Presenting,

Investment Manager’s Insurance (IMI)

Investment Manager’s Insurance (IMI)

IMI is type of combined liability insurance policy which provides protection to Insured
against a variety of Professional Liability, Director’s and Officer’s Liability as well as Financial
Crime liability which may occur.

Key Exposures Which Can Give Rise To A Claim?

(SEC) UIN: IRDAN108P0020V01201213 | (Non-SEC) UIN: IRDAN108P0021V01201213

• Poor performance/Return/Failure of Funds

• Inadequate Disclosure

• Improper investment

• The Fee debate

• Sales Practice

• Lack of Transparency/Misrepresentation of Facts

• Inappropriate Valuation of Securities

• Prospectus Liability

• Regulatory Compliance

• Fiduciary Breach
 What Are The Key Coverages Available Under The Policy?

• Investment Manager Professional Civil Liability: provides cover to the insured

person for any losses and also reimbursement for an Insured entity for any loss it pays
on its own behalf or on behalf of an insured person, which arises out of a claim made for
a wrongful professional act.

• Fund Professional Civil Liability and Management Liability: provides cover to the
insured person for any losses and also reimbursement for the fund for any loss it pays
on its own behalf or on behalf of an insured person, which arises out of a claim made for
a wrongful professional or managerial act.

• Investment Manager Management Liability: provides cover to the insured person

for any losses and also reimbursement for an Insured entity for any loss it pays on its
own behalf or on behalf of an insured person, which arises out of a claim made for a
wrongful managerial act.

• Investment Manager and Fund Crime Protection: provides reimbursement to any

insured entity, fund or plan for its direct financial loss discovered during the policy which
results directly from any:

(SEC) UIN: IRDAN108P0020V01201213 | (Non-SEC) UIN: IRDAN108P0021V01201213

1. Act of infidelity; or

2. Third party crime.

What Does The Policy Pay For? What Is Not Covered?

• Investigation costs, defence costs, • Prior Knowledge and Prior Discovery.

regulator costs and awards of damages.
• Court Attendance Costs.
• Emergency Costs.
• Repair of Computer Programs.
• Bodily Injury/Property Damage.
• Insured vs insured/parent company.
• Contractual Liability.
• Consensual claims.
• Credit Risks.
 Is The Policy Required By Law?

No, IMI policies are not mandatory as per regulations. However, the Mutual Fund industry,
like the rest of the financial sector, is highly regulated by SEBI and AMFI and there have
been several cases where the funds were penalized for violation of regulations or faced
litigation by their customers for non-performance etc. Given the current scenario, all funds
should necessarily opt for IMI insurance to protect their balance sheet.

When To Buy IMI Cover Who Should Buy IMI?

It is important buy IMI cover when: Mutual Funds – i.e. Equity Funds, Debt
• At the inception of a new fund. Funds, Balanced Funds, Income Funds,
Growth Funds and Value Funds etc.
• During the existence of a fund.
• Since the mutual fund industry is highly
regulated, it is advisable to have an IMI
policy in place to protect the fund against
adverse financial implications arising out
of regulatory action, customer litigation
or employee/third party financial crime.

(SEC) UIN: IRDAN108P0020V01201213 | (Non-SEC) UIN: IRDAN108P0021V01201213

Why Tata AIG?

AIG is a pioneer worldwide in Liability Insurance and is the most preferred underwriter
among the Fortune 500 companies in the US and Tata Group is India's most respected and
best-known industrial group. These inherent strengths of AIG & Tata are now available to
the Indian companies through the Tata-AIG partnership.

Tata AIG has expertise in this insurance segment, being the leaders in Liability Insurance
and having introduced most of the Financial Lines products to the Indian market. The Tata
AIG team of Underwriters comprises of highly skilled professionals from various
background, such as Chartered Accountants, MBAs, Lawyers etc, giving us an edge over
the competition.

On the claims front, Tata AIG has superior claims handling ability at domestic level with the
support and network of over 130 jurisdictions.
Disclaimer: This content is for training and development purposes only. No business can be solicited basis this content.

Registered Office: Peninsula Business Park, Tower A, 15th Floor, G.K. Marg, Lower Parel, Mumbai – 400013.
24X7 Toll Free No: 1800 266 7780 or 1800 229966 (For Senior Citizens) | Fax: 022 6693 8170
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IRDA of India Registration No: 108 | CIN:U85110MH2000PLC128425
(SEC) UIN: IRDAN108P0020V01201213 | (Non-SEC) UIN: IRDAN108P0021V01201213
This content is for training and development purposes only. No business can be solicited basis this content.