Insurance services and products

Introduction

It is polling of risks In the contract of insurance, The insurer agrees (insurance company) In consideration of sum of money (premium) To make good the loss suffered by the insured against a specific risk Types of insurance Life insurance General insurance

Insurance Act,1938

Eligibility Registration Cancellation of Registration Renewal of Registration Restriction on Name Capital requirement Promoter's holding Deposits Reservation of deposits Refund of deposits Refund of deposits

Contd..

Accounts and Balance sheet Actuarial report and Abstract Investments of Assets Approved investments Other investments Investment of General insurance business Prohibition of investment Manner and Condition of investment Statement of investment of assets Returns of Investments relating to controlled fund Return on investment by general insurance companies

Penalties
Default in compliance with/Act in contravention Carrying on business in contravention of requirement of registration and deposits False statement in document Wrongfully obtaining/withholding property Offences by companies Failure to comply with Power to call for information Power of Government to make rules Power of IRDA to make regulations

Insurance Regulatory and Development Authority (IRDA)

1. 2. 3.

4.
5. 6. 7. 8.

Issue of certificate of registration to the applicant Protection of interest of policy holders Specifying requisite qualifications and practical training Specifying code of conduct for surveyor and loss assessors Promoting efficiency Promoting and regulating professional organizations Calling for the information Control of the rates, terms and conditions

Contd..
Regulating investment of funds 10. Adjudication of disputes 11. Supervising the functioning of the Tariff advisory committee 12. Specifying the percentage of premium income 13. Specifying the percentage of life insurance and general insurance 14. Exercising such other powers as may be prescribed
9.

Power and functions of IRDA

1. 2. 3. 4. 5. 6.

Issue of certificate of registration to the applicant Protection of interest of policy holders Specifying requisite qualifications and practical training Specifying code of conduct for surveyor and loss assessors Promoting efficiency Promoting and regulating professional organizations

Contd..
7. Calling for the information 8. Control of the rates, terms and conditions 9. Regulating investment of funds 10. Adjudication of disputes 11. Supervising the functioning of the Tariff

advisory committee 12. Specifying the percentage of premium income 13. Specifying the percentage of life insurance and general insurance 14. Exercising such other powers as may be prescribed

IRDA Regulations

Rural/social sector obligation New insurer Rural sector Social sector Existing insurers Insurance Advertisement and Disclosure Compliance and control Changes in Advertisement Insurance company Advertisements Advertisements by insurance Agents Advertisements by insurance Intermediaries

Contd..
Advertising on internet Identity of Advertiser Endorsements and other third party involvement Procedure in case of complaint Adherence to advertisement code Statutory warning

Licensing of Insurance Agents Issue/renewal of license Qualifications Practical training examinations Others Code of conduct Cancellation of license General Insurance-Reinsurance Procedure for Reinsurance arrangement Inward Reinsurance business Outstanding loss provisioning

Absolute Privilege: An appointed actuary should enjoy absolute privilege to make any statement-oral or written-so that he can perform his functions Asset, Liabilities and Solvency Margins: 1. Valuation of Assets: It includes: Values of Assets, Statement of Assets, Determination of Amount of Liabilities, Methods of Determination of mathematical Reserves, Policy Cash Flows, Policy Options, Valuation Parameters, Applicability to Reinsurance, Additional Requirements for Linked Business, Additional Requirements for provisions. 2. Statement of Liabilities: It includes: Valuation of liabilities, Determination of Liabilities and Statement of Liability.

Contd
3. Determination of Solvency Margin: The statement of solvency margin should be separately prepared for Life Insurance Business and General Insurance Business Solvency Margin is calculated based on Net Premium and Net Incurred Claims RSM-1 means required Solvency Margin based on net premiums, and should be determined as 20% of the amount which is the higher of the gross premiums multiplied by Factor-A as specified and the net premiums RSM-2 is based on net incurred claims, and should be determined as 30% of the amount which is higher of the gross net incurred claims multiplied by a Factor-B as specified below and the net incurred claims

Contd..

Business Outside India: Where the insurer transacts insurance business outside India, and submits statements or returns to a public authority of that country, he should enclose the same along with the details specified in accordance with the regulations and the IRDA Actuarial Report and Abstract Regulations 2000.

Registration of Indian Insurance Companies

Indian Insurance Companies: it is a company in which holding by a foreign company does not exceed 26 percent. The registration of Indian insurance companies is with reference to : 1. Requisition for Registration: An applicant who want to do insurance business in India have to file requisition of registration and when it is accepted by IRDA, he can apply for certificate of registration.

Contd..
Requisition of registration should be accompanied by: a. A certified copy of MOA/AOA b. Names/address/occupation of directors/principal officer c. a statement of proposed class of business d. A statement indicating source of the required Rs. 100 cr and 200 cr share capital for life/general and reinsurance business respectively

Contd.
2.

Application for Registration: An applicant, whose requisition has been accepted, may make an application in prescribed form for grant of certificate of registration. Every applicant should accompany certain documents as per law while making application of registration, like: evidence of making of deposits, evidence of required paid up capital, affidavit by the principal officer that eq. capital held by foreign company do not exceed 26%, MOA etc.

Contd..
3.

Renewal of Certificate of Registration: all insurers who have been granted a certificate of registration would have to apply to IRDA before December 31 every year together with a fee of (a) Rs 50000 for each class of business and (b) 1/10 of one % of the total gross premium written by them or Rs 5 cr whichever is less. Failure to apply within prescribed time limit would require to pay additional penalty of 10% of the total fee.

Contd.
4. Action in case of default: The registration can be suspended by the IRDA for a specified period if the insurance company: conducts its business in manner prejudicial to the policy holders interests Fails to furnish any information required by the IRDA Does not submit periodical returns as required by the Insurance Act or by the IRDA Does not cooperate in any inquiry by the IRDA Indulges in manipulating the insurance business Indulges in unfair trade practices and fails to invest in the infrastructure or social sector as per the regulations

Investment Regulations/Norms

1.

Regulation norms pertains to investment assets of (1) life/pension/general annuity and unit linked business and (2) general insurance business (A) Life Business: Investment should be as follows:
Types of Investment % of Fund 25 50

1. Government Securities, Not < than 2. Government and other approved securities including 1 above, Not less than 3. Investment specified in section-27(A) of the insurance Act/Approved investment subject to specified prudential norms

50

Contd.
(B) Pension and General Annuity Business:
Types of Investment 1. Government Securities, Not < than 2. Government and other approved securities including 1 above, Not less than 3. Investment specified in section-27(A) of the insurance Act/Approved investment subject to specified prudential norms, Not exceeding % of Fund 20 40 60

2. General Insurance Business:

Types of Investment 1. Government Securities, Not < than % of Fund 20

2. Government and other approved securities including 1 above, Not less than
3. Investment specified in section-27(B) of the insurance Act/Approved investment subject to specified prudential norms

30
70

Third Party Administrators (TPAs)- Health

1.

Definition: It is a company which provides health services for a fee to an insurance company Licensing of TPAs: The main/primary purpose of the company should be to carry on business as a TPA in health services and it should not engage into any other business It should have minimum (1) paid-up equity capital and (2) working capital of 1 cr At least 1 of its directors should be a qualified medical doctor registered with medical council of India Not more than 26% eq. shares can be held by a foreign company Any license granted to a TPA would be valid for 3 years and it can be renewed by paying a fee of Rs 30000 at least before 30 days of its expiration

Contd
2.

3.

4.

Revocation/Cancellation of License: The license granted to any TPA may, after due notice, be revoked or cancelled by the IRDA for not following guidelines prescribed by the IRDA Code of Conduct: A TPA should, as far as possible, act in the best manner. In particular, every TPA/its CAO/its CEO/ its employees would be bound to norms as prescribed by the IRDA Maintenance and Confidentiality of Information: Every TPA is required to maintain, in accordance with the accepted professional standards of record keeping for at least 3 years and they should be available to the IRDA and access cannot be denied on any ground

Protection of Policyholders Interest Regulations

This regulations apply to all insurers, insurance agents, insurance intermediaries and policy holders and its essential elements are: 1. Point of sale 2. Proposal for insurance 3. Grievance redressal procedure 4. Matters to be stated in life insurance policy 5. Matters to be stated in general insurance policy 6. Claims procedures in respect of life and general insurance policy 7. Policy holders servicing 8. general

Corporate Agents Regulations

Corporate Agent is any person licensed by the IRDA to act as an insurance agent. Elements of these regulations 1. Issue/Renewal of license a) Qualifications b) Practical Training c) Examination 2. Remuneration 3. Code of Conduct 4. Renewal of License a) Cancellation of License Certificate b) Issue of Duplicate License 5. Miscellaneous

Insurance Brokers

Insurance Broker arranges insurance contracts with insurance companies on behalf of his clients. Functions/Categories a) Direct Broker b) Reinsurance Broker c) Composite Broker

Code of Conduct

Professional Conduct Conduct of matters relating to clients relationship Conduct of matters relating to sales practices Conduct of relation to furnishing of information Conduct in regulation to explanation of insurance contracts Conduct in relation to renewal of policies Conduct in relation to claim by client

Contd
Conduct in relation to receipt of complaints Conduct in relation to documentation Conduct in matters relating to advertising Conduct in matters relating to receipts of remuneration Conduct in relation to matters relating to relating

Professional Indemnity Insurance Every insurance broker should maintain a professional

indemnity insurance cover throughout the period of his license In suitable case 15 months from the date of issue of original license is given to produce such a guarantee Insurance cover must indemnify an insurance broker against a) Any error or omission on his part or on the part of his employee and directors b) Any loss of money or other property for which the broker is legally liable c) Any loss of documents and costs and expenses incurred in replacing or restoring such documents d) Dishonest or fraudulent acts or omissions by

Maintenance of Books of Accounts and Records

Every insurance broker should prepare I. Balance sheet/statement of affairs II. A Profit and loss a/c III. A statement of cash/funds flow IV. Additional statements on insurance broking business required by IRDA These books of accounts and records should be submitted within 90 days to IRDA together with the auditors report These books of accounts and records should be retained for atleast 10 years A half-yearly unaudited financial statements should also be submitted to IRDA by insurance broker.

Disclosures

An insurance broker may be required to disclose to IRDA within 30 days of requisition the following information I. His responsibilities with regard to placement of an insurance contract II. Any change in the information/particulars previously furnished having a bearing on the grant of license III. Name of clients whose insurance portfolio he manages/has managed IV. Any other requirement specified from time to time by the IRDA

Inspection
The IRDA has the right to appoint inspecting officer to inspect the premises of insurance broker to ascertain how the business is carried on and also to inspect the books of accounts, records and documents to I. Ensure that they are being maintained in the prescribed manner II. Ensure that the provisions of the insurance act, rules, regulations are being complied with III. Investigate the complaints from any insured/insurer/insurance broker/any other person or any matter having a bearing on his activities IV. Investigate his affairs suo motu in the interest of the proper development of the insurance business or policy holders interests IRDA may also appoint a CA or an actuary or any qualified and experienced individual in the insurance field as an investigating officer.

Cancellation or Suspension of License with Notice

Reasons for cancellation/suspension of license: a) Violation of the provision of the insurance act, IRDA act; b) Failure to furnish any information required by the IRDA; c) Furnishing wrong or false information for obtaining a license; d) Failure to submit periodical returns as required by IRDA; e) Not co-operating with any inspection or inquiry conducted by IRDA; f) Failure to resolve the complaints of the policy holders.

Contd
g) Breaching of the code of conduct by him; h) Failure to maintain capital requirements ; i) Failure to pay the fees or reimbursement of expenses; j) Violation of the conditions of license; k) Failure to carry out obligations as specified in the regulations; l) If the principal officer does not acquire practical training and pass the examination within the stipulated period.

Cancellation or Suspension of License without Notice

Reasons for cancellation of license without notice: a) Violation of any one or more of the requirements under the code of conduct; b) Found guilty or fraud, or is convicted of a criminal offence; c) Commitment of such default which requires immediate action in the opinion of IRDA; d) If the insurance broker has not commenced business within six months of being granted a license.

Micro-Insurance

A micro-insurance product includes life as well as general micro-insurance products. i. General micro-insurance product means a health insurance contract/any contract covering the belongings, such as a hut, live stock, tools etc. ii. Life micro-insurance product means any term insurance contract, with/without return of premium/any endowment insurance contract/health insurance contract with/without an accident benefit rider, either on individual or group basis.

Tie-up
The insurer should tie-up with a general insurer for the purpose and subject to the provisions of Section 64-VB of the insurance act, collect the attributable premium from the prospect and make it over to the general insurer(GI). He would forward any claim in regard to the general micro-insurance product to the general insurer and offer all assistance for its expeditious disposal. A GI can similarly tie-up with a life insurer to offer life micro-insurance products.

Micro-insurance Agents

A micro-insurance agent means i. NGO/SHG i.e. a Non-Government organization or a self help group registered as a society/an informal group, consisting of 1020 persons, which has been working for atleast 3 years with marginalized groups, with proven track record, clearly stated terms and objectives as outlined in its memorandum. ii. MFI : Any entity registered with non-profit objective for sanctioning loans/finance to members

Duties of MIA
Collection of proposal forms/self declaration forms from the proposer; Distribution of policy documents; Maintenance of a register of all the insured and their dependants with all the details in it; Assistance in settlement of claims; Ensuring nominations to be made by the insured; Any policy administrative service A MIA can work for only one life insurer and one general insurer.

Insurance products/services
Fundamental principles Products including groups/life insurance General insurance products Fire insurance Marine insurance Motor insurance Health insurance Liability insurance

Insurance products/services

Fundamental principals

Insurance principals

Fundamental principal

Insurance Means of protection of economic value of assets Assets are insured against the risk of being destroyed/lost/made non-functional Reduces impact of risk to the owner or those who depends on it Does not protect asset Only compensate economic/financial losses Perils Occurrences which can cause any damage to the assets The damage by perils to the assets is the risk that the asset is exposed to

Fundamental principals

Insurable interest

Utmost good faith

indemnity

subrogation

contribution

Insurable interest

Means a person entering into a contract of insurance would stand to lose financially on the occurrence of the event insured against Insurable interest in life insurance contract Own life Husband/wife in each others life Creditor in the life of debtor Partners in the life of other partners(to the extent of their int in the firm) An employer in the lives of the key employee A parent in the life of the child

Contd..

Insurable interest in non-life insurance contract Ownership of property Car owner in third party to an accident An employer to health of his employees A bank in the loyalty/integrity of cashiers/tellers An insured person can transfer(assign) his rights/ liabilities to another person(assignee)/liabilities to another person The assignee would acquire all the benefits of insurance contract

Utmost good faith

Implies full and accurate disclosure of facts material to the risk to the insurer without being asked Material fact: The breach of utmost good faith may arise from Misrepresentation (i.e. an statement of material fact) Nondisclosure (i.e. failure to disclose/ suppression known fact) Facts which should be disclosed are 1)facts which show greater risk than normally expected(e.g. dangerous hobby like bungeejumping) 2)external factors enhancing risk like occupation (e.g. fighter pilot)

Contd...
3)losses/claims on previous polices 4)decline/postponement of a previous proposed, 5)full facts (e.g. age, medical history, smoking/drinking habits) Principal of indemnity Insurance contracts basically indemnify the insured in the sense the sense that he is not allowed to make profit from them The indemnity principle implies that the financial position of the insured must be restored to the level he enjoyed before suffering the loss

Principal of subrogation As an extension of the core principle of indemnity, subrogation means the automatic transfer of rights/remedies of the insured to the insurer upon the insured having received the benefits of insurance such as salvaged/recovered value of a wrecked car, a stolen property in case of theft and burglary The recovered/salvage property goes towards reducing the insurers loss Subrogation comes into effect only on the payment of a claim

Principal of contribution The principal applies if the insured has taken several insurance policies for the same risk from several insurers Each insure in such a case pays only that portin of the risk as is represented by the proportion of the sum assured by him to the overall sum assured by the different insurers Example Under a fire insurance policy, if the insured has three policies of Rs. 10,00,000, 20,00,00 and 30,00,000 each, The respective insurers will suffer 1/6th, 1/3rd ,1/2 of the loss respectively.

Insurance polices Life Insurance General Insurance

Life insurance products

Life insurance products are based on core risk coverage needs of individuals As well as long term investment concerns Could be with or without profits There are also group insurance products

Life insurance products

Term policy Whole life policy

endowment
annuities Unit linked policy With/without profit policy Group life insurance

Term Insurance Policy

Provides pure element of risk cover without any saving For specified period only (temporary insurance) The payment is made only when the insured dies during selected period if not than nothing is payable Different Types of Term Insurance Plans (1)Level Term Insurance: (2)Decreasing Term Insurance (3)Increasing Term Insurance (4)Renewable Term Insurance (5)Convertible term insurance (6)Term insurance with Return of Premium

Whole Life Insurance Policy The assured sum is paid whenever death of the assured occurs Premiums are paid throughout the life or for shorter period Endowment Insurance Policy Benefit is payable to the insured only on survival after the specified term Payment made either on death or on the term get over

Contd..

Annuities Starts when life insurance ends Involves a series of periodic payments to the annuitant or dependents Immediate annuity: if the person purchasing the annuity dies during the term, his legal heirs/nominees are entitled to the remaining installments Differed annuity: payments commence at some specified time/age of annuitant and such annuity can be funded by single payment or by series of regular payments

Unit-link Insurance Policy(ULIP) Combines the benefits of insurance protection and investment in managed fund Benefits depends on investment portfolio Each premium split in two parts: one to provide insurance cover and balance is invested in mutual fund units With Profit and Without Profit Policies Additional amount or cash bonus paid to the assured sum is called with profit policy Policies with no bonus are without profit policy Group Life Insurance Products Covers similar/homogeneous individuals under single policy

General insurance
fire marine Motor/accident

Health /medical
liability

Fire Insurance

For financial loss to property due to fire and related hazards Examples of property that can be covered under fire insurance Buildings and their contents(machinery/ equipments/ accessories/ goods/ raw materials/ finished goods so on..) Electrical installation of a buildings Goods in the open Dwellings and their contents furniture/ fixtures/ fittings Pipelines located inside/ outside buildings/ dwellings/ compounds

Fire Hazards
Fire Explosion/Implosion Aircraft Damage Riots, strikes, malicious and terrorism damage Impact Damage Subsidence and landslide including road slides

General Conditions
Policy would become void if: non-discloser of material facts, misrepresentation, mis-description 2) All insurance under such policies would automatically cease if the building or structure covered by the policy falls, or displaced in full or in part. Insurer should given a notice within 7days of the event of fall/displacement 3) The insurance ceases to exist before any loss/damage the insurer does not obtain sanction of the insurer: (a) If trade/manufacturer or any other circumstances are alter which can increase the risk of loss/damage (b) if the building or property insured becomes unoccupied for more than 30 days (c) if interest is passes from insured to some one else except by succession will or such similar
1)

Contd..
(d) All above changes have to be notified to the insurer prior to occurrence/damager On the death of the insured his legal heirs automatically become the insured If there is marine policy than fire policy would pay only the excess over the amount payable under marine policy Cancellation is possible by either party: (a) if insured cancel the policy the premium is retained by insurer (b) if insurance company cancel by giving 15days notice than premium would be refunded on a pro-rata basis

(4)

(5)

Contd..
(6) Duties of insured (a) notice of loss/damage to insurer immediately (b) within 15days or as time allowed by insurer submit claim statement giving item wise detail (c) particulars of other insurance should be given (d) non compliance of these conditions could make the

Contd..
(e) after 12 months from date of loss the insurer is not liable unless claim is sub to pending action, arbitration or litigation (f) if insurer disclaim the liability and insured not file a suit in court for recovery within 12 months of the disclaim than it is not recoverable thereafter (7) Rights of insurer: (a) can take possession of building/premises where loss occurred (b) can take possession of insured property in building (c ) remove, sort, arrange or salvage insured property (d) sell or dispose off the damaged property

Contd..
(e) insurer can exercise above rights until the claim is closed or withdrawn by the insured in writing (f) if insured does not co-operate in any way all benefits of policy could be forfeited (g) insured doesnt have right to abandon damaged property whether the insurer takes possession of it or not

Contd..
(8) If claim is fraudulent or any false evidence is given to get benefit by insured than he will lose all benefits of policy (9) Insurer can replace or re-instate the property damaged instead of paying for the loss or damage (10) At the event of claim if insured has not covered the property to its full value he has to bear a portion of the loss (11) If one or more policies are there for same property than all policies would contribute to claim in the same proportion (12) Insured is require to help insurer in recovering the loss from third party, the insureds right to recover against a third party are subrogated to the insurer

Contd..
(13) Any discipline regarding the amount of claim payable would referred as per the provisions of the Arbitration and Conciliation Act (14) Upon the settlement of any loss under the fire policy, pro rata premium for the un-expired period from the date of loss to expiry of policy for the amount equivalent to the loss is payable by the insured to the insurer (15) All notices must given in written

Special policies

Fire insurance policies have some unique issues Such as Consequential Loss Replacement/ Reinstatement Value Policy Floater/ Multi-location Policy Industrial All Risk Policy

Marine Insurance

Marine Insurance has two broad components (1) Hull Insurance (2) Cargo Insurance Marine Insurance Act(MIA): MIA,1963 has provided legal framework for Marine Insurance Deals with details contents of marine insurance

Contd..

Institute Cargo Clauses(ICC) ICCC (C) ICC (B) ICC (A) ICC (AIR) Excluding Sending by Post Inland Transit (Rail/Road) Clause C Inland Transit (Rail/Road) Clause B Inland Transit (Rail/Road) Clause A

Motor/Accident Insurance

The Motor Vehicle Act requires compulsory Insurance to take care of injured person in accident Insurance to damage for vehicle is not mandatory The Liabilities.. Arising in respect of death/bodily injured to the owner/person in carriage Damage to any third party or property Death/bodily injury of passenger of public service vehicle Under Workmans Compensation Act at death/injury of a paid driver, conductor/ticket examiner and workers carried in a goods vehicle

Contd..
Death/injury of Passenger carried for reward/ hire to contract of employment Policy should carry No Fault liability to specified sum in case of Rs50,000 in case of death Rs25,000 in case of permanent disability Rs 6000 in case of property damage Injured/ insured does not have to prove any fault to claim this amount

Types of Vehicles a) Private cars b) Motor cycles/scooters c) Commercial vehicles I. Goods carrying vehicles II. Passenger carrying vehicles( i.e. auto rickshaw, taxis, buses) III. Miscellaneous (i.e. hearses, ambulances, cinema/recording vans, mobile utilities)

Types of Policies 1) Third party liability policy/ act liability policy a) Death/bodily injury of third party b) Damage or loss to the property of third party 2) Comprehensive/own damage losses and act liability policy a) Fire, explosion, self-ignition/lightning b) Burglary/ house-break/ theft, earthquake c) Flood/ typhoon/ hurricane/ storm/ tempest/ inundation / cyclone/ hailstorm/ frost d) Terrorist activity e) Malicious act f) Riot and strike g) Landslide/ rockslide, evator/air

Contd..

Exclusion Mechanical breakdown/Failures/ Breakages/ wear and tear/Depreciation/Consequential loss Loss when vehicle driven under intoxication Overloading/strain to commercial vehicles

Health Medical Insurance

Health insurance covers mainly two types of benefits 1) Reimbursement of medical expenses related to specific diseases 2) Hospitalization Recently available policies are.. Individual Mediclaim Policy Group Mediclaim Policy Bhavishya Arogya Policy Jan Arogya Bima Policy Cancer Insurance Overseas Mediclaim Cover

Individual Mediclaim Policy

Policy covers Boarding expenses in hospital as description of policy Surgical, anesthetist, medical practitioner and consultants fees specialists fees Nursing expenses Anesthesia, blood, oxygen, operation theatre charges, surgical appliances, medicines and drugs, diagnostic reports, dialysis, chemotherapy, prosthetic limbs Domiciliary Hospitalization: This is a medical treatment where patient is not able to move hospital due to conditions or lack of facility and treatment is done at home by professional doctors at home

Bhavishya Arogya Policy Taken between the age of 25 to 55 of years Retirement age is selected by insured and is between 55 and 60 years of age Amount of total benefit maximum Rs50,000 Cannot exceed Rs 20,000 per injury Jan Arogya Bima Policy Policy for smaller covers and people with limited means of paying the premium Sum assured is limited to Rs. 5000 Works like a usual mediclaim policy but defers on few value added extras 1. Not offer any cumulative bonuses 2. Not offer any medical check up benefits

Cancer Insurance In India there are two cancer policies: A group policy issued by the Indian Cancer Society (ICS) Group Policy offered to members of the Society/Association to qualify for the policy Cover is limited to Rs 50,000 in the case of the ICS policy an can go up to RS 2,00,000 in case of the CPAA policy Group Mediclaim Policy Available to corporate, association, institution and group of people Group is policyholder and premium is payable to group Overseas Medical Cover The policy is for the Indians who got illness or injuries

Liability Insurance

Liability Insurance Act, 1991 defines scope of liability insurance in India Types of Liabilities (Indemnity Policies) 1) Employee liabilities 2) Employees state insurance liability 3) Non-industrial risks 4) Professional liabilities 5) Product liabilities Industrial Risks Compulsory liability; not required to prove the death, injury or damage occurred due to any neglect

Contd..
Amount of relief payable fatal accident: Rs 25,000 per person Permanent total disability: Rs 25,000per person Permanent partial disability: Amount of relief on the basis of % of disablement as certified by a doctor Temporary partial disability: fixed monthly relief snot exceeding Rs 1,000 per month Actual medical expenses: maximum of 12,500 Actual damage to property: Up to Rs 6,000

Product Liability: Product insurance arisen because of some products which can bodily harm or death or injury to consumers if defective Electrical appliances, LPG cooking gas, household cleaning agents that includes strong acids/chemicals, ready to eat packages There are different groups for purpose of product liability

Professional Indemnities 1. Doctors and medical practitioners 2. Medical establishments 3. Engineers, architects and interior decorators 4. Chartered accountants, financial consultants, management consultants 5. Lawyers, solicitors, advocates and counselor Directors Liability To provide insurance protection against liability arising from damages for wrongful acts committed by a company/its directors

Workmens Compensation Insurance This policy basically covers employers against liability arising from compensations given to workman as a result of death or disability Two types of cover provides indemnity against legal liability under Table A:The Workmens compensation Act, Fatal Accidents Act and common Law Table B:Fatal Accident Act and Common Law Employee State Insurance Liability To provide employee benefits in case of sickness, maternity, and employment injury Employee State Insurance Corporation monitor the ESI rules

Thank You