INTRODUCTION TO INSURANCE:

In insurance, the insured makes payments called "premiums" to an insurer,

and in return is able to claim a payment from the insurer if the insured suffers some
kind of loss. This relationship is usually drawn up in a formal legal contract.
In one classic example of insurance, a ship-owner insures a ship and receives
payment if the ship is damaged or destroyed. This example is one of the earliest
uses and developments of concepts like insurance. Interestingly, ships are now
more often insured through risk pooling and spreading organizations such as
Lloyd's of London because the loss of a large ship going down is too great for one
insurer to accept.
In the case of annuities, such as a pension, similar concepts apply, but in
some sense in the reverse. When applied to annuities, the terms risk and loss are
somewhat different from traditional insurance as they concern the chances of living
beyond life expectancy and the need for income during the period between
annuitization and death.
Insurance attempts to quantify risk by pooling together a large number of
risks. This makes use of the law of large numbers. As applied to insurance, this
means that the greater the number of similar risks, the greater accuracy with which
insurers can estimate the overall risk.

For example:
Many individual people purchase health insurance policies and they
each pay a small monthly or yearly premium to an insurance company. When a
policyholder gets ill, the insurance company provides money to cover medical
treatment. For some individuals the insurance benefits may total far more money
than they have ever paid into the insurance policy. Others may never make a claim.
When averaged out over all of the people buying policies, value of the claims even
out. Insurance companies set their premiums based on their calculated payouts.
They plan to take in more money (in premiums and in profit from the float, see
below) than they pay out in the end to cover expenses. For-profit insurance
companies set their rates to make a profit rather than to break even.
Insurance companies also earn investment profits, because they have the use
of the premium money from the time they receive it until the time they need it to
pay claims. This money is called the float. When the investments of float are
successful, they may earn large profits, even if the insurance company pays out in
claims every penny received as premiums. In fact, most insurance companies pay
out more money than they receive in premiums.
The excess amount that they pay to policyholders is the cost of float. An
insurance company will profit if they invest the money at a greater return than their
cost of float.

HISTORY OF INSURANCE:
Insurance probably made a beginning in the ancient land of Babylonia In the
18th century B.C., Babylonian king Hammurabi developed a code of law, known
as the Code of Hammurabi, which codified many specific rules governing the
practices of early risk-sharing activities. For instance, the code dictated that traders
had to repay merchants who financed trading voyages unless thieves stole goods in
transit, in which case debts would be cancelled.
This was similar to the system of insurance known as bottomry which
existed in Phoenicia in 1200 B.C. In this system, backers loaned money to
merchants to finance voyages. Merchants offered their ships (the hull was known
as the ships bottom) as collateral for such loans. When a trip succeeded, the
merchant would pay the trips backer the original loan plus interest, the equivalent
of a premium. If a ship went down on its voyage, the trips backer would cancel the
merchants loan.
The Greeks and Romans developed the earliest systems of life insurance.
They formed societies which paid dues that went toward paying for the burial of
members. Sometimes these societies also paid for the living expenses of deceased
members families. During the Middle Ages (5th to 15th centuries A.D.), workers
joined together in craft. Many guilds, particularly in England and Italy, provided
benefits to workers and their families in the event of illness or death.

INSURANCE PRINCIPLES:
Main principles of Insurance:

Utmost Good Faith (Uberrimae Fides):

As a client it is your duty to disclose all material facts to the risk being
covered. A material fact is a fact which would influence the mind of a
prudent underwriter in deciding whether to accept a risk for insurance and
on what terms. The duty to disclose operates at the time of inception, at
renewal and at any point mid-term.

Indemnity :
On the happening of an event insured against, the Insured will be placed in
the same monetary position that he/she occupied immediately before the
event taking place. In the event of a claim the insured must:

Prove that the event occurred

Prove that a monetary loss has occurred
Transfer any rights which he/she may have for recovery from another
source to the Insurer, if he/she has been fully indemnified.

Subrogation:

The right of an insurer which has paid a claim under a policy to step into the shoes of
the insured so as to exercise in his name all rights he might have with regard

MEANING AND DEFINATION OF INSURANCE

MEANING
Insurance is financial service. It is pooling of risk in a
contract of Insurance, the insurer undertakes in consideration of a
sum of money to make good the loss suffered by the insured
against specified risk or any other contingency. There are two
parties and insurance contract, insurance company and the
insured party. The document laying down the terms of the
contract is called insurance policy.
The property, which is insured, is the subject matter of
insurance. It may be insured against loss arising uncertain events
in the form of destruction or damage to the property or death or
disablement of person.
The interest, which the insured has subject matter of
insurance, is known as insurable interest depending upon the
subject matter, the types of insurance are life insurance and
general insurance. In case of life insurance a specified amount
becomes payable on the death of insured or upon the expiry of
specified period. General insurance covers losses caused by fire,
accident and marine adventures

DEFINATION

Insurance is a financial arrangement that redistributes the cost of unexpected

losses.

According to D.S.Hansell, Insurance may be defines as a social device

providing financial compensation for the effects of misfortune, the payments
being made from the accumulated contribution of all parties participating in
the scheme.

Insurance is a device to protect again risk or a provision against inevitable

contingencies or a co-operation device of spreading risks.
According to Riegel and miller, Insurance is a social device ware by a
uncertain risk of individuals may to combine in a group an thus made
certain small periodic contributions by the individuals, providing funds out
of which those who suffer losses may be reimbursed.

INTRODUCTION OF INSURANCE
Insurance companies in India are governed by the insurance Act 1938, though
consequent to the nationalization of life insurance business 1956, the provisions of
the respective legislations apply to them.
Insurance is a means of protection of the economic value of assets. It is method of
spreading over large number of persons, a possible financial loss, which cannot be
borne by individual. The occurrences which cause any damage to the assets are
called perils.
Insuranceis a financial device for transferring or shifting risk from an
individual orentity to a large group with the same risk. This is accomplished
through a contract,the insurance policy, with an insurance company. Under this
arrangement, the individual,along with other insureds, pays a sum to the insurance
company. In turn, theinsurance company agrees to pay an amount of money
(reimbursement) to the individual,or on behalf of the individual, if the events
described in the policy occur.Insurance is used to indemnify, or restore, a
policyholder to a pre-loss condition. Theindividual accepts a known cost, the
premium, in exchange for payment of a large,uncertain financial loss. The
insurance company combines, orpools, a large numberof similar units (homes,
autos, businesses, etc.) and thus can predict losses withinthese units.
Insurance is social device to reduce or eliminate a risk of loss to life and
property. A group of individuals transfer risk to another party in order to combine
loss incurred. It includes statistical prediction of losses and provide for payment of
losses from fund contributed by all members who transfer risk. Thus collective
bearing of risk is immense. Life insurance exist because there is uncertainty
regarding the timing and manner of death; though it is certain.
With largest number of life insurances policies in force in the world,
insurance happens to be a mega business in India. It is business growing at 15 to 20
percent annually together with banking services it adds about 7 percent of GDP.
Gross premium collection percent of GDP and funds available with LIC for
investmentAre 8 percent of GDP. Get nearly 80 percent of the population is
without life insurance cover. The insurance sector to the extend can enable
investment in infrastructure development to sustain economic growth of country.
Insurance companies not only provide risk cover to infrastructure project they also
contributes long term capital.

HISTORY OF INSURANCE

INDIAN INSURANCE SECTOR

There are evidences that marine insurance was practiced in India some three
thousand years ago. In earlier days travellers by sea and land where exposed to risk
of losing their vessels and merchandise because of piracy of the open seas. The
practice of insurance was quite common during the rule of Akbar to Aurangzeb,
but the nature and coverage is not well known. It was British insurers who
introduced general insurance in India in its modern form.
The Britishers opened general insurance in India around the year 1700. The
first company known as the SUN Insurance office ltd. Was setup in Calcutta. This
was followed by several insurance companies on different parts of the world in the
field of marine insurance. In 1972, general insurance business was nationalizing by
the government of India by forming general Insurance Corporation. The following
four companies have been authorized to carry on the general insurance business
including marine insurance in the country viz. The national insurance company,
New India Assurance Company, /Oriental Fire and General Insurance Company
and Untied India Fire and General Insurance Company.
Insurance penetration in India is just 4.6 percent in case Life Insurance and 0.61
percent in general insurance (Annual premium paid as percentage of countries
GDP). In terms of insurance density, the number is even more alarming. In
developed countries like united states, insurance density is 33 times that of India
and in united kingdom it is 73 times and in japan it is 65 times. Even a country like
Thailand, it is double that of India.

INSURANCE ACT, 1938:

The insurance Act was passed 1938 and was brought into force from 1 st July 1939.
It was a well balance and was the first comprehensive piece of insurance
legislation in this country governing both life and non-life branches of insurance
this Act provided to prevent mushrooming of companies, to enforce working on
sound principles, to prevent misappropriation of fund and to protect the assets.
The Act was wide and more comprehensive. There was strict control over the
insurance business. Since 1938 there were 6 amendments up to 1945. In 1945 it
was deemed necessary to protect the interest of insured companies.
Therefore a committee was appointed under the chairmanship of Shree Kavsaji
Jahangir. On the basic of the committees recommendation, and amendment bill
was made on 18th April 1980 by the parliament. As per the amended Act the total
right was with central Government. It controls the insurance business by
appointing controller of insurance. The insurance companies violating the rules and
regulations are penalized under this Act.
This Act applies to all types insurance business life, fire, marine, etc. done by
companies incorporated in India or elsewhere

UMBRELLA INSURANCE:

Umbrella insurance is extra liability insurance that you

purchase in addition to your regular insurance policies. As its
name implies, umbrella insurance sits "on top of" your other
insurance policies like an umbrella, to provide added financial
protection in the event that other policies cannot cover the loss.

For example, let's say that you rear-end a luxury vehicle, and
it turns out that you must pay far more than your insurance
coverage allows. If you don't have an umbrella insurance policy,
you'll need to figure out where to get that money. But if you do
have umbrella insurance, then that policy would kick in and you
would likely pay nothing out of pocket.
It used to be that only the very wealthy needed umbrella
insurance. But anyone can be sued for any reason at any time,
and umbrella insurance provides added protection against losses.
If someone falls on your front steps or your tree falls on a
neighbor's house during a storm, they can successfully sue you
for damages.
Anything that happens on your property or because of your
property is fair game and not always covered by traditional
homeowners' insurance. Umbrella policies provide protection in
many situations that usual liability policies don't cover. While
being wealthy isn't a prerequisite for needing umbrella insurance,
most people who fall into this category need it. Obviously, the
more money you have, the more of a target you become for
lawsuits, and the more you have to protect.Umbrella insurance
refers to a liabilityinsurance policy that protects the assets and
future income of the policyholder above and beyond the standard
limits set on their primary policies.
Typically, an umbrella policy is pure liability coverage over
and above the coverage afforded by the regular policy, and is sold
in increments of one million dollars. The term "umbrella" is used

because it covers liability claims from all policies underneath it,

such as auto insurance and homeowners insurance policies.
For example, if you have an auto insurance policy with
liability limits of $500,000 and a homeowners insurance policy
with a limit of $300,000, then with a million dollar umbrella, your
limits become in effect, $1,500,000 on an auto liability claim and
$1,300,000 on a homeowners liability claim.
Umbrella

insurance

provides

broad

insurance

beyond

traditional home and auto. It provides additional liability coverage

above the limits of your homeowner's, auto, and boat insurance
policies.

THE NEED AND PURPOSE OF UMBRELLAS

WHAT IS THE NEED?

People can be held legally liable to pay damages for the bodily injury or
property damage caused by their negligence. The need for liability can arise as a
result of a person's personal or recreational activities as well as a person's business.
Some of the higher liability claims arise when insureds are entertaining guests or
permitting people to use their property.
Consider how a jury's desire to punish a negligent person could result in a
judgment for damages in the following situations:

 A practical joke misfires and results in a lawsuit for defamation of character.

A neighbor or guest falls on a person's property, resulting in permanent
disability.
A protective watchdog proves that his bite is even worse than his bark.
A person's child accidentally breaks an expensive vase while at another
person's house.
A moment's inattention while driving results in a multi-car accident.
A spark from burning leaves starts a fire that inadvertently burns a
neighbor's roof.
A letter to the editor triggers a libel suit.

At this point, it is important to make a distinction between two terms

frequently used in liability suits: coverage and liability.
The word coverage refers to the contractual obligation imposed on the
insurance company that agrees to indemnify the insured for sums he or she
becomes legally responsible to pay as damages. Liability refers to the legal
responsibility of the policyholder to other persons arising out of an occurrence. In
some cases, a particular peril will not be covered by the policy and the insurance
company is under no contractual obligation to indemnify the insured.
For example, assume the insurer issued homeowners policy covering an
insured's liability arising out of the ownership of a certain property. The insurer is
under no obligation to provide coverage under that homeowners policy for an
automobile accident that occurred away from the residence premises even if the
insured was at fault. In this case, there may be liability on the part of the insured,
but there is no coverage provided under the policy.

On the other hand, there may be coverage under the policy but no liability on
the part of the insured. For example, the Personal Auto Policy provides coverage
for property damage up to the policy limits. However, if the insured vehicle is
stolen and the thief uses the car to damage several lawns in the area, the insured
has no liability for the damage. Even if the insured feels sorry for the neighbors
and perceives some moral obligation to repair their lawns, he or she has no legal
liability to do so. Likewise, the insurance company has no responsibility, either by
way of settlement or as a gift, to make any payment to the neighbors. In this case,
while three may be coverage under the policy, but there is no liability on the part of
the insured.
Insureds should be cautioned to remember that even when there is no
apparent liability on the part of the insured or available insurance coverage, the
insured may still be sued and found legally responsible. In a civil case, it is
possible that the plaintiff, who must establish his or her claim by a preponderance
of evidence, may produce evidence that is more credible and convincing than that
of the defendant's. And, if the plaintiff's case is more believable, the plaintiff will
win.

The settlement the plaintiff receives might be quite substantial because of three
factors:
$ The public's attitude toward claims;
$ The application of the law of negligence; and
$ The jury's opinion about damage awards.

PURPOSE OF UMBRELLA POLICIES

The Personal Umbrella Liability Policy was created to expand the insured's
liability coverage by filling gaps in the basic liability coverage provided by
underlying policies and to reduce the insured's worry, trouble and burden of facing
personal litigation on his or her own. Personal umbrella liability coverage is
usually sold in units of $1 million or more and may be added to a basic
homeowners or auto policy that is already written by the insurance company.
Many companies also write stand alone, or separate, personal umbrella policies
without writing the underlying coverage. To qualify for stand-alone coverage,
however, the applicant is usually required to show proof of certain underlying
insurance coverage with other insurance companies. Umbrella policies provide
insurance for accidents and other situations not ordinarily covered under primary
insurance, subject to a deductible of between $250 and $1,000.
There is no standard personal umbrella liability policy. The policy's forms,
format and coverage vary by insurer. This does not necessarily mean that because
one company's policy looks more extensive that it is superior to another policy.
Rather, each contract should be reviewed to determine which offers the best

coverage for a particular policyholder. Regardless of which company is providing

the policy, all personal umbrella policies are designed to give insureds and their
families two types of extra liability protection:
They add to the liability of any homeowners, automobile or other liability
policies currently in force. Most homeowners policies provide a basic personal
liability coverage of $100,000; auto policies typically contain a combined single
limit of $300,000 per occurrence. An umbrella policy supplements these basic
personal liability coverages. If, for example, the insured has a standard auto policy
with liability limits of $300,000 and a personal umbrella policy with limits of $1
million, the insured is protected up to $1,300,000, if a covered auto accident occurs
and the insured is found legally responsible. $ They are designed to cover liability
exposures that other policies do not cover. The personal umbrella policy is
designed to cover some of the more unusual exposures, such as personal injury
claims, that an insured might face but that are typically not covered under most
standard liability policies.
A personal umbrella is the liability counterpart of Difference in Conditions
(DIC) insurance, a property coverage that expands insurance written on a named
perils basis to an open perils basis and protects the insured against risks of direct
physical loss to the insured property, subject to certain exclusions and deductibles.
An umbrella contract provides (subject to a deductible) liability coverage where no
other liability insurance exists, and in addition provides coverage for liability when
the limit of the primary or underlying insurance has been exhausted.

SPECIAL CHARACTERISTICS OF UMBRELLA

POLICIES

The insurance company that issues the umbrella policy provides additional
liability coverage over the primary policies, up to the limits listed on the
Declarations page of the umbrella policy, even if the same insurer does not
provide the underlying insurance.
The personal umbrella policy covers any number of accidents or occurrences
that occur during the policy term, regardless of how many claims are
presented. However, the policy restricts payment for any one accident to the
limit listed in the policy (usually up to $1 million per occurrence). In other
words, even though the insurer may pay for ten claims totaling $10 million
during a one-year period, it will not pay more than $1 million for any one
occurrence.
To limit the insurer's liability, however, many umbrella policies are
beginning to offer aggregate limits, meaning a maximum dollar amount that

may be paid during the policy period or during the insured's lifetime, as
specified in the policy.
A policy with a $10 million aggregate limit, for example, may pay several
claims for $1 million each, but it will only pay out a maximum of $10
million during a given policy period.
It is important to remember that the personal umbrella is a third party
liability policy that covers only another person's claim against the insured. It
does not cover damage to the insured's own property, motor vehicles, home
or other valuables.

TYPES OF UMBRELLA INSURANCE:

1. PERSONAL UMBRELLA INSURANCE:

Accidents happen on your property or because of your property, you

can be held financially responsible for the consequences. This can happen to
anyone. For example, if you were to host a party in your home or apartment
and someone was injured on your stairs, then you would suddenly be
responsible for their medical bills, emotional damages, and lost wages. How
would you pay for it?

Personal umbrella liability insurance provides added protection

against sudden financial loss in a situation like this. Accidents will happen,
and lawsuits can cost millions. Usual insurance policies-such as your
automobile insurance and homeowners' insurance-often don't cover the full
amount of your assets. So once you've met your policy limits, then you are
responsible for any of the remaining settlement.
Personal umbrella liability insurance provides higher coverage based
on the value of your assets. Coverage limits usually start at $1 million and
can go higher depending on your needs and qualifications.
To decide if you need personal umbrella liability insurance, you
should add up the value of your assets-bank accounts, stocks, bonds, home,
available retirement funds, etc.-and compare that dollar amount to the
coverage offered under your home and auto insurance policies. If the value
of your assets is more than the policy limits, then you may need to consider
a personal umbrella liability insurance policy.

2. COMMERCIAL OR BUSINESS UMBRELLA

INSURANCE:

If you run a business of any kind-especially one that comes into

contact with clients-then you should look into purchasing commercial or
business umbrella insurance. This type of insurance is a secondary "excess
liability" policy that protects business owners from lawsuits with settlements
exceeding their usual insurance policies. Certain businesses are at higher risk
of being sued for large amounts-bars, restaurants, sports arenas, large office
buildings, and anywhere large amounts of people gather and may potentially
be injured or otherwise harmed.
Sometimes accidents can happen in your businesses that are not
directly your fault, but a court may decide that you are responsible for the
financial damages. Your building may have a leak that results in personal
injury to an employee or client, or one of your employees may give some
bad advice that leads a client to sue. The potential is endless, and as the
owner, it makes sense to cover all your bases.

Commercial or business umbrella insurance usually covers a variety

of situations, including personal injury, contractual liability, liquor law
liability, and extension of coverage to other insured parties like employees
and business partners. Most umbrella insurance policies start at a $1 million
limit and increase from there, depending on your assets and risk.
Your umbrella policy limits and terms will vary across different
insurance providers, and you should look around to find the policy that best
suits the needs of your business. In addition to the added financial
protection, commercial or business umbrella insurance provides additional
peace of mind. If someone sues you beyond what your traditional insurance
policy will cover, you will be able to keep your doors open.

3. OFFICE UMBRELLA POLICY:

Office Umbrella Policy is a comprehensive insurance policy that

offers protection to business enterprises against different kinds of risks and
contingencies. It is a single insurance policy, which is suitable for large
MNC-owned offices, as well as small and medium sized offices such as
travel agencies.

Professionals including chartered accountants, architects, engineers

or any other service provider can also acquire benefit from office umbrella
policy. Being a package policy, the office umbrella insurance provides total
coverage of all risks that are common to office environment and does away
with the need to take different policies. Go through the following lines to
know all about office umbrella policy prevalent in India.

UMBRELLA INSURANCE COST:

A common misconception about umbrella insurance is that it costs too much.

Of course your rates and terms will depend on your needs and your specific
insurance company, but most businesses and many individuals can manage
umbrella insurance cost.

Typically, most umbrella insurance costs a premium of about $200 to $300 a

year. That is very low and generally affordable. But keep in mind that before you
can use the umbrella insurance, you will need to meet a deductible-usually
$300,000 or more. Careful planning and coordination between your umbrella
insurance policy and your traditional liability coverage will take care of this
deductible.

UMBRELLA INSURANCE RATES:

Umbrella insurance rates depend on many different factors. In

general, people who buy umbrella insurance pay premiums of $200 to $300 a year,
and deductibles of $300,000 or more for coverage exceeding $1 million. But these

numbers can vary widely. Let's look at some of the factors that go into deciding
umbrella insurance rates:

Your risk:
If you have a risky lifestyle or company, then your umbrella
insurance rates will be higher than average. In the context of umbrella
insurance, risk is defined as anything that raises your chance of being
sued. Owning a sports arena or bar qualifies as a high-risk activity.

Your location:
Umbrella insurance rates vary across states and cities.

The amount of coverage you need:

People who need $1 million in umbrella insurance pay lower rates
than those who need $9 million.

The amount of coverage you already have:

If you already have home and auto insurance liability policies, your
rates will be different from someone who wants to use umbrella
insurance as a replacement for traditional insurance policies.

The insurance company:

All other variables aside, umbrella insurance rates will be different at
each company you consider. Make sure to do your homework and
shop around to find the best umbrella insurance rates for your needs.
Get quotes from several different companies before signing a contract.

UMBRELLA INSURANCE QUOTE:

When you are looking for an insurance company to provide umbrella coverage for
yourself or your business, it's extremely important that you first get an umbrella
insurance quote before making any decisions.
An umbrella insurance quote is basically an estimate of how much coverage
the company will provide for you, including the rate and deductible. This step is
vital because every insurance company offers different rates and options at any
given time. You can present the same information to five competing insurance
companies, and come away with five different umbrella insurance quotes. If you

were to perform the same comparison next month, all the numbers would be
different, because rates and company variables change constantly.
To get an umbrella insurance quote, you will need to give the company some
key information about your needs. This usually includes your assets (all types of
vehicles, your home, real estate of any kind, retirement funds, etc.), risk factors,
current insurance policies, , criminal history, and insurance claim history.
The umbrella insurance quote isn't a substitute for a contract. It's more like
the price tag. Once you find a company that provides an acceptable quote for your
individual umbrella insurance needs, you will need to set up an appointment to
sign the official paperwork.

UMBRELLA POLICY CLAIMS:

A personal umbrella policy comes in handy in the event of a lawsuit or
liability judgment. For example, imagine someone visits your house and falls and
injures herself, or your pet damages your neighbors' property or injures their child.
In such cases the umbrella policy claim can be made to cover such judgment if the
liability coverage that comes with your home owner's insurance policy does not
cover it, or the limits have been reached.
Claims

can

also

be

made

for

legal

and

defense

fees.

An umbrella policy will also cover liability coverage when you are sued for
slander, libel, false arrest, malicious prosecution or other personal liability
situations. Most personal umbrella policies do not cover punitive damages,
intentional actions or liability incurred in connection with your business activities.

MYTHS ABOUT UMBRELLA POLICY:

Below are some of the common misconceptions contractors have whilst using an
Umbrella Company:

It is a myth to think that the personal liability umbrella policy is only for he
rich.
It is a myth to think that personal umbrella insurance is
expensive.

extremely

It is myth to think that insurance is necessary for only the bread winner of
the family.
It is myth to think that you would not need flood insurance since you are
living in a low risk area.
An Umbrella Company or Composite Company can pay me a minimum
salary and dividends, which will earn me more money.
I can just switch Umbrella Company when I breach the 24 month rule
continue to claim expenses.
The higher my expenses, the higher my net pay will be.

TATA AIG GENRAL INSURANCE

Tata AIG General Insurance Company Limited is an Indian general

insurance company, and a joint venture between the Tata Group and American
International Group (AIG).Tata Group holds 74 per cent stake in the insurance
venture with AIG holding the balance 26 percent. Tata AIG General Insurance
Company, which started its operations in India on 22 January 2001, provides
insurance to individuals and corporates. It offers a range of general insurance
products including insurance for automobile, home, personal accident, travel,
energy, marine, property and casualty as well as several specialized financial lines.
The Company's products are available through various channels of distribution
like agents, brokers, banks (through bank assurance tie ups) and direct channels
like Telemarketing, Digital Marketing, worksite etc.

History

Tata AIG General Insurance Company Limited (Tata AIG General) is a

business Collaboration of the Tata Group and American International Group, Inc.
(AIG). Tata AIG General merges two major finance organizations i.e. the Tata
Group's prominent headship place in India and AIG's global presence as the world's
leading international insurance and financial services Organization. This joint
venture has started its operations in India from 22 January 2001. The company
provides both corporate and personal insurance services. The organization offers an
array of general insurance covers which are well thought-out under commercial
and
consumer
demands.
The
commercial
sector
covers Energy, Marine, Property and several specialized financial covers, while the
consumer insurance service offers a variety of general Insurance products such as
insurance for Automobiles, personal accident, casualty, home, health and travel.
The company has made the availability for its services from end to end channels of
distribution like agents, banks (through banc assurance tie ups), brokers and direct
channels like tele-marketing, e-commerce, website, etc. The headquarters of the
company is situated in Mumbai. The company has provided the employment to
more than 2000 qualified professionals across the country in more than 160
locations.

TATA AIG UMBRELLA POLICY

Covers legal liability of the insured arising out of bodily injury, property damage
.Personal injury or advertising injury.
Why Tata AIG?
TATA AIG brings to you one of the most extensive worldwide network, with
presence in more than 130 jurisdictions.
Our form is a duty to defend form which means client will not have to bear the
brunt of litigation as under the express terms of the policy we will defend the client
in any lawsuit.

Key Features
Duty to defend form
Acting like an umbrella it sits over multiple primary policies, in addition to
providing broader coverage
it provides excess limits when the limits of underlying liability policies are
exhausted by the payment of claims
Umbrella comes with a drop-down feature, narrowing coverage gaps

Key Exclusions
War
Asbestos exposure
Any obligation of the Policyholder under Workers Compensation Law

CASE STUDY ON UMBRELLA INSURANCE OF TATA

AIG
What Exactly the Umbrella policy?
Umbrella insurance refers to the liability insurance that is in excess of
specified other policies and also potentially primary insurance for losses not
covered by other policies
Why would anyone need an Umbrella policy?
There are many situations where a standard liability policy is simply not
enough coverage. Anumbrella policy allows you to protect yourself against
major lawsuits in two ways. First, the umbrellaprovides excess liability over
underlying coverage. Second, the umbrella provides liability coveragethat
may be excluded by homeowners or auto policies.
What Special protection is given by umbrella policy?
Personal injury losses that may be limited or excluded under most
homeowners policies will receivebroader coverage under an umbrella
policy. As a rule, personal injury does not have a uniform definition;
however, just about all umbrellas will refer to personal injury to include
bodily injury.
MostPolicies also include in their definition of personal injury:Mental
anguish, false arrests, wrongful eviction, wrongful detention, malicious
prosecution, invasion ofPrivacy, assault and battery, slander, libel and
defamation of character.

How the policy work?

Generally, an umbrella policy pays all of the covered loss that exceeds the
limits of the base orunderlying policy.If, for example, the basic policy paid
$200,000 on a slip and fall injury and the claim was for $250,000,the
umbrella would cover the $50,000 over the basic policy's $200,000 limit.

What does Umbrella insurance covers?

Umbrella insurance provides coverage for injuries, damage to property,
certain lawsuits, and other personal liability situations listed below.
Umbrella Insurance insures you above and beyond the limits of those
policies and, in addition, it covers some situations that aren't covered by
the

other

types

of

policies

you

have.

CONCLUSION
I conclude this project study by saying that Umbrella Insurance is very
important & should have more market & value in India as compared with
international insurance market.

The

combination of many items together makes the policyholder easer &

profitable.

Policies like this should be there in India on large basic that will help the
citizens.

Now, before coming to the conclusion that, despite all the warnings and all
the concerns, you probably don't need umbrella coverage, think about some
of the consequences of not getting it.
The time is coming, if it hasnt happened already, where an insured is sued
for injuries or property damage not covered by either his primary policies or
his umbrella that would have been covered by another umbrella.
As a result, the insured sues his broker for damages caused by a professional
error in not recommending the umbrella policy that would have covered this
lawsuit, and a jury agrees. .