Professional Documents
Culture Documents
Non Life Insurance Products
Non Life Insurance Products
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Reinsurance Company GIC was originally the holding company for 4 public
sector General Insurance Companies. Later in 2000, GIC was approved as an
Indian Reinsurer with the aim of optimising retention of reinsurance business
within the country and developing adequate reinsurance capacity.
GIC manages the Indian Insurance pools in behalf of the industry. The following
are the pools managed by GIC
Marine Hull Pool
Terrorism pool
Indian Motor Third Party Pool
GIC has branch offices in London, Dubai and Kuala lumpus and continues to
participate in the share capital of Kenindia Assurance Company Limited (Kenya),
India International Insurance Private Limited (Singapore)
As of 2011, GIC was the only company licensed by IRDA to conduct reinsurance
business. Some foreign reinsurers who are interested in operating in India like
Swiss Re, Munich Re, Scor Re, Hannovar Re etc., have been allowed to open
some form of liaison / servicing / consulting offices in India.
State Government Insurance Departments / Funds
These are the insurance departments of some of the Indian States like
Maharastra, Gujarat, Rajasthan and Kerala. They insure the property and other
interests of the respective state governments.
Heading
Preamble
Signature
Operative Clause
Exceptions
Conditions
Policy Schedule
Heading
Every policy document has a heading that includes the name of the insurer /
Logo / Address / contact details like phone numbers, mail id and website etc.,
Preamble
Preamble consists of 5 main points
1. The proposal form and any questionnaire are part of the contract and so
the insured need to be careful in filling up the proposal form.
2. The Sum Assured
3. The Premium
4. The details of the cover provided by the insurer under this policy
Operative Clause
This is the key part of the policy where the actual cover provided is outlined. It is
also called the insuring clause and includes the phrase The company will .......
Exceptions
This section details what the insurer will not pay for. The policyholders would like
the policy to cover all eventualities, this is impractical in terms of premium,
reinsurance agreement, insurer solvency etc.,
The options available for the insurer are to mention what is covered under the
policy. But there is impracticality as the wordings will be too long to mention
everything. So the insurer provides wider cover possible e.g., if any of the
property insured be accidentally, physically lost, destroyed or damaged other
than by an excluded peril or cause.
It also places the onus on the insurer to be very sure of what to exclude if it is
not excluded, the by definition, it is covered. In plain English format the policy
wordings are often simply mentioned as we will not pay for ....
Example War Exclusions: This policy does not cover loss destruction or
damage caused by war, invasion, act of foreign enemy, hostilities or war like
operations (whether war be declared or not), civil war, mutiny, civil commotion,
rebellion, revolution, insurrection or military or usurped power.
Conditions
Conditions are critical to the understanding of the cover just like exceptions. The
conditions describe what the insured must do and must not do. Traditionally,
conditions appear towards the end of the policy. Some of the common conditions
are as follows
Condition
Terms
Alterations to
the risk
Claims
Comment
The insured must comply with the terms of the policy
The insured must notify the insurer should there be any
change to the risk
This will vary from cover to cover
procedure
Fraud
Reasonable
Care
Contribution
Cancellation
Estimated /
Declarations
The insured should make it a point to carefully examine the policy document to
confirm that it provides the cover required and take note of any conditions that
he must observe. Policy documents should be stored in a safe place so that there
are available when required.
The perils specified in the standard fire policy are Fire, Lightning,
Explosion/Implosion, Aircraft damage, Riot, Strike, Malicious damage. Other
perils like earth quake, Terrorism, Storm, Tempest, Flood and Inundation, Forest
fire, Spontaneous combustion may be covered with additional premium.
Exclusions Fire insurance Excludes destruction or damage caused to the
insured property due to
i.
ii.
iii.
(the risk of steam generating boilers can be covered under boiler explosion
policy in Engineering Insurance)
Aircraft Damage Destruction or damage caused by aircraft, other aerial or
space devices and articles dropped there from excluding those caused by
pressure waves.
Riot, Strike and Malicious Damage Loss, damage or destruction of the
property by external means by riot, strike or malicious damage.
Terrorism damage is excluded from the standard fire policy. However it can be
covered by payment of additional premium. It cannot be given in isolation. It can
be offered only in conjunction with RSMD.
Every claim under terrorism cover is subject to deductibles at the rate of 0.5% of
SI subject to minimum of Rs, 1 lakh for industrial risks and 0.5% of SI subject to
minimum of Rs. 25,000/- for non industrial risks.
STFI ( Storm, Tempest, Flood and Inundation) Loss, destruction or damage
directly caused by Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood
and Inundation excluding those resulting from earth quake, volcanic eruption or
other convulsions of nature
Earthquake Earthquake can be covered as an add on cover by collecting
additional premium
Impact Damage
Loss or visible physical damage or destruction caused to the insured property
due to impact by any road, rail vehicle or animal by direct contact not belonging
to or owned by the insured or any occupier of the premises or their employees.
Subsidence and Land Slide including Rock Slide Loss, destruction or damage
directly caused by subsidence of the part of the site on which the property
stands or land slide or rock slide excluding normal cracking, settlement or
bedding down of new structures, demolition, construction, structural alterations
or repair of any property or underground works or excavations.
Bursting and overflowing of water tanks
Missile testing operations
Accidental leakage from Automatic sprinkler Installations
Bush Fire excluding forest fire
General Exclusions under Fire Insurance
The policy does not cover
1. The first 5% of each and every claim subject to minimum of Rs.
10,000/- in respect of each and every loss arising out of Act of
God perils such as Lightning, STFI, Subsidence, Land Slide and
Rock Slide.
2. The first Rs. 10,000/- for each and every loss arising out of other
perils
3. Loss, destruction or damage caused by War
4. Loss, destruction or damage caused by nuclear peril
5. Loss, destruction or damage caused by pollution or contamination
6. Loss, destruction or damage to bullion or unset precious stones,
curios or works of art for an amount exceeding Rs. 10,000
manuscripts, plans, drawings, stamps, coins or paper money,
Special policies
Floater Policy
Declaration policy
Reinstatement Value policy
Industrial all risk policy
Agreed Bank clause
Fire proposal form