Industrial All Risk Insurance is an exclusion based
package policy without any named perils. In this policy specific exclusions
are incorporated with reference to the operating perils and properties. That
means whatever is not excluded, is covered under this Insurance.
All industrial risks (other than risks ratable
under Petrochemical Tariff) having overall Sum Insured of Rs.100 crores and
above in one or more locations in India shall be eligible for Industrial All
Risks Policy.
- All Risk cover including Standard Fire & special perils viz
Lightning,
Explosion, Implosion,
- Aircraft damage, impact damage, Riot strike & malicious damage,
Storm
tempest, flood, inundation, cyclone, typhoon, hurricane, tornado,
Subsidence and landslide including rockslide, leakage from automatic
sprinkler Installation, Bursting, etc
- Theft & Burglary
Machinery Breakdown ‐ Mechanical and Electrical Breakdown
- Boiler explosion ‐ Explosion and implosion of boiler and pressure
plants, Explosion due to smelt water reaction for waste heat
boilers,
Flue gas explosion.
- Electronic equipment insurance – Breakdown and all risk coverage of
electronic equipment.
- Transit risk and loading – unloading risks within the premises
Loss of Profit due to Fire and Allied Perils
Loss of Profit or business interruption due to machinery breakdown
Advantages of IAR policy
- Under insurance up to 15% is waived
- Reduced flat rate is applicable for Machinery breakdown cover
- Transit risk within the premises is covered
- Burglary & other accidental damage cover
- No depreciation is deducted
- Breakdown of Machinery, Electronic Equipments & explosion risk of
Boiler
are
covered. So there is no need for separate MB, EEI & BPP policy (all
insurance
companies do not cover EEI)
Property insurance provides protection to
property and
stocks against perils such as fire, theft and named weather damages. This
includes specialized form of insurance such as fire insurance, flood
insurance, earthquake insurance, home insurance, or boiler insurance.
Property is insured in two main ways—all perils and named perils.
All risk perils cover all the causes of loss not
specifically excluded in the policy.
Named perils require actual cause of loss to be listed
in the policy for insurance to be provided. The more common named perils
include such damage-causing events as fire, lightning, explosion, and theft.
- Industrial All Risks
- Standard Fire and Allied Perils Insurance
- Terrorism and Sabotage
- House holder’s/Hoteliers/Business package
- Loss of production [Renewable Energy]
Property of any kind whether manufacturing
units,warehouses, shops, schools, hotels, hospitals, offices, residential,
storage units, trading and services or c9ommercial complexes could be
exposed to loss or damage due to Fire & Allied Perils Insurance and Fire
Consequential Loss. In addition, we offer package policies against risks of
burglary, money, employee Infidelity, all Risk Insurance (for portable
equipment), machinery breakdown Insurance (for plant & machinery),
electronic equipment insurance, plate glass, travel baggage covers etc.
Perils insured are fire, lightning, explosion /
implosion, impact damage, aircraft impact, bursting / overflowing of water
tanks / pipes / apparatus, sprinkler leakage, storm, cyclone, typhoon,
hurricane, tempest, tornado, flood, inundation, subsidence, landslide
including landslide, riots, strikes, malicious damage, missile testing
operations. Other perils which can be insured as add-on covers are
earthquake, terrorism, removal of debris, spontaneous combustion etc.
This policy covers loss of profits of a business due to
reduction in turnover
caused by a loss or damage covered under Standard Fire Insurance. This also
includes cover for Increased Cost of Working following the loss of standing
charges.
To the insured’s premises or contents caused by actual
or attempted
burglary/robbery (excluding valuables unless specifically insured).
Money in Transit: Loss of money in transit to
the specified destinations against
robbery, theft or any other unfortunate event. Transit for the purpose of
this
policy commences with the taking over of the money for the purpose of
transit
and ends as soon as the money reaches the place of delivery.
Money in Safe: Loss of money that is kept in safe
which have to be paid as
salaries towards employees or petty cash kept in safe.
Any direct pecuniary loss caused by the act of fraud or
dishonesty committed by
any salaried person employed by the insured during the course of the
business
provided:
Such loss is committed by the employee with the primary
intention to obtain
personal financial gain and such loss is first discovered during the policy
period
This section covers breakdown of any business appliances
such as photocopying
machine, deep freezers, money counting achines, AC’s, chillers, DG sets,
lifts/elevators, sewage treatment plan, water treatment plan, etc. solely as
a
result of electrical or mechanical breakdown.
This is an all risk cover and losses or damages due to
any cause other than
those specifically excluded are covered. Damage to media data and cost of
reproduction of lost data can also be covered. Items insured under this
section
need not to be insured under Fire & Burglary sections.
Covers any losses or damage due to accidents, fire and
allied perils, riots and
strikes to the neon / glow signs.
Insures the risk of accidental damage to portable
equipments such as laptops and
other electronic equipments, test & measuring instruments, etc. Also covers
these equipments at any location and including whilst in transit in the
personal
custody of the employees of the business.
Fixed plate glass in the interior of the business
premises is expensive and is
prone to accidental and/or malicious breakage. Plate glass insurance covers
the
risk of accidental damage to plate glass installed in the business premises.
It
covers repair/replacement of such glass and reasonable costs.
Marine insurance offers coverage in case of damage or loss of
cargo, ships, terminals and any transport by which any property is acquired,
transferred or held between the point of origin and its destination. It is
an integral part of National / International Trade and is required by
Importers,
Exporters, Manufacturers, Distributors, Retailers,
Wholesalers and others engaged in the movement of goods by sea, air, road,
rail and post.
Marine insurance covers property exposed either onshore/
offshore, marine casualty, marine liability and hull damages.
- Specific Policy/Single Transit: a policy for a single shipment by
sea/air/rail/post
- Open / Declaration Policy: an annual policy subject to monthly
declaration
- Sales Turnover / Open Cover: an annual policy subject to a deposit
premium and annual adjustment
- Hull: It covers torso and hull of the vessel. Insurance is against
the
value of ship loss.
- Export/Import – When exporting or importing goods the Institute
Cargo Clause (ICC) A, B, or C of Institute of London Underwriters is
applicable.
1. ICC (A) is all risk cover.
2. ICC (B) is broader cover excluding Malicious Damage, Theft/
Pilferage & War Risks.
3. ICC (C) covers all risks covered in ICC (B) except for Loss
overboard during loading or discharge, washing overboard,
seawater entering ship, river water entering ship.
- Inland – Goods transported to anyplace within India by Rail/ Road
are subjected to Inland Transit Clause (ITC) A, B, C.
1. ITC (A) is an all risk coverage barring exclusions.
2. ITC (B) covers loss from fire, lightning, breakage of
bridges, derailment, accident, etc. barring exclusions.
3. ITC (C) covers loss due to fire and lightning only.
| Risk |
Institute Cargo Clauses |
| ( Proximate Cause) |
A |
B |
C |
| Stranding , Grounding, Sinking or Capsizing |
Yes |
Yes |
Yes |
| Overturning or Derailment of Land Conveyance |
Yes |
Yes |
Yes |
| Collision of Ship or Craft with another Ship or Craft |
Yes |
Yes |
Yes |
| Contact of Ship, Craft or Conveyance with anything other than |
Yes |
Yes |
Yes |
| Ship or Craft (excludes Water but not Ice) |
Yes |
Yes |
Yes |
| Discharge of Cargo at Port of Distress |
Yes |
Yes |
Yes |
| Loss overboard during Loading/Discharge (total loss only). |
Yes |
Yes |
No |
| Fire or Explosion |
Yes |
Yes |
Yes |
| Malicious Damage |
Yes |
No* |
No* |
| Theft/ Pilferage |
Yes |
No* |
No* |
| General Average Sacrifice |
Yes |
Yes |
Yes |
| Jettison |
Yes |
Yes |
Yes |
| Washing Overboard (deck cargo) |
Yes |
Yes |
No* |
| War Risks |
No* |
No* |
No* |
| Seawater entering Ship, Craft, Hold, |
Yes |
Yes |
No* |
| Conveyance Container Lift Van or Place of Storage |
Yes |
Yes |
No* |
| River or Lake Water entering same |
Yes |
Yes |
No* |
Technology companies face unique risks and require
specific insurance
coverages to protect their business from financial loss. Technology
professional
indemnity
insurance is a key element of risk management for a technology company
in today’s world.
E&O insurance covers your legal liability arising from
professional
services in the event of a third party claim stemming from professional
negligence.
Professionals may owe a duty of care to anybody who might reasonably rely
upon
the service or advice they have provided. In today’s commercial world,
clients
expect high
standards of service and are more inclined to resort to litigation when such
standards have
not been met.
- Programming error
- Poor customer communication
- Problems with large integration/installation projects
- Development problems
- Problems with combining or integrating software or hardware
components
- Customer changing project scope (often referred to as “project
creep”)
- Turnover of key personnel
- Short cuts during testing
- Poor accounts receivable controls that require the tech company to
sue
their
customer for fees owed and this results in a countersuit for
negligence
in the
performance of the tech services/products
- Shortfall in externally furnished products or externally performed
tasks
- The Policy: provides indemnity for losses arising from civil
liability
(including
liability for claimant’s costs and expenses incurred) arising in
connection with
your professional services including:
- Breach of professional duty
- Infringement of copyright or intellectual property rights
- Breach of confidentiality
- Defamation – and other types of civil liability.
- Insured Person: cover extends to include you, partners (or members
of
limited
liability partnerships), directors, employees and their personal
representatives in
the event of death, incapacity, insolvency or bankruptcy.
- Fraud and Dishonesty Cover: liability of your business to any third
party resulting
from fraudulent or dishonest conduct.
- Lost Documents Cover: costs of replacing or restoring documents lost
or
damaged ‘in
transit’ or in your custody.
- Specialist Consultants Cover: claims resulting from any wrongful act
of
your
specialist consultants, designers or subcontractors engaged in the
performance of
your professional services.
Directors’ and Officers’ Liability insurance
provides cover for
1. Personal liability arising out of a wrongful act
2. The entity for reimbursement of those Directors and Officers
3. The entity for liability arising out of securities related
lawsuits
Policies are underwritten on a worldwide
jurisdiction basis to clients
domiciled around the world.
We advise organizations in diverse industry segments
and offer tailored
solutions to suit individual clients’ needs.
As a member of the board or an executive officer of
a company, you may
be personally held liable for any actual or alleged breach of duty,
trust, breach warranty,
authority, neglect, errors, misstatement, or omissions by anyone
in company and can be sued for transactions alleging in financial
losses. Exposure varies
from shareholders, creditors, business partners, competitors, regulators
and employees.
The policy reimburses the company to the extent it
has been insured with
respect of such claims, under its Articles of Association or any other
contract that effects
its Directors and Officers.
- An outside or non-executive or independent director in a company is
also covered.
- The policy can additionally be endorsed to cover the directors and
officers of its
subsidiaries, including those acquired or created during the policy
period.
- Specific coverage can be afforded to directorships held in outside
boards/ nominee
directorships held at the request of the company.
- Defence costs shall be payable under alleged criminal cases, if the
directors and
officers are finally acquitted of the wrongful act.
- The wrongful act is that are discovered after the director leaves
the company.
- Incase of a director’s death, the insurer will defend the director
and prevent
spillover liabilities from affecting their heirs, estates and legal
representatives.
This policy protects your business from financial
losses, includes
legal costs and compensations arising from property damage or bodily injury
caused to any
third party due to –
- The services rendered
- In-course of business operations
- Negligence of any employee
- Includes, non-professional neligent acts: Up to the precribed limits
fore-mentioned
by the policy
- While visiting your business, a customer trips on loose flooring and
is injured.
- An employee in your painting or construction business accidentally
leaves water
running, causing substantial damage to a customer’s home.
- A class action lawsuit is filed against your business, alleging
advertisements
constituted misleading information.
This cover provides protection against losses from the
legal liability
for bodily injury or property damage to others arising out of
non-professional negligent
acts or for liability arising out of their premises or business operations.
Mental injuries and emotional distress can be considered bodily injuries,
even in the
absence of physical bodily harm.
Personal and advertising injury protects an insured
against liability
arising out of offences, such as:
- Libel
- Slander
- False arrest
- Infringing on another’s copyright
- Malicious prosecution
- Use of another’s advertising idea
- Wrongful eviction, entry or invasion of privacy
Medical payments includes limited coverage for injuries
sustained by a
non-employee caused due to an accident that takes place on the insured’s
premises or when
exposed to the insured’s business operations. CGL pays for all necessary
and reasonable medical, surgical, ambulance, hospital, professional nursing
and funeral
expenses for a person injured or killed in an accident taking place at the
insured’s
premises or arising from business operations.
" A ‘Claims Made Policy’ is where the claim would occur
and has to be
lodged within the policy period. This is usually given in conventional CGL
policy & would
only become relevant when the policy is not renewed subsequently. "
" Occurrence Based Policy is relevant to CGL Policy
where the claims,
which have taken place during the currency of the policy, can be lodged even
after the
expiry of the policy period, even if the policy is not renewed "
Cyber Insurance is designed to protect commercial
businesses against a
wide range of first and third-party liability occurring out of cyber
exposures
associated
with e-business, internet, networks and information assets. Companies
with access to private & confidential information about their customers have
a
responsibility to keep it secure. Equally, companies who have a web presence
or
a dependency
on technology have emerging content and transactional
exposures. Cyber risk is steadily increasing concerns around data security
affecting
hundreds of millions of records a year and reporting of breaches continue to
rise at a
dramatic rate. The introduction of viruses and unauthorized
access are well known examples.
- E-Theft is a loss incurred in the process of transferring funds or
property or any
given value, due to the fraudulent input of data into a computer
system
or through a
network into a computer system.
- E-communication is a loss caused due to a customer having
transferred
funds or
property or given any value, on the faith[1] of any fraudulent
communication for
which loss you are held legally liable.
- E-Threat exemplifies loss including the cost of a professional
negotiator and any
payment made or any fund or property surrender intended as an
extortion
payment.
- E-Vandalism covers losses even when the vandalism is caused by an
employee.
- E-Business interruption including extra expenses
- Privacy Notification Expenses including the cost of credit
monitoring
services or
similar services for affected customers. (Subject to a sub limit)[2]
- Crisis Expenses including the cost of public relations consultants.
(Subject to a
sub limit) .
- Crisis Expenses including the cost of public relations consultants.
(Subject to a
sub limit) .
- Disclosure Liability including customer claims due to system
security
failures
resulting in unauthorized access to or dissemination of private
information on the
Internet.
- Content Liability including claims for intellectual property,
trademark
and
copyright infringement.
- Reputational Liability includes claims alleging disparagement of
products or
services, libel, slander, defamation and invasion of privacy.
- Conduit Liability including claims arising from system security
failures
that result
in harm to third-party systems.
- Impaired Access Liability includes claims due to system security
failure
resulting
in systems being unavailable to customers.
- Defense Costs cover any cost incurred in defending any claim brought
by
a government
agency or licensing or regulatory organization.
- Defence Costs in advance of the final disposition of any cyber
liability
claim and
within 30 days of receipt of invoice for such costs.
- Claims definition includes Extradition proceedings.
- Prior Notice Exclusion: Excludes prior notice of a fact or
circumstance
that has
been accepted by the previous insurer rather than notice given.
- Full Severability of Exclusions : Knowledge of one Insured Person is
not
imputed to
another and only knowledge possessed by the Chief Executive Officer,
Chief Financial
Officer or the Chief Operating Officer of the Organization
will be imputed to the Organization.
Employees are key business strength and their
good health will
reflect on the profitability of your business. To ensure smooth and
profitable business
operations enterprises offer their employees and dependents access to
timely medical care.
The fact that any illness can strike us without warning and eat up our
savings should not be
overlooked.
- Covers hospitalization charges due to illness or accident of
employees and
dependents.
- Covers any disease/ injury that can be treated medically/
surgically by
hospitalization at nursing home/ hospital in India as
in-patient.
- Covers relevant medical expenses under pre and post
hospitalization.
- Covers Reasonable and necessary:
- Room expenses in hospital/ nursing home
- Ambulance charges
- Nursing expenses
- Medical practitioner fee
- Treatment cost
- Medicines/ diagnostic cost
- Blood/ oxygen
- Cost of pacemaker/ artificial limbs/ Organs
transplantation charges
- Operation theatre charges
- Surgical appliances
- Dressing, ordinary splints & plaster casts
- Physiotherapy – Following a surgical event only
- Covers maternity expenses of employees and spouses.
- Covers Pre-existing ailments with no waiting period.
- Sum insured are provided on individual as well as family floater
basis.
- Child is covered from the time of birth.
Human life is very precious. However, eventualities
like death,
disability and loss of earning capacity cannot be eliminated and when such
eventualities
happen, it leaves the individual’s family devastated.
Group Personal Accident Insurance policy covers the
employees against
death, disablement or loss of earning capacity due to unforeseen accidents.
Accident or Accidental means a sudden, unforeseen
and unexpected
event happening by chance that results in the Insured Person suffering
Death, Disablement or
Bodily Injury.
Geographical limit: 24-hour world-wide coverage.
Capital Sum Insured (CSI) means the monetary
amounts shown
against insured person(s) which is maximum limit of liability against said
insured person.
Accidental Death(AD): Death due to accident
Permanent Total Disablement(PTD): Disablement of
permanent and
irrecoverable nature i.e. the person is prevented from engaging in gainful
employment of any
kind. e.g. loss of sight of both eyes, physical separation of two entire
hands.
Permanent Partial Disablement(PPD): Similar to
PTD with the only
difference being that the disablement is partial e.g. loss of toe or a
finger.
The applicable compensation is payable on the % of loss,
which is
mentioned in a table and if not available in the Table, as per doctor’s
assessment.
Temporary Total Disablement(TTD): Disablement is
total but for a
temporary period. Eg Fractures
Children Education Grant: Children Education
Grant is for 2
dependent children in case of death of employee. The cover can be 10% of
Principal SI or INR
100,000/- whichever is lower.
- Family Transportation Allowance: Family Transportation and House or
Vehicle
Modification expenses payable up to INR 50,000/-
- Repatriation of Remains: The insurer provides reimbursement for
expenses incurred
for repatriation of remains up to maximum of INR 5,000/-
- Animal attack or Snake Bite
- Terrorism is included
- Perils of Sea
- Ambulance Charges
Death, injury or disablement of insured person as a
result of:
- Intentional self-injury, suicide or attempted suicide
- Influence of drugs or liquor
- Committing breach of law with criminal intent
- Insect Bite
- War, invasion, act of foreign enemy, hostilities (whether war be
declared or not)
civil war,
rebellion, revolution, insurrection, mutiny, military or usurped
power, seizure,
capture,
arrests, restraints and detainment of all kinds
- Childbirth or pregnancy or in consequences thereof
- Venereal diseases
Many dream of taking their company public. Talent and
passion
transform the dream into reality. But the reality is fraught with risk.
Investors who helped
to achieve the dream can turn it into a testing reality. Directors of newly
floated companies run the ever-increasing risk of being sued or investigated
if
investor
expectations are not met.
The road to a public offering is hazardous. Investors
and
their advisers
must be presented with detailed information based on which the financial
position and
prospects of the company being floated, is analysed. Directors and others
face a difficult task in ensuring that all relevant information and material
facts regarding
the company are presented accurately.
Is it ever possible to be fully confident of total
accuracy?
Investors experiencing loss in the value of their shares
will seize upon
any mistake or misrepresentation made during such presentations, and make
claim
relating to
defects in information, that encouraged them to invest in the
company.
Given the hype of a pre-IPO with most companies, there
is
increased
scrutiny and accountability post-raising of capital.
- IPO’s are a marketing event for the issuer
- Can they live up to the hype ?
- Is the management up to the challenge? Disappoint and the stock
price
will plunge!
- Are the directors qualified to run a public listed company?
- Can it beat analyst expectations? What are the analysts saying
anyway?
- Can they fulfill Regulatory reporting laws? – stock exchange and /
or
securities
commissions.
- Failure to report accurately, late reporting or just telling plain
lies?
- What are they using the money raised for?
- Overcompensated or over matched management?
- Failure to disclose
- Forward looking statements
- Profile and accuracy of resumes of directors and management
- False promises!
- Quality of investment bank/adviser to the IPO.
- Investors may bring an action against for an alleged
misrepresentation,
error, or
omission in the prospectus on which they had relied to make their
investment.
- Regulatory bodies have authority to initiate proceedings against the
parties to an
offering, for allegations of wrongdoing or breach of the listing
rules.
- POSI gives companies the opportunity to ring-fence the significant
and
long-term
exposure presented by security
- POSI, being a transaction specific product ensures suitable coverage
to
the insureds
and protects the existing D&O contract.
- Accounting rules may allow the premium of a POSI to be capitalized
against the offer
proceeds, without being considered as a bottom line deduction of the
company’s
financials .
Public offering of securities insurance is a
specialist
product which
is tailored to indemnify Insured against claims arising due to errors,
omissions,
misrepresentation, or non-disclosure in documents issued to potential
investors
and cover costs involved in defending such allegations.
The policy can provide the directors, the selling
shareholders and the
company with a number of separate and distinct benefits including:
- Protection against some of the potential statutory exposures.
- The option of a stand-alone policy, specifically tailored to
‘ring-fence’ the
exposures from the transaction, which does not dilute or erode
existing
directors
and officer’s liability insurance arrangements.
- Coverage is typically negotiated to include protection against the
liabilities
arising from the issue of the path finder or ‘red-herring’
prospectus,
the roadshow
presentation, and any press releases.
- Policy coverage cannot be cancelled by insurers without the
insureds’
consent, and
is typically arranged for 3-6 years’ duration, with a one-off
premium
levied for the
full period of the policy.
- The policy can be designed to cover exposures arising from other
jurisdictions.
Costs Covered: The insurance covers legal costs incurred
in
defending
civil and criminal proceedings relating to prospectus liability as well as
any
judgements or
settlements entered into.
Period of Cover: It is purchased for a period of three
to
six years for
a single premium payment. However, other lengths of time can be considered
by
Underwriters.
Who should buy a POSI policy?
POSI is designed for any company that is raising capital
through the
publication of a prospectus. It can provide cover for introductory offerings
(IPO),
secondary offerings and can also cover private placements. The POSI policy
covers the company and its directors, officers and employees for securities
claims raised
against them with regard the offering.
Whilst a D&O policy may cover some of the claims that
might
arise they
are not designed to address all the risks arising from a prospectus and
listing
process.
Typically they do not cover claims against the company. Even if the
policy is suitably worded, these policies are renewable annually for a new
premium. Claims
relating to a prospectus most often arise in the period 12 to 24 months
after
the prospectus
was issued. In an annual D&O policy, premium
may be increased or cover withheld on renewal if there is a potential
prospectus
claim.
Group term life insurance is designed to offer life
insurance to a
group of people under a single policy. A group insurance is not limited to
employer-employee
group only because it extends to other groups like banks, NGOs, etc.; also.
- Default insurance cover: Group policies provide ‘auto cover’ to
members simply by being part of that group. The policy ensures at
least a basic insurance cover for those who are without any life
insurance policy.
- Free cover limit: As the insurance is offered to all members of the
group, irrespective of their health condition, it is of great value
to people who belong to a high-risk group or find difficulty in
buying a policy.
- Tax benefits: As in many cases, employers get tax benefits on group
insurance plans, and the policy can help them in reducing their tax
liability.
- No need to worry about premium payment: As the premium is directly
deducted from the employee’s salary, there is any chance of missing
the premium payment. It also reduces the chances of policy lapse due
to non-payment of premium. In some cases, the policy is offered at
free of cost.
- Easy premium payment options for employers: Depending on the
organization’s needs, the employer can choose monthly, quarterly,
half-yearly and annual premium payment mode as per their
convenience.
- Useful for employees’ wellbeing: Group term life insurance policies
play an important role in the employee welfare and retention scheme
and it offers financial security to the family even in the absence
of the employee.
- Coverage can be extended with riders: By adding riders to the main
group insurance policy, the insurer can expand the coverage. Riders
like education allowance, repatriation allowance, accidental death,
etc.; offer multitude of benefits and thus, can be bought along with
the main insurance policy to get comprehensive coverage.
- Life cover for all the group members under one policy.
- Easy and hassle free financial help to the employee’s family, in
case of an unfortunate event
- Cost-effective method to buy a high cover at a low premium
- GTI cover for future service gratuity liability
- Serves as strong retention tool
- Premiums paid by the employer is tax deductible u/s 37 (1) of the
Income Tax Act, 1961
- Simple procedures for addition and deletion of members in to the
policy
- Adequate financial support to loved ones against his accident,
illness or untimely death
- Convenience of no medical tests till free cover limits
- Cover for housing or vehicle loans given by you to your employees
- Death benefits exempt from tax under Section 10(10D)
Keyman insurance can be defined as an
insurance policy where the proposer as well as the premium payer is
the employer, the life to be insured is that of the
same employer’s key employee (Keyman) and the benefit, in case of a
claim, goes to the employer.
Keyman insurance helps a business recover from the loss
of its valuable assets viz the persons who run it and/or own it. Individual
talents are becoming critical to the success of many companies and employees
are also becoming an important factor in investors’ valuation of the
entities. Every business has at least a few very valuable employees who
contribute significantly to the running and growth of the company. It makes
sense to insure against the unfortunate event
of their untimely demise. It is here that Keyman insurance comes into play.
1. It protects against business risk in the event of unfortunate
death of the key person.
2. The premium paid will be treated as business expenses and the
company would save 30% plus surcharge on every rupee of premium paid
for such a policy as per current tax law.
3. Disruption of lines of business credit due to the death of the
Keyman can seriously affect the business. Here, the insurance money
can help as a guarantee of loan repayment in case of death of the
key person.
4. The morale of the key employee is boosted. He/she feels
important. The sense of belonging increases productivity and helps
in retention of the key employee.
5. It helps in keeping the market price of the company’s shares
stable in case of death of the keyman. If the keyman dies the price
of the company’s shares is likely to fall but if the investors know
that any financial loss can be made up through the insurance
proceeds, they may not start offloading the shares immediately.
6. It protects the company’s valuation. For example, in case of
the company being put up for sale, prospective buyers are likely to
put a higher value to the company if they know that it has a
monetary back-up (insurance) to meet the cost of replacement of its
key person.
It is a compensation payable under a scheme set out in
the workmen
Compensation Act of India, monitored by the Ministry of Labor. The policy
covers statutory
liability of an employer for the death of or bodily injuries or occupational
diseases sustained by workmen in the insured’s immediate service and during
the course of
employment. Costs or expenses incurred by the insured employer, with the
consent of the
company, to defend any claims are paid in addition
to the above.
The policy covers legal liability of an employer under
- Workmen Compensation Act 1923 and subsequent amendments of the said
Act prior to the
date of issue of the policy
- Indian Fatal Accidents Act 1855, and subsequent amendments of the
said Act prior to
the date of issue of the policy
- Common Law
- Any employer, whether as principal or contractor, engaging “workmen”
as defined in
the workmen compensation Act
- Any Employer of employees who do not qualify as “workmen” but share
an
employee-employer relationship
- Death
- Permanent Total Disability
- Permanent Partial Disability
- Legal cost and Expenses incurred with the companies’ consent
The amount of compensation payable is calculated as per
the WC Act using
factors like age of the individual, the nature of disability and the last
drawn salary.
Premium rates are based on the nature of duties performed and on the
basis of annual estimated wages disbursed to the workmen,
This insurance does not cover any interest and/or
penalty which may be
imposed on account of failure to comply with the statutory requirements laid
out.
Product Recall insurance covers expenses associated
with recalling a
product from the market that would be responsible for possible bodily injury
or property
damage from its continued use or existence. Standard product liability
insurance does not cover this exposure. This cover is typically purchased by
manufacturers
such as food and beverage, toy and electronics, automobiles and automobile
components,
aviation parts etc. to cover costs such as customer
notification, shipping costs and disposal costs.
- Recall expenses, such as disposal, replacement, advertising and
transport
- Pre-recall expenses
- Third party recall expenses
- Government recalls
- Business interruption
- Loss of gross profits/revenue
- Accidental contamination
- Product rehabilitation
- Increased cost of working after a recall
- Extortion demands related to malicious tampering
- Terrorism cover
- Terrorism cover
- Consultancy costs
Product Recall insurance covers expenses associated
with recalling a
product from the market that would be responsible for possible bodily injury
or property
damage from its continued use or existence. Standard product liability
insurance does not cover this exposure. This cover is typically purchased by
manufacturers
such as food and beverage, toy and electronics, automobiles and automobile
components,
aviation parts etc. to cover costs such as customer
notification, shipping costs and disposal costs.
- Recall expenses, such as disposal, replacement, advertising and
transport
- Pre-recall expenses
- Third party recall expenses
- Government recalls
- Business interruption
- Loss of gross profits/revenue
- Accidental contamination
- Product rehabilitation
- Increased cost of working after a recall
- Extortion demands related to malicious tampering
- Terrorism cover
- Terrorism cover
- Consultancy costs
Product Recall insurance covers expenses associated
with recalling a
product from the market that would be responsible for possible bodily injury
or property
damage from its continued use or existence. Standard product liability
insurance does not cover this exposure. This cover is typically purchased by
manufacturers
such as food and beverage, toy and electronics, automobiles and automobile
components,
aviation parts etc. to cover costs such as customer
notification, shipping costs and disposal costs.
- Recall expenses, such as disposal, replacement, advertising and
transport
- Pre-recall expenses
- Third party recall expenses
- Government recalls
- Business interruption
- Loss of gross profits/revenue
- Accidental contamination
- Product rehabilitation
- Increased cost of working after a recall
- Extortion demands related to malicious tampering
- Terrorism cover
- Terrorism cover
- Consultancy costs
Product Recall insurance covers expenses associated
with recalling a
product from the market that would be responsible for possible bodily injury
or property
damage from its continued use or existence. Standard product liability
insurance does not cover this exposure. This cover is typically purchased by
manufacturers
such as food and beverage, toy and electronics, automobiles and automobile
components,
aviation parts etc. to cover costs such as customer
notification, shipping costs and disposal costs.
- Recall expenses, such as disposal, replacement, advertising and
transport
- Pre-recall expenses
- Third party recall expenses
- Government recalls
- Business interruption
- Loss of gross profits/revenue
- Accidental contamination
- Product rehabilitation
- Increased cost of working after a recall
- Extortion demands related to malicious tampering
- Terrorism cover
- Terrorism cover
- Consultancy costs
Cyber Insurance is designed to protect commercial businesses against a
wide range of first and third-party liability occurring out of cyber exposures associated
with e-business, internet, networks and information assets. Companies
with access to private & confidential information about their customers have a
responsibility to keep it secure. Equally, companies who have a web presence or a dependency
on technology have emerging content and transactional
exposures. Cyber risk is steadily increasing concerns around data security affecting
hundreds of millions of records a year and reporting of breaches continue to rise at a
dramatic rate. The introduction of viruses and unauthorized
access are well known examples.
- E-Theft is a loss incurred in the process of transferring funds or property or any
given value, due to the fraudulent input of data into a computer system or through a
network into a computer system.
- E-communication is a loss caused due to a customer having transferred funds or
property or given any value, on the faith[1] of any fraudulent communication for
which loss you are held legally liable.
- E-Threat exemplifies loss including the cost of a professional negotiator and any
payment made or any fund or property surrender intended as an extortion payment.
- E-Vandalism covers losses even when the vandalism is caused by an employee.
- E-Business interruption including extra expenses
- Privacy Notification Expenses including the cost of credit monitoring services or
similar services for affected customers. (Subject to a sub limit)[2]
- Crisis Expenses including the cost of public relations consultants. (Subject to a
sub limit) .
- Crisis Expenses including the cost of public relations consultants. (Subject to a
sub limit) .
- Disclosure Liability including customer claims due to system security failures
resulting in unauthorized access to or dissemination of private information on the
Internet.
- Content Liability including claims for intellectual property, trademark and
copyright infringement.
- Reputational Liability includes claims alleging disparagement of products or
services, libel, slander, defamation and invasion of privacy.
- Conduit Liability including claims arising from system security failures that result
in harm to third-party systems.
- Impaired Access Liability includes claims due to system security failure resulting
in systems being unavailable to customers.
- Defense Costs cover any cost incurred in defending any claim brought by a government
agency or licensing or regulatory organization.
- Defence Costs in advance of the final disposition of any cyber liability claim and
within 30 days of receipt of invoice for such costs.
- Claims definition includes Extradition proceedings.
- Prior Notice Exclusion: Excludes prior notice of a fact or circumstance that has
been accepted by the previous insurer rather than notice given.
- Full Severability of Exclusions : Knowledge of one Insured Person is not imputed to
another and only knowledge possessed by the Chief Executive Officer, Chief Financial
Officer or the Chief Operating Officer of the Organization
will be imputed to the Organization.
A commercial crime policy typically provides several different types
of crime coverage including employee dishonesty, forgery or alteration, computer fraud,
funds transfer fraud, money & securities and money orders and counterfeit
money.
Every company is susceptible to white collar crime. Initially offences
may seem inconsequential, over time however, they multiply and cause significant losses to
an organization.
- Theft by employees or management includes direct theft of cash or business assets,
falsification of claim expenses or payroll fraud.
- Collusion between employee and a third party receiving bribes or commissions from a
supplier for awarding of a contract, failure of an employee to disclose financial
interest in a transaction.
- Computer fraud such as diverting funds from bank accounts, stealing intellectual
property, posing as a legitimate business on the Internet and obtaining payment for
goods or services.
- Employee Theft Coverage: Loss of money, securities or other property by theft or
forgery by an identifiable employee of the Insured.
- Premises Coverage: Losses from destruction, disappearance or wrongful abstraction or
computer theft of money or securities from the Insured premises by third parties.
- Transit Coverage: Losses sustained due to the destruction, disappearance or
abstraction of money and securities outside the Insured’s premises by a third party,
while being conveyed by the Insured, an armoured motor vehicle
company or any person authorised by the Insured.
- Depositors Forgery Coverage: Losses from instruments such as cheques fraudulently
drawn on Insured’s accounts by a third party.
- Computer Fraud Coverage: An extension to cover losses sustained and expenses
incurred by an insured due to a computer fraud or violation by a third party.
Credit Insurance protects the companies against customer defaults. It
covers the sales of the companies to its buyers on credit against the risk of loss due to
the insolvency of their customers.
Credit Insurance plays a vital role in the trade life -cycle of any
company by protecting profit, cash flows, sales growth, the balance sheet and a company’s
customer base. It can be of great help in growth of sales by allowing the secure development
of new buyers, new markets and the credit extended to a buyer.
Whatever be the size of your company, Global Trade Credit provides
innovative credit risk protection solutions to protect your business from unmanageable debt
whilst maximizing profitability. We work on your behalf to make sure the most competitive
terms are negotiated and secured in respect of cost, cover and service.
For companies with branches or subsidiaries in different regional
locations or countries, there is an added risk of inconsistent credit management procedures
leading to lack of awareness of your overall exposure to customer failures or politically
unstable markets.
Credit insurance covers the risk of non-payment of trade debt.
Protection for political and pre-credit risk can also be added, giving you the confidence to
trade on credit terms in uncertain economic times.
The policy covers loss due to any or all of the following risks:
- Commercial Risk
- Non payment by the buyer – protracted default
- Insolvency of the buyer
- Political Risk
- Military or civil war, revolution, riot or insurrection
- General moratorium on payment by the government of buyer’s country
- Cancellation of import license
- Government decision preventing performance
- Political events, economic difficulties, legislative or administrative
measures preventing payment
- Non-payment by government buyer
- Protects your profit & loss account and balance sheet against non-payment risk.
- Underpins your credit management function and supports corporate governance best
practices.
- Gives security in new markets allowing exporters to grow their business.
- Provides invaluable customer insight based on updated economic analysis from credit
risk specialists.
- Non-payment arising due to trade disputes
- Sales to a private individual who intends to use the goods or service for
non-professional purposes
- Sales to an associate company (political and AOG risk can be covered)
- Sales contracts where payment is received in advance
- Sales under irrevocable and confirmed Letter of Credit
- Loss due to foreign currency fluctuations
- Nuclear risks
- A war between two or more of the following countries: France, China, Russia, the
United Kingdom and the United States of America
- A war between the Insured’s country and the country of the buyer
