Personal Accident Insurance: Personal Accident is an insurance cover wherein, in the event of the person sustaining bodily injuries resulting solely and directly from an accident caused by EXTERNAL, VIOLENT & VISIBLE means , resulting into death or disablement. An accident may include events like: Rail / Road / Air Accident, Injury due to any collision/fall, Injury due to Bursting of gas cylinder, Snake-bite, Frost bite/Dog bite , Burn Injury, Drowning, Poisoning etc.
Personal Accidental policy covers accidental death, loss of limbs, permanent total and partial disablement as selected and granted by the insurance companies based on the underwriting norms. On payment of additional premium, medical expenses reimbursement can be covered. These expenses are payable, in case, if the claim is admitted under the basic policy cover. In addition to the Personal Accident Insurance cover the policies available are : Nagrik Suraksha Poicy, Janta Personal Accident Policy, Gramin Personal Accidental Policy , Student Package Policies for students, Bhagashree for Girl-children, Raj Rajeshwari for Women etc. Further as an ad-on cover Motor Vehicle Package Policy & Overseas Mediclaim Policy too offer personal accidental injuries cover.
Sum insured is based on various factors namely:
(1) Income from gainful employment,
(2) Type of occupation,
(3) Age as on date of proposal,
(4) Period of insurance
(5) Conditions prevailing at the place from where the proposal is made etc.
(6) As regards the non-earning spouse of the insured the sum insured in respect of such spouse shall not exceed 50% of the eligibility of the insured, subject to a limit of Rs. One Lakh under benefits available under Table III of the policy.
(7) Dependent children can be offered a sum insured not exceeding Rs.50000/- to cover death and disablement only. No temporary disablement cover shall be offered.
Generally Personal Accident policies are maximum for one year only. However, depending upon the requirement of the proposer it can be offered for a period which could even be lesser than 12 months.
Fidelity Insurance: Fidelity insurance protects organizations from loss of money, securities, or inventory resulting from crime. Common Fidelity claims allege employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting, and other criminal acts. These schemes involve every possible angle, taking advantage of any potential weakness in your company’s financial controls. From fictitious employees, dummy accounts payable, non-existent suppliers to outright theft of money, securities and property. Fraud and embezzlement in the workplace is on the rise, occurring in even the best work environments. Liabilities covered by crime insurance usually fall into two categories, although many polices combine both types of coverage:
- Money and security coverage pays for money and securities taken by burglary, robbery, theft, disappearance and destruction.
- Employee dishonesty coverage pays for losses caused by most dishonest acts of your employees, such as embezzlement and theft.
Fidelity insurance includes comprehensive coverage of:
- Employee theft
- Money and securities while on premises or in transit
- Forgery
- Funds transfer fraud
- Computer fraud
- Money order and counterfeit currency fraud
- Credit card fraud
- Optional client coverage
- Coverage for investigative costs for covered losses
- Responds to Employee Retirement Income Security Act of 1974 (ERISA) plan bonding requirement.
- Broad definition of employee, including directors and officers; employees, including part-time, leased, temporary, and seasonal employees; and volunteers.
- Worldwide coverage.
Burglary Insurance: Such a policy provides protection against loss or damage caused by housebreaking, robbery or theft. It is also known as ‘robbery, theft or larceny insurance’. For this purpose a comprehensive policy may be taken or each risk may be separately insured. Full details of the article insured are given in the policy. Insured items include gold and gold ornaments and other assets including household items such as TV, fridge, air conditioner etc. A burglary policy for business premises would provide cover against loss to damage by house breaking and burglary of stock-in -trade, goods in- transit, cash-in-safe, fixture and fittings etc.
Credit Insurance: Credit insurance policy is taken to cover the loss which may arise due to bad debts or non-payment of dues by the debtors. This insurance is very useful to businessmen who sell goods on credit. It protects them from loss arising out of insolvency of their debtors. In India, Export Credit and Guarantee Corporation (ECGC) provide credit insurance to exporters.
Workmen’s Compensation Insurance: In India, Workmen’s Compensation Act was passed in 1934 and 1946. According to this act, an employer is required to pay compensation to his workers who receive injuries or contract occupational diseases during the course of their work. An employer may obtain an insurance policy to cover such liability. The premiums are payable usually on the basis of wages. It is also known as ‘Employers Liability Insurance’. This policy is essential to every employer who employs ‘workmen’ as defined under the Workmen’s Compensation Act in order to protect himself against the legal liabilities arising out of death or bodily injury to this workman. It also extends coverage through reimbursement of medical, surgical and hospitalization expenses including transportation costs on the payment of additional premium. The National Insurance Company Ltd, United India Insurance Company Ltd, Oriental Insurance Company Ltd, and the New India Assurance Company Ltd offer workmen’s compensation policies.
Travel Insurance: Travel insurance covers travel related accidents also. While traveling outside India, individuals face risks such as loss of baggage, accidents involving injuries, illnesses and medical emergencies requiring hospitalization treatment. All this can pose serious consequences to the overseas travellers. A rational person should therefore secure the required coverage before leaving his home country. In India travel insurance has become popular among International travellers. The coverage offered under travel insurance policies in India are as follows:
· Medical assistance in case of an emergency
· Covers Personal Accident, Medical Expenses & Medical Evacuation & Repatriation
· Loss & delay of Checked Baggage
· Covers pre-existing medical conditions
· Convalescence after hospitalization
· Takes care of sudden and unforeseen expenditure Convenient and hassle free trip for the family
Wedding Insurance: These days, weddings have become quite an expensive and elaborate affair. People do take care to make this once-in-a-lifetime event a memorable one. In case of any postponement or cancellation, there is a certain risk of monetary loss. The wedding insurance package can compensate for the monetary loss. This unique product covers the specific risks related to weddings. This Policy can protect you against certain types of financial losses you may incur in the event of unpredictable situations during the period leading up to and including your wedding day. The period of insurance will be 24 hours prior to the start of the customary functions or rituals or programmes of events mentioned in the printed invitations till the end of the function or five days from the beginning whichever occurs earlier. This policy provides cover for expenses actually and already incurred or advances paid in connection with marriage hall, catering, pandit, guests, music parties, photos and videography, loss on cancellation of travel tickets etc. Liability is restricted only when such cancellation arises out of cancellation or postponement of marriage. The policy does not cover any loss arises when marriage is cancelled or postponed because of dispute between marriage parties, willful negligence and criminal misconduct of the bride, bridegroom or their parents.
Employee State Insurance Scheme: The Employee State Insurance Scheme (ESIS) is an insurance system which provides both the cash and medical benefits. It is managed by the Employee State nsurance Corporation (ESIC), a wholly government-owned enterprise. It was conceived as a compulsory social security benefit for workers in the formal sector. The original legislation creating the scheme allowed it to cover only factories which has been using power and employing 10 or more workers. However, since 1989 the scheme has been expanded, and it now includes all such factories which are not using power and employing 20 or more persons. Mines and plantations are explicitly excluded from coverage under the ESIS Act.
Unemployment Insurance: Unemployment insurance is designed to provide short term protection for regularly employed persons who lose their jobs and who are willing and able to work. Unemployment insurance has several basic objectives:
1) Provide cash income during involuntary unemployment.
2) Help unemployed workers find jobs.
3) Encourage employees to stabilize employment.
4) Help stabilize economy.
Unemployment insurance is a popular concept in developed countries like U.S. where they have well defined laws and regulations. However in India it will take a long time to come.
Personal Liability Insurance: Personal liability insurance provides protection against the legal liability, which arises due to insured’s personal acts. The insurance company will pay for legal defense to third party damages or injuries up to policy limit. Except legal liability, which arises due to automobile accidents and professional liability, most other personal acts are covered under personal liability insurance. The personal liability insurance covers damages caused to properties and injuries to other people due to the negligence of the insured. Under this policy, the insurance company is bound to defend the insured, should the matter go to court of law. It can also settle the matter out of court by negotiating with parties for a settlement within the policy limit. Personal liability policy offers very wide coverage. The following instances of loss, damages or injuries caused by an insured individual come under the purview of personal liability insurance in which coverage will be available up to the policy limit.
· Accidental fire to neighbor’s house as a result of insured’s negligence
· Accidental injury to a third party while playing
· Damaging costly antique accidentally belonging to neighbor
· Injuring another person while riding a bicycle
Self Assessment Questions
1) Define fire insurance. What are the essential features of a fire insurance contract?
2) What is the claim settlement procedure followed for a fire insurance policy?
3) What is a floating policy?
4) What is marine insurance? How it is different from fire insurance?
5) What is meant by “perils of the sea”?
6) Briefly describe the different types of losses under marine insurance.
7) Is third party insurance a must under motor vehicle Act?
8) How is subrogation helpful to the insurer?
9) What would be the status of the claim if the vehicle were covered under liability policy?
10) Explain Travel insurance.
11) Explain the scope of Fidelity insurance.
12) Discuss the main clauses of marine policies.
13) Enumerate the various types of marine insurance policies.
14) What do you mean by ‘assignment of policy’? Indicate the manner in which a marine policy can be assigned.
15) Distinguish between express warranties and implied warranties in relation to marine insurance policy.
16) Write a short note on the following:
i) Unemployment insurance
ii) Wedding insurance
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