Insurance Policies and Claims

Burglary policy is meant for business premises like factories, shops, offices, warehouses and godowns which may contain stocks, goods, furniture fixtures and cash in a locked safe that can be stolen.

No Claim Bonus is a powerful strategy to improve underwriting experience and forms an integral part of rating systems. This bonus recognises the factor of moral hazard. It rewards the insured for not lodging claims either by adopting better driving skills as in motor insurance or taking better care of his health as in mediclaim policies.

The main motive of insurance is cooperation. Insurance is defined as the equitable transfer of risk of loss from one entity to another, in exchange for a premium.

Sharing of claim between two insurers is known as contribution. The principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss. Having paid its share of a loss, an insurer may be entitled to equitable contribution, a legal right to recover part of the payment from another insurer whose policy was also applicable.

Informant means any person providing information solely in return for monetary payment made or promised by the policyholder.

The cancellation clause is also standardized by regulatory provisions and an insurance company may at any time cancel the policy only on grounds of misrepresentation, fraud, non-disclosure of material fact or non-cooperation by the insured.

If, during an insured journey, cash owned by or in the custody of an insured person is lost, then the company will reimburse the insured person the amount up to the total sum insured stated in the schedule. The deductible, if applicable, shall be deducted from the payable compensation.

Erection All Risks (EAR) Policy is a type of Engineering policy. 

Burning ratio is an insurance-industry calculation of excess losses divided by total subject premium. The burning ratio is an experience-based insurance-rating method commonly used in determining rates for excess of loss reinsurance, or the insurance that insurance companies buy to protect themselves against total claims that exceed their total premiums collected.

Goods in transit by rail/road are not insured under Standard Fire & Special Perils Policy. Cargo insurance provides insurance cover in respect of loss of or damage to goods during transit by rail, road, sea or air. 

Time policy is a marine (hull) insurance policy which is valid for a specified time period, generally valid for a year.

Cash is lost from the safe following the use of a key to open it, where such key has been obtained by violence or threats of violence or through means of force. This is generally known as “key clause”.

Liability insurance is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.

The main types of liability insurance are given below:

1. Employers' liability; required by law if you have employees – covers the cost of compensating employees who are injured at or become ill through work
2. Public liability
3. Product liability
4. Professional indemnity
5. Directors' and officers' liability 

Motor insurance for third party liability 

'Hypothecated goods' covers losses suffered due to fraudulent or dishonest act of employees in respect of goods or commodities pledged or hypothecated to the insured bank and under its control.