INTRODUCTION OF INSURANCE

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972,
Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other
related Acts. With such a large population and the untapped market area of this
population Insurance happens to be a very big opportunity in India. Today it stands
as a business growing at the rate of 15-20 per cent annually. Together with banking
services, it adds about 7 per cent to the country’s GDP .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor. Nearly
80% of Indian populations are without Life insurance cover and the Health
insurance. This is an indicator that growth potential for the insurance sector is
immense in India. It was due to this immense growth that the regulations were
introduced in the insurance sector and in continuation “Malhotra Committee” was
constituted by the government in 1993 to examine the various aspects of the
industry. The key element of the reform process was Participation of overseas
insurance companies with 26% capital. Creating a more efficient and competitive
financial system suitable for the requirements of the economy was the main idea
behind this reform. Since then the insurance industry has gone through many sea
changes. The competition LIC started facing from these companies were
threatening to the existence of LIC .since the liberalization of the industry the
insurance industry has never looked back and today stand as the one of the most
competitive and exploring industry in India. The entry of the private players and the
increased use of the new distribution are in the limelight today. The use of new
distribution techniques and the IT tools has increased the scope of the industry in
the longer run.
HISTORY OF INSURANCE SECTOR

India had the nineteenth largest insurance market in the world in 2003. Strong
economic growth in the last decade combined with a population of over one billion
makes it one of the potentially largest markets in the future. Insurance in India has
gone through two radical transformations. Before 1956, insurance was private with
minimal government intervention. In 1956, life insurance was nationalized and a
monopoly was created. In 1972, general insurance was nationalized as well.255 But,
unlike life insurance, a different structure was created for the industry. One holding
company was formed with four subsidiaries. As a part of the general opening up of
the economy after 1992, a government-appointed committee recommended that
private companies should be allowed to operate. It took six years to implement the
recommendation. The private sector was allowed into the insurance business in
2000. However, foreign ownership was restricted. No more than 26 percent of any
company can be foreign-owned.

The term general insurance is used in Britain and other Commonwealth countries.
Elsewhere, the equivalent term is property-casualty insurance or non-life
insurance.ndian Insurance Market – History

Insurance has a long history in India. Life Insurance in its current form was
introduced in 1818 when Oriental Life Insurance Company began its operations in
India. General Insurance was however a comparatively late entrant in 1850 when
Triton Insurance company set up its base in Kolkata. History of Insurance in India
can be broadly bifurcated into three eras: a) Pre Nationalisation b) Nationalisation
and c) Post Nationalisation. Life Insurance was the first to be nationalized in 1956.
Life Insurance Corporation of India was formed by consolidating the operations of
various insurance companies. General Insurance followed suit and was nationalized
in 1973. General Insurance Corporation of India was set up as the controlling body
with New India, United India, National and Oriental as its subsidiaries. The process
of opening up the insurance sector was initiated against the background of
Economic Reform process which commenced from 1991. For this purpose
Malhotra Committee was formed during this year who submitted their report in
1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999.
Resultantly Indian Insurance was opened for private companies and Private
Insurance Company effectively started operations from 2001.
Insurance Market- Present

The insurance sector was opened up for private participation four years ago. For
years now, the private players are active in the liberalized environment. The
insurance market have witnessed dynamic changes which includes presence of a
fairly large number of insurers both life and non-life segment. Most of the private
insurance companies have formed joint venture partnering well recognized foreign
players across the globe.

There are now 29 insurance companies operating in the Indian market – 14 private
life insurers, nine private non-life insurers and six public sector companies. With
many more joint ventures in the offing, the insurance industry in India today stands
at a crossroads as competition intensifies and companies prepare survival strategies
in a detariffed scenario.

There is pressure from both within the country and outside on the Government to
increase the foreign direct investment (FDI) limit from the current 26% to 49%,
which would help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed.
Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has
issued the first licence for a standalone health company in the country as many
more players wait to enter. The health insurance sector has tremendous growth
potential, and as it matures and new players enter, product innovation and
enhancement will increase. The deepening of the health database over time will also
allow players to develop and price products for larger segments of society.

State Insurers Continue To Dominate There may be room for many more players in
a large underinsured market like India with a population of over one billion. But the
reality is that the intense competition in the last five years has made it difficult for
new entrants to keep pace with the leaders and thereby failing to make any impact
in the market.

Also as the private sector controls over 26.18% of the life insurance market and
over 26.53% of the non-life market, the public sector companies still call the shots.

The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a
share of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers – New India Assurance, National
Insurance, Oriental Insurance and United India Insurance – had a combined market
share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company
continues to lead the private sector with a 7.26% market share in terms of fresh
premium, whereas ICICI Lombard General Insurance Company is the leader among
the private non-life players with a 8.11% market share. ICICI Lombard has focused
on growing the market for general insurance products and increasing penetration
within existing customers through product innovation and distribution.

Reaching Out To Customers No doubt, the customer profile in the insurance

industry is changing with the introduction of large number of divergent
intermediaries such as brokers, corporate agents, and bancassurance.

The industry now deals with customers who know what they want and when, and
are more demanding in terms of better service and speedier responses. With the
industry all set to move to a detariffed regime by 2007, there will be considerable
improvement in customer service levels, product innovation and newer standards of
underwriting.

Intense Competition In a de-tariffed environment, competition will manifest itself

in prices, products, underwriting criteria, innovative sales methods and
creditworthiness. Insurance companies will vie with each other to capture market
share through better pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the next few years,
increased competition will drive insurers to rural and semi-urban markets.

Global Standards While the world is eyeing India for growth and expansion, Indian
companies are becoming increasingly world class. Take the case of LIC, which has
set its sight on becoming a major global player following a Rs280-crore investment
from the Indian government. The company now operates in Mauritius, Fiji, the UK,
Sri Lanka, Nepal and will soon start operations in Saudi Arabia. It also plans to
venture into the African and Asia-Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a series
of catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfully

managed to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurance
premiums being 0.65% of GDP, the opportunities in the Indian market place is
immense. The next five years will be challenging but those that can build scale and
market share will survive and prosper.
LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956 by an

Act of Parliament, viz., Life Insurance Corporation Act, 1956, with capital
contribution from the Government of India. The then Finance Minister, Shri C.D.
Deshmukh, while piloting the bill, outlined the objectives of LIC thus: to conduct
the business with the utmost economy, in a spirit of trusteeship; to charge premium
no higher than warranted by strict actuarial considerations; to invest the funds for
obtaining maximum yield for the policy holders consistent with safety of the
capital; to render prompt and efficient service to policy holders, thereby making
insurance widely popular.

Since nationalisation, LIC has built up a vast network of 2,048 branches, 100
divisions and 7 zonal offices spread over the country. The Life Insurance
Corporation of India also transacts business abroad and has offices in Fiji,
Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the
field of insurance, namely, Ken-India Assurance Company Limited, Nairobi;
United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance
Corporation (International) E.C. Bahrain. The Corporation has registered a joint
venture company in 26th December, 2000 in Kathmandu, Nepal by the name of
Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group
Limited, a local industrial Group. An off-shore company L.I.C. (Mauritius) Off-
shore Limited has also been set up in 2001 to tap the African insurance market.
Some Areas of Future Growth

Life Insurance

The traditional life insurance business for the LIC has been a little more than a
savings policy. Term life (where the insurance company pays a predetermined
amount if the policyholder dies within a given time but it pays nothing if the
policyholder does not die) has accounted for less than 2% of the insurance premium
of the LIC (Mitra and Nayak, 2001). For the new life insurance companies, term
life policies would be the main line of business.

Health Insurance

Health insurance expenditure in India is roughly 6% of GDP, much higher than

most other countries with the same level of economic development. Of that, 4.7% is
private and the rest is public. What is even more striking is that 4.5% are out of
pocket expenditure (Berman, 1996). There has been an almost total failure of the
public health care system in India. This creates an opportunity for the new
insurance companies.

Thus, private insurance companies will be able to sell health insurance to a vast
number of families who would like to have health care cover but do not have it.

Pension

The pension system in India is in its infancy. There are generally three forms of
plans: provident funds, gratuities and pension funds. Most of the pension schemes
are confined to government employees (and some large companies). The vast
majority of workers are in the informal sector. As a result, most workers do not
have any retirement benefits to fall back on after retirement. Total assets of all the
pension plans in India amount to less than USD 40 billion.
Therefore, there is a huge scope for the development of pension funds in India. The
finance minister of India has repeatedly asserted that a Latin American style reform
of the privatized pension system in India would be welcome (Roy, 1997). Given all
the pros and cons, it is not clear whether such a wholesale privatization would
really benefit India or not (Sinha, 2000).
MARKET SHARE OF INDIAN INSURANCE INDUSTRY

The introduction of private players in the industry has added value to the industry.
The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LIC. Since the advent
of the private players in the market the industry has seen new and innovative steps
taken by the players in this sector. The new players have improved the service
quality of the insurance. As a result LIC down the years have seen the declining
phase in its career. The market share was distributed among the private players.
Though LIC still holds the 75% of the insurance sector but the upcoming natures of
these private players are enough to give more competition to LIC in the near future.
LIC market share has decreased from 95% (2002-03) to 81 %( 2004-05).The
following companies has the rest of the market share of the insurance industry.
Table 3 shows the mane of the player in the market.

PRESENT SCENARIO OF INSURANCE INDUSTRY

• India with about 200 million middle class household shows a huge untapped
potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for
global insurance majors. The insurance sector in India has come to a position
of very high potential and competitiveness in the market. Indians, have
always seen life insurance as a tax saving device, are now suddenly turning
to the private sector that are providing them new products and variety for
their choice.

• Consumers remain the most important centre of the insurance sector. After
the entry of the foreign players the industry is seeing a lot of competition and
thus improvement of the customer service in the industry. Computerisation of
 operations and updating of technology has become imperative in the current
scenario. Foreign players are bringing in international best practices in
service through use of latest technologies

• The insurance agents still remain the main source through which insurance
products are sold. The concept is very well established in the country like
India but still the increasing use of other sources is imperative. At present the
distribution channels that are available in the market are listed below.

 Direct selling

Corporate agents

Group selling

Brokers and cooperative societies

Bancassurance

• Customers have tremendous choice from a large variety of products from

pure term (risk) insurance to unit-linked investment products. Customers are
offered unbundled products with a variety of benefits as riders from which
they can choose. More customers are buying products and services based on
their true needs and not just traditional moneyback policies, which is not
considered very appropriate for long-term protection and savings. There is
lots of saving and investment plans in the market. However, there are still
some key new products yet to be introduced - e.g. health products.

• The rural consumer is now exhibiting an increasing propensity for insurance

products. A research conducted exhibited that the rural consumers are willing
to dole out anything between Rs 3,500 and Rs 2,900 as premium each year.
In the insurance the awareness level for life insurance is the highest in rural
India, but the consumers are also aware about motor, accidents and cattle
insurance. In a study conducted by MART the results showed that nearly one
third said that they had purchased some kind of insurance with the maximum
penetration skewed in favor of life insurance. The study also pointed out the
private companies have huge task to play in creating awareness and
credibility among the rural populace. The perceived benefits of buying a life
policy range from security of income bulk return in future, daughter's
marriage, children's education and good return on savings, in that order, the
study adds.
APPLICATION OF INFORMATION TECHNOLOGY IN
INSURANCE SECTOR

There is a evolutionary change in the technology that has revolutionized the entire
insurance sector. Insurance industry is a data-rich industry, and thus, there is a need
to use the data for trend analysis and personalization.

With increased competition among insurers, service has become a key issue.
Moreover, customers are getting increasingly sophisticated and tech-savvy. People
today don’t want to accept the current value propositions, they want personalized
interactions and they look for more and more features and add ones and better
service

The insurance companies today must meet the need of the hour for more and more
personalized approach for handling the customer. Today managing the customer
intelligently is very critical for the insurer especially in the very competitive
environment. Companies need to apply different set of rules and treatment
strategies to different customer segments. However, to personalize interactions,
insurers are required to capture customer information in an integrated system.

With the explosion of Website and greater access to direct product or policy
information, there is a need to developing better techniques to give customers a
truly personalized experience. Personalization helps organizations to reach their
customers with more impact and to generate new revenue through cross selling and
up selling activities. To ensure that the customers are receiving personalized
information, many organizations are incorporating knowledge database-repositories
of content that typically include a search engine and lets the customers locate the all
document and information related to their queries of request for services.
Customers can hereby use the knowledge database to mange their products or the
company information and invoices, claim records, and histories of the service
inquiry. These products also may be able to learn from the customer’s previous
knowledge database and to use their information when determining the relevance to
the customers search request.

There is a probability of a spurt in employment opportunities. A number of web-

sites are coming up on insurance, a few financial magazines exclusively devoted to
insurance and also a few training institutes being set up hurriedly. Many of the
universities and management institutes have already started or are contemplating
new courses in insurance. Life insurance has today become a mainstay of any
market economy since it offers plenty of scope for garnering large sums of money
for long periods of time. A well-regulated life insurance industry which moves with
the times by offering its customers tailor-made products to satisfy their financial
needs is, therefore, essential if we desire to progress towards a worry-free future.
INSURANCE BUSINESS

INDIAN PERSPECTIVE:

The Insurance Sector in India dates back to 1818 when the first insurance
company was established the Oriental Life Insurance Company at Calcutta.
This was followed in quick succession with the establishment of Bombay
Life Asurrance Company (1823) and Madras Equitable Life Assurance
Society (1829). In the general insurance business Triton Insurance Company
(1850) was the first to be established. Prior to 1871, Indians were charged
about 15 percent more premium as compared to Europeans. Bombay Mutual
Life Assurance Society (1871) was the first company not to differentiate
between Indians and Europeans in the matter of fixation of premiums. The
first attempt at regulation of the insurance business in India was through the
Indian Life Assurance Companies Act in 1912. This was later broad-based
and the Insurance Act came into existence from the year 1928 onwards. The
Insurance Act was subsequently reviewed and a comprehensive legislation
was enacted called the Insurance Act, 1938. The nationalisation of Life
insurance business took place in 1956 when 245 Indians and Foreign
insurance and provident societies were first amalgamated and then
nationalized. The Life Insurance Corporation of India (LIC) came into
existence and has enjoyed a monopoly over the life insurance business in
India. The milestones in the Insurance sector 1912 onwards can be
summarised as under. The insurance sector witnessed the following
development:
1912 : The Indian Life Assurance Corporation Act eancted as the first statute
to regulate the life insurance business.

1928 : The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life
insurance businesses.

1938 : Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956 : 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalised. LIC formed by an Act of
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore
from the Government of India.

The General insurance business in India, on the other hand, can trace its
root to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British. Some of
the important milestones in the general insurance business in India are:

1907 : The Indian Mercantile Insurance Ltd. set up , the first company to
transact all classes of general insurance business.

1957 : General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound
business practices.
1968 : The Insurance Act amended to regulate investments and set minimum
solvency margins and the Trariff Advisory Committee set up.

1972 : The General Insurance Business (Nationalisation) Act, 1972

nationalised the general insurance business in India with effect from 1st
Jannuary 1973. 107 insurers amalgamated and grouped into four companies
viz., the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd, and the United India
Insurance Company Ltd. GIC incorporated as a company.
ICICI LOMBARD INSURANCE

INTODUCTION:
ICICI Lombard presents a completely new look to the Mediclaim
concept. Health Insurance (popularly known as Mediclaim) offers protection in case
of unexpected medical emergencies. In case of a sudden illness or accident, the
health insurance policy takes care of the hospitalization, medical and other costs
incurred.

We offer a range of innovative policies to choose from. Each plan offers something
unique (in addition to the usual mediclaim policies) to suit your specific needs.

Buy insurance policy online with your ICICI Bank, Citibank & HDFC Bank Credit
Card and pay premium at interest free installments.

HEALTH PLANS:
Health and medical insurance is a recent origin in India. Health insurance
covers two types of benefits. One is reimbursement of medical expenses
related to specific diseases and the other is related to hospitalization. Health
insurance covers operations in two ways – cashless and cash reimbursable
ones. The health insurance has changed the way medicine is dispensed and
sold in most of the parts of the world. In India, the introduction of the new
famous policy ‘mediclaim’ has made a huge difference to an ordinary
citizen’s usage of insurance for medical cover purpose.
The mediclaim policy covers the following expenses:
1. Boarding expenses in a hospital as per the description provided in the
policy.
2. Surgical fees, anesthetist fees, medical practitioner and consultants fees
etc.
3. Nursing expenses.
4. Blood, oxygen, operation theatre charges, surgical appliances,
medicines, diagnostic reports, dialysis, chemotherapy etc.
The total expenses covered under such a policy should not exceed the
total sum assured under the policy , for each such disease as mentioned
in the schedule by the insurance company at the time of taking the
policy. Reimbursement is not commonly used as a claim settlement
system in mediclaim and permitted only when the treatment is taken at
a hospital or as per criteria prescribed in the policy.
HEALTH ADVANTAGE PLUS INSURANCE:
A unique policy that covers hospitalization and Outpatient Department
Expenses (including Dental treatment, cost of medicines and drugs) and enables
optimum tax savings of up to Rs. 5099 u/s 80D

FAMILY FLOATER PLAN:A single policy that secures the

hospitalization expenses of your entire family

TAX GAIN HEALTH ADVANTAGE PLUS INSURANCE:

This unique health policy covers you not only for the usual medical emergencies,
but also for Out Patient Department (OPD) expenses (such as reimbursement of
cost of medicines, drugs, ambulance charges and dental expenses) and emergencies
arising out of terrorism or acts of terrorism. What's more?

You can save tax up to Rs. 5099 under Section 80 D of the Income Tax Act

This Plan is available for all ages between 5-65 years and senior citizens aged 66
and above (renewable up to 70 years).

Moreover, the 45 year age limit for ‘no health check-up’ for policy insuance is now
extended to 55 years of age.
Family Floater Health Plan

Introduction

Enjoy the benefits of covering your entire family under one policy. Pioneer in the
floater concept, ICICI Lombard's Family Floater policy takes care of the medical
expenses during sudden illness, surgeries and accidents. Also secure your family
against terrorism and acts of terrorism.
POLICY COVERAGE:

The policy covers medical expenses:

1.Incurred as an inpatient during hospitalisation for more than 24 hours, including

room charges, doctor/ surgeon's fee, medicines, etc.

2.30 days prior to hospitalisation

3.60 days post hospitalisation

4.Day Care expenses incurred on advanced technological surgeries and procedures

like Dialysis, Radiotherapy, and Chemotherapy, requiring less than 24 hours of
hospitalisation.

KEY BENEFITS:The benefit of coverage against Terrorism. The Family Floater

Health Plan covers claims arising out of Terrorism or acts of Terrorism.

One Policy – One Premium for the entire family. The floater health plan covers
your entire family under one policy with one sum insured and one premium. This
takes care of hospitalisation expenses in case of a sudden illness, accident or
planned surgery of the entire family.

2.5% discount on premium for every claim free year

3.Digitally signed policy is available 24X7 online, customer can take prints
instantly. The hard copy of the policy is couriered the same day (or next day if
customer buys after 6 PM) and will reach him/her within 2-3 working days.

4.No health check up required upto the age of 55 years (as on last birthday).

5.Medical Tests at the rate of Rs. 600 (per insured member).

ADDITIONAL BENEFITS:

Up to 2-year Cover- We offer a continuous 2-year protection with no increase in

premium in the second year. This one time payment of premium for 2 years takes
care of your renewal hassles next year. The sum insured is reinstated to the full sum
insured after the first year. Option for 1 year cover also available.

Single Policy- Single document, single premium, and single date to track. No need
for separate policy for family members.

ELIGIBILITY:

1.The enrollment age (of the senior most family member) should be between 19
years to 60 years

2.Other members in the plan can be less than 19 years of age (i.e. up to 91 days).

3.The insured child aged between 91 days to 5 years must be accompanied by at

least 1 Adult Member.

4.The policy cover is renewable till the age of 70 years.

5.The customer can buy the policy for any family member(s).

6.For the purpose of income tax exemption u/s Sec. 80D, the policy should be
bought only for self, spouse, dependent children and dependent parents.
NEED FOR FLOATER

1. The plan covers you against hospitalization expenses that occur due to Terrorism
and Acts of Terrorism.
2. Healthcare costs have been rising at more than 20 percent on an annualised basis
and out of pocket spending on healthcare still continues to be around 75 percent.
Source TOI
3. Protect your entire family with a single policy against unforeseen medical
contingencies
4. Save Tax up to Rs. 5099/- under section 80 D of the Income Tax Act*
5. Supplements employer-based health plans with higher sum insured and medical
benefits
6. Individuals require to have an insurance that caters solely to their health needs,
apart from life insurance and investments, that provides cover against expenses
incurred during hospitalization, as well as before and after
7. Avail cashless hospitalisation through ICICI Lombard's network of 3500 +
hospitals across In
HOME INSURANCE:

INTRODUCTION:

Home insurance, also commonly called hazard insurance or homeowners insurance

(often abbreviated in the real estate industry as HOI), is the type of property
insurance that covers private homes. It is an insurance policy that combines various
personal insurance protections, which can include losses occurring to one's home,
its contents, loss of its use (additional living expenses), or loss of other personal
possessions of the homeowner, as well as liability insurance for accidents that may
happen at the home. It requires that at least one of the named insured occupies the
home. The dwelling policy (DP) is similar, but used for residences which don't
qualify for various reasons, such as vacancy/non-occupancy, seasonal/secondary
residence, or age. It is a multiple line insurance, meaning that it includes both
property and liability coverage, with an indivisible premium, meaning that a single
premium is paid for all risks. Standard forms divide coverage into several
categories, and the coverage provided is typically a percentage of Coverage A,
which is coverage for the main dwelling
ICICI LOMBARD HOME INSURANCE

INTRODUCTION:

It is imperative that you secure your home from natural and man-made
catastrophes. Our Home Insurance Plan ensures you peace of mind by protecting
the structure and the contents of your home.

POLICY COVERAGE:

You can choose to buy insurance for only the building (structure) of your home, or
only the contents (belongings) or both.

The policy covers the losses to the structure and contents of your home due to any
natural and man made calamities.

CALAMITIES COVERED:

Fire
- Riot, strike & malicious damage

- Explosion & implosion

- Earthquake

- Lightning
- Storm, cyclone, tempest, tornado, hurricane, flood & inundation

- Damage due to impact by vehicles

- Missile testing operation

- Subsidence, landslides and rockslides

- Leakage from automatic Sprinkler installations

- Aircraft damage

- Bursting and/or overflowing of water tanks, apparatus and pipes

Burglary and Theft cover (only for contents):

The contents of your home are also covered against loss due to burglary or an
attempted burglary / housebreaking including larceny and theft. It also covers loss
of jewellery, silver articles and precious stones kept under lock and key, up to 25%
of the total content sum insured or Rs. 1 Lac, whichever is lower.

Optional covers:

Terrorism cover - Covers any damages and losses to the structure and / or contents
of your home due to acts of terrorism.
Additional expenses of rent for alternative accommodation – If you are forced to
shift into an alternative accommodation because your home is destroyed or
damaged by any insured peril, the policy will cover you against the additional rent.

KEY BENEFITS:

1. Comprehensive cover - Covers both structure and contents of your home.

2. Optional covers available - Terrorism and Additional expenses of rent for

alternative accommodation

3. Alternate Covers - A Home Insurance cover allows you to avail an optional cover
for alternative rent & Terrorism cover.

NEED FOR POLICY:

1. FICCI surveys show that realty rates may escalate 10%-15% in next 6 months of
2007.

2. According to official statistics, the Maharashtra floods on July 26, 2005, has led
to damages to over 1,87,000 houses all over the State, affecting eight lakh families.

3. Protect your single largest investment against losses due to natural or man-made
calamities like fire, floods, burglary, earthquake.

4. Cover your household contents including furniture, durables, clothes, utensils,

jewelry, at market value to accommodate inflation.

HOME STRUCTURE:

The home insurance policy insures the structure of your home for its reconstruction
value (and not for market value). Reconstruction value is defined as the cost
incurred to reconstruct the home if it is damaged. On the other hand market value is
a combination of cost of land, demand & supply scenario, etc.

Sum insured is calculated by multiplying the built up area of your home with the
construction rate per sq. feet, e.g. if your built up area of your home is 1000 sq. feet
and the construction rate is Rs. 800 per sq. feet, the sum insured for your home
structure is Rs. 8,00,000.

We recommend the rate of construction for your location when you are buying
online. However, this value can be revised appropriately if expensive material - like
marble flooring, etc. – has been used in construction. If your home has lawn /
garden surrounded by a perimeter wall, the construction rate can be revised to
include the cost of construction of this wall in home structure sum insured.

MOTOR INSURANCE:

Vehicle insurance (also known as auto insurance, car insurance, or motor insurance)
is insurance purchased for cars, trucks, and other vehicles. Its primary use is to
provide protection against losses incurred as a result of traffic accidents and against
liability that could be incurred in an accident.
ICICI LOMBARD VEHICLE INSURANCE:

Car Insurance – Introduction

ICICI Lombard brings to you a comprehensive Package Policy for your four-
wheelers, which covers Loss or damage to the vehicle insured, Personal Accident
and Third Party Liability.

Policy Coverage

Our Motor insurance Policy is governed by the Indian Motor Tariff. It covers you
for:

Loss or damage to your vehicle: The policy covers you against any loss or damage
caused to the vehicle due to the following natural and man made calamities.
Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood,
typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide,
rockslide.

Personal accident cover: The motor insurance provides compulsory personal

accident cover of Rs. 2 lakhs for individual owner driver of the vehicle insured
while travelling in, mounting or dismounting from the car. You can also opt for a
personal accident cover for passengers.

Third party legal liability: This protects you against legal liability arising due to
accidental damages
- Any permanent injury/ death of a person

- Any damage caused to the property.

Key Benefits

1. You can avail of our cashless claim facility at our Cashless Garage Network all
across India.

2. You can claim towing charges up to Rs 1,500 in the event accidental damage or
loss to your vehicle as specified under the policy.

Need for Policy

1. The number of road accidents in India is estimated to be three times vis-a-vis

developed countries. The number of accidents for 1000 vehicles in India is as high
as 35 while the figure ranges from 4 to 10 in developed countries

2. Comprehensive Car Insurance serves as an add-on to the mandatory third-party

cover and protects the car owner from financial losses, caused by damage or theft of
the vehicle.

Sum Insured

The vehicles are insured at a fixed value called the Insured’s Declared Value (IDV).
IDV is calculated on the basis of the manufacturer’s listed selling price of the
vehicle (plus the listed price of any accessories) after deducting the depreciation for
every year as per the schedule provided by the Indian Motor Tariff.
Two Wheeler Insurance - Introduction

Two- wheeler riding calls for a constant alertness from theft and accidents. Two-
wheeler policy guarantees safety for your vehicle and yourself, thereby making
your ride stress- free

Policy Coverage

A composite policy that protects you against an unfortunate accident, third party
liability, injuries and damages.

Two-wheeler insurance policy is governed by the Indian Motor Tariff. It covers you
for:

1. Loss or damage to your vehicle: The policy covers you against any loss or
damage caused to the vehicle due to the following natural and man made
calamities.
2. Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood,
typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide,
rockslide.

3. Personal accident cover: The motor insurance provides compulsory personal

accident cover of Rs. 1 lakh for individual owner driver of the vehicle insured while
travelling on, mounting or dismounting from the vehicle. You can also opt for a
personal accident cover for passengers.
4. Third party legal liability: This protects you against legal liability arising due to
accidental damages for

- Any permanent injury/ death of a person

- Any damage caused to the property.

Sum Insured

The vehicles are insured at a fixed value called the Insured’s Declared Value (IDV).
IDV is calculated on the basis of the manufacturer’s listed selling price of the
vehicle (plus the listed price of any accessories) after deducting the depreciation for
every year as per the schedule provided by the Indian Motor Tariff.

If the price of any electrical and / or electronic item installed in the vehicle is not
included in the manufacturer’s listed selling price, then the actual value (after
depreciation) of this item can be added to the sum insured over and above the IDV.

STUDENT MEDICAL INSURANCE

Plus Plan – Introduction

Student Medical Insurance covers unexpected and unplanned medical and non-
medical expenses when you are studying abroad. In order to faciliate greater access
to quality health care, we have partnered with leading US-based Health Care
provider UnitedHealth Group, to provide you access to United Health Care's
network of hospitals and physicians when in the US.

Student Medical Insurance Plus Plan is an add-on cover to fulfill the various criteria
of universities abroad. It covers treatment for mental and nervous disorders,
including alcoholism and drug dependency, in-patient medical expenses related to
pregnancy, medical expenses for inter-collegiate sports injuries, cancer screening &
mammography examinations and childcare benefits. Click here to find your
university specific insurance details.

Policy Coverage

1. Treatment for mental and nervous disorders - US$ 1,000 - Treatment for mental
and nervous disorders including alcoholism and drug dependency, is covered under
this policy.

2. In-patient medical expenses related to pregnancy - US$ 500 - In-patient medical

expenses related to pregnancy are covered to a maximum limit of US$ 500, after a
waiting period of 10 months.

3. Medical expenses for inter-collegiate sports injuries: Medical expenses for inter-
collegiate sports injuries are covered under this policy as part of the medical cover.
These expenses will be treated as any other medical expenses for an accident, and
will be subject to the terms of conditions mentioned in the policy.

4. Cancer screening and mammography expenses - US$ 2,000 - Cancer screening

and mammography expenses examinations on recommendation from physician will
be paid under this policy. Expenses would be paid for the usual and customary
charges incurred for these test. Any tests done as a part of preventive health check-
up is not included under this benefit.

5. Childcare benefits - US$ 100 - If the child is above 90 days of age, and is
hospitalized for more than 2 days, for any ailment, hospital cash benefit of US$ 100
per day will be paid, subject to a maximum of 7 days.

Key Benefits

1. Buy the policy in Indian rupees, which is 1/3 the cost of buying abroad.

2. Accepted by most of the foreign universities as a substitute for their compulsory

insurance.

3. ICICI Lombard has partnered with leading US-based Health Care provider
UnitedHealth Group, to provide better health care benefits and services to be
availed when in the US.

4. Plans available with second year extension option, thereby covering you for the
entire period of study.

5. Extend your policy 3 months in advance – Now you do not have to wait till
policy expiry to extend your Student Medical cover, extend your policy 3 months in
advance.

6. Policy coverage for 2 years – Student Medical Insurance is now available with a
continuous cover for 2 years. Now cover your entire period of study and rid
yourself of policy extension hassles with a policy duration of 365+365 = 730 days.

7. Medical outpatient expenses covered.

8. No pre-medical check-up required.

Eligibility
1. Minimum age of insured persons is 16 years.

2. Minimum age of insured persons is 16 years.

3. Non-insurable persons: professional and semi-professional sportsmen.

4. The policy can be bought by students already studying abroad.

Need for Policy

1. Medical insurance is mandatory for most foreign universities including popular

destinations like Australia, US, Canada, New Zealand, etc.

2. Majority of universities abroad allow waiver from on-campus health insurance

with comparable domestic insurance policies.

3. Available at 1/3rd the university premiums abroad, ICICI Lombard Student

Medical covers major medical, repatriation, evacuation, dental expenses, etc. and
can be combined with the Plus Plan for additional coverages like medical expenses
related to pregnancy, Mental disorders, Cancer screening, Mammography and
Sports injuries.

Gold Plan - Introduction

Student Medical Insurance provides cover against unexpected medical and non-
medical expenses during your study abroad. To provide quality health care
overseas, we have partnered with UnitedHealth Group (leading US-based Health
Care provider), thus providing you access to it's network of hospitals and
physicians in United States.

Student Medical Gold Plan is a comprehensive health cover against medical

expenses, dental treatment, repatriation of remains, checked baggage loss, personal
accident, personal liability, bail bond, study interruption, sponsor protection and
compassionate visit.

Policy Coverage

Key Benefits

1. Buy the policy in Indian rupees, which is 1/3 the cost of buying abroad.

2. Accepted by most of the foreign universities as a substitute for their compulsory

insurance.

3. ICICI Lombard has partnered with leading US-based Health Care provider
UnitedHealth Group, to provide better health care benefits and services to be
availed when in the US.

4. Plans available with second year extension option, thereby covering you for the
entire period of study.

5. Extend your policy 3 months in advance – Now you do not have to wait till
policy expiry to extend your Student Medical cover, extend your policy 3 months in
advance.

6. Policy coverage for 2 years – Student Medical Insurance is now available with a
continuous cover for 2 years. Now cover your entire period of study and rid
yourself of policy extension hassles with a policy duration of 365+365 = 730 days.

7. Medical outpatient expenses covered.

8. No pre-medical check-up required.

Eligibility
1. Minimum age of insured persons is 16 years.

2. Maximum age of insured persons is 35 years.

3. Non-insurable persons: professional and semi-professional sportsmen.

4. The policy can be bought by students already studying abroad.

Need for Policy

1. Medical insurance is mandatory for most foreign universities including popular

destinations like Australia, US, Canada, New Zealand, etc.

2. Majority of universities abroad allow waiver from on-campus health insurance

with comparable domestic insurance policies.

3. Available at 1/3rd the university premiums abroad, ICICI Lombard Student

Medical covers major medical, repatriation, evacuation, dental expenses, etc. and
can be combined with the Plus Plan for additional coverages like medical expenses
related to pregnancy, Mental disorders, Cancer screening, Mammography and
Sports injuries.

Bronze Plan – Introduction

Student Medical Insurance covers unexpected and unplanned medical and non-
medical expenses when you are studying abroad. In order to faciliate greater access
to quality health care, we have partnered with leading US-based Health Care
provider UnitedHealth Group, to provide you access to United Health Care's
network of hospitals and physicians when in the US.

A composite policy that covers you against sponsor protection, study interruption,
compassionate visit, personal liability, bail bond, checked baggage loss and
personal accident.

Policy Coverage

1. Sponsor Protection– US $10,000 - Reimbursement of tuition fees in case of

demise of person paying for studies due to an accident.

2. Study Interruption– US $7,500 - Reimbursement for the remaining part of the

current school semester fee, if studies are interrupted on account of a medical
condition or compassionate reasons on the family front.

3. Compassionate Visit– US $7,500 - In case of hospitalization (exceeding 7 days)

of student or a family member, where a family member visits student or student
visits India. Round trip economy class tickets for student/ family member, and
accommodation for the family member visiting abroad, will be reimbursed.

4. Bail Bond– US $5,000 - For the bail amount, if arrested or detained by police or
judicial authorities of the place, for any bailable offence whilst abroad.

5. Personal Accident– US $10,000 - Compensation paid in case of death or

permanent total disability.

6. Checked Baggage Loss– US $1,000 – Compensation for the permanent loss of

checked-in baggage.
Key Benefits

1. Buy the policy in Indian rupees, which is 1/3 the cost of buying abroad.

2. Accepted by most of the foreign universities as a substitute for their compulsory

insurance.

3. ICICI Lombard has partnered with leading US-based Health Care provider
UnitedHealth Group, to provide better health care benefits and services to be
availed when in the US.

4. Plans available with second year extension option, thereby covering you for the
entire period of study.

5. Extend your policy 3 months in advance – Now you do not have to wait till
policy expiry to extend your Student Medical cover, extend your policy 3 months in
advance.

6. Policy coverage for 2 years – Student Medical Insurance is now available with a
continuous cover for 2 years. Now cover your entire period of study and rid
yourself of policy extension hassles with a policy duration of 365+365 = 730 days.

7. Medical outpatient expenses covered.

8. No pre-medical check-up required.

Eligibility
1. Minimum age of insured persons is 16 years.
2. Maximum age of insured persons is 35 years.

3. Non-insurable persons: professional and semi-professional sportsmen.

4. The policy can be bought by students already studying abroad.

Need for Policy

1. Medical insurance is mandatory for most foreign universities including popular

destinations like Australia, US, Canada, New Zealand, etc.

2. Majority of universities abroad allow waiver from on-campus health insurance

with comparable domestic insurance policies.

3. Available at 1/3rd the university premiums abroad, ICICI Lombard Student

Medical covers major medical, repatriation, evacuation, dental expenses, etc. and
can be combined with the Plus Plan for additional coverages like medical expenses
related to pregnancy, Mental disorders, Cancer screening, Mammography and
Sports injuries.

Business Products

The key to successful business is proper risk management. It’s all about managing
risk effectively. Our comprehensive commercial product line is aimed at businesses
of all kinds and sizes. We offer products that match your personal and business
needs and provide you a perfect protection cover.
Fire Insurance

Every business has a specific set of requirements. Our range of business products is
especially designed to meet your business needs across the commercial spectrum. It
is pivotal to get adequate insurance cover for your business to mitigate risk.

Fire and Special Perils Policy (Material Damage)

Scope of cover

The Insurance Policy broadly covers losses due to:

1. Fire, lightning, explosion and implosion.

2. Aircraft damage, riot, strike, malicious damage and terrorism.

3. Storm, tempest, flood and inundation.

4. Impact damage, subsidence.

5. Landslide/rockslide.

6. Bursting and/or overflowing of water tanks, apparatus and pipes.

7. Missile testing, leakage from automatic sprinkler installations and bush fire.

Sum Insured

Property can be insured on depreciated cost (market value) or replacement cost

basis. In order to get full protection, insurance on reinstatement (replacement) basis
is recommended.

Premium
1. Premium rate depends on construction of building and occupancy.

2. Discount/ loading in premium is given based on past claims experience for risks
exceeding Rs. 50 crores sum Insured at any location and installation of Fire
Extinguisher Appliances.

Significant Exclusions

The Insurance Policy does not cover the first Rs.10,000 (or as applicable) of each
and every claim. Losses arising out of war and allied perils, theft, willful act or
gross negligence, loss of earnings, loss to bullion, documents, currency etc. for an
amount exceeding Rs. 10,000, unless expressly stated.

Excess
5 % of every claim resulting from Lightning, Storm, Tempest, Flood and
Inundation, Subsidence and Landslide

Main Extension

1. Earthquake (Fire & Shock).

2. Spontaneous Combustion.

3. Deterioration of stocks in cold storage.

4. Impact Damage due to own vehicles.

5. Omission to insure additions.

6. Architect, Surveyors & Consulting engineer’s fees in excess of 3 % of claim

amount.

7. Debris removal in excess of 1 % of claim amount.

8. Industrial All Risk

Scope of cover

This Policy offers comprehensive cover against all perils excepting those
specifically excluded. The Policy covers loss or damage due to :

1. Fire and Special Perils.

2. Burglary.

3. Machinery Breakdown/ Boiler Explosion/ Electronic Equipment Breakdown.

4. Business Interruption due to Fire and Special Perils, burglary and other
accidental damage.

Sum Insured

Sum to be insured for the Material Damage part is the Reinstatement cost of the
property. For the Business Interruption portion, annual gross profit is to be insured.

Premium
Premium depends on the exact cover opted, claims experience, deductible and risk
assessment report of the engineer.

Significant Exclusions

Inherent vice, normal wear and tear, collapse, faulty or defective design material or
workmanship, pollution, contamination, inventory losses, fraud, larceny,
interruption of the water supply, gas, electricity or fuel systems or failure of the
effluent disposal systems etc.
Policy is subject to compulsory deductible excess as under:

1. Material Damage Claims: 5% of claim amount subject to aminimum of Rs 5 lacs

andmaximum of Rs. 50 lacs.

2. Business Interruption Claims: 3 days gross profit subject toa minimum of Rs. 5
lacs and maximum of Rs. 50 lacs.

Rural Insurance
At ICICI Lombard, investing in rural markets is seen as a keen social
responsibility. The protection provided to the rural class is specified and
customized according to their needs. Through a multiple channel system we not
only provide agricultural protection but also health, motor and other covers.
Products we offer
Health Insurance
We provide protection to the health of the rural folk through our comprehensive
Family Health Insurance plan, which covers the entire family in one policy.

Home Insurance
Our comprehensive policy protects much more than just the home. Through our
network channels, we ensure that the houses in the rural sector are insured against
natural and other perils.

Tractor Insurance
Tractors are one of the most precious assets to the rural folks. Our comprehensive
package policy covers not just own damage but also third party liability and
personal accident.

Weather Insurance
Weather Insurance is an insurance cover against losses incurred due to uncertainties
in climatic conditions. It can be used to hedge any vulnerability of assets or any
other damage incurred due to erratic and irregular weather.

Shop Insurance
Shop Insurance is a comprehensive policy that covers both the structure and the
contents of a shop and protects it against any financial loss in case of an unfortunate
incident.

Family Health Floater

Life is full of surprises, some bitter some sweet. For medical emergencies like
surgeries, accidents and sudden illnesses, ICICI Lombard General Insurance
Company Limited brings you Family Health Insurance Plan that is flexible enough
to cover all members of your family.

This unique single family policy provides coverage upto the total sum insured to
every individual family member

Policy Coverage
1. Medical expenses incurred as an inpatient during hospitalization* for more than
24 hours.

2. Pre-hospitalization up to 30 days.

3. Post-hospitalization up to 60 days.

4. Day care procedures like dialysis, cataract, hospitalization also covered

radiotherapy etc. that require less than 24 hours.

There are certain ailments which are covered in cases of less than 24-hrs of
hospitalization. These are:

1. Cataract.

2. Lithotripsy.

3. Tonsillectomy and / or Adenoidectomy.

4. Dialysis.
5. Dialatation and Curatage.

6. Chemotherapy.

7. Radiotherapy.

8. Cardiac Catherisation/ Coronary Angiography.

KEY BENEFITS:

1. Floater Cover - The entire family is covered under one Sum Insured, hence any
member of the family can claim up to Sum Insured, any number of times during the
policy period.

Example – Mr. Singh and his wife are covered for 50000 each and his son is
covered for 25000, under regular health policy. Total sum insured is 1.25 lakh and
each one is covered for 50000 or 25000 only.
In a floater policy of 1.25 lakh Mr. Singh, his wife and son will be covered up to the
sum insured. Any member can claim up to this amount any number of times. Thus
Mr. Singh does not require buying policies for every family member separately.

2. Cashless Facility - You can avail of cashless hospitalization across the country at
network hospitals of the TPA appointed by the company. A list will also be sent to
you with your policy and ID card.

3. Comprehensive Cover - Pre-existing disease covered after 4 years.

4. Income Tax Benefit - The premium payable is eligible for tax rebate as per Sec.
80D of Income Tax Act. (Premium payable only by cheque.)

5. No Claim Discount - If no claim made in a year, a discount of 5% will be given

on renewal premium.
ELIGIBILITY:

1. Individuals between age 91 days to 60 years.

2. Proposer can take cover for himself or his family.

3. Family members comprise of spouse, dependent children, dependent parents and

dependent brothers and sisters.

4. Medical examination is required for people aged 56 yrs and above.

Tractor Insurance
Tractors are one of the most precious assets of the farmers. ICICI Lombard's
comprehensive package policy for tractors covers not just Own Damage but also
Third Party Liability and Personal Accident.

Policy Coverage
Loss of or Damage to the Vehicle Insured (Own Damage)
The Company will indemnify the insured against loss or damage to the vehicle
insured against following:
i. Fire, Explosion, Self ignition or Lightning
ii. Burglary, Housebreaking, Theft, Riot and Strike
iii. Earthquake (fire and shock damage), Flood, Typhoon, Hurricane, Storm,
Tempest
iv. Inundation, Cyclone, Hailstorm, Frost
v. Accidental external means
vi. Malicious acts
vii. Terrorist activity
viii. Landslide, Rockslide
ix. Whilst in transit by road, rail, inland waterway, lift, elevator or air
Subject to a deduction for depreciation at the rates mentioned below in respect of
parts replaced:
- For all rubber/nylon/plastic parts, tyres, tubes, batteries and air bags - 50%
- For fibre glass components - 30%
- For all parts made of glass - Nil
- Rate of depreciation for all other parts including wooden parts will be as per the
schedule.

In the event of the vehicle being disabled by reason of loss or damage covered
under this policy, the Company will bear the reasonable cost of protection and
removal to the nearest repairer and re-delivery to the insured not exceeding
Rs.2500/- for commercial vehicles in respect of any one accident.

Liability to Third Parties

The Company will indemnify the insured in the event of an accident caused by or
arising out of the use of the vehicle against all sums including claimant's cost and
expenses, which the insured shall become legally liable to pay in respect of:
- Death of or bodily injury to any person caused by or arising out of the use
(including the loading and/or unloading) of the vehicle.
- Damage to property caused by the use (including the loading and/or unloading) of
the vehicle.

Personal Accident Cover for Owner-Driver

The Company undertakes to pay compensation as per the following scale for bodily
injury/ death sustained by the owner-driver of the vehicle in direct connection with
the vehicle insured or whilst mounting into/dismounting from or traveling in the
insured vehicle as a co-driver, caused by violent accidental external and visible
means which independent of any other cause shall within six calendar months of
such injury result in:
- Death - 100%
- Loss of two limbs or sight of two eyes or one limb and sight of one eye - 100%
- Loss of one limb or sight of one eye - 50%
- Permanent total disablement from injuries other than named above - 100%

Policy Exclusions

1. Any accidental loss or damage and/or liability caused sustained or incurred

outside the geographical area.

2. Any claim arising out of any contractual liability.

3. Any accidental loss or damage and/or liability caused sustained or incurred

whilst the vehicle insured herein is
- Being used otherwise than in accordance with the ‘Limitations as to Use’ or
- Being driven by or is for the purpose of being driven by him/her in the charge of
any person other than a Driver as stated in the Driver's Clause.

4. Losses such as:

- Any accidental loss or damage to any property whatsoever or any loss or expense
whatsoever resulting or arising there from or any consequential loss.
- Any liability of whatsoever nature directly or indirectly caused by or contributed
to by or arising from ionizing radiations or contamination by radioactivity from any
nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the
purposes of this exception combustion shall include any self-sustaining process of
nuclear fission.

5. Any accidental loss damage or liability directly or indirectly caused by or

contributed to by or arising from nuclear weapons material.

6. Any accidental loss or damage/liability directly or indirectly or proximately or

remotely occasioned by, contributed to by or traceable to or arising out of or in
connection with war, invasion, the act of foreign enemies, hostilities or war like
operations (whether before or after declaration of war), civil war, mutiny, rebellion,
military or usurped power or by any direct or indirect consequences of any of the
said occurrences and in the event of any claim here under the insured shall prove
that the accidental loss damage and/or liability arose independently of and was in
no way connected with or occasioned by or contributed to by or traceable to any of
the said occurrences or any consequences thereof and in default of such proof, the
Company shall not be liable to make any payment in respect of such a claim.

Weather Insurance
The need for risk mitigation in agriculture has been long felt. Agriculture
contributes 24% of the GDP and any change has a multiplier effect on the economy
as a whole. The target of 7-8% economic growth depends significantly on
agricultural growth. Weather insurance is an indemnity for losses that may arise due
to abnormal weather conditions. These abnormal weather conditions can be events
such as excess of rainfall, shortfall in rainfall or variations in temperature, wind
speeds and humidity.Key Benefits
The benefits that weather insurance offers are:

1. It is transparent and thus leads to high level of client comfort.

2. It is easy to administer and thus leads to low management expenses.

3. It is scientifically developed and objective.

Weather insurance has multiplier effect on the economy as it enables access to

factors of production. Adequate protection offered through the weather insurance
product enhances the risk taking capacity of the farmers, banks, micro-finance
lenders and agro-based industries. This in turn would result in boosting the entire
rural economy.

Further, as the product is developed on the foundation of universally acceptable

parameters, it is easier to transfer the risk to international financial markets through
reinsurance. This allows for global pooling of risk and thereby more competitive
“portfolio adjusted” pricing for the insurer and ultimately for the farmers.

Product Structure
1. Peril Identification: Peril identification involves appreciation of agronomic
properties of the crops or nature of the economic activity. Detailed correlation
analysis is carried out to ascertain the way weather impacts yields of the crops/
output of other economic activities.

2. Index Setting: In weather insurance, the claim is settled on the basis of a

transparent index. The index is created by assigning weights to critical time periods
of crop growth. The past weather data is mapped on to this index to arrive at a
normal threshold index. The actual weather data is then mapped to the index to
arrive at the actual index level. In case there is a material deviation between the
normal index and the actual index, compensation is paid out to the insured on the
basis of a pre-agreed formula.

3. Back testing for payouts: In order to ensure the robustness of the structure, the
normal index is extensively tested based on historical data to ascertain if the
payouts made on the basis of the chosen indices would have adequately
indemnified the loss in the past or not.

4. Pricing: Pricing is determined based on components of expected loss, volatility

of historical losses and management expenses.

5. Monitoring: This entails collection of weather data during the policy period and
concurrent assessment of the ground conditions.

6. Claims Settlement: The claim settlement is a hassle-free process, as the

beneficiary is not required to file a claim for loss to receive a payout. Instead ICICI
Lombard will compensate the beneficiary at the end of the crop season for any
deviations from the normal conditions on the basis of the data collected from an
independent source accessible to all, like a local weather station, thus removing the
need for carrying out field surveys.

Deals Initiated
1. Oranges in Jhalawar, Rajasthan: Orange crop suffers yield losses in case
adequate rainfall is not available for flowering or if there is a dry spell subsequent
to flowering. 782 farmers (7% of all the Orange cultivators in the district) were
provided a cover for 613 acres for a sum insured of Rs. 18.3 mn.

2. Various crops in Andhra Pradesh: Weather Insurance was offered to the farmers
of AP for groundnut, castor and cotton crops. A unique distribution model through
the Micro-finance institutions and Self Help Groups was followed to reach out to
the farmers in the remote areas. The product provided cover against losses due to
deficit rainfall. In this kharif season about 800 farmers covering 1100 acres
purchased it. Sum Insured for these covers was Rs. 5.7 mn.
3. Weather insurance for crop loan portfolio: Repayments of crop loans given to
farmers is a function of the revenue from agriculture. This revenue is in turn
dependent on the rainfall in the area as good rains give good yields. Keeping this
correlation in view Weather Linked Loan Portfolio Insurance was offered to a
NBFC lending agricultural loans. The claim payouts from this cover would
compensate the loss of repayments. Sum Insured for this cover was Rs. 7.5 mn.

Shop Insurance-Introduction
Shop Insurance is a comprehensive policy offered by ICICI Lombard General
Insurance Company for your shop. It covers both the structure and its contents of
your shop and protects you against financial loss in case of an unfortunate incident
of fire, earthquake, fraud, burglary, etc. It also provides compensation of liability
claims and accidental benefits.

Scope of Cover

1. Fire (Building and Contents) - Covers losses caused by fire, lightening, riot,
strike, storm, cyclone, flood and terrorism.

2. Burglary - Protects contents of your shop against any loss or damage caused by
burglary or attempted burglary.

3. Burglary of cash in safe - Provides for losses resulting from the burglary of cash
kept in safe.

4. Cash in transit- Covers losses because of burglary of cash while it is being

carried from the bank/ATM to your shop.

5. Glass breakage - Covers loss or damage to any fixed plain glass caused by any
accident, external and visible means.

6. Damage to neon sign - Covers neon or glow signs displayed at your shop
premises against damage caused by fire, accident, riot, and flood.

7. Cheque forgery - Covers loss caused by forgery or material alteration of cheques,

drafts or any other negotiable instruments issued by you or in your favour.

8. Fidelity - Covers direct financial losses sustained due to fraud or any dishonest
act by your salaried employees.

9. Tenant’s legal liability - This cover provides for legal liability imposed on you by
the property owner on account of damage to property by fire, earthquake, flood and
riots.

10. Employer’s liability - It provides for legal liability to your employees.

We also offer the following additional products , which you can opt for:
1. Health – Family Floater – This cover will take care of your hospitalization and
post-hospitalization expenses. The sum insured spread over the members can be
utilized in any proportion necessary.

2. Hospital Cash - A fixed sum of money will be paid per day of hospitalization.
The cover will be for a fixed number of days within the insurance tenure of one
year..

3. Double Benefit - Under this cover a lump sum amount of money will be paid to
the insured in case both the insured and the spouse are hospitalized together for a
period of 72 hours or more.

4. Medical Expenses to Insured – Covers medical expenses to the extent of sum

insured under this cover, incurred by the proposer for the hospital treatment against
any accident.

5. Personal Accident - This cover provides for the bodily injury sustained by you
because of an accident resulting in death or permanent total disability. It also
provides for ambulance charges up to Rs. 2000 and in the event of death for the
carriage of dead body.

6. Professional Indemnity - This cover will protect you from any legal liability
arising out of the dissatisfaction caused to any of your clients towards the services
rendered by you.

7. Terrorism cover - Loss or damage due to terrorism can also be covered under this
Policy by taking an add-on cover in the form of an endorsement.

Benefits / features
1. Lightening fast claims
Lots of additional optional covers available making it the most comprehensive
policy.

Significant Exclusions
Under Insurance- If the actual value of the insured property at the time of loss under
the Fire is found to be greater than the sum insured chosen by you, then the claim
would be proportionally reduced.
Conclusion