ASSIGNMENT

GENERAL INSURANCE CORPORATION OF

INDIA(GIC)

SUBMITTED BY

ANISH .K.THAMBI

ANJU.P

ANJUMOL.P.T

Date : 30/09/2010 SUBMITTED TO

Mr.BOSE TOM

MANAGEMENT STUDIES
HISTORY
The entire general insurance business in India was nationalised
by General Insurance Business (Nationalisation) Act, 1972
(GIBNA). The Government of India (GOI), through
Nationalisation took over the shares of 55 Indian insurance
companies and the undertakings of 52 insurers carrying on
general insurance business.

General Insurance Corporation of India (GIC) was formed in

pursuance of Section 9(1) of GIBNA. It was incorporated on 22

November 1972 under the Companies Act, 1956 as a private

company limited by shares. GIC was formed for the purpose of
superintending, controlling and carrying on the business of
general insurance.

As soon as GIC was formed, GOI transferred all the shares it

held of the general insurance companies to GIC.
Simultaneously, the nationalised undertakings were transferred
to Indian insurance companies. After a process of mergers
among Indian insurance companies, four companies were left
as fully owned subsidiary companies of GIC (1) National
Insurance Company Limited, (2) The New India Assurance
Company Limited, (3) The Oriental Insurance Company
Limited, and (4) United India Insurance Company Limited

The next landmark happened on 19th April 2000, when the

Insurance Regulatory and Development Authority Act, 1999
(IRDAA) came into force. This act also introduced amendment
to GIBNA and the Insurance Act, 1938. An amendment to
GIBNA removed the exclusive privilege of GIC and its
subsidiaries carrying on general insurance in India.

In November 2000, GIC is renotified as the Indian Reinsurer

and through administrative instruction, its supervisory role
over subsidiaries was ended.

With the General Insurance Business (Nationalisation)

Amendment Act 2002 (40 of 2002) coming into force from
March 21, 2003 GIC ceased to be a holding company of its
subsidiaries. Their ownership were vested with Government of
India

The functioning of GIC has to be within the regulations

of the following major Acts:

The Companies Act, 1956

Insurance Act, 1938
General Insurance Business (Nationalisation) Act, 1972
General Insurance Business (Nationalisation) Amendment Act.
2002.
Insurance Regulatory and Development Authority Act, 1999

BUSINESS OF G.I.C.
DOMESTIC REINSURANCE BUSINESS

As a sole reinsurer in the domestic reinsurance market, GIC

provides reinsurance to the direct general insurance companies
in the Indian market. GIC receives statutory cession of 10% on
each and every policy subject to certain limits. It leads many of
domestic companies’ treaty programmes and facultative
placements. GIC’s capacity for each class of business on Treaty
 and Facultative basis for domestic business is given in the
following table.

Details of Domestic Reinsurance Business

Class Capacity
Property INR 15000 mln. Any one risk
Marine Hull - INR 2000 mln. any one vessel
Cargo INR 2500 mln. Any one policy/sending
Crude Oil INR 3500 mln. any one policy/sending
Engineering INR 15000 mln. Sum Insured
Miscellaneous INR 3500 mln. Sum Insured
Motor Unlimited
Aviation-Hull/Spares- Rotor Wing INR 20.50 mln. per aircraft
Aviation-Hull/Spares- -Fixed Wing INR 50 mln. per aircraft
Liability INR 100 mln. per occurrence
Aviation Treaty – Hull INR 500 mln.
Spares INR 250 mln.
Liability INR 1000 mln.
INTERNATIONAL REINSURANCE BUSINESS

A GIC is spreading its wings to emerge as an effective reinsurance

solutions partner for the Afro-Asian region and has started leading the
reinsurance programmes of several insurance companies in SAARC
countries, South East Asia, Middle East and Africa. To offer its
international clientele an easy accessibility, efficient service and tailor
made reinsurance solutions; GIC has opened
liaison/representative/branch offices in London and Moscow. GIC
provides following capacities for Treaty and Facultative business on risk
emanating from the international market based on merits of the
business.

Details of International Reinsurance Business

GIC Re offers following Underwriting Capacities to its International clientele
Foreign Inward Business [Other then Aviation]
Type PML Capacity Sum Insured
Facultative Business US $ 20 Min US $ 50 Min

Treaty Business US $ 4 Min US $ 10 Min

Aviation Business
 Type Any one Hull Liability [AOO]
Facultative [International]

Airlines US $ 10 Min. US $ 100 Min.

General Aviation US $ 5 Min. US $ 30 Min.

Treaty US $ 500,000 any one acceptance

Investments were made within the regulatory framework of Insurance Act, and IRDA Regulations and within
  corporate policy. The funds of the Corporation are managed in-house.  

Major provisions

a.Approved Investments
To be not less than 75% of the assets of GIC.Not more than 25% of the
b.Investments by way of other than
assets of GIC.
Approved Investments

Investments in shares

a) Shares of any one Banking/ Investment Company. Not to exceed -

i) 10% of assets of the insurer
or
ii)2% of the Subscribed Share Capital and Debentures of the investee company,
whichever is less

b) Shares and Debentures of any one company other than Not to exceed -
Banking/Investment Company. i) 10% of assets of the insurer
or
ii) 10% of the Subscribed Share Capital and Debentures of the investee
company, whichever is less.

Investment in Private Company Not allowed

Investment in Fixed Deposits/ Current Deposits with any one Banking Not to exceed 10% of assets of the insurer.
Company

IRDA regulations stipulates that without prejudice to Section 27 or 27(b) of the Act, every insurer carrying on
  General Insurance Business shall invest and at all times keep invested his total assets in the following manner.
Details of IRDA Regulations on Investments

Type of Investment (%)

Central Government Securities being not less than 20
State Government Securities and other Guaranteed Securities including (i) above being not less than 30
Housing and Loans to State Government for Housing and Fire Fighting equipment, being not less
5
than,
Investments in Approved Investments as specified in Schedule II.
a )Infrastructure and Social Sector with in the meaning of IRDA regulations not less than 10
b )Others to be governed by Exposure Norms specified in IRDA regulation (Investment in "other than
55
approved investments" can in no case exceed 25% of the assets) not exceeding

VISION

“To be a leading global reinsurance and risk solution provider”

MISSION

To achieve our vision by

1 Building long-term mutually beneficial relationship with

business partners.
2 Practicing fair business ethics and values
3 Applying “state-of-art” technology, processes including
enterprise risk management and innovative solutions
4 Developing and retaining highly motivated professional team
of employees
5Enhancing profitability and financial strength befitting the
global position

CORE VALUES

Trust and mutual respect

Professional excellence
Integrity and transparency
Commitment
Responsive Service
 United India Insurance Company Limited was incorporated as
a Company on 18th February 1938. General Insurance
Business in India was nationalized in 1972. 12 Indian
Insurance Companies, 4 Cooperative Insurance Societies and
Indian operations of 5 Foreign Insurers, besides General
Insurance operations of southern region of Life Insurance
Corporation of India were merged with United India Insurance
Company Limited. After Nationalization United India has grown
by leaps and bounds and has 18300 work force spread across
1340 offices providing insurance cover to more than 1 Crore
policy holders. The Company has variety of insurance products
to provide insurance cover from bullock carts to satellites.

United India has been in the forefront of designing and

implementing complex covers to large customers, as in cases
of ONGC Ltd, GMR- Hyderabad International Airport Ltd,
Mumbai International Airport Ltd Tirumala-Tirupati
Devasthanam etc. We have been also the pioneer in taking
Insurance to rural masses with large level implementation of
Universal Health Insurance Programme of Government of India
& Vijay Raj Janine Kalian Yojana ( covering 45 lakhs women in
the state of Madhya Pradesh) , Tsunami Jan Bema Yolanda (in
4 states covering 4.59 lakhs of families) , National Livestock
Insurance and many such schemes.

Policy Terms and

Conditions
     
Two Wheeler Package Policy
Private Car Package Policy
      Add-on Covers for Private Car
Package Policy
         Courtesy Car
              Prospectus
              Endorsement
          Medical Expenses
             
Prospectus
Endorsement
      Commercial Vehicles Package
 Policy (Goods Carrying & Passenger
Carrying Vehicles)
      Liability only Policy
      Motor Trade Internal Risks
Package Policy
      Motor Trade Road Risks
Package Policy
India Motor Tariff
Clauses
Motor vehicle which includes private cars,
Motorised Twowheelers and Commercial vehicles
excluding vehicles running on rails

Who can Insure ?

 Owners of the vehicle, Financiers or
Lessee, who have insurable interest in a
motor vehicle.

Insured's Declared Value (IDV)

(a) In case of vehicle not exceeding 5 years of
age, the IDV has to be arrived at by applying the
percentage of depreciation in the tariff on the
showroom price of the particular make and model
of the vehicle.

(b) In case of vehicles exceeding 5 years of age

and Obsolete models (manufacture of those
vehicles which have been specified stopped by the
manufacturers), they have to be insured for the
prevailing market value of the same as agreed to
between the insurer and the insured.

(a) Package Policy - Section I

 

Section I (Own Damage - OD) of Package Policy :

Section I of package policy covers loss or damage

to the vehicle and / or accessories due to

 Accidental external means

 Fire, Self ignition, lightning
 Burglary, house breaking or theft
 Terrorist activity
 Riot, Strike and Malicious Damage
 Earthquake
 Flood, cyclone and Inundation etc
 While in transit by rail, road, air,
elevator, lift or inland waterways
 Landslide or workslide

None of the above perils can be excluded from the

scope of a policy.

Loss or damage to accessories by burglary/house

breaking/theft

1. For private car it is covered

2. In case of Motorised Two Wheelers this
can be covered on payment of an
additional premium at 3% of the IDV of
such accessories
3. Loss or damage to Lamp, Tyres,
mudguard and / or bonner side parts,
bumpers etc., can be covered on
payment of additional premium. This is
applicatble only to Commercial Vehicles.

If the vehicle is disabled in an accident, cover is

provided for the reasonable cost of the following :

 Its removal to nearest reapirers

 The cost of reasonalble repairs
immediately necessary

subject to the limit provided for.

(a) Package Policy - Section II

 

Section II  (Liability) of Package Policy :

1. Liability to third parties bodily injury and

or death and property damage
2. Personal accident cover for the owner
driver for a specified sum insured

The following are payable under Section II of the

Package Policy subject to the limit of liability laid
down in the Motor Vehicles Act :

 The insured's legal liability for death /

disability of third party
 Loss or damage to third party property
 Claimant's cost as decided by the court
 All costs and expenses incurred with
company's written consent
 In case of death of an Insured person,
entitled to indemnity for a liability
incurred under this policy, his legal
representative will be indemnified in
place of insured, if he observed all
conditions as the insured himself.

What is not payable under the policy ?

 Contractual liability.
 War perils, nuclear perils and drunken driving
 Consequentail loss, Depreciation, Wear and
tear, mechanical or electrical break down
 Damage suffered due to driving the vehicle
under the influence of intoxicating liquor or
drugs
 Claims arising outside the geographical area
specified in the policy
 Claims arising whilst the vehicle is used in
contravention of the limitations as to use
 Claims arising when the vehicle is driven by a
person without valid driving licence
Discounts
 

The following are the discounts available on the

premium payable.

 Vintage Cars - Cars manufactured prior to

31.12.40 and duly certified by the Vintage
and Classic Cars Club of India :

A discount of 25% on the OD rates is

available. Policies issued covering these
vehicles are Agreed Value Policies.

 No Claim Bonus :

Ranging from 20% to 50% depending on the

number of claim free years.

 Automobile Association Membership

Discount :

Discount of 5% on the Own Damage premium

subject to a maximum of Rs. 200/- for private cars
and Rs. 50/- for Motorised Two wheelers only.

 Discount for Anti Theft Devices :

A discount of 2.5% on the OD component of

premium subject to a maximum of Rs. 200/-.
Device approved by the ARAI, Pune - installation
of the same in vehicle certified by the Automobile
Association of India.

 Concession for vehicles laid up for continuous

 periods exceeding 2 months

 50% discount on the OD premium on the

vehicle specialy designed / modified for use
of the blind, handicapped and mentally
challenged persons

 Use of vehicles withing Insured's

premises/sites :

A discount of 33 1/1 % on the tariff rates is

permissible.

Extension of Cover on payment of additional

premium
 

additional premium is payable to extend the cover

under the Package and Liability Only policies in
case of the following :

 The Geographical area may be extended to

include

a) Bangladesh b) Bhutan c) Nepal d) Pakistan e)

Sri Lanka f) Maldives by charging additional
premium of Rs. 500/- per vehicle in case of
package policy and Rs.100/- per vehicle in case of
Liability only Policy.

 Personal Accident covers are available to

names and unnamed persons travelling in the
Motor Vehicles including employees.

 In case of vehicles belonging to Embassies /

Consulates etc., where the "import duty"
element is not included in the IDV the
premium for Own Damage shall be loaded by
30%.
  Electrical / Electronic Fittings :

Electrical / Electronic Fittings which do not form

part of the vehicle manufactured and imported
have to be specifically covered separately by
paying additional premium of 4% on the value of
such fittings.

 CNG / LPG-Bi-fuel Kits :

Vehicles fitted with CNG/LPG Bi-fuel kits have to

be separately declared and premium is chargeable
at 4% on the value of such kit.

 Fibre Glass Fuel Tanks :

An additional premium of Rs.50/- for OD cover for

all vehicles except Miscellaneous Type of
Commercial Vehicles : for Miscellaneous Type of
Commercial Vehicle it is Rs. 100/-.

Other Information
 

(I) Transfers :

In case of change of ownership, please ensure to

effect the transfer of Insurance policy within 14
days from the date of transfers of ownership.

(II) Change of Vehicles :

A vehicle can be substituted by another vehicle for

the same class, for the balance period of a policy
subject to adjustment of premium, if any, on
prorata basis from the date of substitution.
 Related Policies
 

Workmens Compensation Policy

Public Liability Insurance

Product Liability Insurance

Professional Indemnity Insurance

Marine Cargo Insurance

Marine Cargo Insurance

   

We Cover
Any loss or damage to goods in transit by rail, sea, road, air or
post.

Who can Insure?

Owners or bankers of goods in transit/shipment.

What is Insured?
 export and import shipments
 goods in transit by rail, sea, road, air or post
 goods carried by coastal vessels plying between the
various ports within the country
 cargo transported by small vessels or country craft over
inland waters
 goods moved from place to place by river transport

Insured against what Risks?

 

The policy covers loss/damage to the property insured

due to:

 Fire or explosion; stranding, sinking etc.

 Overturning, derailment ( of land conveyance)
 Collision
 Discharge of cargo at port of distress
 Jettison
 General average sacrifice, salvage charges
 Earthquake, lightning
 Washing overboard
 Sea, lake, river water
 Total loss of package lost overboard or dropped in loading
or unloading
  War and SRCC is specifically covered

Premium Rating
The normal basis of valuation for ocean/air consignment will be
CIF + incidentals up to a percentage which is agreed upon at
the inception of the policy (normally this is 10 %)
 

Open Cover
 

Open cover is usually issued for import/export. The open cover

is a contract affected for a period of 12 months, whereby the
insurance company agrees to provide insurance cover to all
shipments coming within the scope of the open cover. Open
cover is not a policy. It is an unstamped agreement. As and
when shipments are declared, specific policies are issued as
evidence of the contract and on collection of premium.

Open Policy
 

This policy is issued for transit of goods within India. Policy is

valid for one year and all transits during the policy period and
declared are automatically covered by the insurance company
subject to the availability of the overall sum insured.

It is a stamped document. In this case specific policies are not

issued for each consignment. Premium can be collected in
advance for the entire estimated value during the policy period.
Stamp duty is collected in advance premium for despatches to
be declared periodically

Specific Voyage Policy

 
This policy is valid for a single voyage or transit. The policy will
be issued before the voyage starts. The coverage will cease
immediately on completion of the voyage.

The specific voyage policy must show complete details of the

risk..It should contain particulars of conveyance/Vessel name/
Bill of Lading or Way bill and date, sum insured, terms and
conditions of cover, voyage, cargo description etc like all other
marine policies.

Annual Policy
 

This policy may be issued to cover goods in transit by road or

rail or sea from specified depots or processing units owned or
hired by the insured. The goods covered must belong to or held
in trust by the insured. These policies cannot be issued to
transport operators, clearing, forwarding and commission
agents or freight forwarders or in joint names. They cannot be
assigned or transferred. For such policies the sum insured
should not be less than Rs 5000/-.
Marine Hull Insurance

We Cover
Any loss or damage to ships, tankers, bulk carriers, smaller
vessels, fishing boats and sailing vessels.

Who can Insure?

 

Owners or bankers of ships or vessels.

What is Insured?
The various vessels that are covered under this policy are :

 Fishing Vessels
 Ocean Going Vessels
 Sailing Vessels
 Other Vessels

Insured against what Risks?

 

The policy covers loss/damage to the property insured due to:

 Fire or explosion; stranding, sinking etc.

 Overturning, derailment ( of land conveyance)
 Collision
 General average sacrifice, salvage charges

What is not Insured?

The policy does not pay any loss/damage caused by,
attributable to, due to

 Deliberate damage/destruction of the vessel by wrongful

act of any person
 Use of any weapon of war employing atomic / nuclear
fission and or fusion
 Insolvency or financial default of the vessel owner /
operators / charterers
 War / civil war · Strike, Riot or Civil Commotion
 Any terrorist or person/s acting with political motive

 
                  

Boiler & Pressure Plant Insurance

                  

We Cover
Boilers like fire tube boilers/recovery boilers and
unfired pressure vessels/steam pipes can be covered.
Who can be Insured?

The owners of the boiler/ pressure plant can take

insurance.

What is insured?
This policy affords protection against

 Damage to the boilers and/or pressure vessels

 Damage to the surrounding property of the
insured
 Liability of the insured by law to any third party
on account of
a. death or bodily injury
b. damage to property (not held in trust or in
commission) caused by and solely due to
explosion or collapse occurring in the course
of ordinary working.

What will Policy Pay and how much?

 

Partial loss 

In cases where damage to an item can be repaired,

the policy shall pay expenses necessarily incurred plus
the cost of dismantling and re-erection. No deduction
for depreciation but salvage value is deductible.

Total loss

Where an insured item is destroyed, the company pays

the actual market value of the item immediately before
the occurrence of loss including freight and erection
cost. The salvage shall be taken into account and
condition of average will apply (i.e. if sum insured is
not adequate, claim will be paid only proportionately)

What will policy not pay?

 

 Fire related losses including extinguishment

 Act of God perils
 Gradually developing flaws
 Wearing away or wasting of the materials of a
boiler like blockage, corrosion, fracturing, blisters,
lamination.
 Failure of individual tubes
 War group and nuclear group of perils
 Experiments/tests requiring abnormal conditions
 Defects, fracture, failure, deformation/bulging not
resulting in explosion
 Consequential loss, loss arising out of existing
defects known to insured
 Loss/damage for which manufacturer/ repairer is
responsible
  Wilful act/neglect or gross negligence of insured.

Related Policies
 

 Contractors Plant & Machinery Policy

  Deterioration of Stock Policy

  Electronic Equipment Policy

  Industrial All Risk Policy

  Machinery Breakdown Policy

Contractors Plant & Machinery Policy

                  

We Cover
Various types of mobile equipments like earthmovers,
excavators, cranes in particular location are covered. The
policy is restricted to a particular location.

Who can be Insured ?

 

The owners of the plant and machinery. Financier interest

if any involved is preserved by including it as a joint name.

What is insured ?
CPM Policy can be issued by covering equipment on
Anywhere in India basis with the following provisions:

a. Full description with identification no. of each and

every equipment with valuation should be declared.
b. Transit risks from site to site will be excluded.
c. Loading of 10% on the basic CPM rate shall be
charged to cover floater risks.

Insured against what risk?

This policy shall cover any unforeseen and sudden physical

damage to the property by any cause not specially
excluded. This policy shall apply to the insured item
whether:

 They are at work

 or at rest
 or being dismantled for the purpose of cleaning or
overhauling
 or when being shifted within the premises
 or subsequent re-erection.

What will Policy Pay and how much?

Partial loss 

Full cost of replacement of parts plus repair charges, cost

of dismantling and re-erection. Depreciation is applied only
for the parts with limited life. If the repair works are
undertaken by the insured, actual material and labour
costs plus a reasonable quantum of overheads is payable.
Salvage is deducted. If the suminsured is not adequate,
policy pays only proportionately.

Total loss

The actual market value of item immediately before the

occurrence of loss, less salvage and depreciation subject to
adequacy of suminsured

In both cases freight and customs duty are also paid if

they are included in suminsured. Policy excess is deducted
from the claim.

What will policy not pay ?

Loss or damage due to: -

1. Electrical or mechanical breakdown or boiler explosion

.
2. Replaceable parts like bits, knives, ropes & bolts,
chains etc., wear and tear, corrosion, damage whilst
in transit, war and nuclear perils.
3. When undergoing test or while used for a purpose
different from what was originally intended .
4. Damage due to accidents to carrying vehicle
/train/vessel/and craft.
5. Damage to plant&machinery working underground .
6. Contractual liability, consequential loss, existing
defect, inventory loss.

Related Policies
 
 Boiler & Pressure Plant Insurance

  Deterioration of Stock Policy

  Electronic Equipment Policy

  Industrial All Risk Policy

  Machinery Breakdown Policy

Machinery Breakdown Policy

 

We Cover
Various types of machinery, plant and equipment
(mechanical/electrical) can be insured. Any type of
installed machinery with an option to insure/to cover
only selected equipments.

Who can be Insured ?

 The owner of the machinery.
 In case of any financier’s interest eg. Bank,
IDBI etc. machinery can be insured in the joint
names.

What could be the SumInsured ?

The sum insured should represent:
  Present day replacement value which includes
- Basic cost + customs duty
- Incidental cost

Insured against What Risks ?

Policy covers the insured machinery, plant and

equipments while at work/idle, being dismantled or
removed or re-erected, if performed in the same
premises, damage to electrical machinery due to fire
originating within itself.

It covers loss or damage due to faulty operation,

adjustment, casting, vibration, entry of foreign
objects, loosening of parts, self heating, centrifugal
force, short circuit.

What is the Basis of Indemnity ?

 

The sum insured representing the present

replacement cost of the machinery.

Partial Loss

Full cost of parts plus the labour charges, to and fro

freight, customs duty and charges for dismantling
and re-erection. Excess applicable to the affected
item is deducted from claim. Depreciation is applied
for items with limited life.

Total Loss

Actual value of items immediately before the

occurrence less appropriate depreciation. If under
insured, claim is paid only on proportionate basis.

What will Policy not Pay ?

Policy will not pay for loss/damage due to

 Fire and allied perils

 War and War like operations, Nuclear perils
 Wilful act or gross negligence, existing defects,
normal wear and tear and consequential loss
 Loss or damage falling under manufacturer’s
warranty

Related Policies
 

Boiler & Pressure Plant Insurance

Contractors Plant & Machinery Policy

Electronic Equipment Insurance

Deterioration of Stock

Industrial All Risk Policy

Mediclaim Policy
                   

We Cover
Expenses incurred by the insured for hospitalisation for
illness / diseases or injury sustained (domiciliary
hospitalisation also payable as per policy). These include
Hospital charges ( Room, Boarding & Operation theatre )
fees for surgeon, Anaesthetist Nursing, specialist etc.,
diagnostic tests, cost of medicines, blood, oxygen etc., cost
of appliances like pacemaker, artificial limbs etc.,

Who can be Insured ?

 Any person in the age group of 5 to 75 years Children

between 3 months and 5 years can be covered only
along with parent/s.
 Institutions ( Government or Private ) for their
employees
 Clubs / association for their members in the said age
group.
 Group schemes for homogenous groups of more than
50 persons.

Insured against what risk ?

Illness / disease, accidental injury sustained leading to one
or more of class of expenses listed above.
Other Benefits
  Domiciliary hospitalisation benefits can be excluded
under group mediclaim policy and a premium discount
can be availed
 Exemption under income tax (80D of Income Tax Act)
for Premium paid by cheque
 A discount of 10% of total premium for coverage of
family under a single policy.

What will Policy Pay ?

 Actual hospitalisation expenses of various types listed
above subject to a
maximum of Rs. 15,000/- to Rs. 5,00,000/-
depending upon the sum insured chosen at the
inception of the policy ( sum insured is maximum
liability under the policy.)
 Actual domiciliary hospitalisation expenses limited to
Rs. 3,000/- to Rs. 50,000/- depending on the sum
insured chosen at inception.
 Cost of health check up reimbursable at the end of 4
continuously claim free underwriting years limited to
1% of Average sum insured of 4 claim free years
 The sum insured will be increased by 5 % cumulative
bonus for every claim free year. If there is a claim in
a policy with cumulative bonus 10% of the sum
insured will be reduced from the earned bonus.

What will policy not pay ?

 

 Broadly there would be no claim under policy under

following circumstances
DOMICILLARY HOSPITALISATION: Pre and post
hospitalisation treatment, treatment of Asthma,
Chronic Nephritis and Nephritis Syndrome, Gastro-
enteritis, diabetes mellitus and insipidus, epilepsy,
hypertension, influenza, cough and cold, all
psychiatric or psychosomatic disorder, pyrexia of
 unknown origin for less than 10 days, tonsilitis and
URTI, arthritis, rheumatism ( the list is not
exhaustive) Any treatment relating to any illness /
disease already in existence at the time of proposal
 Any disease / injury during first 30 days of
commencement of policy. ( accidental injury is not an
exclusion )
 During first year of cover of cataract, Benign prostatic
Hypertrophy, Hysterectomy for menorrhagia on
fibromyoma, Hernia, Hydrocele, Congenital internal
disease, Fistula in anus, sinusitis and related disorder.
 Any pre-existing disease / illness is not covered
during renewal also.
 Vaccination, inoculation circumcision or change of life
or cosmetic or aesthetic treatment, plastic surgery,
unless dental treatment unless requiring
hospitalisation necessitated due to accident or as a
part of any illness.
 Cost of spectacles, contact lenses, hearing aids.
 Convalescence, general debility, "run-down"
conditions sterility, venereal disease, intentional self-
injury use of intoxicants
 Any variation of deficiency syndrome or AIDS.
 Hospital / nursing home charges not consistent with
or incidental to the diagnosis and treatment :
Vitamins, tonics not forming part of any treatment.
 Any treatment related to pregnancy, child birth and
voluntary medical termination of pregnancy during
the first 12 weeks of pregnancy
 Nuclear perils and war group of perils
 Naturo pathy treatment.

Related Policies
 

 Road Safety Package Policy

  Mediclaim Policy

  Overseas Mediclaim Policy for Business & Holiday

  Overseas Mediclaim Policy Employment & Studies

  Overseas Mediclaim Policy for Corporate Frequent Travellers

  Janata Personal Accident

  Gram in Accident

Social Sector Policies

 

Janata Personal
Accident Policy
Bhagyashree Policy
Raja Rajeshwari
Policy
Mother Teresa
Women & Children
Policy
Jan Arogya Bima
Policy

Rural Policies
 

Cattle & LiveStock

Policy
Agricultural
pumpset Policy
Poultry Insurance
Policy

GraminAcciden
tPolicy

Plantation
 Insurance

Animal Driven
cart / Tonga Policy

Travel Policies

Baggage
Policy
Suhana
Safar Policy
Marga
Bandhu Policy

House Holder Policy

Compact Policy
Dukan Mitra Policy

Public Liability Insurance

We Cover
The Public Liability Act, 1991 was made
effective from 1st April 1991. The object
of this Act is to provide through
insurance immediate relief to persons
affected due to “accident” while
“handling” “hazardous substance”  by
the owners on “no fault liability basis”.
This has also been brought under Tariff.
The definition of “Owner” is so
comprehensive as to cover any person
who owns or has control over any
hazardous substance at the time of
accident. This includes any Firm or its
partners. Association or its members,
Company or its Directors and all other
persons associated and responsible to
that Company in the conduct of their
business.

The various terms like “Accident”,

“Hazardous substances” as defined in
the Act are given below.

“Accident” means an accident involving

a fortuitous, sudden or unintentional
occurrence while handling any
hazardous substance resulting in
continuous, intermittent or repeated
exposure to death of, or injury to any
person or damage to any property but
does not include an accident by reason
only of war or radioactivity.

“Handling”in relation to any hazardous

substance, means the manufacture,
processing, treatment, package, storage,
transportation by vehicle, use, collection,
destruction, conversion, offering for sale,
transfer or the like of such hazardous
substance.

“Hazardous Substance” means any

substance or preparation which is
defined as hazardous substance under
the Environment (Protection) Act, 1986
and exceeding such quantity as may be
specified by notification by the Central
Government.

“Hazardous Substance”means any

substance or preparation which, by
reason of its chemical properties or
handling is liable to cause harm to
human beings, other living creatures,
plants, micro-organism, property or the
environment (as per the Environment
(Protection) Act, 1986).

Insurance Limits
 

Any one accident : Minimum equal to

Paid up Capital upto a maximum of Rs.5
crores.

Any one year : 3 times of `Any one

accident’ limit subject to a maximum of
Rs.15 crores.

Liability beyond Insurance

In case of claim/s exceeding the above

statutory limit/s, it is to be met by the
Environmental Relief Fund to be set up
under Section 7A of the Act and
managed by the Authority appointed by
the Central Government.

The liability beyond the total of the

insurance and the Relief / Fund is to be
borne by the “Owner”.

Contribution to the relief fund

An amount equal to the insurance
premium chargeable is to be paid
simultaneously by every owner with the
insurance premium to the underwriting
Company.

All proposals can be rated and accepted

at DO level in terms of the rating
structure laid down.

Schedule of Compensation
 

1. Reimbursement of medical
expenses incurred upto a
maximum of Rs.12,500/- in each
case.
2. For a fatal accident the relief will
be Rs.25,000/- per person in
addition to reimbursement of
medical expenses, if any incurred
on the victim upto a maximum of
Rs.12,500/-.
3. For permanent total or permanent
partial disability or other injury or
sickness, the relief will be :
a. Reimbursement of medical
expenses incurred, if any,
upto a maximum of
Rs.12,500/- in each case
and,
b. Cash relief on the basis of
percentage of disablement
as certified by an authorized
physician. The relief for
total permanent disability
will be Rs.25,000/-.
4. For loss of wages due to
 temporary partial disability which
reduce the earning capacity of the
victim, there will be a fixed
monthly relief not exceeding
Rs.1,000/- per month upto a
maximum of 3 months provided
the victim has been hospitalized
for a period exceeding 3 days and
above 16 years of age.
5. In respect of damage to private
property, upto Rs.6,000/- per
claim.

Apart from Public liability insurance Act

policy, policies are also available to cover
the legal liability of the insured against
third parties for claims arising due to
industrial accidents. Two different types
of policies are available to cover
accidents in industries like factories etc
and non industries like hotels, schools,
exhibitions and storage tanks etc.

Particulars of cover, liability and

exclusion given above are not complete
or exhaustive.

Our nearest branch office may be

approached for complete details.

Related Policies
 
 Workmens Compensation Policy

Product Liability Insurance

Professional Indemnity Insurance

Motor A Policy (Act Liability)

Workmen Compensation
Insurance
 

We Cover
Liability of an employer for employment
injury (including death) of any of his
employees who is a ‘workman’ as
defined under Workmen Compensation
Act.

Who can be Insured ?

Any employer whether as a

Principal or contractor engaging
"workmen" as defined in WC Act
to cover his liability to them
under statute and at common
law. Employer can cover
Employees who do not qualify as
"Workmen" under separate table

Insured against what risks ?

 Indemnity to insured against his
liability as an ‘employer’ to
accidental injuries (including fatal)
sustained by the ‘workman’ whilst
at work.

 On extra premium-medical,
surgical, and hospital expenses
including the cost of transport to
hospital for accidental
employment injuries
 Liability in respect of diseases
mentioned in Part C / schedule III
of WC Act, on additional premium;
which arise out of and in the
course of employment

What will Policy Pay and How

Much ?

Subject to the provisions of WC

Act the amount of compensation
/ reimbursable would be as
follows:-

 Where employment injury

results in death, then we
pay 40% of the monthly
wages of the deceased
multiplied by the relevant
factor or Rs. 20,000/-
which ever is more.
 Permanent Total
Disablement 50% of the
monthly wages of the
injured disabled (PTD)
workman multiplied by
relevant factor or Rs.
24,000/- which ever is
more.
 Permanent Partial
Disablement a) For an
injury specified in Part II of
disablement (PPD)
schedule. The percentage
of loss of earning capacity
caused applied to the
compensation payable for
permanent total
disablement b) For an
injury not specified in
schedule - the percentage
of permanent loss of
earning capacity as
assessed by qualified
Medical Practitioners
applied to the
compensation payable for
permanent total
disablement.
 Where more than one
injury caused by same
accident it shall be
aggregate but in any case
not to exceed the amount
payable for permanent
total disablement
 Temporary disablement - A
half monthly payment
equivalent to 25 % (total or
partial) of monthly wages
of the workman to be paid
 in accordance with the
provisions of Sub section
(2) of the WC Act.
 Actual medical expenses
incurred in connection with
on-duty accident ranging
from Rs.80/- to 2400/- per
case as per the option
given at the inception of
the policy by the insured
and extra premium paid.
 Legal costs and expenses
incurred with the
Company's consent.

What will Policy not Pay ?

 Any injury which does not result in
fatality or partial disablement for
period exceeding 3 days
 First 3 days of disablement where
the total disablement is less than
28 days
 For any non-fatal injury caused by
any accident which is directly
attributable to
a) Influence of drinks or drugs
b) Willful disobedience of an order
for securing safety of the
workman
c) Willful removal or disregard of
safety guard device.
 War group and nuclear group of
perils
 Liability to employees of
contractors of the insured (unless
specifically declared)
 Employee who is not a "workman"
as per WC act.
 Liability of insured assumed under
 an agreement
 For occupational diseases
mentioned in part "C" of schedule
III of WC Act , unless cover is
extended on extra premium.
 Increase due to any change in
statute provisions after policy had
incepted.
Under more than one statute /
one forum for the same injury

Particulars of cover, liability and

exclusion given above are not complete
or exhaustive.

Our nearest branch may be approached

for complete details.

Related Policies
 

Public Liability Insurance

Product Liability Insurance

 Professional Indemnity Insurance

Motor A Policy (Act Liability)

Product Liability Insurance
 

                  
 

We Cover
This insurance is intended to provide an
indemnity to the insured (upto the limit
of liability) in the event of a claim being
brought against him. This may be caused
by anything harmful or defective in the
products sold or supplied by the insured
in connection with the business
specified. The Company in addition will
reimburse all costs and expenses
incurred with its written consent
defending such a claim for
compensation. The insurance will
however not cover the cost of removing,
replacing or repairing defective products
or loss of use thereof.

Liability Covered

The policy seeks to indemnify the

insured against his legal liability to pay
compensation (including claimants costs,
fees and expenses) in respect of injury
damage or pollution for third parties for
claims arising out of accidents due to
any defects in the products specified in
the policy during the period of the
insurance and first made against the
insured during the policy period. For the
purpose of determining the indemnity
granted :

1. Injury shall mean death, bodily

injury, illness or disease of or to
any person
2. Damage shall mean actual and /
or physical damage to the
atmosphere or of any water, land
or other tangible property
3. Pollution shall mean pollution or
contamination of the atmosphere
or of any water, land or other
tangible property
4. Product shall mean any tangible
property after it has left the
custody or control of the Insured
which has been designed,
specified, formulated,
manufactured, constructed,
installed, sold, supplied,
distributed, treated, serviced,
altered or repaired by on behalf of
the Insured
5. Accident shall mean a fortuitous
event or circumstance which is
sudden, unexpected and
unintentional including resultant
continuous, intermittent or
repeated exposures arising out of
the same fortuitous event or
 circumstances

Special Features
1) CLAIMS MADE BASIS

The policy is on `Claims made’ basis. This

means that the accident giving rise to
the claim shall occur during the period of
insurance and further that the claim
shall be first made against the insured
during the policy period.

2) RETROACTIVE DATE

This is the date of commencement of the

first `Claims made’ product liability
policy. This date will remain unaltered as
long as the policy has been renewed
without break and there has been no
substantial material change in the risk.

3) PERIOD OF INSURANCE

This is the period commencing from the

retroactive date and terminating on the
expiry date of the policy.

4) POLICY PERIOD

This is the period commencing from the

midnight on the inception date and
terminating at midnight on the expiry
date of the policy.

Special Exclusions
1. The policy excludes liability for
costs in the repair, reconditioning,
modification or replacement of any
part of any product which is or is
alleged to be defective.
2. For cost arising out of the recall of
any product or part thereof.
3. Arising out of any product which is
intended for incorporation into the
structure, machinery or control of
any aircraft.
4. Arising out of deliberate, willful or
intentional non-compliance of any
statutory provision.
5. Arising out of pure financial loss
such as loss of goodwill, loss of
market, etc.
6. Arising out of fines, penalties,
punitive and exemplary damages.
7. For injury and/or damage occurring
prior to the Retroactive date shown
in the schedule.
8. Arising out of deliberate, conscious
or intentional disregard of the
insured’s technical or
administrative management of the
need to take all reasonable steps to
prevent claims.
9. For injury to any person under a
contract of employment or
apprenticeship with insured where
such injury arises out of the
execution of such contract.
10.Arising out of contractual liability
which would not have existed in
the absence of the specific
contract.
11.Arising out of any product
guarantee.
12.Arising out of claims for failure of
 the goods or products to fulfill the
purpose for which they were
intended

General Exclusions

1) War Perils

2) Nuclear Exclusions

What will Policy not Pay ?

Loss or damage due to

 War and war like perils

 Wear and tear, depreciation,
consequential loss
 Nuclear group of perils
 Gross and wilful negligence of
Insured
 Violation of policy conditions
 Loss/damage/liability where
Insured’s family or Insured’s
employee are involved as
principal/accessory
 Intentional act/self injury/
influence of drug/intoxicant.
Related Policies
 

Workmens Compensation Policy

Public Liability Insurance

Professional Indemnity Insurance

Motor A Policy (Act Liability)

Professional Indemnity Policy
 

We Cover
 The cover granted under the
policy provide indemnity for legal
liability to third party arising out of
errors and omissions or negligence
in professional service rendered
by the insured
 Policies will be issued for a period
of 12 months (1 year) .

Who can be Insured ?

 Doctors
 Medical Establishments
 Engineers
 Architects
  Chartered Accountants
 Lawyers

What is not Covered ?

Applicable in case of Doctors Policy

 Any criminal act or violation of any

Act of Statute
 Services rendered under the
influence of intoxicants or
narcotics
 Performance by Dentists under
general anesthesia or any
procedures carried out under
general anesthesia unless
performed in a hospital.
 Willful neglect or deliberate act
 Third Party Public Liability
 Pure financial loss due to loss of
goodwill or loss of market

Related Policies
 

Workmens Compensation Policy

Public Liability Insurance

Product Liability Insurance

Motor A Policy (Act Liability)

Standard Fire and Special Perils Policy
                   

We Cover
 Buildings
 Machinery and Accessories
 Stock and stock in process
 Contents including furniture

What Can Be Insured ?

 Dwellings, Offices, Shops, Hospitals(Located outside the

compounds of industrial/manufacturing risks)
 Industrial / Manufacturing Risks
 Utilities located outside industrial/manufacturing risks
 Machinery and Accessories
 Storage Risks outside the compound of industrial risks
 Tank farms / Gas holders located outside the compound of
industrial risks

Perils Covered

 Fire
 Lightning
 Explosion/Implosion
 Aircraft damage
 Riot, Strike
  Terrorism
 Storm, Flood, inundation
 Impact damage
 Subsidence , landslide
 Bursting or overflowing of tanks
 Bush fire etc.

What is not Covered ?

The policy does not cover any loss if

 Loss or damage to property due to :

 Spontaneous combustion, fermentation
 Burning of property by order of any Public Authority
 Its undergoing any heating or drying process
 Explosion of boilers (other than domestic boilers)
 Total or partial cessation of work
 Permanent or temporary dispossession by order of Government
 Burglary, House breaking, theft
 Normal Cracking or settlement or bedding down of new structures
 War or war like operations
 Defective design, workmanship, defective materials
 Pollution or contamination
 Over-running, short circuit etc.
 Earthquake
 Spoilage loss

Add on Covers
Some Add on covers..

 Terrorism
 Removal Of Debris
 Architects, Surveyors, Consulting Engineers fees
 Earthquake (Fire and Shock only)
 Spontaneous combustion
 Startup expenses
  Spoilage Material Damage Cover
 Leakage and Contamination cover

These additional covers are available by payment of additional premium.

Related Policies

Loss of Profit

Fire Loss of Profit Policy

 

Pre-Requisite for the Policy

This policy can be taken only if a Standard fire and Special Perils Policy
exists for the risk.
What Can Be Insured ?

 Net profit due to the stoppage of business as a result of an

insured peril
 Standing charges which continue to accrue in spite of stoppage
of business
 Additional expenditure incurred by the insured to maintain
 normal business activity, during the period in which the normal
business is affected.

Indemnity Period
The indemnity period commences with the date of damage and lasts
till such a time as the business is restored to its pre damaged level or
the period stipulated policy which ever comes first. The policy insures
earnings of the business lost during the indemnity period.

Related Policies
Standard Fire and Special Perils Policy

Introducing Ourselves
   UI is a leading
General
Insurance
Company.
 More than three
decades of
experience in
Non-life
Insurance
business.
 Formed by the
merger of 22
companies,
 consequent to
nationalisation
of General
Insurance.
 Head Quarters
at Chennai.

  Corporate Mission
 To provide
Insurance
protection to all.
 To ensure
customer
satisfaction
 To function on
  sound business
principles
 To help
minimise
national waste
and to help
develop the
Indian economy.