Burglary Insurance policies cover various types of properties.
2WHAT KIND OF PROPERTIES CAN BE COVERED UNDER STANDARD FIRE & SPECIAL PERILS POLICY?
Building, Machinery & Equipment, Furniture, fixture & fittings and Stocks.
3WHAT TYPES OF RISKS ARE COVERED UNDER FIRE POLICY?
Fire, Lightning, Explosion/Implosion, Aircraft Damage, Storm, Cyclone, Riot, Strike, Malicious Damage, Impact Damage, Subsidence, Land Slide, Missile Testing Operation, Bush Fire etc.
4WHAT IS MARINE (CARGO) INSURANCE?
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.
5WHAT IS COVERED UNDER MARINE (HULL) INSURANCE?
It covers loss/damage suffered to a ship and machinery of vessel.
6WHAT TYPES OF COVER ARE AVAILABLE FOR INDUSTRIES AND CIVIL CONSTRUCTION?
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.
7WHAT DOES BURGLARY INSURANCE COVER?
Burglary insurance covers theft of property after actual forcible and violent entry or exit.
8WHICH POLICY IS BEST SUITED TO COVER HOUSEHOLDS?
The Domestic Insurance Policy is the best suited as it covers most of the risks faced by a household.