Insurance Policies and Claims

Both Health check-up and Cumulative Bonus provisions are applicable only in respect of continuous insurance without break. However in exceptional circumstances, the break for a maximum of seven days is approved as a special case subject to medical examination and exclusion of disease during the break period. Health check-up benefit will be accrued after completion of four years continuous claim free insurance.

A fact that would be important to a reasonable person in deciding whether to engage or not to engage in a particular transaction; an important fact as distinguished from some unimportant or trivial details.

For a home insurance policy, that only provides coverage on losses incurred to your property from hazards or events named on the policy, named peril policies may be purchased as less expensive alternatives to comprehensive coverage or broad policies, which are the policies that tend to offer coverage to most perils.

Unlike other policies where the period of insurance is one year, in this policy the period of insurance should be equivalent to the period of contract, commencing from the date of unloading of the first batch of materials at the site of construction and expiring on the date of handing over of the contract work to the principal.

Insured's declared value in motor insurance includes manufacturer's selling price. In case of motor insurance, the sum insured is the insured's declared value [IDV]. It is the value of the vehicle, which is arrived at by adjusting the current manufacture's listed selling price of the vehicle with depreciation percentage as prescribed in the IRDA regulations. Manufacturer's listed selling price will include local duties / taxes excluding registration and insurance. 

An open cover is an agreement (not a policy) whereby the insurer will accept insurance of all shipments made by the assured, within the terms of the cover for a fixed period, usually for 12 months. Being an agreement, it is not stamped. However, stamped policies or certificates of insurance are issued against the declaration made by the assured. The open cover is of great convenience to the clients engaged in regular import/export trade.

A net premium is the premium calculated on the basis of the valuation assumptions to provide the contractual benefits at outset. Its calculation only allows explicitly for interest and mortality. Thus, the net premium covers the risk factor as well as interest earned on investment of fund by the insurers. Net premium is always less than the risk premium.

Rescission is the termination of an insurance contract by the insurer when material misrepresentation has occurred. Insurers have the right to rescind an insurance policy due to concealment, material misrepresentation, or material breach of warranty. Generally, to rescind, an insurer will send a notice to the insured and tender a check in the amount of the premium paid for the relevant policy period.

In fire insurance, the principle of indemnity can be modified in the case of building, machinery and other fixed assets whereby, subject to the sum insured representing the value of similar new property, it can be insured under ‘Reinstatement Value’ clause. In case of reinstatement value policy, the basis of loss settlement is the value of new property without taking any depreciation into account. This type of insurance enables the owner to replace his property without any financial strain on his own resources and is quite commonly taken by industrialists and building owners.

Variants of fire policy include: -Market value basis policy -Reinstatement value policies -Declaration policy -Floater policy

Renters insurance is a form of property insurance that covers a policyholder's belongings against perils. It also provides personal liability coverage and additional living expenses. Possessions can be covered for their replacement cost or the actual cash value, which includes depreciation.

General insurance cannot be used to make windfall gains on the occurrence of a contingent event.

Underwriting is a process of risk selection which is based upon the characteristics of a group or an individual. Here based on the degree of the risk, the underwriter decides the selection as well as the price of risk.

A Third party administrator is the felicitator between the policy holder and the policy provider. He is the one who offers claims services on behalf of the insurer. So it is always necessary to have contact numbers and all other details of the third party provider, for he will be the sole point of contact when some unforeseen circumstances are met during the course of travel.

Hull insurance includes the insurances related to : i. inland vessels such as barges, launches, passenger vessels etc. ii. dredgers (mechanized or non-mechanized) iii. fishing vessels (mechanized or non-mechanized) iv. sailing vessels (mechanized or non-mechanized) v. jetties and wharves vi. vessels in the course of construction