Insurance

Kind Of Insurance Policies

Characteristics of various types of insurance policies, prevalent today are:

1. Shopkeeper's Insurance Policy:

   This is most comprehensive policy that covers almost every risk. The insured may not, however, opt for all risks except -those compulsory. The risks covered are :

   • Fire and Allied Perils : The insurer will indemnify in respect of loss of or damage to the building and / or contents whilst contained in the insured premises, by--
     • Fire, lightning, explosion of gas in domestic appliances,
     • Bursting and overflowing of water tanks apparatus or pipes,
     • Aircraft or articles dropped therefrom,
     • Riot, strike or malicious act,
     • Earthquake, subsidence and landslide,
     • Flood, inundation, storm, tempest, typhoon, hurricane, tornado or cyclone,
     • Impact damage.

     It, however, does not cover loss of or damage to livestock, motor vehicles, pedal cycles, money, securities, stamps, bullion, deeds, bonds, bills of exchange, promissory notes, stock and share certificates, business books, manuscripts, documents, unset precious stones and jewelry and valuables.

     Average Clause - If the sum insured under this risk is less than 85% of the collective value of the property insured, the insured will bear a ratable proportion of the loss

   • Burglary and House breaking: The insurer will indemnity in respect of loss of or damage to the contents (except moneys and valuables) whilst contained in the insured premises by burglary and / or house - breaking.
   • Money Insurance : the insurer will indemnify in respect of --
     • Loss of insured 's money in transit between any two places within a radius of fifteen miles from he insured premises,
     • Loss of money / valuables kept in safe steel cupboards/ cash box, etc. under lock and key, by burglary / housebreaking, and
     • Loss of money from cashier's till and / or counter during business hours, following assault, violence against the insured or his employee.
   • Neon Sign / Glow sign: the insurer will indemnify in respect of loss of or damage to Neon sign / glow sign, by
     • Accidental external means,
     • Fire, lightning or external explosion or theft,
     • Riot, strike or malicious act,
     • Floods, Inundation, storm, typhoon, hurricane, tornado or cyclone.
   • Personal Accident: If the insured (or any named partner, director of member of managerial staff or employee permanently working with the insured) aged between 16 and 65 years, sustain bodily injury solely and directly caused by accidental, violent, external and visible means resulting in death or disablement, the insurance company shall pay to the victim or his assignee / legal representative, the specified sum.
   • Fidelity Guarantee: If the insured sustains direct pecuniary loss caused by act of fraud or dishonesty committed by any of his employees in the insured premises, the insurer will indemnify in respect of such loss.
   • Liability: The insurer will indemnify in respect of sums which the insured becomes legally liable to pay as
     • Comp ensation and litigation expenses incurred by the insured , in connection with accidental death of or bodily injury to any person other than an employee, and / or accidental damage to property caused by or through the fault or negligence of the insured or his family member,
     • Compensation to the insured employees under the Fatal Accident Act/ Workmen's compensation Act,
   • Business Interruption: The insurer undertakes to indemnify for losses arising out of business interruption i.e. cessation of normal commercial activity on account of or as a direct result of fire and allied perils (covered in clause "a" above)

2. Fire Policy "A"

   Under this policy the insurer undertakes to indemnify in respect of any loss of, or damage to, the property insured, caused by --

   • Fire
   • Lightning
   • Explosion / Implosion excluding damage to boilers, economisers or other vessels in which steam is generated,
   • Riot , strike and malicious damage,
   • Impact damage by any rail/road vehicle or animal,
   • Aircraft and other aerial and / or space devices and / or articles dropped there from,
   • Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation,
   • Subsidence and landslide ( including rockslide) damage,
   • Earthquakes fire and shock.

3. Fire Policy "B":

   This policy is similar to Fire Policy "A" and provides insurance from all risks enumerated therein except subsidence, landslide and earthquake.

4. Contractor's All Risk Insurance Policy

   This policy provides insurance against -

   • Loss, damage or destruction of property insured in a manner necessitating replacement or repair,
   • Cost of clearance and removal of debris.
   • The risks covered under the policy are -
     • Earthquake -- fire and shock,
     • Landslide / Rockslide / Subsidence,
     • Flood / Inundation,
     • Storm / Tempest/Hurricane /Typhoon /Cyclone,
     • Collapse
     • Water damage in contracts involving work in rivers, canals, lakes or sea.
   • Liability for accidental loss or damage caused property of other persons or for fatal or non-fatal injury to any person other than the insurer's own employees or the employees of the owner of the works or premises.
   • Cost and expenses of litigation recovered by any claimant from the insured or incurred by the insured.

5. Motor Car Insurance Policy:

   This policy covers the same risks as stated under "Motor Cycle / Scooter Insurance Policy' in respect of cars used solely for private or professional purposes.

6. Commercial Vehicles Insurance B Policy:

   This policy covers the same risks as stated under "Motor Cycle / Scooter Insurance Policy', in respect of motor vehicles used for carrying goods.

7. Personal Accident Insurance Policy:

   Under this policy the insurer pays the specified sum, if the insured sustains any bodily injury resulting solely and directly from accident caused by external violent and visible means.