Professional Documents
Culture Documents
In the organisation, everybody remains concerned about profit, performance and productivity. talks about vision, mission and goals. In the process, we forget to make provisions for unforeseen and uncertain losses.
In spite of best laid plans, practice, protections and precautions, accidents/losses do take place.
They are uncertain, unpredictable but inevitable.
Day by day
Road ahead is uncertain and unpredictable Therefore calls for Prudent Risk management.
A systematic way of protecting business resources and income against losses so that the aims of a company can be reached without interruption
The real objective of Risk Management is to reduce fear of the unknown and unexpected events and to create confidence in future.
Risks
lightning
Business
accident flood
Exposures
Risk Management Planning organizing & controlling the activities of a firm to efficiently minimize the adverse impact of risks on the achievement of the companys goals.
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Property losses
PROPERTY damage or loss resulting from fire, explosion, flood, theft or any other peril.
LIABILITY for injury to third party damage to their property caused by negligence Or other tortuous act of the firm Or its employees .
PERSONNEL LOSSES injury or death of employee and may involve extra cost by way of compensation
PECUNIARY LOSSES such as interruption due to damage, loss of sale, business misappropriation or theft of money .
THE REAL OBJECTIVE OF RISK MANAGEMENT IS TO REDUCE FEAR OF THE UNKNOWN & UNEXPECTED EVENTS & TO CREATE CONFIDENCE IN FUTURE
PROTECTION OF THE COMPANYS ASSESTS AND EARNINGS AGAINST LOSSes , Including PROTECTION against LEGAL LIABILITIES, AT A MINIMUM COST ( Premium) COMMENSURATE WITH SATISFACTORY COVER .
WHY
High Capital Intensive in nature.
Risks beyond human control Element of uncertainty
Risk identification Risk Avoidance Risk Reduction Risk Retention Risk analysis / measurement Risk transfer (by Insurance)
IS THERE A RISK
YES HAS IT BEEN MEASURED YES IS IT SIGNIFICANT NO DISREGARD YES AVOID / ELEMINATE YES CAN IT BE AVOIDED OR ELIMINATED NO CAN IT BE REDUCED YES IS RESIDUAL RISK SIGNIFICANT NO YES IS IT A CATASTROPE RISK NO CAN IT BE RETAINED YES YES NO DISREGARD NO
ANALYSE RISK
Evaluation
Control
Financing
12/20/2013
NO TRANSFER
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OTHER
Insurance
Insurance Insurance is a contract whereby in return for the payment of premium by the insured ( the Owner), the insurers ( Company) pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events.
Insurable Intrest
Insurable interest The owner of a property has a right to effect insurance on the property if he is likely to suffer financially when the property is lost or damaged to accident. This is a legal right which is called insurable interest.
Without insurable interest, the contract of insurance will be void.
Proximate Cause CLAIMS ARE PAID BY THE INSURERS, If the LOSS is PROXIMATELY CAUSED BY A PERIL INSURED AGAINST.
Indemnity
Principle of indemnity states that under a policy of insurance, the insured after a loss is to be placed in the same financial position in which he was immediately before the occurrence of loss.
Insured cannot recover more than his financial loss. Object of insurance is to protect the financial interest of the insured
Insurer ????
In Public Sector there are two Insurance Companies L I C . Life Insurance Company .. Deals with Life Policy GIC General Insurance Company . Deals with Assests & Properties NICL. National Insurance Co. UIIC.. United India Insurance Co. OIC Oriental Insurance Co. NIAC .. New India Assurance Co. In Private Sector major names are
IFFCO-TOKIO GEN. INS. CO. BAJAJ ALLIANZ GEN INS. CO. RELIANCE GEN. INS.CO.LTD. ICICI LOMB. GEN. INS.CO.LTD. TATA AIG GEN. INS.CO.LTD. ROYAL SUNDARAM INS CO.LTD. CHOLAMANDALAM MS GEN.CO.LTD HDFC CHUBB. GEN.INS CO.LTD.
the Perils
IMPACT OF VEHICLES / AIRCRAFT
ELECTRICAL/ MALICIOUS ELECTRONIC DAMAGE DAMAGE / ARSON NEGLIGENCE OF EMPLOYEES TRANSPORTATION DAMAGE
ACCIDENTS STRIKE
DEFECTIVE PRODUCT
POLLUTION
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INSOLVENCY OF CLIENT
Type of Covers
CONVENTIONAL COVERS
CUSTOMISED COVERS
TARIFF
NON TARIFF i) PACKAGE POLICY ii) SPL.CONT.POLICY (ON FIRST LOSS) ETC.
i) FIRE i)MARINE ii) MBD ii)SPL.CONT. iii) CPM iii) GPAI ETC. iv) MV v) BE vi) EEI vii) IAR ETC. viii) EAR Insu. ix) Public Liability Act policy
21,08,46,000.00
D&O Liability Ins. Policy Public Liability Ins. Act Policy (PLIA) Group Personal Ins. Act Policy (GPAI)
17.22 Cr.
14,919.00
PERIOD OF COVER
The insurance cover commences From mid night of the day premium is paid. & The Period of insurance is normally one year
EXTENSION OF COVERS
Earthquake- The zones covered under the scope is III & IV. The risk for zone I & II are only covered against extra premium. Secondhand Machinery- Can be covered only against extra premium. Dismantling cover- an appropriate cover can be obtained against additional premium as per tariff. Coverage for removal of debris third party liability owners surrounding property- Can be obtained by paying additional premium. Marine cover- The overseas as well as inland transit portion of the risk can be covered against extra premium.
Loss of Damages due to faulty designs, defective materials, bad workmanship. Manufacturing Defects- Being not related to erection work.. Loss or damages to erection machinery and equipment due to mechanical/electrical breakdown. Loss or damages due to willful act or negligence of the insured or his representatives. Loss or damages due to nuclear reaction, radiation. Loss due to normal wear and tear.
Implementation
Interactive Supplement
Hardware Software
Interlock Diagnosis system On line monitoring Detection & Suppression system, etc
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Thank You