Insurance Policies and Claims

All the given options come under valuables. Valuables mean photographic, audio, computer, telecommunication and electrical equipment, telescopes, binoculars, spectacles, sunglasses antiques, watches, jewellery, furs and articles made of precious stones and metals and no claim will be paid for valuables. Such items should be carried by the insured person and should not be packed as a part of checked baggage.

The IDV of vehicles aged over five years is calculated by mutual agreement between insurer and the insured. Instead of depreciation, IDV of old cars (obsolete) is arrived at by assessment of vehicle’s condition done by surveyors, car dealers etc. 

A form of self-insurance employed by organizations, which have determined that the cost of transferring risk to an insurance company is greater over time than that of retaining the risk and paying for losses out of their own reserve fund is known as risk retention.

'Hut insurance' covers loss or damage to huts due to Fire (including fire resulting from explosion and short-circuiting) Lighting Earthquake Flood, Inundation Storm, Tempest, cyclone or other atmospheric disturbance Impact damage, Riot, Malicious Damage Aircraft Explosion of boiler or gas used for domestic purpose only 

Pure premium is sufficient enough to pay for losses, however it does not account for administrative expenses or profit.

The right to change (convert) insurance coverage from one type of policy to another is known as conversion privilege. A conversion privilege also guarantees coverage and set premium payments for a certain number of years regardless of the health status of the insured.

Loss, destruction or damage to bullion or unset precious stones, any curios or works of art for an amount exceeding Rs.10,000, goods held in trust or on commission, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives are covered only if expressly stated in the policy. If not stated in policy, they will not be covered under policy. 

In insurance, the insurance policy is a contract between the insurer and the insured. Insurer determines which claims are legally required to pay. If the insurer decides that a certain loss is not payable because it is not covered under the policy, then such matters will be decided in the court of law.

Types of fidelity guarantee policies include individual policy, floating policy, collective policy and blanket policy.

Indemnity means security or compensation against loss or damage. The principle of indemnity states that the insurance company may not compensate the insured with an amount exceeding the insured’s economic loss. The insured would be compensated with the amount equivalent to the actual loss and not the amount exceeding the loss.

To qualify for a particular policy at a particular price, companies have the right to ask for information about health and lifestyle. An insurance company will use this information, the evidence of insurability, to decide if your application for insurance is acceptable and at what premium rate.

By transferring the risk to an insurer, it becomes possible to enjoy peace of mind, invest funds that would otherwise have been set aside as a reserve and plan one’s business more effectively. It is precisely for these reasons that insurance is needed.

Floating insurance covers for situations where the total insurable amount can be reasonably estimated, but cannot be determined accurately-enough for computing correct premium, until the insurance policy comes to an end. 

Contractors All Risks (CAR) Policy is designed to protect the interests of contractors and principals engaged in civil engineering projects from small buildings to massive dams, buildings, bridges, tunnels, etc. The policy provides an “All Risk” cover, thus providing indemnity against any sudden and unforeseen loss or damage that occurs to property insured at the construction site. This can be extended to cover third party liability and other exposures. Premium chargeable depends on the nature of the project, the project cost, the project period, geographic location and the period of testing.

Deductibles are the amount of money you have to pay for a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.