DSPMS K. V.

PENDHARKAR COLLEGE OF ARTS, SCIENCE & COMMERCE DOMBIVLI (EAST)

PROJECT REPORT ON

NEW INDIA ASSURANCE CO

PROJECT REPORT SUBMITTED IN PARTIAL FULLFILLMENT OF REQUIREMENT FOR THE DEGREE OF B.COM (BANKING & INSURANCE) UNIVERSITY OF MUMBAI SUBMITTED BY

KIRTI KISHOR AMBERKAR.

ROLL NO: - 108251

T.Y.B.COM (B&I) SEM-VI

UNDER THE GUIDENCE OF

Omkar Datar
ACADEDMIC YEAR

2010-2011

INDEX

Chapter no 1.

Name

Page no

Introduction of assurance

2.

New India Assurance co

3.

Products

4.

Various Products & plans

5.

Analysis & Review

6.

Questions & conclusion

ASSURANCE
IntroductionAssurance industry has always been a growth-oriented industry globally. On the Indian scene too, the assurance industry has always recorded noticeable growth vis--vis other Indian industries. The new India assurance Co. Ltd. was the first general assurance company to be established in India in 1850, which was a wholly Britishowned company. The new India assurance company to be set up by an Indian was Indian Mercantile assurance Co. Ltd., which was established in 1907. There emerged many a assurance player on the Indian scene thereafter. The general assurance business was nationalized after the promulgation of General Insurance Business (Nationalization) Act, 1972. The post-nationalization general assurance business was undertaken by the assurance Corporation of India (GIC) and its 3 subsidiaries: 1. New India Assurance Company Limited 2. National Insurance Company Limited 3. United India Insurance Company Limited Towards the end of 2000, the relation ceased to exist and the four companies are, at present, operating as independent companies. The Life assurance Corporation (AIC) was established on 01.09.1956 and had been the sole corporation to write the life assurance business in India. The Indian assurance industry saw a new sun when the assurance Development Authority invited the applications for registration as assurors

in August, 2000. With the liberalization and opening up of the sector to private players, the industry has presented promising prospects for the coming future. The transition has also resulted into introduction of ample opportunities for the professionals including Chartered Accountants. The Indian assurance industry is featured by the attributes: Low market penetration; Ever-growing middle class component in population. Growth of consumer Movement with an increasing demand for better assurance products; Inadequate application of information technology for business. Adequate Fillip from the Government in the form of tax incentives to the assured, etc. The industry formations need to keep vigil on these characteristics of the Indian market and formulate their strategies to entail maximum contribution to the output of the sector. The Indian life and non-life assurance business accounted for merely 0.42 percent of the world's life and non-life business in 1997. The figures of the basic parameters of the industry's performance viz. assurance Density and assurance Penetration also are evident of the hitherto existing low-yield Indian market conditions. The term "assurance Penetration" broadly measures the contribution of the assurance industry in relation to a nation's entire economic productivity. The figure of premium vis--vis the GDP of 1999 stood at 0.54 percent for non-life assurance business and 1.39 percent for the life assurance business.

The term "assurance Density" reflects the assurance purchasing power. The premium per capita in India amounted to US $ 2.40 for assurance and US $ 6.10 for life assurance in 1999 but with the deregulation of the sector, a sea change in the scene is most likely. The assurance sector in India has come a full circle from being an open competitive market to Nationalization and back to a liberalized market again. Tracing the developments in the Indian assurance sector reveals the 360- degree turn witnessed over a period of almost two centuries. STRUCTURE OF THE ASSURANCE INDUSTRY The structure of the assurance industry comprises of the Operating department, Administrative department and the finance department. The Operating Department generally performs the basic functions pertaining to the designing of products, marketing thereof, servicing the insured, the insured, management of portfolio, etc. The Administrative Department looks after the day-to-day affairs of the company. The Finance Department backs the operations and administration of the company by accounting for the transactions, streamlining the flow of funds, materializing the management decisions, etc. The Administration Department as well as the Finance Department, usually, functions through in-house setup. The Finance Department functions in the areas of accounting, financial and management reporting, budgeting and controlling, etc. and thus renders enormous scope for finance professionals. The new entrants in the assurance sector are likely to call for the services of the Chartered Accountants for their financial setup

requirements. The Chartered Accountants have engaged themselves in the audit of assurance Companies since long. With the transition in the insurance sector, the horizons for their contribution have broadened. Contributions have broadened. There has, emerged a king-size pool of opportunities that the Chartered Accountants can explore and apply their professional wisdom and experience to.

BASIC FUNCTIONS OF THE ASSURANCE INDUSTRY

1. Risk Perception and Evaluation: The fundamental function of an insurer is to provide a cover against the detriment caused to the insured due to the happening of certain specified and agreed events. Thus, prior to providing such umbrella through a product, the insurer has to assess the risk involved in the transaction. The insurer has to identify the element of risk prevalent in the concerned industry or a particular unit. The perception of risk requires the study of variables through various methods including the application of scientific and statistical techniques and correlation thereof with the industry or unit under study in light of their basic environmental and infra-structural characteristics. 2. Designing the Insurance Product: On the basis of the risks perceived, the insurer develops a product to cover the stipulated risks. While designing an insurance product, an insurer decides its cost to be charged from the insured in the form of premium,

reduction thereof in certain cases like not lodging any claim during the previous covered period(s), suggesting the implementation of risk-mitigating measures, etc. 3. Marketing of the Product: The core function of the marketing force of an insurance company is to generate awareness about the insurance products among the target market. But in the Indian scenario, where the insurance penetration is too low as compared to the other nations, the marketing force needs to perform the proactive role in developing an insurance culture. It is through the efficiency of the sales force of an insurance company that the desirability and the success of a product are determined. Adequate knowledge of the insurance industry, products and the modalities attached therewith. Further, the marketing personnel should be adequately backed by the back-office setup.

4. Selling of the Products: The term selling in the context of Assurance industry connotes the issuance of policies to the applicant proposer. The Assurance basically embodies the covenant between the insurer and the insured wherein the former agrees to indemnify the latter for the loss caused to him on the happening of the certain agreed events up to a specified limit. The life insurance policy generally contains the agreement whereby the insurer agrees to pay to the insured or the beneficiary of the policy an agreed amount on the expiry of the term of the policy or in the event of the death of

the insured respectively. The additional benefits in the shape of Riders viz. Accidental Death Benefit, Double Sum Assured, Critical Illness benefits; Waiver of Premiums, etc. can also be appended with the policy on the payment of an additional premium. 5. Management of Portfolio: The management of the portfolio includes the assessment of requirement of funds, identification of various sources of finance, the evaluation of the sources in the light of their cost, availability, timing, etc., reconciling the features of various sources with the needs of the company and the selection of appropriate conjunction of sources. The insurer possesses huge amount of funds, which need proper management. The management of the portfolio of an insurance company requires the identification of investment avenues, evaluation thereof and the selection of the most appropriate mix of alternatives where the funds of the company can be invested. The selection requires the knowledge of finance related functions and techniques apart from the in-depth know of the patterns of requirement of funds in the company as well as in the industry as a whole.

ABOUT US
New India is a leading global insurance group, with offices and branches throughout India and various countries abroad. The company

services the Indian subcontinent with a network of 1068 offices, comprising 26 Regional offices, 393 Divisional offices and 648 branches. With approximately 21000 employees, New India has the largest number of specialist and technically qualified personnel at all levels of management, who are empowered to underwrite and settle claims of high magnitude. New India has been rated "A-" (Excellent) by A.M.Best Co., making it the only Indian insurance company to have been rated by an international rating agency. Rating based on following factors:
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Superior Capital Position Strong Operating Performance Only Company to develop significant International operations, long record of successful trading outside Indi

PROFILE
 

History Present Position International Presence Our Strengths Pioneers Citizens' Charter

History Incorporated on July 23rd, 1919 Founded by the House of Tata Founder member - Sir Dorab Tata. Nationalised in 1973 with merger of Indian companies. Present Position Gross Premium (in India) of Rs. 5017.20 crores in the year 2006-2007, as against Rs. 4791.49crores in the year 2005-2006. Assets Rs. 27444.57crores as on 31st March 2007. Network of Offices-26 Regional Offices, 393 Divisional Offices, 614 Branches and 34 Direct Agent Branches. Rank No. 1 in the Indian market. Largest Non-Life insurer in Afro-Asia excluding Japan. First Indian non-life company to cross Rs. 5000 crores Gross Premium. Global Re-insurance facilities. Over-seas presence in countries like Japan, U.K, Middle East, Fiji and Australia.

International Presence Overseas operations commenced in 1920. Operations in 24 countries in the year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs. 892.35 crores in the year 2004-05, which accounts for more than 80% of total overseas premium in India. Pre Our Strengths Largest number of Offices - In India and Abroad Trained and technically qualified staff 1068 fully computerised offices across India. "A-" (Excellent) rating by A.M.Best & Co (Europe) First domestic company to be rated by an International Rating Agency Rating based upon following factors: Superior capital position Strong operating performance Strong market position Only company to develop significant International operations, long record of successful trading outside India. Pioneers
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First company to set up an Aviation Insurance Department in 1946. First company to handle the Hull Insurance requirements of the Indian Shipping Fleet.

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First company to establish its own Training School. First company to introduce the concept of 'Model Office Training'. First company to create department in Engineering insurance. Pioneer in Satellite insurance.

Citizens Charter Our Mission

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To develop general insurance business in the best interest of the community.

To provide financial security to individuals, trade, commerce and all other segments of the society by offering insurance products and services of high quality at affordable cost

Our Values
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Highest priority to customer needs. High standards of public conduct. Transparency in operations.

Our Commitment to the citizens

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We will respond to all commercially viable general insurance requirements of the citizens, including products for weaker sections of the society at affordable price within three months from the date on which such a requirement is received.

We will ensure issuance of 100% of documents within a period of seven days.

We will ensure that prospectus of the various insurance products are provided to the customers and the extent of coverage is explained for his choosing the appropriate product. A written proposal will be

obtained from the insured wherever necessary and accordingly the policy will be prepared.
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We will settle all claims within a time schedule envisaged hereunder: A. Personal life insurance claims within 30 days on completion of all requirements. B. Property claims within 30 days on completion of all requirements. C. Liability claims within 30 days on completion of process of law.

We will promote customer education in general insurance products/services by holding workshops in various centers.

We will open a customer service cell in all ROs/DOs in addition to the existing 'May I Help You' counters.

We will set up proper grievance redressal mechanism in every operating office and will educate the clients about the same including the system of grievance redressal thorough ombudsman.

On request to the policy issuing office, we will make available to a customer, the status of his claim and/or claim settlement details within seven working days.

We will adhere to the IRDA guidelines in protecting the policyholders' interest.

All the above services and commitments will be honoured without the citizen having to pay any gratification/bribe.

(This Citizens' Charter was adopted at the board meeting held on 31.12.2003)

FINANCIAL RATING

For the sixth consecutive year, the Company has been rated as "A-" (Excellent) by M/s. A.M. Best Europe Ltd. The rating reflects Company's excellent risk adjusted capitalisation, prospective improvement in underwriting performance and its leading business profile in the direct insurance market in India. A partially off-setting factor is the Company's reliance on investment income which counter balances underwriting losses. But the outlook is stable. A.M. Best believes the Company's risk adjusted capitalisation is excellent and anticipates that it will remain sufficient to absorb the likely growth in the net premium. Further it also expects that there will be a reduction in the combined ratio in the years to come. The Company is likely to maintain its leading business position as the largest direct insurer in India, despite increased competition from private players.

PERFORMANCE
New India Assurance Company is the largest non-life insurer in India. The financial strength of the Company is reflected from the following figures:-

(Rs. in Crores) Gross Year Premium (in India) 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 1999-2000 1998-1999 1997-1998 Gross Premium Net Premium Net Profit Total Assets Net Worth (Outside India) 4914.28 4751.76 4342.66 3895.11 3634.94 3516.43 3068.23 2671.48 2477.45 2186.92 1945.00 1401.13 1459.95 716.38 402.23 590.21 255.81 142.00 173.54 287.29 375.00 470.94 31944.14 6972.80 27444.57 5972.55 27025.58 4706.87 19827.19 4161.69 17510.44 3735.22 12984.75 3404.00 12273.02 3189.39 8292.00 7664.71 6727.72 6071.67 3067.39 2859.86 2524.23 1462.52 (Global) (Global) (Global) (Global)

5276.91 874.55 5017.20 919.58 4791.49 884.05 4210.81 892.35 4045.68 875.79 3921.24 891.55 3512.33 685.73 3041.17 451.88 2979.53 327.00 2729.48 288.16 2433.73 254.04

WORKFORCE

Employee Strength (as on 31.03.2010)

Category

Total Number of Employees

Function

Class I Class II

5504 2574

Supervisory Development Force

Class III Class IV P. T. S. TOTAL

9032 2049 389 19548

Clerical/Secretarial Substaff/Drivers

PRODUCTS

PERSONAL

SOCIAL

PRODUCTS

COMMERCI AL

INDUSTRIA L

PERSONAL 1. HOUSEHOLDERS POLICY

This is a package policy specially designed to meet the insurance requirements of a householder. Highlights This is a package policy specially designed to meet the insurance requirements of a householder by combining under a single policy, a number of our standard policies usually taken by householders. Discount in premium is offered depending upon the number of sections of the policy, opted for, by the proposer. Scope The policy comprises of 10 sections as given here under Section I - Fire & Allied Perils A - Coverage for building B - Covers contents of the dwelling belonging to the proposer and his/her family members permanently residing with him/her.

Allied Perils: a. Fire, Lightening, Explosion of gas in domestic appliances b. Bursting and overflowing of water tanks, apparatus or pipes. c. Damage caused by Aircraft d. Riot, Strike, Malicious or Terrorist Act e. Earthquake, Fire and/or Shock, subsidence and Landslide (including Rockslide) damage f. Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Tomado or Cyclone. g. Impact damage Section II - Burglary & House Breaking including larceny and theft. Covers contents of the dwelling against loss due to burglary, house breaking, larceny or theft. Section III - All Risks (Jewellery & Valuables) Covers loss or damage to your jewellery and valuables by accident or misfortune whilst kept, worn or carried anywhere in India subject to the value declared in the schedule. Section IV - Plate Glass Loss or damage to fixed plate glass in the insured premises by accidental breakage subject to limit of sum insured Section V - Breakdown of Domestic appliances

Covers domestic appliances against unforeseen and sudden physical damage due to mechanical or electrical breakdown. Section VI - T.V. Set including VCP/VCR (ALL RISKS) Covers loss or damage to T.V.Set including VCP/VCR by fire and allied perils, burglary, house breaking or theft, breakage due to accidental external means, mechanical or electrical breakdown. Any legal liability arising out of bodily injury or accidental death of any person other than insured's family members or employee as also damage to property not belonging to or in the custody of insured , caused by use of the T.V. Set is also covered upto a limit of Rs.25,000/-. How to claim In case of any incident leading to a valid claim under the policy, following steps should be taken: 1. Take necessary steps to minimize the loss/damage. 2. In case of fire, inform fire brigade immediately. 3. In case of theft, larceny or burglary inform the police immediately along with a list of items stolen and their approximate value. 4. Inform insurance company by phone or fax and in writing. 5. Extend full co-operation to the surveyor appointed by the insurance Co. and provide necessary documents to the substantiate the loss. A claim form issued by the company is also to be submitted. 6. In case any rights of recovery exist against any other party responsible for the loss, your rights of recovery have to be subrogated to the insurance company on payment of claim.

2. PERSONAL ACCIDENT POLICY

The insurance provides compensation in the event of death or disability directly due to accident. Highlights This policy offers compensation in case of death or bodily injury to the insured person, directly and solely as a result of an accident, by external, visible and violent means. The policy operates worldwide and is a 24 hours cover. Different coverages are available ranging from a restricted cover of Death only; to a comprehensive cover covering death, permanent disablements and temporary total disablements. Family Package cover is available to Individuals under Personal Accident Policy whereby the proposer, spouse and dependent children can be covered under a single policy with a 10% discount in premium.

Scope This policy is basically designed to offer some sort of compensation to the insured person who suffers bodily injury solely as a result of an accident which is external, violent and visible. Hence death or injury due to any illness or disease is not covered by the policy. The following types of coverages are offered under a Personal Accident policy:Table D 1. Death cover wherein 100% of the capital sum insured is payable. Table C 1. Coverage under Table D 2. Loss of two limbs / both eyes / one limb and one eye wherein 100% of the capital sum insured is payable. 3. Loss of one limb or one eye wherein 50% of the capital sum insured is payable. 4. Permanent Total Disablement other than above e.g. paralysis due to an accident, wherein 100% of the capital sum insured is payable. Table B 1. Coverage under Table C 2. Permanent Partial Disablement i.e. where a part of the body becomes permanently disabled due to an accident, e.g. total and irrevocable

loss of use of a finger due to an accident. In such cases, a percentage of the capital sum insured as specified in the policy is paid. Table A 1. Coverage under Table B 2. Temporary Total Disablement i.e. where the insured person becomes temporarily disabled from undertaking any work as a result of an accident for e.g. fracture of legs. In such cases, a weekly payment of 1% of the capital sum insured subject to a maximum limit, is paid for the number of weeks or part thereof (maximum 100 weeks), during which the insured person is totally disabled. The insured can claim only under any one of these sections as a result of any one accident. The policy also covers expenses incurred for carriage of dead body from place of accident to the residence subject to a limit of 2% of the capital sum insured or Rs.2, 500 whichever is less. Under an Individual Personal Accident policy or Family Package Policy, an education fund is payable for a maximum of 2 dependent school going children, in case of death or permanent total disablement of the insured person. We issue several types of personal accident policies such as :y y y

Individual Personal Accident policy. Group Personal Accident policy. Passenger Flight Coupon - Covering personal accident risk whilst traveling as a passenger on a scheduled flight.

Gramin Personal Accident Policy - for persons residing in rural areas where benefits as per Table C mentioned above are covered for a capital sum insured of Rs.10,000/-.

Janata Personal Accident policy - where benefits as per Table C mentioned above are covered for a maximum sum insured of Rs.1,00,000/-. Long Term Policies can also be issued upto 5yrs.

Student Safety Insurance - for schools and colleges, covering students against Personal Accident benefits as per Table B mentioned above for a capital sum insured of Rs.10,000/-.

Raj Rajeshwari Mahila Kalyan Yojna - for women in the age group of 10 to 75 years. where benefits as per Table C mentioned above are covered for a capital sum insured for Rs.25,000/-. In case of death of an unmarried woman due to an accident, Rs.25,000/- is payable to the nominee or legal heir. In case of a married woman, if the husband dies due to an accident, Rs.25,000/- is payable to the wife but if the wife or insured dies no compensation is payable.

Bhagyashree Child Welfare Policy - for girl child in the age group of 0 to 18 years. whose parents age does not exceed 60yrs. In case of death of either or both parents due to an accident, a sum of Rs.25,000/- is deposited in the name of the girl child with a financial institution named in the policy which will disburse amounts as specified for the benefit of the girl child to the living parent or to the nominated guardian. Group policies can also be issued.

Add on covers Individual and group personal accident policies can be extended to cover medical expenses incurred in the treatment of an accident covered under the policy, subject to a limit of 10% of the sum insured or 40% of the death / disability compensation claim payable, on payment of additional premium. The policy issued to Indian personnel working in foreign countries on civilian duty can be extended to cover War risk on payment of additional premium. The policy can also be restricted to cover Personal Accident risk during duty hours only or during off-duty hours only with discount in premium. It is also possible to issue group P.A. policy excluding the death benefit subject to a group life policy covering death benefit being taken for the same group of persons for the same policy period. Who can take the policy Any adult residing in India can take the policy covering himself / herself and dependent family members between the ages of 5 and 70yrs. How to claim In the event of an accident giving rise to a claim the following steps should be taken:In case of death claim :-

1. Assignee under the policy should immediately notify the policy issuing office. 2. Submit the claim form along with death certificate, post mortem report, police report and original policy. In case of injury claim:1. Notify the policy issuing office immediately. 2. Submit Police report if any. 3. Submit claim form along with medical certificate certifying the disablement. In case medical expenses extension has been taken, then the prescription along with bills are to be submitted.

3. MOTOR POLICY

This policy covers all types of vehicles plying on public roads. Highlights This policy covers all types of vehicles plying on public roads such as:y

Scooters &Motorcycles

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Private cars All types of commercial vehicles Motor Trade (vehicles in show rooms and garages)

As per the Motor Vehicles Act, 1988 it is mandatory for every owner of a vehicle plying on public roads, to take an insurance policy, to cover the amount, which the owner becomes legally liable to pay as damages to third parties as a result of accidental death, bodily injury or damage to property. A Certificate of Insurance must be carried in the vehicle as a proof of such insurance. Two types of covers are available: 1. Liability only policy. This covers third party liability for bodily injury liability and / or death and property damage. Personal Accident cover for Owner-driver is also included. 2. Package policy. This cover loss or damage to the vehicle insured in addition to (1) above. No- claim discounts are available on renewal of policy, ranging from 20% to 50%, depending upon the type of vehicle and the number of years for which no claim has been made. Scope Liability Only policies: The policy covers the vehicle owner's legal liability to pay compensation for:

1. Death or bodily injury to a third party person. 2. Damage to third party property. Liability is covered for an unlimited amount in respect of death or injury and damage to third party property for Rs.7.5 lacs under Commercial vehicle and private and Rs. 1 lakh for Scooters / Motor Cycles. Package Policy In addition to the coverage under liability only, this policy covers loss or damage to the insured vehicle and its accessories due to: 1. Fire, explosion, self-ignition or lightning. 2. Burglary, housebreaking or theft. 3. Riot and Strike. 4. Malicious Act. 5. Terrorist Act. 6. Earthquake (Fire and Shock) Damage. 7. Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone and Hailstorm. 8. Accidental external means. 9. Whilst in transit by road, inland waterway, lift, elevator or air. 10. By landslide/Rockslide The policy also pays for towing charges from the place of accident to the workshop upto a maximum limit of Rs.300/- for Scooters/Motorcycles and Rs.1500/- for cars and commercial vehicles. It is also permissible to opt for higher towing charges subject to payment of extra premium.

A restricted cover is also available covering the risk of Fire and/or Theft only, in addition to the compulsory cover granted under "Liability Only Policy". However the same is not available in case of vehicle ratable under Class D, Tariff for Miscellaneous and special types of vehicles. The important exclusions under the policies are:
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Wear and tear, breakdowns Consequential loss Loss when driving with invalid driving license or under the influence of alcohol.

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Loss due to war, civil war, etc. Claims arising out of contractual liability. Use of vehicle otherwise than in accordance with `limitations as to use ' (e.g. private car being used as a taxi)

Rating factors Rating depends upon the following factors: 1. IDV. 2. Cubic capacity 3. Geographical zone 4. Age of the vehicle 5. GVW of in case of commercial vehicles 6. Add on Covers Add on covers The policy can be extended to cover the following risks on payment of additional premium:

1. Loss or damage to accessories fitted in the vehicle such as stereos, fans, air-conditioners etc. 2. Personal accident cover under private car policies for:
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passengers paid driver

3. Legal liability to employees. 4. Legal liability to non-fare paying passengers in commercial vehicles. Who can take the policy Any vehicle owner whose vehicle is registered in his/her name with the Regional Transport Authority in India. How to claim In the event of an incident giving rise to a claim under the policy, the following steps should be taken: In case of accidental damage to the vehicle: 1. Immediate intimation to the nearest office, which will issue a Claim Form. 2. Claim Form duly filled in to be submitted along with copy of Registration Certificate and driving license of the driver of the vehicle at the time of accident as also estimate of repairs. 3. Vehicle will be surveyed by a Surveyor, appointed by the insurance company, who shall submit his report to the company. In case of a major damage to the vehicle, a spot survey, at the site of accident, would also be arranged by the company. 4. Final bills/cash memos are to be submitted duly signed by the insured.

5. Salvage of the damaged parts may be required to be deposited with the insurance company after approval of the claim. In case of theft of the vehicle: 1. Lodge an F.I.R. with the police immediately. 2. Inform the policy issuing office with a copy of FIR. 3. Submit the Final Police Report as soon as it is received. 4. Extend full cooperation to the surveyor and/or investigator appointed by the company. 5. After approval of the claim by the company, get the Registration Certificate transferred in the name of the company, hand over the keys of the vehicle, submit a letter of Subrogation and Indemnity on stamp paper duly notarized. In case of liability claim: 1. Inform insurance company immediately of any incident likely to give rise to liability claim. 2. On receipt of summons from Court, the same should be sent to the company immediately. Claim Form duly filled in along-with copies of Registration Certificate, Diving License, FIR are to be submitted.

COMMERCIAL 1. JEWELLERS BLOCK POLICY

This is a package policy specially designed for jewellers & diamontaires i.e. those establishments dealing solely in diamonds. Highlights This is a package policy specially designed for jewellers & diamontaires i.e. those establishments dealing solely in diamonds. Jewellers premises are categorized into Class I, II or III depending upon the type of security provided for the premises. Discount in premium is available in case the premises have special protection devices like built-in vaults, strong rooms ,closed circuit T.V. or armed guards. Scope The policy comprises four sections which are optional except for section I which is compulsory.

Section I : Covers loss or damage to jewellery , gold and silver ornaments or plates , pearls, precious stones, cash and currency notes whilst contained in the premises insured, by fire,explosion, lightning,burglary,house breaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism. Section II : Covers loss or damage to jewellery, gold etc. as described in Section I whilst it is in the custody of the insured, his/her partners, employees, directors, sorters of diamonds or whilst such property (excluding cash and currency notes) is in the custody of brokers, agents, cutters and goldsmiths. Section III : Covers loss or damage to property described in Section I whilst in transit by registered parcel post, air freight or through angadia. Section IV : Covers loss or damage to trade and office furniture and fixtures in insured premises due to fire,explosion, lightning,burglary,house breaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism. Who can take the policy The policy can be taken by jewellers who are wholesalers or retailers. The policy cannot be given to establishments whose work is predominantly manufacturing like cutters and goldsmiths. The policy also cannot be given to angadias , brokers or pawn brokers etc. How to select the sum insuredo How The sum insured under Section I and II should represent the cost price of the jewellery items. The sum insured under Section III should represent the

maximum loss likely, arising out of any one incident. The sum insured under Section IV should represent the market value of the property How to claim In case of any incident giving rise to a claim under the policy, the following steps should be taken: 1. Inform insurance company within 24 hrs. 2. In case of burglary, theft etc. inform police immediately and obtain FIR Submit claim form and relevant documents to surveyor appointed by Insurance Co. to substantiate loss. Test.

2. BANKERS INDEMNITY POLICY

A package policy designed specially to cover the risks related to banking sector. A single policy covering all branches in India of the particular bank.

Highlights A package policy designed specially to cover the risks related to banking sector. A single policy covering all branches in India of the particular bank. Retroactive period facility available whereby losses discovered during policy period due to an incident occurring in earlier period but after inception of first policy , also become payable, provided the policy has been continuously renewed with us without break. Discount in premium available for banks having less than 500 branches. Scope The policy comprises of following 7 sections : A. On Premises : Covers money and/or securities belonging to, or in the custody of bank, whilst on their own premises or on the premises of their bankers, against loss or destruction by Fire, Riot & Strike, Malicious damage, terrorist act, burglary ,theft ,robbery or hold-up. B. In Transit : Covers money and/or securities if they are lost ,stolen, mislaid, misappropriated or made away with, whilst in transit in the hands of its employees whether by negligence or fraud of the employees. C. Forgery or Alteration : Covers losses suffered as a result of payment of bogus, fictious, forged cheques or drafts as also forged endorsements on genuine cheques or drafts or FDRs.

D. Dishonesty : Covers loss of money and/or securities suffered due to dishonest or criminal act of its employees. E. Hypothecated Goods : Covers losses suffered due to fraudulent or dishonest act of employees in respect of goods or commodities pledged or hypothecated to the insured bank and under its control. F. Registered Postal Service : Covers loss of registered postal sending by robbery,theft or any other cause not specifically excluded, provided that each post parcel shall be insured with the post office. G. Appraisers : Covers loss due to infidelity or criminal act on the part of appraisers, provided that such appraisers are on the bank's approved list. H. Janata Agents : Covers loss due to infidelity of criminal acts on the part of Janata Agents, Chhoti Bachat Yojana Agents/Pygmie Collectors. Add on covers The following additional perils can be covered on payment of an additional premium: 1. Losses due to flood, inundation, hurricane, typhoon, storm, tempest, tornado and cyclone. 2. Losses due to earthquake - Fire & Shock Additional sum insured can be opted for under Section A & B.

Who can take the policy Any banking company as defined under various Banking Acts like Banking Regulation Act 1945, State Bank of India Act 1955 etc. How to select the sum insured The proposer has to select a basic sum insured which will apply to Sections A to E of the policies. This sum insured should represent the maximum amount of loss which could be suffered by the bank due to any single incident covered under Sections A to E. The sum insured under Section F,G&H is fixed at a percentage of the basic sum insured. In addition to the basic sum insured , an additional sum insured can be opted under Section A and/or B on payment of additional premium. How to claim How to claim In case of discovery of any loss falling under the scope of the policy, the following steps should be taken: 1. Inform insurance co. by phone and/or fax/letter. 2. In case of burglary/robbery/theft/hold-up etc. inform police and get FIR registered. 3. In case of dishonest act of employee, inform police and initiate departmental enquiry. 4. Submit claim form and relevant documents to substantiate loss to the surveyor appointed by the insurance company. 5. Take reasonable steps to prevent further loss due to the same reason.

3. MARINE CARGO POLICY

This policy covers goods,freight and other interests against loss or damage to goods whilst being transported by rail,road,sea and/or air. Highlights
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This policy covers goods,freight and other interests against loss or damage to goods whilst being transported by rail,road,sea and/or air.

Different policies are available depending on the type of coverage required ranging from an ALL RISK cover to a restricted FIRE RISK ONLY cover.

This policy is freely assignable and is basically an agreed value policy.

Scope Transportation of goods can be broadly classified into three categories: i. ii. iii. Inland Transport Import Export

The types of policies issued to cover these transits are: For Inland Transit a. Specific Policy - For covering a specific single transit b. Open Policy -For covering transit of regular consignments over the same route .The policy can be taken for an amount equivalent to three months despatches and premium paid in advance.As each consignment is despatched, a declaration giving details of the despatch including GR/RR No. is to be sent to the insurer and the sum insured gets reduced by the amount of the declared despatch.The sum insured can be increased any number of times during the policy period of one year;but care should be taken to ensure that adequate sum insured is available to cover the consignment to be despatched. c. Special Declaration Policy - For covering inland transit of goods wherein the value of goods transported during one year exceeds Rs.2 crores.Although the premium for the estimated annual turnover [i.e.the estimated value of goods likely to be transported during the year] has to be paid in advance,attractive discounts in premium are available. d. Multi-transit Policy - For covering multiple transits of the same consignment including intermediate storage and processing.For e.g.covering goods from raw material supplier's warehouse to final distibuter's godown of final product.

For Import/Export a. Specific Policy - For covering a specific import/export consignment. b. Open cover - This policy which is issued for a policy period of one year indicates the rates, terms and conditions agreed upon by the insured and insurer to cover the consignments to be imported or exported.A declaration is to be made to the insurance company as and when a consignment is to be sent along with the premium at the agreed rate.The insurance co. will then issue a certificate covering the declared consignment. Custom duty cover - This policy covers loss of custom duty paid in case goods arrive in damaged condition.This policy can be taken even if the overseas transit has been covered by an insurance company abroad,but it has to be taken before the goods arrive in India. Add on covers Inland transit policies can be extended to cover the following perils on payment of additional premium : i. ii. SRCC - Strike, riot and civil commotion (including terrorist act) FOB - Where the inland transit is required to be extended to cover the goods till they are loaded on board the vessel , this extension can be taken. Export /Import policies can be extended to cover War and /or SRCC perils on payment of an additional premium.

Who can take the policy The contract of sale would determine who buys the policy. The most common contracts are :
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FOB (Free on Board) C & F (Cost & Freight) CIF (Cost, Insurance & Freight) In FOB AND C&F contracts, the buyer is responsible for insurance. Whereas in CIF contracts the seller is responsible for insurance from his own premises to that of the purchaser. How to select the sum insured The sum insured or value of the policy would depend upon the type of contract. Usually, in addition to the contract value 10/15% is added to take care of incidental cost.

How to claim The following steps should be taken in event of a loss or damage to goods insured: i. ii. Take immediate steps to minimize loss. Inform nearest office of the insurance company or claim settling agent mentioned on the policy. iii. In case of damage to goods whilst on ship or port , arrange for joint ship survey or port survey. iv. Lodge monetary claim with carrier within stipulated time period.

v.

Submit duly assigned insurance policy/certificate along with the original invoice and other documents required to substantiate the claim such as : a. b. c. d. Bill of Lading / AWB/GR Packing list Copies of correspondence exchanged with carriers. Copy of notice served on carriers along with acknowledgment/receipt. e. Shortage/Damage Certificate issued by carriers.

Vi. Survey fees is to be paid to the surveyor appointed by the insurance company. This fees will be reimbursed along with the claim if the claim is otherwise admissible.

INDUSTRIAL
1. CONTRACTORS ALL RISK POLICY

This policy is specially designed to give financial protection to the Civil Engineering Contractors in the event of an accident to the civil engineering works under construction. Highlights This policy is specially designed to give financial protection to the Civil Engineering Contractors in the event of an accident to the civil engineering works under construction. In case the policy period exceeds 12 months, the premium can be paid in quarterly installments with the first installment being more by 5% and the last installment being paid 6 months before expiry of the policy. Scope The policy comprises of 2 Sections:
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Section I-Material Damage-covering physical loss, damage or destruction of the property insured by any cause, other than those specifically excluded in the policy.

Section II-Third Party Liability-covering the legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.

The main exclusions under Section I for which no claim is payable, are loss or damage due to: i. ii. faulty design rectification of aesthetic defects of structure not relating to any physical loss or damage to the structure due to any accident, or of material defector of workmanship defect. The exclusion of defective material / workmanship is limited to the parts of the structure immediately affected and does not apply to any consequential loss to correctly executed items, arising out of the accident due to defective material or workmanship. iii. Loss or damage due to gradual deterioration, atmospheric condition, rusting etc. iv. v. Loss discovered only at the time of taking inventory. Loss arising out of penalty for delay, non-fulfillment of terms of contract. Add on covers The policy can be extended to cover the following items :a. construction equipment like scaffolding, shuttering materials b. construction equipment like scaffolding, shuttering materials

c. Damage to surrounding property not forming part of the contract work. d. maintenance visit / extended maintenance cover to cover accidental loss or damage whilst carrying out any rectification during maintenance period and / or any amount incurred for rectification of such original defects or faults during construction. Who can take the policy The policy can be taken by the principal, contractor or sub contractor, jointly or separately. How to select the sum insured The sum insured selected under section I should represent total contract value including the estimated cost of labour charges and cost of materials but excluding profit. The cost of materials supplied by the principal is to be declared separately. In case of long term contracts, there is bound to be escalation in prices. The basic policy will pay only as per the original cost and prices. However escalation clause can be opted for, under which escalation upto 50%, can be selected to take care of such increase in prices. The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured's site). The limit per policy period should be fixed taking into account the maximum number of such accidents which can reasonably be expected to occur.

How to claim In the event of any loss or damage giving rise to a claim under the policy, the following steps should be taken:y y y y

take necessary steps to minimise the loss. inform insurance company immediately. extend full cooperation to the surveyor deputed by the company. submit duly filled in claim form along with necessary documents to substantiate the financial loss suffered as a result of the accident.

Period of Insurance Unlike other policies where the period of insurance is one year, in this policy the period of insurance should be equivalent to the period of contract, commencing from the date of unloading of the first batch of material at the site of construction and expiring on the date of handing over of the contract work to the principal. Although it is possible to extend the policy period in case of delay in completion of contract, it is always advisable to choose a slightly longer period of insurance initially, to avoid paying the higher extension premium.

2. Machinery Breakdown Policy

This is a policy which covers financial loss incurred by the insured due to loss or damage to machinery as a result of accidental electrical and mechanical breakdown. Highlights This is a policy which covers financial loss incurred by the insured due to loss or damage to machinery as a result of sudden accidental electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature.
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Who can take this Insurance:This insurance can be taken by the individual owner of the machine or a person or company having financial interest in the machine.

What kind of machines can be covered: All types of industrial machinery like compressors, pumps, turbine etc. as also electrical machines like transformer, electrical motor, generator etc. can be covered under this policy.

What is the sum insured or value for which policy is to be taken: It is a requirement of this policy that the sum insured or value for which the particular machine is insured should represent the present day purchase value of a similar new machine including all incidental expenses like custom duties, taxes, excise, freight, insurance charges, handling charges etc. In case the sum insured under the policy is less than as per the above requirement the claim will be paid only in such proportion as the sum insured bears to the current replacement cost of similar new machinery.

Scope The policy covers all kinds of electrical and mechanical breakdown resulting from the following incidents: a. Faulty material/workmanship of the machine b. Action of centrifugal forces contributing to disruption of the rotating parts c. Failure of lubrication due to malfunctioning of lubricating oil pumps or its breakdown. d. Malfunctioning or failure of safety devices. e. Electrical short-circuiting including electrical fire originating from failure of insulation and or over voltage or under voltage conditions. f. Abrupt and sudden stoppage of other connected machinery. g. Entry of foreign bodies into running machine. h. Inexperienced operations causing damage due to error of judgment or error in operation.

Add on covers The policy can be extended to include the following risks on payment of additional premium. 1. Damage to foundation of machinery 2. Damage to oil in electrical apparatus 3. Express freight (excluding air freight), holiday rates, overtime charges 4. Air freight 5. Additional custom duty i.e the additional percentage of duty payable at the time of reimport for replacement over and above the percentage of duty included in the original sum insured. 6. Own surrounding property i.e. damage to the insureds own existing property or property in his custody or control (not included in the sum insured of the policy) due to any damage to the insured machines which is covered under the policy. 7. Third party liability i.e. liability falling on the insured for bodily injury to any other party other than those covered by the policy or for property damage belonging to such other party. How to claim In case of any such incident which falls under the scope of the policy, the following steps should be followed: 1. Please inform the insuring office by phone, letter or fax. 2. Take all necessary steps to minimise the loss. 3. Obtain estimate of repair from repairer of your choice.

4. Submit this repair estimate and claim form to the surveyor deputed by the insurance company. 5. After getting clearance from the surveyor, proceed for repairing machine or ordering for replacement as the case may be. Submit actual bills of repair/replacement with proof of payment to the surveyor.

SOCIAL
1. Universal Health Insurance Scheme Covers Medical Expenses whilst traveling abroad for business / holiday / employment / studies. Benefits Medical Reimbursement The policy provides reimbursement of hospitalisation expenses upto Rs.30,000/- to an individual /family subject to the following sublimits: A. (i) Room, Boarding expenses upto Rs.150/per day (ii) If admitted in ICU upto Rs.300/per day B. Surgeon, Anaesthetist, Consultant, specialists fees, Nursing expenses upto Rs.4,500/per illness/ injury C. Anaesthesia, Blood, Oxygen, OT charges, Medicines, upto Rs. 4,500/Diagnostic material & X-Ray, Dialysis, Radiotherapy, Chemotherapy, Cost of pacemaker, Artificial limb, etc D. Total expenses incurred for any one illness per illness/ injury upto Rs. 15,000/-

Personal Accident Cover Coverage for Death of the Earning Head of the family (as named in the schedule) due to accident: Rs. 25,000/-. Disability Cover If the earning head of the family is hospitalized due to an accident / illness compensation of Rs.50/- per day will be paid per day of hospitalization up to a maximum of 15 days after a waiting period of 3 days. For purpose of this policy HOSPITAL means:
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Any Hospital/ Nursing home registered with the local authorities and under the supervision of a registered and qualified Medical practitioner.

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Hospital/ Nursing Home run by Government. Enlisted hospitals run by NGOS / Trusts / selected private hospitals with fixed schedule of charges.

It should have minimum 15 beds (10 in case of class 'C' cities having a population lest than 5 lakhs) with fully equipped OT, fully qualified nursing staff round the clock and fully qualified doctor should be in charge round the clock.

Hospitalization should be for a minimum period of 24 hrs. However this time limit is not applied to some specific treatments and also where due to technological advancement hospitalization for 24 hrs may not be required.

Premium For an individual Rs. 300/- per annum For a family upto 5 (including the first3 children) Rs. 450/- per annum For a family upto 7 (including the first 3 children and dependent parents) Premium Subsidy For BPL Families For families below the poverty line the Government will provide a premium subsidy of Rs.100/- per family. Main Exclusions
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Rs. 600/- per annum

Corrective, cosmetic or aesthetic dental surgery or treatment. Cost of spectacles, contact lens and hearing aid. Vaccination, inoculation, change of life or cosmetic treatment or surgery HIV, AIDS, Sterility, Venereal Disease, Intentional Self injury, use of Intoxicating Drugs/ Alcohol.

Primarily diagnostic expenses not related to sickness/ injury.

Claim Settlement Claim settlement to be done through TPAS mentioned in the schedule or by the insurance company. To be made cashless as far as possible through listed hospitals.

Other Features Any One Illness will be deemed to mean continuous period of illness and it includes relapse within 60 days from the date of last consultation with the hospital. Age Limitations This Policy covers people between the age of 3 months to 70 years. Family means earning head, spouse and up to maximum of three dependent children. Dependent parents can also be included. Floater Basis The benefit of family will operate on floater basis i.e. the total reimbursement of Rs.30,000/- can be availed of individually or collectively by members of the family. 2. STUDENT SAFETY INSURANCE Highlights This insurance is available to schools, colleges or other educational institutions. The policy is issued in the name of the Institution. The claim amount is payable to the parent/guardian as recorded in the school register. All students are to be covered. Additional students are covered during the policy period at extra premium. But no deletions are allowed.

Scope The students will be covered against death, total loss of two limbs or two eyes, total loss of one limb and one eye, total loss of one limb or one eye and Permanent total and partial disablement.
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Death (Capital Benefit) : Rs 10,000/Loss of two limbs, two eyes or one limb and one eye : Rs 10,000/Loss of one limb or one eye : Rs 5,000/Permanent total disablement from injuries other than those mentioned above : Rs 10,000/-

Permanent partial disablement (percentage of benefits as given below on the capital benefit of Rs 10,000/-)

Limit upto Rs 500/- (any one accident, any one year)

Eligibility The policy provides personal accident benefits to registered students of the school.

MANAGEMENT
Board of Directors

1. 2. 3. 4.

Name Shri M. Ramadoss Shri A. R. Sekar, Shri I S Phukela, Mr. R. Gopalan

Chairman cum Managing Director Director and FA Director I.A.S., Secretary, Department of Financial Services, Ministry of Finance,

5.

Shri M. D. Mallaya

Government of India Chairman & Managing Director, Bank of Baroda

Questioners
1. Which type of product do you sell? 2. What is term &condition of each plan? 3. Which type of special facility you provide to your customer? 4. Which type of marketing strategy you adopt launching new plan? 5. Which benefit are you offered to your employee? 6. Do you have tie up any bank to provide insurance scheme? 7. Which technique you adopt to retain more & more customer?