Whatis an insurance proposal? An insurance proposal is a legal document that provides the details of your client and what is being insured. The idea behind the proposal is to create a clear picture for the insurance company. This is then used to ascertain the insurability of an individual or company by the underwriters and ultimately determines whether the company will accept or reject an insurance policy.Insurance proposal vs insurance policy What is the difference between an insurance proposal and an insurance policy? An insurance proposal is a document that provides critical personal information on the potential client so that the insurance underwriters can best provide the necessary coverage. An insurance policy is an actual contract that details the insurance coverage and the agreement between the insured and the insurer.Importance of an insurance proposal The insurance proposal form helps insurance companies determine if a potential client is worth the risk or not. As an insurance agent, the information provided to you from an insurance proposal form can help you determine what coverage or benefits your new client may need. In addition, the information provided by clients in this form helps insurance underwriters determine the degree of risk they may bear by issuing insurance benefits.What is in the insurance proposal? As an insurance agent, you will provide your potential clients with an insurance proposal form in order to gain information. An insurance proposal form requires many different details, including: « Name: This is the name of the potential policyholder ¢ Address: This is the address of the policyholder « Occupation: This is important information as it can affect the premium rate and the decision of the underwriter¢ Subject matter: This refers to the life or property that the insurance is covering. For example, auto insurance would include information about the vehicle. For a life insurance policy, this would be for the life being insured. Sum insured: This is the amount of coverage required Claims history: This is a detailed history of any previous insurance claims Other policies: This asks about other current insurance policies in place Declinature: Has the proposer had any insurance previously declined by an insurance company?¢ Declaration: Every proposal form must include a declaration that contains a written statement that states that the answers provided are true and not a misrepresentation and that the proposal form shall provide a basis for an insurance contract. Signature: A place for the proposer to sign Date: A date when the signature was signed» As per the Insurance Act 1938, under Section 2 (6A), Fire Insurance is defined as “the business of effecting, otherwise than independently to some other class of business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the tisks insured against in fire insurance policies.” ffe insurance is an agreement whereby one party (the insurer), in return, for a consideration undertakes to the indemnify the other party (the insured) against financial loss which he may sustain by reason of certain defined subject matter being damaged by the destroyed by fire or other defined perils up to an agreed amount. = The word fire here does not mean the fire used for domestic and household activities. it refers to fire which is not caused intentionally and has no bound, and itis production of ignition, light and smoke by combustion. = itis ols0 one of the oldest types of Insurance which emerged in London. 2nd September 1666, a great fire break out in London which caused moss jestruction in city buming 13,000 houses and lasted for 5 days. This led to emergence of Fire Insurance Policy so as to compensate people for the losses, suffered by them and so they can stort their life again after such @ mishap. The fist Fire Insurance Company was established in 1681, Insurance Office for Houses to insure 5000 brick and frame houses. Later on may more Insurance Companies were established such as Hond-in Hand, Sun Fire Office, Wesiminster and the Royal Exchange in 1720. PRINCIPLES OF FIRE INSURANCE ®Insurable Interest in Fire Insurance (insurable interest in the subject matter of the contract both in the at the time of taking the policy and the at the time of loss) ® The principle of Good Faith in Fire Insurance principle of indemnity ®™ Proximate Cause of Fire Insurance The doctrine of Subrogation Warranties in Fire Insurance® A Fire insurance contract like any other insurance contract must fulfil the essential elements of a valid contract like offer and the acceptance, lawful consideration, legality of object etc. ® Premium is a required fo be paid the at the time of taking policy ® Fire insurance usually taken for any year duration but in the some cases for short periods also ‘fe policies can be assigned with the prior consent of the insurer. The loss must be outcome of fire or ignition only = Nothing can be recovered under a fire policy if the fire is caused deliberately. ® In case of several policies for the same property each insurer is entitled fo CONTRIBUTIONS from other insurers. After indemnification, the insurer is SUBROGATED on to the rights and interest of the policy holders. | * Buildings + Plant & Machinery, Equipments and Accessories + Furniture and electrical fittings * Goods as in raw materials, semi-finished and finished goods stored in warehouses and open + Pipelines present inside as well as outside the building Scope of fire insurance > According of section 2 of the insurance act 1938, the cope of fire insurance includes., (a). Fire insurance Piast Ke cream NaS col CMTS operation and covers the risks caused by fire: (b) In CPM ecUS ASM KelsoM ee oe ce LC ertoluKolsCol ere cone oa Maliol Nore gl tees fouuet NAST intel ol Xo elaatointe ci iacsOicro Une Imi Migse relator CooTalicolel ey LAMAN cto) or olf Mince ner Norell e\-aieel=tel iolanTe} angles vi (1) Ordinary scope of fire insurance and elute ue ieel Moi Masel)> ORDINARY SCOPE OF FIRE INSURANCE Itincludes only those risks which define the namower scope of fire insurance viz., the losses caused) by fire only. Some losses caused) by the fire andlare included in the insurance ‘against fire and some lossesjarelleft/o i a i __® a. RISKS COVERED UNDER FIRE INSURANCE: ‘s Ite SACU RCC Re eeseo iene) eo eed Siecle) policy and only these risks Grelindemnify | are by the Insurance company, in!case)of the loss. The following risks caused by the fire are generally included in the fire Insurance: " The following risks caused by the fe Sc) : | | insurance: a EMA etie eee iene oles rhea Sais soreness -ul-lnielonlei Neue say anecedlie ket drying process, Also ifjexcludes buming of property Insured by order Siemamsrey sis , > lightening: There may belocc! or other damages to thelinsy office due to lightening willbe’ Kine Aner a Rees Nom icicn occ rnsinicee eto Glicicie lacie dai hls itclIe nse slate Keae ht) extemal cimospheric temperatur jesinot|cover the domestic etek BE PN oineelns HSIN Ae Cherokees Kess-tel 97a inks omieelogercm nl ge ONarIMeaeianred role aN Age Nolale Neer alah Diceurlke ec Mien oS > Riot, Strike and malicious damage: If covers the physical a damage to the property caused dueifo strikes by workers, riots Py Misiexemaicwiiente ls sulla isl el casos Beast Te 5 Pair 7a elst-dis/e)nele)p) -ani)sl-S ia Uuteroin-pueoaTere emer] ‘and Inundation:/Any/damagesicaused|tolthe insured properly RMN ones ated ie holace cinerea te RLS) Insurance policy, > Impact Damage: If refers fo the damage to the insured property due to its confactwith rail, vehicles orany animal, But EMail erate Sato laelj st-Konwialrolsy aT LaNcys] Remeron > Subsidence and land slide including rock slide: can also lead to. damage or destruction of the insureds property. In such cases, the insured can file for claim Under Fire Insurance Policy.> Bursting and/or overflowing of water tanks, apparatus and pipes: These perils arejalso covered Under Fire Insurance Policy: > Missile testing operations: can leadito damage to property and /arelalsoleoverediUnder Fire Insurance: policy. i » Leakage from/aUfomaticspnnkler installations: It covers. destruction of property defo faulty working of sprinklers but exclUdes damage Which is caused while. repairing and removal Gf sprinklers or renovation in the. buildings: > Bush Fire; It refers to fire’ spread from bushes but doesn't Lely 7 ice SmI Secondary scope: There are many special risks whichion insured can getit covered RNs em Nz Sich isola 907 sie\ y's [ossicoh canon NS Item inl eel AescKecKeN lols Pere sell oh pelosi sey or feoas eee |in=iae vce eisharo histone) slece inion Manto NEN Pate Ne eked akon low iahieneTN elke wastages from the construction/sitayif thatjamountiexceeds Like (Bile o\-Lacexalace littl) (reliant let Pe haere setae sles ca iMeneneis Ens routetn 7A cM ilcIbA villa cel coorelcelaM SIS Pkereor in lksouee(uel iio oon ied zero niin b. RISKS NOT COVERED BY FIRE INSURANGE There are certain risks for the Which insurer donot indemnity the insured in case of (ors peteKerhiel oii) > Loss, durations, damage! fo precioUs)stones) and) metal artistic goods Cte Piteat aster ltl sch Cotte Icey Coleen (soe) Mere ln) Clerc ares Meme aualamaseriuiels(Mecls-telly utah, oilers sacar rreimtelo(ouctsL oii niin Nip = f°)=i Dis folate Grimes nic Nia nel esis Rrmenrratareusa leaker tel) Ain-en slates Theft during fire or offer breok ouf the lof fire Compulsory buming of goods or properties: bythe orders of Govemment or Sema Mm SANAFire loss is the result of two types of hazard: + PHYSICAL HAZARDS: It refers to the inherent risk of the fire inthe property which may be on account of the situation, inflammable ature, constructions artificial lighting and heating, lack of the fire extinguishing is a appliances, etc, Fire insurance, providers protections to the property against the occurrence of fie, an unavoidable physical hazard, MORAL HAZARD: The term Moral Hazard refers to the willful and HAZARDS IN is malicious setting on fire of on the property by the owners or some body else. Moral hazard may be in anyone of the following forms: (a) IN INSURANGE CENDIARISM: Itrefers to the deliberate destruction of one’s own property by fire. Some insured indulge in such activities to realize the insured amount from the insurer. (b). ARSON: It refers to setting on fire the property of the insured by the some other persons. Some persons may set fire to property of others with a view to getting a reward for information about the break out of the fire or assisting in extinguishing it. (C), PASSIVE DISHONESTY: It refers to the willful neglect to the by the insured to take proper action for extinguishing fire and his carelessness during the occurrence of fire KINDS OF FIRE INSURANCE POLICY > 1, Valued Policy ‘As the name suggests, the value of the insured property is pre-determined at the inception of the policy. In case of loss suffered by the insured, a fixed compensation amount is paid by the insurer irrespective of the actual amount of financial loss suffered by the insured. The claim amount may be less or greater than the market value of the property and will not include renovations made in the property. > 2. Valuable Policy / It is reserve of the above policy. Here, the value of the insured property is determined at the time of loss and claim is paid depending on the market value of the property at the time of damage. > 3. Specific Policy In this policy, a specific policy coverage amount is mentioned which is not ‘the market value of the property and is for a specific period of time for a particular property. The compensation paid will not exceed the policy coverage value. > 4, Average Policy It is that policy in which the Insured doesn’t take insurance policy which covers the total value of the property. The loss is shared by both the insured and the Insurance Company in pre decided proportion. For ‘example, Rama took an Insurance policy of ° 7, 00,000 for her house which value 1s "1, 400,000. In case of a fire, her house is 50 percent damaged, and then she will receive compensation of "3, 50,000 from the Insurance ‘Company which is 50 percent of her Insurance coverage value.> 4, Floating Policy In this type, a single poticy covers two or more properties present at different locations for an insured. A single premium is paid by the insured, providing him convenience against buying multiple policies. > 6, Adjustable Policy There may be change in the value of stocks; hence it becomes difficult for the insured to determine what coverage amount of insurance policy should be purchased. In this case Adjustable policy is taken where insurance amount and premium is calculated on the existing value of the stock initially and the later is adjusted depending on the change in value of the stock which is regularly provided by the insured. The premium changes on a pro rata basi » 7. Declaration Policy Unlike above, the Insured takes insurance policy for the maximum value of the stock and regularly (particular date of the month) declares to the Insurance Company the change in value of the stock. The insured pays 75 percent of the premium before in advance and remaining depends on the premium so calculated after one year on average of the value declared by the insured in that year. » 8. Excess Policy This policy is for those people, who stock value keeps on fluctuating. In this scenario, insured purchases two policies- First loss policy for the minimum stock value and Excess Policy for the excess value of the stock. ‘The minimum value for the stock is calculated on the past experience and excess value of the stock is informed by the insured to the insurer every month. The premium is not high in this case. > 9, Reinstatement Policy Here, the Insurance Company replaces or reinstates the insured property in case of damage of fire instead of providing monetary compensation. > 10, Comprehensive Policy It is that one which Insured gets coverage from not only loss by the fire but also from theft, war, riot, strike and etc, The premium charged for such a policy is very high but it provides security to insured against many risks. > 11. Consequential loss Pol It covers the consequential loss as well loss by fire, suffered by the insured. As discussed in comprehensive scope, consequential loss is loss suffered by the insured in terms of loss in profit, salary, inflation incidental to the occurrence _ of the fire.What is Marine Insurance? Marine insurance refers to a contract of indemnity. It is an assurance that the goods dispatched from the country of origin to the land of destination are insured. Marine insurance covers the loss/damage of ships, cargo, terminals, and includes any other means of transport by which goods are transferred, acquired, or held between the points of origin and the final destination. The term originated when parties began to ship goods via sea. Despite what the name implies, marine insurance applies to all modes of transportation of goods. For instance, when goods are shipped by air, the insurance is known as the contract of marine cargo insurance.Importance of Marine Insurance Marine insurance is required in many import-export trade proceedings. Admitting the terms, both parties are liable for the payment of goods under insurance. However, the subject matter of marine insurance goes beyond contractual obligations, and there are several valid arguments necessary for buying it before dispatching the export cargo. Goods in transit need to be insured by one of the three parties:- © The Forwarding Agent ¢ The Exporter ¢ The ImporterWhere to get Marine Insurance? The process to purchase marine insurance in India is easy. The country’s geographical position allows many banks and financial institutions to provide marine insurance. Marine Insurance Act 1963 The Marine Insurance Act, in India, came into existence in 1963. As per section three of the act, any time the term ‘marine insurance’ is used, expressed or even extended for the insuring of goods against loss or damage, the insurer will be at risk to bear the charges. The insurer will consider all the certainty of goods in case of misfortune sustained during marine ventures. Principles of Marine Insurance ¢ Principle of Good faith - Parties demand absolute trust on the part of both; the insurer and the guaranteed. =—_Principles of Marine Insurance ¢ Principle of Good faith - Parties demand absolute trust on the part of both; the insurer and the guaranteed. ¢ Principle of Proximate Cause - The proximate cause is not adjacent in time; also, it is inefficient. Nevertheless, it is the definitive and adequate cause of loss. ¢ Principle of Insurable Interest - Any object presented as a marine risk and the assured covering the insurance of goods - both should have legal relevance. Also, a series is devoted called ‘Incoterms' to respectfully assign the insurance of goods to each party. ¢ Principle of Indemnity - The insurance extended to the parties will only be applicable up to the loss. The parties can't buy insurance to gain profits. If they do, they won't get more than the actual loss.e Principle of Indemnity - The insurance extended to the parties will only be applicable up to the loss. The parties can't buy insurance to gain profits. If they do, they won't get more than the actual loss. ¢ Principle of Contribution - Sometimes, the risk coverage for goods has more than one insurer. In such cases, the amount has to be fairly distributed amongst the insurers.Features of Marine Insurance FEATURES OF MARINE INSURANCE Acceptance of the offer Coverage Payment of Premium Insurable interest Contract of Indemnity Claiming Process Flexibility IIcHow Marine Insurance works? Marine insurance best transfers the liability of the goods from the parties and intermediaries involved to the insurance company. The legal liability of the intermediaries handling the goods is limited to begin with. The exporter, instead of bearing the sole responsibility of the goods, can buy an insurance policy and get maritime insurance coverage for the exported goods against any possible loss or damage. The carrier of the goods, be it the airline or the shipping company, may bear the cost of damages and losses to the goods while on board. However, the compensation agreed upon is mostly on a ‘per package’ or ‘per consignment’ basis. The coverage so provided may not be sufficient to cover the cost of the goods shipped. Therefore, exporters prefer to ship their products after getting it insured the same with an insurance company.The Scope of Marine insurance is necessary to meet the contractual obligations of exports. To align with agreements such as cost insurance and freight (CIF) or carriage and insurance paid (CIP), the exporter needs to take marine insurance to protect the buyer's or their bank’s interest and honor the contractual obligation. Similarly, in the case of Delivered Duty Unpaid (DDU) and Delivered Duty Paid (DDP) terms, the seller may not be obligated to insure the goods, although in practice they generally do. To get marine insurance and avoid insurance claims, ensure the following: e Packing of goods should be done keeping in mind their safety during loading and unloading ¢ Packing should be good enough to withstand natural hazards to the best extent possible ¢ Keep in mind the possibility of clumsy handling or theft when packing goods.How to calculate Marine Insurance Premium? Ac HOW TO CALCULATE MARINE INSURANCE PREMIUM? x oO = Shipment Value 10% Multiply the Amount & of the amount with the payable The Cost of Freight total Cost quoted premium as premium Types of Marine Insurance ¢ Freight Insurance ¢ Liability Insurance e Hull Insurance ¢ Marine Cargo InsuranceFreight Insurance In freight insurance, for example, if the goods are damaged in transit, the operator would lose freight receivables & so the insurance will be provided on compensation for loss of freight. Liability Insurance Marine Liability insurance is where compensation is bought to provide any liability occurring on account of a ship crashing or colliding. Hull Insurance Hull Insurance covers the hull & torso of the transportation vehicle. It covers the transportation against damages and accidents. Marine Cargo Insurance Marine cargo policy refers to the insurance of goods dispatched from the country of origin to the country of destination.Types of Marine Insurance policies e Floating Policy « Voyage Policy ¢ Time Policy ° Mixed Policy * Named Policy e Port Risk Policy e Fleet Policy Single Vessel Policy Blanket Policy Floating policy Floating in Marine Insurance policy, large exporters may opt for an open policy, also known as a blanket policy, instead of taking insurance separately for each shipment. An open policy is a one-time insurance that provides insurance cover against all shipments made during the agreed period, often a year. The exporter may need to declare periodically (say, once a month) the detail of all shipments made during the period, type of goods, modes of transport, destinations, etc.Voyage policy A specific policy can be taken for a single lot or consignment only. The exporter needs to purchase insurance cover every time a shipment is sent overseas. The drawback is that extra effort and time is involved each time an exporter sends a consignment. With open policies, on the other hand, shipments are insured automatically.Time policy Time policy in marine insurance is generally issued for a year’s period. One can issue for more than a year or they may extend to complete a specific voyage. But it is normally for a fixed period. Also under marine insurance in India, time policy can be issued only once a year. Mixed policy Mixed policy is a mixture of two policies ie Voyage policy and Time policy. Named policy Named policy is one of the most popular policies in marine insurance policy. The name of the ship is mentioned in the insurance document, stating the policy issued is in the name of the shin.Port Risk policy Itis a policy taken to ensure the safety of the ship when it is stationed in a port. Fleet policy Several ships belonging to the company/owner are covered under one policy. Where it has the advantage of covering even the old ships. Also the policy is a time based policy. Single Vessel policy In single vessel policy only one vessel is covered under marine insurance policy. Blanket policy In this policy, the owner has to pay the maximum protection amount at the time of buying the policy.Which clauses cover Marine Insurance? The Maritime insurance coverage provided by marine insurance can be understood by going through the risks handled by the insurance policies loaded with various marine insurance clauses: 2/¢ COVERAGE UNDER MARINE INSURANCE Three Types of Marine Insurance clauses Maximum Coverage Additional Coverage Basic Coverage It covers losses due to It covers the shipment It covers the shipment breakage, chipping, against events such as _ against events such as denting, bruising, theft, earthquake, volcanic _fire, discharge of cargo non-delivery, all water eruption, and damage in case of distress, damage, etc. due to rainwater, explosion, accidents like Also, covers ClauseB& seawater, river water etc. sinking, capsizing, Clause C Also, covers Clause C derailment, collision etc. ¢ Institute Cargo Clause C provides basic coverage and includes a restricted list of risk covers. It covers the shipment against events such as fire, discharge of cargo in case of distress, explosion, accidents like sinking, capsizing, derailment, collision, etc.¢ Institute Cargo clause B offers an additional layer of protection. Not only does it include all the risk covers provided under Clause C, but it also covers the shipment against events such as earthquake, volcanic eruption, and damage due to rainwater, seawater, river water, etc., and loss to package overboard or during loading and unloading. ¢ Institute Cargo Clause A provides maximum coverage as it covers all risk of loss or damage to the goods. Apart from the risks covered under Clauses B and C, it also covers losses due to breakage, chipping, denting, bruising, theft, non- delivery, all water damage, etc. ¢ Risks such as wars, strikes, riots, and civil commotions are not covered under the institute cargo clauses. However, the insurer may provide this cover on payment of additional marine insurance premium.What is not covered under Marine Insurance? He WHAT IS NOT COVERED UNDER MARINE INSURANCE? =h Delivery issues = Renovation & repairs 8 Bad quality goods Intentional loss Ss, Personal insolvency ae Wars and situations iSDifference between Fire Insurance & Marine Insurance Fire insurance is an insurance that covers the risk of fire. The subject matter is any physical asset or property. The moral responsibility is an important condition here. There is no expected profit margin in terms of fire insurance. The insurable interest must be present before taking the policy and also at the time of loss. Whereas, the Functions of Marine insurance is one that encompasses risks associated with the sea. The subject matter is the ship, freight or cargo. It does not consist of any clause related to the moral responsibility of the cargo owner or the ship. 10 to 15% profit margin is expected in terms of marine insurance. Also in marine insurance the insurable interest must be only at the time of loss.2. Nouetounee + What Motor Insurans Motor insurance gives protection to the vehicle owner against (I). damages to his/her vebicle and (i). pays for any Third Party Liability determined as perlwaguinsttheowner ofthe vehicle, ‘Third Party Insurance is a statutory requitement. The owner of the vehicle i legally isle for any injury or damage to third party life orproperty caused by vrarisingout of the usc of the vehicle sn a pubic place, Driving a rotor vehicle without insurance ina public place is a punishable fence in terms of the Motor Vehieles Act, 1988, Typesof Motor Insurance cover: Broadly there are two types of insurances policies that offer motor insurance cover: a. Liability Only Dohiey Statutory requirement) b. Package Poly (Liabibity Only Policy + Damage toowner’s Vehicle usually calles! OD Cover) Remember that if you take only a Liability Only Policy, damage to your vehicle will not be covered. Hence, it would be prustent to take a Package Policy which would give a wider cover, including cover for your vehicle, What Motor Insurance cover The damages to the vehicle due to the following perils are usually covered under OD section of the Motor Insurance policy: a. Fire, Explosion, Self Ignition, Lightning 1. Burglary/Housebreaking /Theft Riot &Strike Earthquake Flow, Storm, Cyclone, Hurricane, tempest, inundation, hailstorm, frost Aceidentalestemal means Malicious Act Terrorism acts i. While in Transit by Rail/ Road, Inland waterways, Lift, Elevator or Air j- Landslide /Rock hide ‘What Motor Insurance exelud The following contingencies are usually excluded under the Motor Insurance Policyvalid Driving License * Under Influence of intoxicating iquor/drugs + Accidlenttakingplace beyond Geographical limits + While Vehicleis wed for unlawful purposes + Electrical/Mechanical Breakdowns, + Basis of Sum Insured: For Own Damage: The Sum Insured under a Motor Insurance policy reflects the value of the motor vehicle determined bused on the concept known as Insured's Declared Value. Insured's Declared Value isthe value arrived at based on the Manufacturer's present value and depreciation hased on the Age ofthe 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 Person: Accident to occupants of vehicle, Workm Compensation to Driver, ete over and above the cover able vo him under starute, oo Bos FAQson Motor Insurance What Motor Insurance cover should I bu Should I buy Comprehensive Insurance or Liability only Policy? ‘Third Party Liability insurance is mandatory for all vehicles plying on public roads in Indias This covers Liability for injuries and damages to others that youare responsible for In aukition, it isprudent tocover lossordamages tothe vehicle itself by way of Comprehensive/Packaze poli which covers both “Liability” damage” to Insured vehicle, Liability Only cover isalsoknownas Act Only cover, Howisthepremium determined? Many factors determine the premium you will ‘or Own Damage cover differe companies charge different premiums for similar coverage, Shop around; getting three or more comparison quotes is worthwhile, Check various insurers's websites; it will help you compare premiums. Donot forget tocompare deductibles, coverage and IDV's as premium may be lesser of ‘one insurer but with higher deductibles, lower coverage and lower IDV, which will adversely impact youn the event of claim settlement.Be prepared togive youragentiinformation about the following items that are commonly used t0 determine your premium: Vehicle registration details with Engine No., Chasis no, Chss of vehicle, cubie capacity seating eapacity, ete. (In fact, all relevant details are in the RC hookjeard anda copy ofsame mayhe handed over) Tax paid details; Certificate of fitness, Driver details -age, ender, qualifications, licence validity Previous insurance histony ifony The Own Damage coverage is left to be rated by individual insurance companies after duly fling rates with the Insurance Regulatory and Development Authority. The same is determined on following factors amongst others ++ Age of vehicles Discounts / loadings: Appropriate Bonus / loading/ discounts along with post claims experience are taken into account while calculating premium. IDV (Insured Deelaced Value). Third Party Liabilicy Premium rates are laid dowmby IRDA. In cave of break in insurance, vehicle inspection would be required and extra charges will have to beincurred for the same. What coverage limits meet my needs? Soy Ans. For Own Damage, the Sum Insured for the vehiele is called “Insured Declared Value” and should reflect the current market value of the vehicle. For Thitd Party Liability cover, there is unlimited coverage to Third. parties injuries, however, Third party property damages. are covered up to a sum of Rs.750,000. Insured has tt coverage for Thisd Party se to R56,000 whereby there will “Liability Only” premium Whatis the period of the policy? The policy is usually val fora period of one year and has to be renewed before the due date. Pay the premium on time. No Insurer offers a grace period for paying the premium ~ che due date is the due date. In case of lapse of policy by even fone day, the vehicle has to he inspected Moreover ifa comprehensive policy allowed to lapse for more than 90 days, the accrued benefit of NCB (NoClaim Bonus) isalso lost. ‘What is"No Chaim Bonus"? No Claim Bonus (NCB) isthe benefitaccrued 10 an insured for NIL elaiens during the previous policy period. Aspereurrent norms prevalent it anges from 20% on the Own Daniage premium (ondnot on Liability premiums) and progressivelyincreases ta maximum of 50% hase on lodged, subsequent policy petiod. NCB is given 10 insured and not to the insured vehicle, He oon transfer of the wehiele, the insurance poliey can be transferred to new owner bur mot the NCB. The new owner has to pay the difference oom account of NCB forthe Falance picy perio The original owner ean, however, use the NCB con a new vehicle purchased by him provided he ransferted the insurance tthe buyer of has to be intimated tely (in any ease nor later than the time limit prescribed) about sale of hiseld vehicle anal the insurance. Origina in the old insurance policy tllits validity period. Prostata difference of premium on account of ein IDV ofnew vehicle isto be paid. Will my No Claim Bonus get migrated if want tochange my insurance company? Yes, you ean avail of the NCB facility if you ge the insurer on renewal. You would have to produce proof of the NCB eared by way of, Pann “heute renewal notice from the current insurer Ifthe same eannot be produced, you my proxluce your Ooriginal expiring policy along with x certification that no claim has been laxged by yourselfen the iting policy, Hence, evidence ean be in form of a renewal notice or a letter confirming the NCBemtirlement frum the previousinsurer, Are there discounts that will lower my premium? In addition to NCB, there are additional discounts available under Own Dama Premium for membership of Automohi Association of India, Vintage Cars (Pvt, Cars certified by the Vintage and Classic Car Club of India); Installation of anti-theft devices approved by Automobile Research, Association of login (ARAD, Pune and whose installation is approved by AAL Concessions for specially designed/modified vehicles for the Blind, Handicapped and mentally challenged persons, wwhicl are suitably endorsed inthe RC by ¢ RTA concemed; opting for voluntary additional deduictiblefexcess. Under “Liability Only Section”, discount ale for reduction in Third Party Prope axe (TPPD) from Rs. 750,00010 Rs. 6,600.is Q Q Ans. Q Is Service Tax is applicable and how much isit? Yes , Service Tax is applicable and would be as ngruleoflaw, jeductible? Deductible or “excess” is the amount over and above, which che claim willbe payable. Thete isa normal standard/eompulsory excess for most vehicles ranging from Rs, 50 for two-wheelers to Rs, 500 for Pvt. Cars and Commercial vehicles which increases depending upon the cubic capacity/earrying capacity of the vehicle. However, in some cases the insurer may impose additional excess depending upon the age of the vehicleor ifthereishigh frequency of claims. What is the procedure for recording any changesin the policy? If there are any changes in the policy, ic will be done by an Endorsement by the insurance office. Submit a letter to the insurer with proof forthe changesandl ebtain the Endorsement. Check the correctnessofthe Endorsement. If Lam using the car in a particular city, what premium rate is applied? Ans. For the purpose of applying premium rate, the ; Bees place where the vebicle fs registered is reckoned (Not the place where the vehicle ts used), If your hicle fs registered in Chennai rate applicable for Zone A is charged. Even when you shift toa different city / town, the same rare will continue to be applied. Similarly ifa vehicle is registered in Subsequently ifthe owner shifts to a metro, he will continue to be charged Zone Brate. What is a Certificate of Insurance under Motor Vehicle Act? As per Rule 141 of Central Motor Vehicle Rules 1989, a certificate of Insurance is wo be issued only in Form 51. It is only in, Motor Vehicle Insurance, apart from policy, a separate certificate of insurances required tobe issued by Insurersasper law. This document should always be cartied in the vehicle. Policy should be preserved separately ahome /c 161 fit CNG or LPG kit to my vehicle, is it necessary toinform the Insurance Company? TWCNG / LPG kit is fitted to the vehicle, RTA where the vehicle was red should be informed 10 nore the change in the rexistration certificate (RC), The Insurance Company should also be informed tw have the kit covered‘on payment ofextta premium on the value of the kit under “OD” section and also under “TP” section ‘What are the documents to be kept in the vehicle while plyingin publie places? * Contifcate oflnsurance + Xeroxcopy of Registration Certificate «Pollution under consol Centficate * CopyofDLofpersan whodrivesthe vehicle Can I transfer my insurance to the purchaser of my vehicle? Yes, the insurance cane transferred to the buyer of the vehicle, provided the seller informs in writing ef such uansier tw the insurance company. A fesh proposal form needs toe filled in. There is nominal fee charged for transfer of insurance along with pro-rata recovery of NCB from che date of transfer till policy expiry. [t may be noted that transfer of ownership in comprehensive/packaze policies has to be recorded within 14 days from date of transfer failing which no claim will be payable for own damages tothe vehicle. Can I continue the insurance in the name of the previous owner even after the vehicle is transferred in RTO records in my name? No. Registration and insurance of the vehicle should always he in the same name with same address. Otherwise the elaim is not payable. A fresh proposal form needs tobe filled in. There is nominal fee charged for tansferofinsurance. Thave lost the insurance policy. Can T get a duplicate one? Yes, please approach the same office, which had issued the policy, with a written request. A nominal fer is charged for issuing duplicate policy copy. ‘What are the documents that are required to, be submitted fora Motor Instirance claim? Generally, the following documents are required to be submitted. However read through your policy to see the complete fist duly filled in claim form, RC copy of the vehicle, Original estimate of loss, Original repair invoice and payment receipt. In case cashless facility is availed, only repair invoice would need 10 be submitted and FIR, ifrequired. For theft claims, the keys are to be submitted. Thefi claims would also require nonetraceable certificate to be submitted.holder Ser 1: Turnaround Times as prescribed by IRDA Tascewng of Diopynal and Commanicaion cf deciions inching requrementsissue cf Tuiey Cancelitens Obvsinin copy the proposal Font Pll tse sevice tequess concering Insta refund of propel depot ama al Now Cla rele Surender solucanniyension pricesing ‘Motus claim Survival Fenefic renal Anetest not pak Rajsing claim requirements afer lagi the Clim DDeoth csi setlemane without Tnvesigition teuitement Death csi settementiepiiton with Investigation seauirement General ct sechingalerslom fepont Settlementiejetion of Cinim after tng fist suevey fepoet ‘Acknowledge a piewance Resolve grievance rea Turn Around Tine Saye 30 dave Waaye Way 1alays 1Sdaye 30 dos 6 mnths Ways days 30 days die 15 days 5. Myouhaveagrievance: The Consumer Affairs Department of the Insorance Regulatory and Development Authority (IRDA) h: texluced the Integrated Grievance Management System (IGMS) which is an online system for registration and tracking of grievances, You must, ropister your grievance first with the insurance company and sn ease you are not satisfied with its disposal hy the company, you may escalate it 10 IRDA, through IGMS by accessing wewigmsirdagoscin. In cease yet are not able to access the insurer's sriey system direetly, [GMS sso provides you a gateway to register ourgrievance with the web), you have several channels for registration through e-mail (complaints irda through fetter (address your letter toConsumer Affairs Department, Insurance Regulatory and Development Authority, 3rd Floor, Parishram Bhavan, Basheerbagh, Hydderabad:4) or simply call IRDA Call Centre at Toll Free 155255 through which IRDA shall, free of cost, register your complaints against insurance companies as well as help track its status. The Call Centre assists by filling up the complaints form on the basis of the call. Wherever requited, i wil feiitate in filing of complaints directly with the insurancep jf Betts companies as the first port of call by giving information relating: to the a ldress, telephone num website details, contact number, e-mail id ete of the insurance company. IRDA Call Centre offers a true alternative channel for prospects and policyholders, with comprehensive tele-functionalities, serving as a 12 hours x 6 days service plattorm from 8 AM to 8 PM, Monday to Saturday in Hindi, English and various Indian lang Se When acomplaint is registered with IRDA, it facilitates resolution by taking it up with the insurance company. The company is given 15 days time to resolve the complaint. If required, IRDA carries out investigations and enquiries, Further, wherever applicable, IRDA advises the complainant to approach the Insurance Ombudsman in terms of the Redressal of Public Grievances Rules, 1998,