Vehicle insurance (also known as GAP insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from the specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.

Types of Motor Insurance:

Broadly there are two types of insurances policies that offer motor insurance cover:

• Liability Only Policy (Statutory requirement)
• Package Policy (Liability Only Policy + Damage to owner’s Vehicle usually called O.D Cover

Remember that if you take only a Liability only Policy, damage to your vehicle will not be covered. Hence, it would be prudent to take a Package Policy which would give a wider cover, including cover for your vehicle.

What Motor Insurance covers:

The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy:

• Fire, Explosion, Self- Ignition, Lightning)
• Burglary/Housebreaking / Theft
• Riot & Strike
• Earthquake
• Flood, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost
• Accidental external means
• Malicious Act
• Terrorism acts
• While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air
• Land slide / Rock slide

What Motor Insurance excludes:

The following contingencies are usually excluded under the Motor Insurance Policy:

• Not having a valid Driving License
• Under Influence of intoxicating liquor/ drugs
• Accident taking place beyond Geographical limits
• While Vehicle is used for unlawful purposes
• Electrical/Mechanical Breakdowns.

Sum Insured For Own Damage:

The Sum Insured under a Motor Insurance policy reflects the value of the motor vehicle determined based on the concept known as Insured's Declared Value. Insured's Declared Value is the value arrived at based on the Manufacturer's present value and depreciation based on the Age of the Vehicle.

For Third Party:

Coverage is as per requirements of the Motor Vehicles Act, 1988 . Compulsory Personal accident cover for owner-driver is also included. Policy can also be extended to cover various other risks like Personal Accident to occupants of vehicle, Workmen's Compensation to Driver, etc over and above the cover available to him under statute.

The term ‘Health Insurance’ relates to a type of insurance that essentially covers your medical expenses. A health insurance policy like other policies is a contract between an insurer and an individual / group in which the insurer agrees to provide specified health insurance cover at a particular “premium” subject to terms and conditions specified in the policy.

A Health Insurance Policy would normally cover expenses reasonably and necessarily incurred under the following heads in respect of each insured person subject to overall ceiling of sum insured (for all claims during one policy period).

• Room, Boarding expenses
• Nursing expenses
• Fees of surgeon, anaesthetist, physician, consultants, specialists
• d. Anaesthesia, blood, oxygen, operation theatre charges, surgical appliances, medicines, drugs, diagnostic materials, X-ray, Dialysis, chemotherapy, Radio therapy, cost of pace maker, Artificial limbs, cost or organs and similar expenses.

Sum Insured

The Sum Insured offered may be on an individual basis or on floater basis for the family as a whole.

Cumulative Bonus (CB)

Health Insurance policies may offer Cumulative Bonus wherein for every claim free year, the Sum Insured is increased by a certain percentage at the time of renewal subject to a maximum percentage (generally 50%). In case of a claim, CB will be reduced by 10% at the next renewal.

Cost of Health Check-up

Health policies may also contain a provision for reimbursement of cost of health check up. Read your policy carefully to understand what is allowed.

Minimum period of stay in Hospital

In order to become eligible to make a claim under the policy, minimum stay in the Hospital is necessary for a certain number of hours. Usually this is 24 hours. This time limit may not apply for certain specified treatments.

Pre and post hospitalization expenses

Expenses incurred during a certain number of days prior to hospitalization and post hospitalization expenses for a specified period from the date of discharge may be considered as part of the claim provided the expenses relate to the disease / sickness. Go through the specific provision in this regard.

Additional Benefits and other stand alone policies

Insurance companies offer various other benefits as “Add-ons” or riders. There are also stand alone policies that are designed to give benefits like “Hospital Cash”, “Critical Illness Benefits”, “Surgical Expense Benefits” etc. These policies can either be taken separately or in addition to the hospitalization policy.

Exclusions

The following are generally excluded under health policies:

• All pre-existing diseases (the pre-existing disease exclusion is uniformly defined by all non-life and health insurance companies).
• Under first year policy, any claim during the first 30 days from date of cover, for sickness / disease. This is not applicable for accidental injury claims.
• During first year of cover – cataract, Benign prostatic hypertrophy, Hysterectomy for Menorrhagia or Fibromyoma, Hernia, Hydrocele, Congenital Internal diseases, Fistula in anus, piles, sinusitis and related disorders.
• Circumcision unless for treatment of a disease
• Cost of specs, contact lenses, hearing aids
• Dental treatment / surgery unless requiring hospitalization
• Convalescence, general debility, congenital external defects, V.D., intentional self-injury, use of intoxicating drugs / alcohol, AIDS, Expenses for Diagnosis, X-ray or lab tests not consistent with the disease requiring hospitalization.
• Treatment relating to pregnancy or child birth including caesarean section
• Naturopathy treatment.

The actual exclusions may vary from product to product and company to company. In group policies, it may be possible to waive / delete the exclusions on payment of extra premium. Health insurance policies are not issued for less than one year period.

Travel Insurance offers insurance protection while you travel. Travel Insurance may be called by different names by insurance companies. It is important for you to check and understand whether the policy covers domestic travel or overseas travel or both. Travel Insurance protects you and/or family against travel related accidents, unexpected medical expenditure during travel, losses such as baggage loss, loss of passport etc and interruption or delays in flights or delayed arrival of baggage etc.

You must read and understand what the policy you are considering exactly covers. Do ask you insurer and/or agent or broker questions to clear all your doubts and go through the terms and conditions of the cover thoroughly. Travel Insurance normally offers cover only during a specific period of travel. However, some insurance companies may offer various combinations of protection to cater to the specific needs of customers e.g., there could be a special policy for Corporate Frequent Travellers etc

The Scope of Cover and Benefits offered by different insurance companies would vary. You must shop around to ensure that you purchase a policy that you need. The following are covers that are generally provided under Travel Insurance- though the combination may vary. The list, however, is not exhaustive.

• Medical Expenses with or without cashless facility (most travel insurance products offer cashless facility)
• Personal Accident
• Loss of Baggage
• Delay in Baggage arrival
• Loss of Passport
• Travel Delay
• Repatriation
• Transportation of dead body etc.

The Sum Insured offered may vary and so would the premium rates, which would depend on the country in question, apart from other factors such as Age, Period Of Travel etc.

You must go through the exclusion clauses very thoroughly. Ask your insurer and/or agent or broker for clarifications wherever you have a doubt. In general, the following are not covered:

• Pre-existing diseases
• War Risks
• Suicide and Insanity
• Hazardous Sports

There could be some exclusions relating to personal effects.

It is very important for you to understand what to do in case a claim situation arises abroad. Generally policies provide hotline numbers where intimation of claim/s should be given. You must also notify the concerned authorities involved eg: local police, embassy, transportation company etc, as applicable. The insurer also should be notified. Normally, every travel insurance policy docket will also contain a claim form as you will be away in a distant place and may not be in a position to obtain a claim form immediately.

Contractors who are given Civil Constructions Works in Projects Under Construction/After Construction

Contractors who are given construction works by Government like Construction of Roads, Bridges, Canals, Tunnels etc. This applies to all Risks located in India, for which the value of Civil Works involved is more than 50% of the Total Constructed Value.

Third Party Liability DOES NOT INCLUDE Legal Liability to Workers under W. C. Act or similar Acts. Workers belonging to the Principal or other contractors on the site also cannot be covered under T. P. Liability. Only representatives of material suppliers, visiting consultants and general public etc come under its meaning. A separate W. C. Policy is to be taken for Workers.

The Scope, terms, conditions and exclusions of this policy are more or less similar to Erection All Risks Policy. Hence they are not repeated here. The method of arriving at premium is also similar to EAR Policy.

Machinery Breakdown Policy has a wide range of Customers. The machinery in a factory like Generators, Motors etc can be insured under the Policy. Air conditioning equipments, Xerox Machines etc can also be covered under this policy.

Sudden and unforeseen physical damage to the insured property by any cause not hereinafter excluded..

• While at work
• While at rest
• While being dismantled for the purpose of cleaning or overhauling or in the course of above operations
• During subsequent re - erection after successful ccommissioning

Fire within electrical appliances occasioned by over running, excessive pressure, short circuiting, arcing, self heating or leakage of electricity from whatever cause including lightning is covered only so far as that item is concerned

Machinery which should NOT be insured under MBD policy

• Stone Crushers
• Rolling Mill Stands, Pedestal Bearings etc.,
• PVC Lined, Rubber lined and such other lined vessels
• Radios, Tape recorders, TV sets and electric and electrical measuring instruments
• Any imported machinery, which cannot be repaired in the country
• Cupolas and oil fired furnaces
• Pumps with glass, graphite, rubber impellers.
• Pipelines
• Computers and other electronic equipment
• Portable and mobile equipments
• Urea scrubber, LP Scrubber, Ammonia Scrubber, Ammonia Storage tanks

Insurance of property means insurance of buildings, machinery, stocks etc against Fire and Allied Perils, Burglary Risks and so on. Goods in transit via Sea, Air, Railways, Roads and Courier can be insured under Marine Cargo Insurance. Hulls of ship and boats can be insured under Marine Hull Insurance. Further, there are specialized policies available such as Aviation Insurance Policy for insurance of planes and helicopters. Thus Property Insurance is a very vast category of General Insurance and the type of cover that you need depends upon the type of property you are seeking to cover.

Package or Umbrella policies

There are package or umbrella covers available which give, under a single document, a combination of covers. For instance there are covers such as Householders Policy, Shopkeepers Policy, Office Package policy etc that, under one policy, seek to cover various physical assets including buildings, contents etc. Such policies, apart from seeking to cover property may also include certain personal lines or liability covers. Make sure you understand the complete details of cover and exclusions contained in the policy you are considering. Package or Umbrella covers could have common terms and conditions for all sections as also specific terms for specific sections of the policy.

The most popular property insurance is the standard fire insurance policy. The fire insurance policy offers protection against any unforeseen loss or damage to/destruction of property due to fire or other perils covered under the policy. The different types of property that could be covered under a fire insurance policy are dwellings, offices, shops, hospitals, places of worship etc and their contents; industrial/manufacturing risks and contents such as machinery, plants, equipment and accessories; goods including raw material, material in process, semi-finished goods, finished goods, packing materials etc in factories, godowns and in the open; utilities located outside industrial/manufacturing risks; storage risks outside the compound of industrial risks; tank farms/gas holders located outside the compound of industrial risks etc.

• Any kind of movable or immovable property having economic value
• Buildings,
• Plant, Machinery,
• Furniture & Fixtures, House Hold Articles,
• Merchandise, stocks on Premises or in open etc.
• Reinstatement Value basis (except Stocks) as per insured’s option
• Sum Insured is always fixed by the insured
• Sum Insured is the limit of insurer’s liability
• Sum Insured is the amount on which premium is calculated
• No-benefit to the insured in case of over-insurance, but in case of under-insurance proportionate claim amount will be reduced. (prorate condition of average will be applied)

What a Fire Policy covers:

Thought it is called ‘Fire Insurance’, apart from the risk of fire, it also offers cover against lightning, explosion/implosion, aircraft damage, riot, strike and malicious damage, storm , cyclone, typhoon, hurricane, flood and inundation, impact damage, subsidence and landslide including rockslide, bursting and/or overflowing of water tanks, apparatus and pipes, missile testing operations, accidental leakage from automatic sprinkler installations, bush fire etc.

What a Fire Policy excludes:

A fire insurance policy usually does not cover a certain amount known as “excess” under the policy. Loss or damage caused by war and warlike operations, nuclear perils, pollution or contamination, electrical/mechanical breakdown, burglary and housebreaking are excluded. Certain perils like earthquake, spontaneous combustion etc can be covered on payment of additional premium.

Fire insurance policies are issued for one year except for dwellings, where a policy may be issued for long term (with a minimum period of three years).

A Burglary Insurance policy may be offered for a business enterprise or for a house. The policy covers property contained in the premises including stocks/goods owned or held in trust if specifically covered. It also covers cash, valuables, securities kept in a locked safe or cash box in locked steel cupboard if you specifically request for it.

Apart from offering cover for the contents in the premises, a Burglary Insurance policy covers damage to your house or premises caused by burglars during burglary or attempts at burglary. The Policy pays actual loss/damage to your insured property caused by burglary/house breaking subject to the limit of Sum Insured. If Sum Insured is not adequate, Policy pays only proportionate loss. Hence, you must ensure that you value the property covered correctly to ensure that there is no underinsurance.

A Burglary Insurance Policy can generally be extended to cover Riot, Strike, Malicious Damage and Theft.

What is not covered in a Burglary Insurance Policy?

Generally, the Policy will not pay for loss/damage to goods held in trust/commission unless specifically covered, jewellery, curios, title deeds, business books unless specifically insured; any amount that is recoverable under Fire/Plate glass insurance policy; loss from a safe using a key or duplicate key, unless it is obtained by violence or threat; Due to shop lifting, acts involving you/your family members/ your employees; due to War perils, Riot & Strike ( covered by payment of additional premium), Acts of God, Nuclear perils.

All Risks Insurance generally offers cover for jewellery and/or portable equipment etc. This cover is generally offered selectively. The design of the policy may vary from company to company. It is important to note that an All Risks policy is not free from exclusions. So, the term “All Risks” doesn’t mean that anything and everything is covered.

What is generally excluded in All Risks Insurance?

Lookout for the exclusions—generally actions of moth, vermin, mildew, wear and tear or repairs, dyeing or bleaching or any gradually operating cause , Mere breaking/ scratching or cracking of fragile items unless caused by accident to the means of conveyance and Any mechanical or electrical breakdown/derangement except due to accidental external means, Over winding, denting or internal damage to watches or clocks, Thefts from cars except fully closed saloons Consequential losses, any legal liability, War perils, nuclear risks, any government/ local authority action and Any loss due to insured's action which has contributed to increase in risk are excluded from the scope of the policy.

On payment of additional premium mechanical and/ or electrical/ electronic breakdown extension may be offered.

Marine Cargo Insurance

Marine Cargo Insurance covers transits by Water, Air, Road or Rail, Registered Post Parcel, Courier or a combination of two or more of these.

Who can take a Marine Cargo Insurance Policy?

Buyers, Sellers, Import/Export merchants, Buying Agents, Contractors and Banks etc. Marine Cargo Policies cover the interest in the cargo and also extend to cover the interests of any third party who has acquired interest upon transfer of ownership, as determined by the Terms of Sale.

How Marine Cargo Insurance helps?

Cargo can be damaged on exposure to a wide variety of risks, including an accident of the vehicle carrying the cargo, damage due to jolts, jerks etc. Decide whether you want to take a Basic Cover or a wider cover. Read and understand the terms and conditions of the policy. Check whether there are any ‘Deductibles’.

What is generally excluded in a Marine Cargo Insurance Policy?

Loss or damage due to Inherent Vice , Delay, Insufficiency of packing, loss or damage due to financial default or insolvency of the ship owner etc.

What are the other types of property insurance available?

LSome of the other property insurances available are engineering insurance policies like the Electronic Equipment Insurance, Machinery Breakdown insurance etc.

Customers: The Policy is useful for Middle Class, Upper Middle Class and Upper Class House Holders.

Coverage: The Policy contains TEN sections. The coverage offered under each Section is given briefly hereunder. Sections I(b) is compulsory. Minimum 4 sections are to be taken including compulsory sections.

Proposal and Computation of premium: Agents are advised to note the important precautions in filling the proposal and computing the premium. It is advisable to enclose a separate statement of the items covered under each section duly signed by the Insured.

Section 1 (a): This NOT a compulsory Section. Covers Building against Fire and Specified Perils. The values of Compound Wall, Out Houses have to be separately given.

Section 1 (b): Covers Contents against Fire Etc perils. This Section is compulsory. This covers the contents of the building. Please give break-up values for the following: Furniture, Fixtures, Fittings and Domestic Appliances like Washing Machine, Mixer, Refrigerator, Geyser etc., Fixed Plate Glass, Other House Hold Articles and Utensils. Do not include Values of Jewellery, Gold & Silver Articles and valuable items like Video Cameras, Television and Computer in this Section.

Section II: Covers contents against Burglary, House Breaking and Theft. Here the contents as declared under section I(b) have to be covered.

Section III: This Section covers Jewellery and Valuables. This section offers a 24-hour coverage any where in India. Here item-wise details with values are necessary. For Jewellery please give description of the item, weight in grams, gold/silver/platinum, date of purchase, value. It is advisable for the customers to keep purchase receipts for the items puchased or a Valuation Certificate issued by an approved Appraiser. For Valuables like Video cameras, Binoculars, Portable Stereos etc give Make, Specifications, Date of Purchase and Value.

Section IV: This Section covers Fixed Plate Glass against accidental breakage, other than the perils covered under Section I(b) i.e. Fire etc. Please furnish details like measurements, type of glass i.e. plain glass or ground glass or tinted glass with thickness and engravings if any on them.

Section V: This section covers Electrical and Mechanical Domestic Appliances like Refrigerator, Washing Machine, Mixie, Geysers, Sump Motor etc. The perils covered are Electrical and Mechanical Accidents. Please furnish details like description of the Item, Specifications, Year of Make, Manufacturers Name and Value.

Section VI: This Section covers electronic item like Television, Computer, VCD, VCR, VCP etc. This is an All Risk Section. That is the perils covered under Section I- Fir etc, Section II- Burglary and Section V- Electrical & Mechanical Accidents are all covered. Please furnish details like description of the Item, Specifications, Year of Make, Manufacturers Name and Value.

Section VII: This Section Covers Pedal Cycle against Accidental Loss. The cycle should have locking system and should be kept locked when not in use. Please furnish details like description of the Item, Specifications, Year of Make, Manufacturers Name and Value.

Section VIII: Travel Baggage- Loss to Travel Baggage due to theft or Accidents is covered. Baggage does not include Jewelry and Valuables, eatables, articles carried on about like spectacles, hand-sticks, umbrellas, flasks etc. An immediate police complaint is necessary in case of theft.

Section IX: Covers Personal Accident risk for the House Holder, spouse and dependant children. Please refer Personal Accident chapter for coverage and premium rates. Cumulative Bonus also available. Medical Extension is also available. But it s advisable restrict cover to Table II, to avoid too-much confusion in calculations, since this is a multi-sectional policy. Insured Persons names, details like age, relationship with the proposer, sum insured, nominee’s name and relationship, table chosen, existing disability/infirmity, if any, have to be furnished.

Section X(a): Public Liability covers Legal Liability for bodily injury to or loss/damage to property of third parties due to unintentional negligent acts of the insured or his family members. The Liability is limited to the Sum Insured chosen.

Section X(b): Covers Legal Liability as per provisions of Workmen's Compensation Act in respect Accidental death or injury to Domestic Servants during or in course of employment. The name, sex, age and wages paid to the servants are to be furnished.