Liability insurance

Liability Insurance
• Product Liability
• Professional Liability
• Arises if there is a violation of a person’s legal
rights or a failure to perform legal duty owed to
certain person or to society as a whole.
• Classes of legal wrong
– Crime
– Breach of contract
– Tort
 Categories of torts
• Intentional torts: assault, battery, trespass, false imprisonment,
fraud, libel, slander and patent and copyright infringement.
• Strict Liability: Rylands vs.Fletcher If a person brings on his land
anything which is likely to do mischief if it escapes, he will be prima
facie answerable for the damage caused by its escape though he
had not been negligent.
• Absolute liability: liability is imposed even without negligence or
fault. Examples
– Occupational injury and disease
– Blasting operations
– Manufacturing of explosives, medicines, food products eg. M C Mehta
vs. Union Of India
– Owning wild or dangerous animals
– Crop spraying by airplanes
• Negligence: failure to exercise standard of care required by law to
protect others from an unreasonable risk of harm.
 Defences against negligence
• Contributory negligence
• Comparative negligence
– Pure rule
– 49 percent rule
– 50 percent rule
• Last clear chance rule
• Assumption of risk
 Imputed negligence
• Employee employer relationship (Lloyd vs.
Grace Smith & Co.)
• Vicarious liability
• Family purpose doctrine
• Joint business venture (Hamlyn v.
Houston & Co.)
 Res ipsa loquitur
• Meaning the thing speaks for itself. Injury or
damage establishes a presumption of
negligence on behalf of the defendant.
• Requirements
– The event doesnot happen except in case of
negligence.
– The defendant has exclusive control over the
instrumentality causing the accident.
– The injured has not contributed to the negligence in
any way.
• Muncipal Corporation of Delhi v. Subhagwati
 Specific applications of the law of
negligence
• Property owners
– Liability in case of trespasser
– Liability in case of licensee
– Liability in case of invitee.
• Attractive nuisance doctrine : a condition that can attract
and injure children.
• Owners and operators of automobiles
• Governmental liability
• Charitable institutions
• Employee employer
• Parents and children
• Animal owners
 Special Tort Liability Problems
• Products Liability: liability of retailer or manufacturer
(privity of contract doctrine)
• Solutions:
– State of the art defense
– Alteration of the product defense
• Professional liability: A genuine error of judgement by
doctors, lawyers, accountants, architects, insurance
brokers, actuaries etc. Spring meadows hospital v.
Harjot Ahluwalia
• Employer’s liability/ workmen’s compensation insurance:
insurance compulsory, ESI Act
• Directors and Officers Liability:
 Public Liability Insurance
• For individuals
• Third party insurance
• Business risks
• The public Liability Insurance Act,1991:
mandatory for installations handling
hazardous substances.
Characteristics of liability insurance
• Liability may be by litigation, arbitration or
agreement.
• Loss is the sum finally determined by law. Law
means both statutory as well as common law.
• Potential liability is open-ended.
• Claimant is not the insured but a third party.
• Two stages of claims processing.
– Whether the policy covers the claim or not;
– Whether the insured is legally liable to pay or not. If
yes, how the amount is to be determined.
 Origin and development of liability
insurance in India
• Enactment of Workmen’s Compensation Act,1923, Motor
Vehicles Act,1939 and compulsory third party insurance.
• Bhopal Gas Tragedy in 1984.
• Environment Protection Act,1986, Public Liability
Insurance Act,1991.
• Consumer Protection Act,1986
• Employees State Insurance Act,1948
• Supreme Court decision in the case of Shriram Food &
Fertilizer Industries (vide M.C Mehta vs, Union of India)
ruled that civil liability of corporation for torts also
attached to directors and other officers.
 PUBLIC LIABILITY INSURANCE
• Coverage :
– Liability to a person and his dependants for death or injury,
– Liability for damage to property,
– Liability for legal costs involved in defending the case irrespective of
whether the case gets decided for or against the insured.
• Add on benefits by paying additional premium
– Liability due to Pollution
– Liability during transportation of material including hazardous ones
outside factory premises
– Liability because of effluents discharge through pipelines
– Earthquake risk
– Technical collaborators liability.
• Target Group: A whole range of industries starting from a humble
bakery or a beedi rolling unit to hi-tech aircraft hangers, chemical
manufacturing plants, hydroelectric power stations and ship building
units.
 What is the Amount of Cover
Available?
• AOA (any one accident) limit and AOY (any one year)/AOP (any one
period) limits.
• But there is a restriction that only four ratios are permitted for AOA
to AOY, i.e., 1:1, 1:2, 1:3 and 1:4.
• So, if an AOA limit of Rs. 50 Lacs is selected, the AOY limits can
either be Rs. 50, 100, 150 or 200 Lacs.
• It is also important to remember that these limits are inclusive of all
legal costs likely to be incurred.
• Factors to be considered for deciding the premium:
– Risk group of the industry
– Limit of AOA
– Ratio of AOA to AOY
– If more than one unit is to be covered in the policy, number of units
– Turnover of the business
– Additional covers opted for
 What Risks are not Covered in
the Policy?
• Excess: The first 0.5% of the AOA limit (subject to a
maximum of Rs. 2 lacs) for each claim is deducted from
the claim
• Liability assumed by any specific contract
• Loss of goodwill, market, etc.
• Punitive or exemplary damages
• Specific liabilities covered elsewhere such as liability due
to the use of a motor vehicle, aircraft, watercraft,
hovercraft, etc.
• Liability covered under Public Liability Act of 1991
• Liability arising due to war, civil war, etc.
• Liability due to radiation or contamination from
radioactivity.
 What is the Claims procedure?
• Liability claims are said to have a “long tail”, i.e., an incident occurring at one
point of time can produce an effect much later. Claims made vs.
occurrence coverage.
• So, the policy provides for special relaxations to the insured to register and
get claims from an Insurance company much after the first incident has
occurred provided the policy has been kept in force and all premiums paid
on time.
• Normal steps for making a claim are as follows:
– Inform Insurers as soon as possible of any incident, which may produce
a liability claim at a future date.
– The rule is to settle claims through the legal channel only. However, if
the liability is clear, the insurer may prefer to compromise the claim out
of court.
– The basic assessment is of actual monetary loss suffered due to the
incident. Some component of pain and suffering as well as loss of future
earnings also are considered.
– The peculiarity of a liability claim is that the insured does not have to do
very much except providing the Insurer the information asked for.
Insurer does the final settlement with the affected party.
 Directors’ and officers’ Liability
Policy
• Coverage: ‘Loss’ shall mean legal liability of the directors or officers to pay
damages or costs awarded against them and costs and expenses incurred
by the directors or Officers with the written consent of underwriters in
respect of investigation, defense or settlement of any claim.
• A wrongful Act shall mean actual or alleged breach of duty, breach of trust,
neglect, misstatement, misleading statement, omission, and breach of
warranty of authority or other act done or wrongly attempted by any Director
or Officers.
• Claims : Any writ or summons issued against or served upon any directors
or officers for any Wrongful Act, or,
• Any written communication alleging a wrongful Act communicated to any
Director or Officer.
• Loss arising from claim first made against the Directors or Officers where
company is required or permitted to indemnify the Directors or Officers
pursuant to the law, common or statutory, or the Memorandum and Articles
of Association
• Company reimbursement provision shall be applicable if such an obligation
is expressly mentioned in the Company’s Articles of Association or in an
agreement between the company and the concerned director or officers.
 Exclusions
• Legal action or litigation brought in a court of law within the Excluded
Territories
• Indemnity or payment is available from any source, other than the policy.
• Any actual or alleged bodily injury, sickness, disease or death of any person
or any tangible property, including loss of use thereof arising out of, any
actual or alleged seepage, pollution or contamination of any kind . (This is a
subject matter of public liability policy)
• Made by any third party based upon breach of any professional duty owed
to such third party. (This is a subject matter of a professional indemnity
policy).
• Brought about by any circumstances existing prior to or at the inception date
of the policy and which the directors or officers or the company knew or
ought reasonably to have known could give rise to a claim.
• For tax or fines or penalties or punitive or exemplary or multiple damages or
any claim deemed uninsurable under law.
• Based upon, actual or alleged libel, slander, infringement of copyright,
infringement of patent (separate policies can be availed of)
• Directly, resulting from goods or products manufactured or sold or supplied
by the company (this is a subject-matter of products liability policy).
 Professional Liability Insurance
• Also referred as Malpractice policies or errors-and-
omissions policies.
• Professional vs. other liability contracts
• Insurer needs consent of insured to settle claims out of
court as it may damage the reputation of the
professional.
• Limit of liability not by per accident but in terms of per
claim.
• The act that gives rise to the claim is not accidental but
deliberate.
• The policy responds to suits based on professional’s
error, mistake or malpractice but not to warranty
successful results.
 Commercial General Liability and
Commercial Umbrella Policy
• Under CGL one can insure general products and completed
operations liability; personal injury; advertising liability; medical
payments; and liability for damage to premises rented to the
insured. Two options for events that trigger coverage: claims made
and occurrence.
• Commercial umbrella policy is purchased to pay for catastrophic
losses. In this case the insurer will require primary insurance in form
of CGL, a business auto policy, workers compensation policy etc.
• Coverage under the umbrella includes property in the insured’s
care, custody and control, worldwide products coverage.
• Umbrellas are written with few exclusions, and endorsements are
used to limit coverage. However, in primary policies, endorsements
are used to broaden the coverage.
• For higher liability coverage, excess umbrella policies may be
purchased.
 Property Insurance- Non Life
Insurance
• Marine Insurance
• Motor Insurance
• Fire Insurance
• Health Insurance
• Project and Engineering Insurance
 Marine Insurance
• Ocean marine insurance
– Hull insurance
– Cargo insurance
– Protection and indemnity insurance
– Freight insurance
• Inland marine insurance
 Fundamental concepts of ocean
marine insurance
• Covered Perils: Types of covers
– Institute Cargo Clause (C) : Named Peril basis
– Institute Cargo Clause (B) : Named Peril basis
– Institute Cargo Clause (A) offers the widest form of cover under Marine Cargo Insurance in
so far as it relates to the perils covered. ICC (A) is an unnamed perils clause.
• Particular Average : partial loss of or damage to the subject matter of insurance.
• General Average: when a sacrifice is made or an expense voluntarily incurred to
preserve the rest of a venture, the loss or expense should be shared among all the
interests involved in proportion to their value.
• General average is a voluntary and deliberate loss whereas particular average is
fortuitous or accidental.
• General average losses are borne rateably by all the interests, which benefit, but
particular average rests where it falls, and is recoverable from the insurer of the
particular subject matter lost or damaged.
• A general average loss may include expenditure, but particular average can only be
loss or damage of the subject matter insured caused by an insured peril and would
not embrace any expenses.
• Abandonment: The cession by the insured to the insurer of the remains of his
property, and rights relating to it, when a constructive total loss is claimed.
 Common clauses attached to an
Inland policy
• Warehouse to warehouse clause
• The Insurable Interest
• The Agreed Value: Normally insurance is taken for Invoice cost plus
Insurance charges plus 10% loading on the total figure.
• Factors determining premium:
– Commodity being transported;
– Types of packing;
– Mode of transport;
– Details of the Vessel used for the shipment;
– Length/duration of journey;
– Season in which the journey is to be undertaken;
– Volume of business;
– Claims experience of the Client and /or the commodity; and
– Voluntary excess (The minimum amount which an Insured agrees to
bear out of every claim, normally in consideration of a reduction in
premium rates)
 The exclusions
• Exclusions vary according to the type of cover opted.
However general exclusions are:
– Loss due to wilful misconduct of the insured.
– Ordinary leakage, ordinary losses in weight or volume or
ordinary wear & tear.
– Loss caused by insufficiency or unsuitability of packing.
– Loss proximately caused by delay, even though delay be caused
by a risk insured against.
– Loss caused by inherent nature of the subject matter insured
– Strikes, Riots and Civil Commotion Clause. These risks are
normally excluded but can be covered by payment of additional
premium
TYPES OF MARINE INSURANCE
POLICIES
• Voyage Policy
• Annual policy
• Declaration policy
• Special declaration
• Open cover
• Duty policy
• Increased Value Insurance
• Marine Cum Erection Policy
 Carriage of goods by Rail
• Effective from 1st July, 1990 the new Indian Railways Act, 1989
came into force, replacing the earlier Act of 1890.
• The liability of the railways is of a common carrier so long as the
goods are in transit and that of a bailee (under Sections 151, 152
and 161 of the Indian Contract Act, 1872) for a period of 7 days
thereafter. The liability of the railways ceases on expiry of 7 days
after termination of the transit.
• The liability of a common carrier is absolute as that of an insurer of
goods for any loss, damage, destruction, deterioration, short or non-
delivery, save and except where such loss, damage, etc. is caused
on account of act of God, enemies of state, inherent vice or fault of
the consignee himself.
• Liability of a bailee,on the other hand, is only for failure to take
reasonable care, that is for negligence and misconduct on his part
or on the part of his servants.
• Goods carried at owner’s risk rate
 Other Modes of Transport
• Carriage of goods by Road: The Carriers Act 1865
governs liability of road transporters, according to which
anyone who carries goods not belonging to him for hire
or reward is a common carrier. The common carrier may
limit his liability by a special contract, if he chooses to do
so. Otherwise his liability is absolute ‘’as of an insurer” of
the goods.
• Multimodal Transportation Of Goods Act, 1993
• The MTO remains responsible for the goods throughout
the period from the time he takes them in his charge until
the time of their delivery. The MTO shall be liable for loss
resulting from:
– Any loss of or damage to the consignment;
– Delay in delivery of the consignment and any
consequential’ loss/damage arising from such delay,
 Cargo claims procedure
summary
• You should inspect cargo on arrival;
• You must hold the transport operators liable for any loss or damage;
• You should contact the nearest claims settling agent;
• A surveyor may be required to determine the nature, cause and extent of
loss/damage; and
• Act swiftly - the cargo remains your property.
• Documentation that is usually required when presenting a claim includes:
– Bill of Lading/Air Waybill
– Commercial Invoice
– Insurance Certificate
– Copy of notice of claim reported against carrier
– Documentation relating to out-turn/receipt of goods
– Local Carriers Waybill, where applicable
– Copy of temperature records, where available
– Invoices to confirm salvage/sale price, where applicable
– Copy of instructions to carrier regarding carriage temperature, where applicable
– Note: For a marine insurance claim to be paid, insurers require:
– evidence of physical damage to cargo; and
– complete documentation.
 ACCIDENT AND MOTOR
INSURANCE
• Material Information in Motor Insurance
– cubic capacity of engine;
– the year of manufacture;
– carrying capacity of the vehicle;
– the purpose for which the vehicle is used;
– the geographical area in which it is used; and
– the owner’s or driver’s convictions for traffic
offences etc.
 Types of Coverage
• Liability policy (informally called ACT policy or third party policy)
• Package policy covers loss to insureds' vehicle on account of
– Fire, explosion, self ignition or lightning
– Burglary housebreaking or theft
– Riot and strike, malicious act, and terrorist activity
– Earthquake (fire and shock damage)
– Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, and
frost.
– Accidental external means
– Whilst in transit by road, rail, inland-waterway, lift, elevator or air
– Landslide and rockslide.
• additional benefits on payment of extra premium include:
• Damage to the Electrical / Electronic fittings not part of standard equipment of the
vehicle.
• Damage to the CNG/LPG Fuel Kit System
• Liability to the paid driver in excess of that is provided by WC Act 1923.
• Personal Accident cover for occupants
• Legal liability to employees while traveling or driving (not as paid driver)
Basis of Premium Calculation
 Indian Insurance Industry
• Ist Life Insurer in India-Bombay Mutual Life
Insurance Society -1870
• Ist Non Life Insurer in India-Tritan Insurance Co.
Ltd – 1850 Insurance Act, 1938
• Nationalisation of Life Insurance Industry –
Incorporation of LIC – 1956
• Nationalisation of General Insurance Business –
GIBNA, 1972
• Opening up of Insurance Industry - IRDA Act,
1999
• Public Grievances (Ombudsman) Rules, 1998
• Regulations of IRDA
• De-tariffing of Non Life (P&C) industry – January,
2007
INSURANCE MARKET GROWTH 

Phase I Phase II Phase III

S-Curve of
Insurance Market Nascent Transitional Fully Mature
Development Market Market Market

Insurance
Penetration
(Premiums /
GDP)
 India  US
 China  Japan
 UK
 Brazil
 South
Korea

Economic Development of Country

(GDP / Capita)
Source: Swiss Re Economic Research & Consulting, Swiss Re Sigma
Insurance Market Potential in India
Phase Three Phase Two Phase One

Criteria US Brazil China India

Economic Strength

Regulatory Environment

Competitive Environment

Consumer Demand

Established Distribution

Source – Swiss Re Sigma

 Effects of liberalisation on critical
parameters
25,000
20,000 4,330
Millions

3,707 Total Premium Volume

15,000 3,197
2,573 increased by a 5-year 20%
10,000 2,338 16,919
10,504 12,275 14,425 compound annual
5,000 7,595
growth rate
-
2000 2001 2002 2003 2004
Total Life Premium Total Nonlife Premium

20%
4.0%
16% 3.5%
3.0%
12% Insurance Density increased
2.4%
2.3%
8%
12.9%
15.7% by a 5-year 18% compound
11.7%
4% 7.6% 9.1%
annual growth rate
0%
2000 2001 2002 2003 2004
Life Premium Per C apita Nonlife Premium Per C apita

3.5%
3.0% 0.67% 0.65%
2.5% 0.62%
0.55%
0.56% Insurance Penetration can
2.0%
1.5% be described as “embryonic”
2.59% 2.26% 2.52%
2.15%
1.0% 1.77% at this stage
0.5%
0.0%
2000 2001 2002 2003 2004
Life Premium % GDP Nonlife Premium % GDP

Sources: Swiss Re/sigma

 Peer Growth Potential Comparison

Total Premium Volume 2001-2004 Premium per Capita 2001-2004

compound annual growth rate compound annual growth rate

India 20%
India 18%
Brazil 10%
Brazil 8%
Russia 33% Russia 34%
China 25% China 25%

0% 10% 20% 30% 40% 0% 10% 20% 30% 40%

2004 Penetration
4
3.5 High growth and low penetration
3 0.65 position India, Russia and China for
1.05
2.5
1.63 unlimited market development
2
2.21
1.5 potential. India has put in place the
2.53 2.21
1 liberalization and regulation process
1.36
0.5 0.62 to make it happen.
0
India Brazil Russia China
Life Premium % of GDP Nonlife Premium % of GDP

Sources: EIU DataServices, Swiss Re/sigma

 Insurance Penetration
(% of Premium to GDP)
Market 2003 2004 2005

World 8.06 7.99 7.52

Asia 7.51 7.37 6.83

India 2.88 3.17 3.14

Steadfast growth of Industry
(raising penetration levels)

Insurance Penetratin

3.26 3.17
2.71 3.14
2.32 2.88
1.93

1999 2000 2001 2002 2003 2004 2005

Year

Insurance Penetratin
 Insurance Density
(% of Premium to Total Population)
Market 2003 2004 2005

World 469.6 511.5 518.5

Asia 183.4 194.3 197.9

India 16.4 19.7 22.7

 Steadfast growth of Industry
(raising density levels)

22.7
Insurance Density

14.7 19.7
16.4
9.9
11.5
8.5

1999 2000 2001 2002 2003 2004 2005

Year

Insurance Density
 Financial Services-Still a long way to
go
• Savings accounts 30
• Insurance Policies 04
• Shares and Mutual Funds 02
• General Insurance 2.5
• Health Insurance 0.2
• Credit Cards 03
• Debit Cards 5.6
• Small Overdrafts 3.6
• Entrepreneurial Credit 02
Figures in % of population

Source – India today

Financial Savings of Household
Sector
(% to GDP)
Item 2003-04 2004-05 2005-06

Bank 37.4 36.4 46.7

Deposits
Shares & 0.1 1.1 4.9
Debenture
Insurance 13.7 16.0 14.2
Funds
 Non-life at a Promising Stage
Gross Written Premiums
2002
Government-owned Companies
Privately-owned Companies
2005
Government-owned Companies
Privately-owned Companies
Sources: Swiss Re/sigma
* government-owned
 Despite its low penetration, non-
life premiums have increased by a
14% CAGR from 1999-2004.
 The private sector companies are
growing aggressively and
developing new products, sales
and distribution infrastructure.
 Private players have increased
market share from 6% in 2002 to
over 27% in 2005.
 The four state companies have
also benefited from competition,
streamlining operations, investing
in IT technology and launching
new products.
Booming Insurance Industry

Premium 2003-04 2004-05 2005-06

Growth
Life 18.91% 24.31% 27.78%
India
Non Life 11.16% 12.09% 15.61%
India
Global 11.71% 9.70% 4.90%
Increase in Premium Volumes
Expansion of market size

Increase in Premium Volumes

4000.00
Total Premium ($)

3000.00
2000.00
1000.00
0.00
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Year

Life Non Life Total

 Growing Number
Indication of furthering penetration

52.89
47.25
No of New Policies sold

43.56 41.73
35.46
(million)

28.63
25.37 26.21

2002-03 2003-04 2004-05 2005-06

Year

Life Non Life

Market Share of Private players
Indication of increasing acceptance levels

16.91
Companies (No. of New
Market Share of Private

Policies Issued)

10.81 10.91
7.91
8.52
3.85
5.79
3.25

2002-03 2003-04 2004-05 2005-06

Year

Life Non Life

Growth of Unit Linked Funds
UL Funds under Management ($
Increased level of awareness

70000
64720.33
60000
50000
million)

40000
30000
20000 18818.6
10000 0.01
4220.77
0 664.77 0.48 1.76 5.31
2002-03 2003-04 2004-05 2005-06
Year

Total ULIP Funds % to Total Funds

 Opening up of Insurance Sector
Expectations
• Increased Coverage of population - including rural

• Choice of better products – with informed decision

• Economy of operations

• Better returns

• Service Excellence
 Regulator as Developer
• Shouldering the responsibility of developing
nascent insurance market
• Striking a right balance between developing and
regulating the industry
• Protection of Policy holders’ Interests – Mission
of IRDA
• Interests of policy holders prime objective while
framing regulations
 Regulatory role - consumer
protection
• Insurance Advertisement and Disclosures
regulations, 2000
• Protection of Policy holders’ interests
regulations, 2002
• Maintenance of Minimum Solvency Margins
• Introduction of cashless transactions – TPAs
 Regulatory role - consumer
protection
• Widening of Distribution Channels – Increased
Insurance accessibility
• Regulatory norms for intermediaries
– Licensing of Insurance (individual) Agents – 2000
– Licensing of Corporate Agents – 2002
– Insurance Brokers – 2002
• Entry of Banks under ‘Bancassurance’ model
• Mandatory Training, Pre-recruitment exam before
licensing
• Accreditation of Training Institutes – Upkeep of
training standards for intermediaries
 Regulatory role - consumer
protection
• Monitoring of underwriting policy through File
and Use
• Constitution of Grievances Redressal Cell
– Indication of operational inadequacies – triggering
regulatory intervention
• Committee to study existing grievances’
mechanism to formulate uniform guidelines
 Development Oriented Regulations
Spread of Insurance to all sections

Rural and Social Sector Obligations

Rural Sector - Cultivators

- Agri labourers
- Rural assets
Social Sector - Unorganised sector
- BPL population
- Persons with disabilities
- Informal sector
 Rural and Social Sector
Obligations
• Life Insurers – 7,9,12,14,16 & 18% of total
policies in first six years of operation as rural
obligations
• General Insurers – 2,3 & 5% of total gross
premium in I, II and subsequent years as rural
obligations
• Five, Seven, Ten, Fifteen, Twenty and Twenty
five thousand of lives as social sector
obligations by all insurers in first six years of
operation
 Development Oriented Regulations
Spread of Insurance through Micro
Insurance
• Micro Insurance Agency by agreement – A
relaxation from pre licensing training/test
• Local Institutions as MI agents – Helps in
spread of Insurance awareness
• Micro Insurance Products subject to File and
Use procedure – Expected to be self
supportive
• Issuance of documents in vernacular
languages – to reach the targeted
• Simplicity of forms – Avoidance of technical
jargons desired
Grievances Redressal Mechanism
Ombudsman

• Introduction of Insurance Ombudsman –

1998
• A quasi judicial mechanism – Empowering
adjudication of disputes
• Adjudication limited to personal lines of
business – A limit of Rs 2 millions contract
value
• Award binding on Insurer
 Insurance Education
• Lower level of insurance awareness
• Insurance not part of academic curricula
• Market dynamics weigh on insurance education
• Constitution of standalone Insurance academic
institution of International standards
– IIRM
– IIRM International School of Actuarial Sciences
– Distance Education programmes
 Insurance Awareness Programmes
• Programmes in Radio and Television – In 11
regional languages

• Publicity campaign in de tariffed scenario

• Efforts to standardise policy documents,

proposal forms, sales literatures

• Press Releases
 Role of Insurers

• Simplified policy wordings – Avoidance of

information asymmetry
• Updated web portals – premium calculator,
rates and conditions
• 24 hours toll free call numbers
• Implementation of advanced Technologies
 Role of Insurers
• Grievances Redressal cells – Constitution
of committees with an independent
director
• Claims review committees
• Introduction of on-line payments
• Representatives of consumer activists,
policy holders in the board
 Increased Public participation
• Seminars by voluntary organisations
• Works shops on health insurance, Micro
Insurance
• Consumers’ organisations
• Notices under Right to Information Act