Insurance Plan

Life Insurance

  1.  Term Insurance Plan

 The term insurance plan is one of the most sought-after types of life insurance policies in India. This is one of the types of life insurance policy in India that you can buy for a specific period of 10, 20, 30 or more years, hence the name.

While some other types of life insurance policy offer maturity benefits, term insurance does not. It is one reason why term insurance, being the best insurance policy in India, is comparatively cheaper than other types of life insurance schemes.

Term insurance is pure life cover, unlike other types of life insurance policies which have a saving component. You can also opt for a significant life cover at a lower premium as compared to other types of life insurance policy which are costlier but have built-in saving components.

  1. Term Insurance with Return of Premium

A term insurance plan is amongst the types of life insurance policies that provides a death benefit but no maturity benefit.

If you live a healthy lifestyle, the probability that you will outlive the best insurance policy in India you have bought also increases. For you, among the many life insurance types, a term insurance with return of premium is one of the best insurance policy in India, which also give you maturity benefits.

It is one of the types of term insurance plans that give back the premiums you pay on surviving the policy period. Besides, you can easily calculate premium for term insurance using an online term insurance calculator.

When you calculate premium for term insurance, you get a clear understanding about your unique requirements, explore rider options, and also choose your policy term. Doing so helps you ensure that you are investing in the most suitable types of life insurance policies for yourself and your family.

  1. Unit Linked Insurance Plan (ULIP)

 You may face a dilemma in life about choosing between any of the two options – investment or insurance.

A ULIP is one of the types of life insurance policies in India that fulfill both these aspects. Amongst different types of life insurance, it is the one that offers life cover along with investment opportunities. Being one of the types of life insurance, it has a lock-in period of five years, which makes it a long-term investment instrument that comes with risk protection. ULIPs also allow you to balance your funds as per market dynamics.

  1. Endowment Policy

 Endowment policies are one of the types of life insurance policies that provide you with the combined benefit of life insurance and savings. Along with giving you the life cover, these types of life insurance help you save money regularly over a period to get a lump sum at maturity.

What makes them one of the most useful types of life insurance policies is that they help fulfill long-term goals in life. You will also get the maturity amount if you survive the policy tenure.

Endowment policies, being one of the most appropriate types of life insurance plans, also help you create a financial cushion for your family to meet various financial objectives in life.

  1. Moneyback Policy

 The purpose of investing in the insurance policy in India for your loved ones can be to create wealth over an extended period. However, most of the types of life insurance do not provide any provision to get funds before their tenure ends. It is where a moneyback policy plays a vital role in solving the problem of liquidity.

As the name suggests, moneyback policies are one of the popular types of life insurance policies in India that give money back regularly.

It pays a percentage of the assured sum throughout the policy tenure, unlike other types of life insurance plans that offer no returns till maturity.

  1. Whole Life Insurance

As a life insurance policyholder, you get the benefits depending on the types of life insurance policies you have chosen. What distinguishes a whole life insurance plan from other life insurance types is that it provides insurance coverage to the insured for the entire life, up to 100 years of age.

Typically, the death benefit, under a whole life insurance, is payable to the beneficiary in the case of the untimely demise of the policyholder. On the other hand, you are eligible to receive a maturity benefit under a whole life insurance policy if you cross 100 years of age.

Another significant feature of such whole life insurance plans is that some offer the option to pay premium for the first 10-15 years while you get the benefits for the entire life.

  1. Group Life Insurance 

 Just like group health insurance, group life insurance is one of the types of life insurance policies that covers a group of people under one master policy. Such life insurance types are generally provided as part of an employment benefit.

A unique feature of these types of life insurance products is that you will get the insurance cover if you remain a part of the group. It is different from the individual types of life insurance plans in which the coverage continues throughout the chosen policy tenure.

  1. Child Insurance Plans 

 When it comes to life insurance types, a child plan is an investment + insurance plan that helps you meet your child’s financial needs. A child insurance plan will help you create wealth for your child’s future needs like education.

You can start investing in these plans from the birth of your child. You get the flexibility of investing your hard-earned money into several funds on the basis of your financial condition and goals in mind.

  1. Retirement Plans

 Retirement Plans are amongst the types of life insurance policies that provides financial security and help you with wealth creation after your retirement. With Retirement Plan, you will get a sum of money as pension in the vesting period.

In case of your untimely demise during the policy term, your nominee will get the death benefits. Retirement Plans comes with death benefit as well as vesting benefit providing protection to you and your family members.

Health Insurance

  1. Individual Health Insurance

 An Individual Health Insurance is a policy which you may buy to cover you, your spouse, children and parents. This type of insurance policy covers your medical expenses for injury & illnesses related hospitalization, surgery costs, room rent, day-care procedures and more.

Every member covered under the Individual Health Insurance plan will have an Individual Sum Insured. For example, if you take an Individual health policy of 3 lakh’s sum insured covering your spouse, 2 kids and yourself, then each person covered will have an individual sum insured of Rs.3 lakh’s. Though it makes the premium comparatively higher.

Individuals like you who fall in the age bracket of 18 years to 100 years can choose to buy this plan. The best part of buying an Individual Policy is that it offers individual Sum Insured limit for each covered member.

  1. Family Floater Health Insurance

 If you want an affordable health insurance policy for all the members of your family then Family Floater Health Insurance should be your choice.

Under a Family Floater Health Insurance, single Sum Insured floats for all the members covered under the policy. A Family Floater Health Insurance Plan is beneficial because the premium is comparatively lower than the Individual Health Insurance policy. This policy can cover yourself, your spouse, children and parents.

You should not consider adding members of your family who are above 60 years of age. They are more prone to illness and hence it will impact the premium.

If you or the eldest member of your family is below 60 years of age, then you should buy a family floater policy.

  1. Group Health Insurance

 A Group Health Insurance policy is designed for a group of employees working together. So, if you own a start-up or a corporate house, you should buy such plans for your employees. It is a kind of benefit offered to the employees. As an employer, you can buy the cover to boost the rate of employee retention.

Group Health Insurance Plan comes with a low-cost premium. Some insurance companies allow to refill the sum insured, that too, unlimited times, if it is exhausted. A Group Health Insurance Plan covers you for hospitalization due to accident, illness, critical illness, psychiatric illness, and maternity.

Buying a Group Health Insurance policy not only offers coverage to your employees but also enhance the goodwill of your company. A very crucial point here is that the employees are covered only till the time they work with your company.

  1. Senior Citizens Health Insurance

The health insurance policy which is dedicatedly designed for old people above the age of 60 years is called Senior Citizen Health Insurance Plan. If your parents or grandparents are above 60, then this cover is a good choice for you.

A Senior Citizen Policy will offer coverage for cost of medicines, hospitalization arising out of accident or illness, pre and post hospitalization and treatment. Along with these, some other benefits like Domiciliary Hospitalization and Psychiatric benefits are also covered.

Add-ons like “Zone Upgrade” helps to meet the city-wise price escalation for treatment. Other than this, you can also choose to buy alternative treatment (AYUSH) cover as an addition.

Some insurers may ask for a complete body check-up before they sell a Senior Citizen Health Insurance Policy. The maximum entry age limit has been pushed to 70 years of age with lifetime renewability. And, as we know, the senior citizens are more prone to illnesses, these plans are more expensive than other health insurance policies.

  1. Maternity Health Insurance

 A Maternity cover can be bought as a rider along with the basic health insurance plan. All the expenses incurred in the prenatal stage, delivery and post-natal stage are covered.

Newly married couples or families who are planning a baby in the coming years should buy this policy. It covers for child-delivery (including medically necessary terminations), infertility expenses and coverage for the new born baby up to its first 90 days. The Maternity Cover has a minimum waiting period of 2 years.

  1. Critical Illness Insurance

 The occurrence of the lifestyle-related diseases is on the rise. Keeping this in mind, the insurance companies have offered the Critical Illness Policy.

Dedicatedly designed for middle-class families, this health plan covers diseases like:

  • Cancer
  • Stroke
  • Kidney Failure
  • Paralysis
  • Coronary Artery Bypass Surgery
  • First heart attack
  • Pulmonary Arterial Hypertension
  • Multiple Sclerosis
  • Aorta Graft Surgery

Getting treatment for these diseases is an expensive affair. Under the Critical Illness Plan as soon as you are diagnosed with the disease, it will pay you a predefined amount irrespective of the actual cost of treatment incurred.

Nothing can be a smart move than buying a Critical Illness Policy as it prevents any impact on your savings. The policy has lifetime renewability. If you take the Critical Illness Policy, then you should survive for 30 days after diagnosis of the illness.

It will be wise to buy this policy if you have had a family history of some diseases. Other than the lump sum amount, a Critical Illness Policy reimburses you the cost of care and hospitalization expenses. You can also avail the benefit of the complementary health check-ups.

But you should remember that once a claim is filed, then the Sum Insured is released in lump sum. After the release of the Sum Insured, the policy terminates.

  1. Top-Up Health Insurance

You can buy a top-up policy if you seek coverage for higher amounts. But such plans come with a “Deductible Clause”. So, in case of a claim the payment will be made over and above a defined limit mentioned in the policy.

Like if you have taken a cover for 15 lakh’s and it has a deductible of Rs.3 lakh’s, then you will have to bear claim up to Rs.3 lakh’s. The amount over and above this, will be paid by the insurer.

So, if you seek a wider cover over and above your basic health insurance policy, then you can buy this plan.

  1. Daily Cash Allowance Plans

Under the Health Insurance Plans, you also get a Daily Cash Allowance offered by the insurance company. These are daily expenses reimbursed for 30-45 days and are separate from the hospitalization expenses.

  1. Out Patient Department (OPD) COVER

Out Patient Department (OPD) Expenses are usually paid under Pre and Post Hospitalization cover along with Inpatient treatment only. Nowadays, some plans come as exclusively OPD coverage and some plans extend OPD coverage as rider or in built benefit. Premium will be calculated based on the insured’s age, family members, coverage amount and term.

  1. Personal Accident Cover

Personal Accidents Policy covers Accidental Death, Complete Total Disability, Permanent Total Disability (PTD) like loss of entire Hand, Leg and Vision, Permanent Partial Disability (PPD) like loss of fingers, toe, speech and other disabilities, Temporary Total Disability (Period from admission date to date of ready work), Treatment expenses, Ambulance charges, Daily cash allowance for admission period, lump sum benefit for modification of vehicle, home, multi bone fracture, coma, loan repayment, medical policy premium waiver and educational grant, etc.,

Individuals and family members can take retail policies. Companies can take for their employees through Group Personal Accident policies. Coverage amount will be provided based on monthly salary or income. Premium will be calculated based on the insured’s occupational risk class and term.

  1. Overseas Mediclaim Cover

Overseas Mediclaim Policy is mandatory for some foreign countries. It covers Insured Person’s Accidental Death, Disability, Emergency Medical Expenses, loss of passport/baggage, flight delay in departure/arrivals, misconnection, hijack, trip interruption or cancellation due to relative’s demise and third party liability in foreign country.

Businessmen can take multi trip policies and students can take long term policies. Others like Tourists can take a maximum 180 days, but extend after the term. Premium will be calculated based on the insured’s age, pre existing diseases condition and term.

General Insurance:

  • Property Insurance (MOTOR, HOUSE, SHOP, MACHINERY, STOCK)
  • Marine Insurance.
  • Fire Insurance (FIRE, BURGLARY AND NATURAL PERILS)
  • Liability Insurance (PUBLIC LIABILITY, PROFESSIONAL INDEMNITY)
  • Guarantee Insurance

Property Insurance

Motor Insurance Policies

  1. Third Party Car Insurance Policy

As per the Motor Vehicles Act of 2019, it is mandatory to avail a Third-Party Cover. Without it, you will be driving your car unlawfully on the road and would result in a penalty and/or fine. This cover offers coverage against legal liability caused to a third party due to your car or vehicle. In simple terms, Third Party insurance covers injury or death caused to a third person by your vehicle along with damage caused to a property. Here’s one interesting feature of the cover. As per the Motor Vehicles Act, the claimant is not obliged to prove negligence of the driver that was responsible for the accident. As the name suggests, Third Party Insurance only covers third party liabilities. It does not cover damage to your vehicle or theft. Considering the nature of the cover, the premium is also low.

  1. Own Damage Car Insurance Policy

An Own Damage car insurance policy​ helps you stay covered against the damages caused to your car due to accidents like fire, theft, etc.

In case of an accident, an own damage cover compensates you for expense to repair or replace parts of your car damaged in the accident.

This policy covers the cost of damages to your car due to Natural calamities like floods, earthquake, fire and more

Man-made calamities like vandalism, riots and terror attacks

Damage to your car or the belongings in the car in case of an accident

Theft or malicious acts

  1. Comprehensive Car Insurance Policy

​With comprehensive car insurance​, you get the benefits of Third-Party Liability cover along with Own Damage coverage. As the name indicates, it offers in-depth, end-to-end protection for you and your car. The key feature of this insurance is that it covers theft of the car in addition to damage due to a number of reasons. If you have this cover and your car gets stolen, you can breathe easy knowing the fact that it will be covered. Comprehensive insurance covers a number of perils such as vandalism, fire damage, floods, damage due to natural calamities like tornado, wind storm etc, glass breakage (e.g. windshield), damage due to falling object and so on. You can also amplify your protection with add-on covers such as Personal Accident cover, Electrical Appliances cover, Zero Depreciation cover and much more.

Importance of Motor Insurance in India

With the update in the Motor Vehicle Act 2019 it has become even more essential to know about the various aspects that affect you as an owner of a vehicle. Motor insurance is a major aspect that you need to know about.​​​​​​​

Now a days a car has become very much important than a luxury. Going or planning for long-distance travelling, most of the people prefer to travel in the ease and comfort of their cars instead of using other forms of transport. Whenever you buy a car, motor insurance policy is equally valuable & important.

Purchasing a decent policy is becoming a overall responsibility for people everywhere as motor insurance​ policy is actually mandatory in most of the countries. Because of the high premium rates today, many buyers believe that it’s a waste of money. However, motor insurance policy, over the long run-in future, becomes a very important & valuable investment. Motor insurance is becoming necessary for everyone who owns a car no matter how perfect they drive a car or how super driver they are.

Accidents may be caused by anyone, and motor insurance policy helps to ensure that you as well as your car to stay safe. Lots of insurance providers not merely buy insurance policy for destroys & damages to the car but in addition also go for a medical insurance as a part of the policy. In this way, if anything at all happen to you in your vehicle, your insurance policy will take care of all the expenses for that as well. Nowadays an additional advantage to motor insurance is third party liability. Because of this benefit, anyone that gets injured due to any sort of accident he is involved in, it could also be covered under your insurance policy.

The best perfect motor insurance policy is available for you will help you to decide that depending on whatever your needs and requirements are. Due to the vast market of insurances, you can find lots of competitors in the market today, lots of insurance companies provides you with customized insurance policies. If in case more than one person drives the car in your family, he ensures your insurance policy protect them as well. The best motor insurance policy includes damage or loss to your car because of burglary and theft, natural disasters, riots and malicious acts, fire and explosions, etc. A number of motor insurance policies include a feature which is known as the no-claim bonus – this is applicable during the time when you don’t a claim for insurance in quite a long time, so in this case the motor insurance provider will provide you with a discount on your premium rates.

A motor insurance policy has to match the size of your pocket without being a strain on your expenses. With the ideal amount of insurance coverage and exclusions, your insurance policy is going to be effective for your vehicle and situation. Even though if you are planning to purchase motor insurance policy for your child’s car, it’s advisable to purchase it on your own name, as younger drivers get extra expensive insurance rates. Many insurance companies in India include loyalty discounts, therefore if you’ve bought some other insurance policy from them, they may give you a price reduction or discount on your motor insurance premium.

Add On Covers for Your Car Insurance Policy

We have so many additional covers to increase the vehicle’s safety:​

  1. Nil Depreciation Cover: We can opt this cover with a little additional premium to protect additional depreciation charges at the time of claim.
  2. NCB Retention Cover: We can opt this cover to protect our No Claim Bonus even after claim in running policy.
  3. Total Cover: We can get insured our additional cost of vehicle, this cover allow benefit to get reimbursement of the amount spent on Registration Cost, Road Tax and Insurance at the time of Total Loss, Constructive Total Loss or Theft Claims.
  4. Engine Protector Cover: An engine is the heart and soul of your car. The Engine add-on cover offers compensation for expenses incurred while fixing the indirect damage done by water ingression or leakage of lubricating oil leading to loss or damage
  5. Consumables Cover​​: Sometimes, a bunch of seemingly insignificant expenses can create a big dent in your pocket. All expenses incurred on consumable items are covered in case they are damaged due to perils covered our policy. Consumable items such as nuts and bolts, screws, washers, grease, lubricants, clips, AC gas, bearings, distilled water, engine oil, oil filter, fuel filter and break oil are covered. ​

Motor insurance policy is available for people in each of the avenues of life. Whatever your age, which model car you have or what number of people you want to cover, you will get a policy that well suited for you. With the wide variety in the insurance business today, it’s very simple to find a motor insurance policy that is customized to meet your requirement. Buying a comprehensive car insurance policy is very important for all vehicle owners today – Buy one perfect & best suited motor insurance policy and stay protected.​​

 Why Buy Property Insurance           

 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.

What Property Insurance to Buy

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.

Fire Insurance

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, go downs 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.

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).

Burglary Insurance

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

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?

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

Dos and Don’ts for Property Insurance

Property Insurance: Some Dos and Don’ts

A fire or burglary in your home is enough to devastate you. A fire insurance policy protects you from all this and more. Doing all the right things while buying your policy goes a long way in assuring your peace of mind and also giving you the right protection at the time of need.

Here are some Dos and Don’ts for buying Property insurance

Dos

When you buy a property insurance policy you should:

  • Know you can insure only property you own
  • Be sure you have the documents to prove ownership and value at the time of a claim
  • Give a complete and correct description, address and location of the property to be covered
  • Ask the intermediary or insurer to give information and explain the basis of fixing the Sum Insured. It can be
    • Market Value basis where depreciation is taken into account or
    • Reinstatement Value basis where the cost of replacement of the property is taken into account. This is the basis on which the claim is paid.
    • Information regarding add-ons; choose them as per your needs

Don’ts

  • Don’t allow anyone else to fill your proposal form
  • Don’t conceal or misstate any facts about the property and its fixtures
  • Don’t miss declare the value of your property and face disputes at the time of a claim

General Advice for Property Insurance

When you decide to buy an insurance policy:

  • Check if the company selling the policy is registered with IRDAI
  • Make sure you buy the policy through a genuine licensed agent or broker. Ask for an identity card or license
  • You can also buy policies from the company directly
  • Read the policy brochure/ prospectus carefully and get to know what the policy covers and does not cover

Mobile Insurance

The concept of mobile insurance is rather recent and not many smartphone owners are aware of it, or willing to purchase it. Theft of smartphones has become a very common occurrence, making it all the more important for owners to insure their devices. For higher end smartphones, this protection is even more important as they are very lucrative targets for theft.

Over the past few years, the smartphone industry has undergone massive changes. From being an item of luxury, smartphones have now become a necessity, aiding us in almost everything that we do. When first introduced, smartphones offered very basic features. However, the smartphones being rolled out now are equipped to allow you to manage your entire personal and professional life on one single device. Beyond the functionality they offer, smartphones have become a status elevator in terms of spending abilities and style.

As opposed to previous years, customers are now spending more than ever on smartphones, the cost of which can easily go up to a lakh. Just like any other article of value, a smartphone too, is at a potential risk of being stolen. Beside theft, being an electronic gadget, smartphones are very prone to hardware or software damage or failure which may occur due to an accident, drop, water spillage, screen crack, or a variety of other reasons. Considering all that, it is only wise for you to get your smartphone insured, to help protect in case of any internal or external damage which may be caused to the device.

Mobile Insurance Covers:

Mobile insurance policies provide protection against a variety of perils and damages to the phone. Given that smartphones are electronic devices, they could be prone to software failure which can often render the device useless. Besides internal damage, external damage can also occur due to various reasons. Listed below are some of risks and damages which are commonly covered under mobile insurance policies.

  • Damage to the internal parts workings of the phone due to water spillage.
  • Hardware Failure like malfunctioning touchscreen, faulty earphone jack or charging port problem.
  • Damage due to fire.
  • Damage occurring due to riot, strike, terrorist activities.
  • Damage caused due to malicious intent.
  • Screen cracks.
  • Loss of device due to theft, house break-in, burglary.
  • Loss of device from a securely locked vehicle or building.
  • Damage to the interior or exterior components of the device.

Mobile Insurance Exclusions:

Some of the common exclusions under mobile insurance policies are listed below. The coverage is not valid:

  • If the phone has gone missing mysteriously.
  • If the phone is stolen from an unattended building or vehicle. Theft of the mobile phone from vehicles that are left unattended.
  • If any damage occurs or the phone is lost during the period when it was being used by a third party, other than the owner of the phone.
  • If the phone suffers a mechanical or electronic breakdown.
  • If the device has been overloaded or experimented with under any abnormal conditions.
  • If any damage was caused due to routine wear and tear of the device.
  • If any damage occurs due to change in climatic/atmospheric conditions.
  • If the damage was due to any wilful or malicious act caused by the owner of the insured device.
  • Any defects or damage that has been caused during the process of repairing or cleaning the device.

List of companies Providing Mobile Insurance:

  1. AppsDaily – AppsDaily offers anti-theft protection for mobile phones through its app. The app also supports 14 other features that include cloud scan, call management, battery optimizer, etc.
  2. OneAssist – OneAssist is a one-stop-shop platform that provides insurance protection for items of daily use, such as mobile phones and tablets, wallets, laptops, and home appliances. The company provides cashless repair services using spare parts that are 100% original. Free doorstep pickup and drop services are other benefits of getting insured with OneAssist.
  3. SyncNScan – SyncNScan offers insurance protection for your mobile device to safeguard it from theft and damages by violent means. The system automatically backs up data and restores it when needed. Tracking and deleting viruses/spam messages and finding/locking the lost phone are other features of the app.
  4. OnsiteGo – OnsiteGo enables you to protect your electronic devices in a hassle-free and transparent manner. The company’s one flagship product protects your devices even after the manufacturer’s warranty has expired. The coverage under the mobile insurance plan includes physical or liquid damage as well.
  5. Times Global Insurance – The insurance solutions provided by the company include coverage for liquid damage, screen damages, theft of the device, malfunctioning, display/camera issue, accidental damage, or breakdown. There is no need for elaborate documentation for the insurance purchase. No Claim Bonus facility is offered to customers who do not raise any claims in a year.

Jewellery Insurance

 Jewellery Insurance Overview:

Precious Jewellery needs to be protected both for monetary and emotional purposes. The most common and traditional way to safeguard precious Jewellery are bank lockers. Jewellery insurance is another way to protect your Jewellery. Although you can avail this type of insurance along with a home insurance policy, there are some standalone Jewellery insurance products in the market as well. If taking a home insurance policy, you can choose to go for contents cover that includes valuables and Jewellery protection.

Benefits of Jewellery Insurance:

Having a lot of Jewellery locked up at home is not really a safe option anymore. It is very important to shield the Jewellery you own as it has many benefits:

Jewellery comes to rescue when you are faced with a misfortune and are in sudden dire need of funds.

Having an insurance on the Jewellery saves you from the trouble of opening a locker with the bank.

Bank lockers are not fully safe and there is always a certain amount of risk associated with it.

Jewellery Insurance Covers:

Jeweller Insurance covers theft of jewellery, accidental loss, burglary or damage to jewellery kept in some fixed bank lockers. Some insurance policies offer protection to jewellery worn in person as well. Typically, there is a sub-limit on the jewellery to be insured. However, some policies provide a separate all-risk cover for valuables and jewellery where you can choose a suitable sum assured.

Process of Applying for Jewellery Insurance:

The following factors play an important role in applying for jewellery insurance:

Valuation – While applying for jewellery insurance, you are required to present a list of items that will be covered along with their valuation. Valuation certificates of the jewellery can be attained from a reputed jeweller as it may be required for items of high-value.

Cost Factor – Premium towards jewellery insurance depends on the total sum assured. However, you can always try to avail discounts from the insurance company.

Filing a Claim – In case of loss of the insured jewellery, you must file a claim with the insurance company. The claim form needs to be filed along with the details of the loss and valuation of the jewellery. You are also required to provide a report from the fire department in case of fire and an FIR in case of theft of jewellery. It is also advisable to keep a copy of the insurance policy.

All-risk Cover – The insurance should be an ‘all risk cover’ which provides protection against fire, burglary and other perils. Some covers are 100% insured, while some are on a ‘first-loss limits’ basis, which implies a portion of the jewellery’s value is insured. The insurance company determines the maximum probable value that can be lost in as single incident. This value is termed as the first loss sum insured.

Exclusions:

Jewellery insurance cover excludes loss of jewellery or damage during war, terrorist attack or riot. The cover also excludes any damage to jewellery caused by a wilful act by the proposer, his or her domestic staff, family member or disappearance of items. Insurance companies also do not cover for any loss of jewellery owing to a theft or burglary from a home left unoccupied for 30 days continuously.

Money Insurance

 Money Insurance Overview:

An insurance on your money may sound conceited, but big businessmen often have large sums of money either in their house safes or in transit. You may be carrying huge sums of money to the bank, post office, office or any other place where the money is needed. There is always a fear of robbery or theft during such a conveyance and burglary at homes, as you may have read in the local newspaper several times. It is at such times that you might want to buy a money insurance or cash insurance to protect your hard-earned money.

Benefits Of Money Insurance:

You may need to insure your cash in the following circumstances:

  • Suppose you are carrying cash from your bank to the factory to distribute wages to the workers. If your vehicle is waylaid and you are robbed of the money, you will have no way to get back your earnings except through an insurance payment. The police may or may not find the culprits and get your money back, but an insurance is a surer way to retrieve at least a part of your money.
  • You may be robbed when you are carrying cash from your home or office to the bank or any financial institution for safe depositing. Money insurance ensures that you get your money back through insurance claim.
  • If you have money stored in your home safe overnight or over a bank holiday, and your house is burgled, then money insurance will be helpful in getting back the amount.
  • If you are a banking institution and you are carrying cash to deposit in an ATM, you could be robbed. Cash insurance protects you against this loss.
  • The premium amounts are affordable and justifiable as protection to your cash.

The sum assured will depend on 3 main points:

  1. Maximum liability of a company for a loss (single carrying limit)
  2. Approximate amount that may be in transit during a year
  3. The actual amount in transit/safe

The cash amount insured should, of course, be legitimate and declared with the Income Tax Department for you to avail a money insurance. The insurance policy has to be renewed at least once a year.

Money Insurance Covers:

Money insurance protects your cash equivalents such as:

  • Cash
  • Bank Drafts
  • Currency Notes
  • Treasury Notes
  • Cheques
  • Postal Orders
  • Current Postage Stamps

The money is protected in the following circumstances, against events such as robbery, burglary, theft, hold-up, kidnapping or other unexpected circumstances:

  1. Cash or cash equivalent in transit
  2. Money in safe deposits in banks or on your home premises

The policy can be extended at a higher premium to include risks from fraud, infidelity of employees, terrorism, disbursement risks, and foreign currency coverage. You can also get extra protection for assault on the authorized cash-carrying person during the theft or robbery, leading to death or disability of the person.

Money Insurance Exclusions:

The following reasons for loss of cash are usually not considered for payout claims by most insurance companies in India, unless any specific event is covered under the terms of the policy:

  • Shortage in cash due to error or omission
  • Losses due to the fraud/dishonesty of the employee entrusted with the money
  • Losses covered by other policies
  • Loss or damage due to riot, strike, civil commotion
  • Loss or damage due to flood, cyclone, earthquake and other natural disasters, and wars and terrorism
  • Loss or damage due to misplaced or duplicated keys to a safe that held the cash, unless it is a case of robbery where the keys were forcefully taken
  • Loss because the money was given to an unauthorized person or a carrier/courier
  • Loss when the person insured or an employee is either the principal or accessory, unless the dishonesty is discovered within 2 days
  • Loss when the money was being carried under contract of affreightment
  • If the money was kept at home or office premises 48 hours after being withdrawn from a bank
  • Loss when the money was not kept in a safe or strong-room
  • Loss due to legal liability
  • Inexplicable disappearance of money
  • Theft from an unsecured vehicle

Liability Insurance

What is Liability Insurance?

Businesses could incur several unintentional liabilities, even if the business tries hard not to. For instance, even an accidental harm or injury caused to a customer might land the company or a professional in a lawsuit, costing millions. Fortunately, there are various liability insurance products available in the market to help one overcome financial loss due to such situations.

Types of Liability Insurance

A liability insurance is an amalgamation of various types of insurance. Each type is according to the industry and the requirement of that business. Some of the most popular types of liability insurance are:

  • Product Liability Insurance: A product liability insurance policy protects you against customer claims arising due to accidents caused by your product’s performance. For example, a cell phone customer may sue the manufacturer of the phone if it explodes while charging or if it injures the customer in anyway. Such lawsuits can cost the company millions in the absence of a proper product liability insurance. Packaged food companies may also face claims related to health and wellness damage due to food consumption.
  • Professional Liability Insurance: This liability insurance covers you from financial and legal costs associated with claims made against you or your company due to lapses in the performance of professional services. A professional liability insurance can come in handy if you face liabilities due to such damage.
  • Public Liability Insurance: Public liability insurance protects you from claims made against your company, products or employees which might have harmed general public. In India, it is mandatory for business operating in hazardous areas to enroll into a public liability insurance as per the Public Liability Insurance Act, 1991. For other businesses, it is not mandatory, but is highly recommended.
  • Third Party Liability Insurance: A third party liability insurance is mandatory when you buy a new vehicle. You are not allowed to drive the vehicle unless you have a third-party liability insurance. Any human injury or property damage caused to a third party by your vehicle is covered under this insurance.
  • Employers’ Liability Insurance or Workmen’s Compensation Insurance: The employers’ liability insurance covers the owner or management of the company against claims by the employees. Employees may claim compensation for any kind of losses or injuries caused due to the organizational environment or infrastructure. For instance, a worker may get injured due to the chemicals he works with in a factory, or an employee might suffer from food poisoning due to the canteen food. Such unexpected situations might require you, as a business owner, to compensate the employees for such damage. Under such circumstances, employers’ liability insurance can indemnify your employees against any such unfortunate events and save you from hefty financial outgoes and legal hassles.

What is all Liability Insurance Covers?

For product liability, it covers the following:

  • Death, injury or accidental damage to the property, in case of any problem in the product manufactured by the insured

For public liability, it covers the following:

  • The plan compensates claims due to accidents, injury and damage taking place on your premises in connection to your business

For professional liability, it covers:

  • Various categories of professions like doctors and lawyers
  • Liabilities falling on them due to any omission or mistake done by them while offering the service

For employers’ liability insurance, it covers the following:

  • Death or injury or occupational disease taking place during the course of the employment

How Liability Insurance Functions

Before deciding to buy a liability insurance, you should be aware about how it works.

  • Evaluate the kind of business you deal with and the type of liability insurance you are eligible for
  • Evaluate the types of risks you can face in your business and the losses you will have to bear in case of any untoward incident
  • The above two points will help in deciding the premium amount
  • Compare the companies and policies well by reading the documents and policies
  • Opt for the policy that gives the best deal
  • Fill in the proposal form and submit the required documents
  • In case a claim is needed, fill in the claim form and supplement it with the needed documents
  • Once the scrutiny is done, the insurance company will either approve or reject the claim
  • In case the insured is not satisfied, he/she can approach the court of law

Eligibility Criteria

Let us look at various sections that should go for a liability insurance policy in order to lead a happy life and carry on peacefully with their businesses:

  • Manufacturing companies because there is a high risk of the general public getting harmed due to organizational operations
  • Places like schools, hospitals, BPOs, IT firms, etc. can consider availing public liability insurance with non-industrial risks
  • Professionals like medical practitioners, chartered accountants, lawyers, consultants, architects, designers, etc.
  • Business whose product is consumed or exposed to the public at large

Liability Insurance Claim Process

In case any business or organization needs to make a claim under liability insurance, you can follow the below mentioned steps:

  • Read your policy documents to understand whether you can be compensated and, if yes, then how can it be done
  • Inform the provider about the problem either by calling them, mailing them or visiting the nearest branch office
  • Report the concern or the issue to the authority concerned, for instance the police in case of a theft or death. You need to submit this report to the insurance company along with the claim form and other required documents
  •  Arrange for the evidence
  • A supervisor appointed by the provider will scrutinize the case and accordingly will give a nod or a rejection for it. He/she will also decide the compensation amount accordingly
  • Don’t forget to follow up regularly to know the status of your claim

Documents Required for Claim Process

In order to make claims under various types of liability insurance, you should know what documents to submit. Let us look at them:

  •  Dully filled in claim form
  • Copies of necessary reports, depending on the case, such as an FIR report or other reports needed from the hospital, fire department or civic authority
  • Details of the business
  • Photographs of the loss and its witness
  • Photo copies of required licenses, certifications and permits
  • Surveyor report

Cases Where You Can’t Claim Liability Insurance (Exclusions)

  • Intentional damage
  • Lacking contractual obligations. For example, the company might reject the claim for damage due to fire, if you have not kept fire extinguishers in your factory, which is mandatory as per the law.
  • Injuries caused due to mental loss, loss of reputation, defamation and other similar matters
  • Costs due to recall of any product
  • Liability due to pollution
  • Illegal personal profit
  • Dishonest acts

  Important Aspects

Before purchasing the liability insurance, you should be aware of all the aspects related to each type of insurance so that you get the best deal for your business. Let us look at some points:

  • The premium is based on risk perception and past data available with the insurance company
  • Your business turnover is also an important factor in considering the sum insured and the premium payable. The history of your business and past claims may also influence the premium payable for your liability insurance
  • Under public liability insurance, an extra payment can help in getting pollution and contamination coverage and transportation coverage

Advantages of Buying Liability Insurance

A liability insurance is a must for businesses that deal with public in some way or the other. Let us look at some of the advantages of buying a liability insurance

  • It covers any accidental injuries caused to the insured
  • Covers damage caused to another person or property
  • Protects the insured from any wrongful activity
  • Helps minimize risks

FAQs

Q1. Is it mandatory for me to avail a liability insurance if I have a small business?

Unless the nature of your business involves a hazardous environment according to the Environment Protection Act of 1986, availing a liability insurance is not mandatory. But it definitely is recommended.

Q2. Why do I need a liability insurance if I am practicing medicine?

As a doctor, patients might claim compensation from you for any kind of harm that might have been accidentally caused to them as a result of your treatment. A professional liability insurance in this scenario would aid you financially.

Q3. How much will I have to spend every year if I purchase a liability insurance?

The premiums that you pay can be set by you based on the insurance provider that you choose and the kind of cover you require. Generally, the amount you pay in premiums would be much lower than the amount you would end up paying for such liabilities.

Fidelity Bond Insurance

Fidelity Guarantee Insurance Overview:

Leading insurance companies offer an innovative product called fidelity bond/guarantee insurance. This type of insurance is basically a contract of insurance and guarantee. The standard principles of general insurance is not applicable to fidelity bond/guarantee insurance, and this makes the product really unique.

Though it is impossible for fidelity guarantee insurance to ensure that every employee in the organization is completely honest yet it does compensate the organization for any financial loss incurred as a result of dishonest activities conducted by employees. Please note that the organization will be compensated for the financial loss undergone, only within the stipulated limits (as stated in the policy wordings) of the insurance policy.

Benefits of Fidelity Bond Insurance:

As this insurance protects organizations from any financial loss suffered as a result of acts of dishonesty conducted by an employee, it is of utmost importance for every company to but this policy. The benefits of holding a called fidelity bond/guarantee insurance policy have been stated below –

  • As an organization which employs different kinds of people, nobody can take guarantee that they will be completely honest throughout their employment tenure. It is pretty common for certain employees to indulge in acts of dishonesty and forgery and harm the company in turn. This insurance policy safeguards the company from financial losses arising due to forgery, money misappropriation (defalcation), embezzlement, and other dishonest acts by employees. These situations usually arise due to misuse of the employment capacity by cashiers, accountants, etc.
  • Fidelity guarantee insurance assures that as an organization your hierarchy is maintained and your employees are weary of performing any malpractices.
  • It protects the reputation, standing and employee reputation and the employer.
  • It ensures absolute transparency in accounts checking and standard supervision within the organization.

Fidelity Insurance covers:

As per this insurance policy the insurer covers the insured organization against a pecuniary loss (only if it is direct) due to acts of fraud/dishonesty conducted by any employee, under the following situations –

  • You will be entitled for coverage on and after the day the insurance policy commences.
  • Coverage shall also be provided during unhindered service with the organization, and its discovery during the existence of the policy. This is also valid within a year/12 calendar months of the policy expiration.
  • In case of demise, termination or retirement of the employee with 12 calendar months of such an event; whichever event occurs earlier.
  • Depending on the requirement of this cover being applicable to a single employee or a group of employees there are three types of plans, namely individual policy, collective policy, and floating policy.

Fidelity Guarantee Insurance Policy Exclusions:

  • The called fidelity bond/guarantee insurance doesn’t provide coverage for –
  • There is no coverage for any consequential loss, unlike a pecuniary loss.
  • If the loss incurred is not in terms of finances or goods of the organization, then it isn’t covered.
  • The act of dishonesty by the employee should be committed during the tenure of the specified duties.
  • If an employee under the policy had quit the organization earlier, but was re-employed again, any loss resulting out of this act will not be covered (if the consent of the insurer hasn’t been obtained before reappointing him).
  • If the loss has been incurred due to wrong/bad accounting process, and not as an act of dishonesty; it is not covered.

Types of Fidelity Guarantee Insurance:

  • Individual Policy – This policy provides coverage to an individual for a stipulated amount.
  • Collective Policy – This policy provides coverage to a group of employees. It depends on the organization to place the guarantee amount on each employee (depending on their position and job roles).
  • Blanket Policy – Sometimes an organization buys the policy not by naming individuals to be guaranteed, but on the basis of groups/categories/teams. It could usually be accounts team, store-keeping team, clerical team, etc.
  • Floater Policy – Only one amount is depicted in the policy. This is representative of the Insurer’s liability. This is valid in context to one person and also total liabilities of the entire set of guaranteed employees. The minimum number of guaranteed individuals required to avail this policy is 5.

The limit for each employee can be either fixed independently or together in a group. In either case, the compensation for any loss incurred will be provided only up to the stipulated limit as mentioned in the policy contract. The higher the limit (depending on the need), the better it is for the organization and the employees.

Fidelity Insurance Claims Process:

To settle a fidelity bond/guarantee insurance claim, the organization must inform the insurance company immediately about any act of fraud conducted by any employee. It should immediately suspend/default/take disciplinary action against the employee depending on the situation. The ‘act of infidelity’ must be furnished with every possible proof, indicating the same. If the loss incurred has come into light only during the time of stock-taking, or due to some security failure, the insurance company is not liable for the same. To settle the claim, you must provide a “proof of loss” to the insurance company stating the amount of recovery.

A forensic audit must be done, and the cost of paying these auditors is also included the cover. These auditors shall verify and approve the amount lost by the insured. Please note, that coverage is not provided to the policyholder’s overhead and in-house expenses.

It is a universally known fact that such high profile frauds are extremely complicated, and that is the reason the policyholder is required to furnish the insurance company with so much proof. It is the policyholder’s responsibility to ensure investigation, forensic audit, accounts tallying, flawless documentation, and other proofs substantiating the claim of financial loss.

Hence, to settle a fidelity bond/guarantee insurance claim without any hassle, an organization must be adept at the following –

  • Investigation
  • Interrogation
  • Documentation
  • Proof of Loss
  • Law Enforcement Liaison
  • Forensic Accounting

REAL ESTATE

Like all investments, real estate involves risks – and the expected returns on investment usually vary commensurately with the riskiness of a particular project. Here, we review some of the more basic risks involved with all kinds of investments. Risk is the possibility of suffering adverse consequences.

Real estate investing can be lucrative, but it’s important to understand the risks. Key risks include bad locations, negative cash flow, high vacancies, and problem tenants. Other risks to consider are the lack of liquidity, hidden structural problems, and the unpredictable nature of the real estate market.

Insurance Plan

Life Insurance

  1.  Term Insurance Plan

 The term insurance plan is one of the most sought-after types of life insurance policies in India. This is one of the types of life insurance policy in India that you can buy for a specific period of 10, 20, 30 or more years, hence the name.

While some other types of life insurance policy offer maturity benefits, term insurance does not. It is one reason why term insurance, being the best insurance policy in India, is comparatively cheaper than other types of life insurance schemes.

Term insurance is pure life cover, unlike other types of life insurance policies which have a saving component. You can also opt for a significant life cover at a lower premium as compared to other types of life insurance policy which are costlier but have built-in saving components.

  1. Term Insurance with Return of Premium

A term insurance plan is amongst the types of life insurance policies that provides a death benefit but no maturity benefit.

If you live a healthy lifestyle, the probability that you will outlive the best insurance policy in India you have bought also increases. For you, among the many life insurance types, a term insurance with return of premium is one of the best insurance policy in India, which also give you maturity benefits.

It is one of the types of term insurance plans that give back the premiums you pay on surviving the policy period. Besides, you can easily calculate premium for term insurance using an online term insurance calculator.

When you calculate premium for term insurance, you get a clear understanding about your unique requirements, explore rider options, and also choose your policy term. Doing so helps you ensure that you are investing in the most suitable types of life insurance policies for yourself and your family.

  1. Unit Linked Insurance Plan (ULIP)

 You may face a dilemma in life about choosing between any of the two options – investment or insurance.

A ULIP is one of the types of life insurance policies in India that fulfill both these aspects. Amongst different types of life insurance, it is the one that offers life cover along with investment opportunities. Being one of the types of life insurance, it has a lock-in period of five years, which makes it a long-term investment instrument that comes with risk protection. ULIPs also allow you to balance your funds as per market dynamics.

  1. Endowment Policy

 Endowment policies are one of the types of life insurance policies that provide you with the combined benefit of life insurance and savings. Along with giving you the life cover, these types of life insurance help you save money regularly over a period to get a lump sum at maturity.

What makes them one of the most useful types of life insurance policies is that they help fulfill long-term goals in life. You will also get the maturity amount if you survive the policy tenure.

Endowment policies, being one of the most appropriate types of life insurance plans, also help you create a financial cushion for your family to meet various financial objectives in life.

  1. Moneyback Policy

 The purpose of investing in the insurance policy in India for your loved ones can be to create wealth over an extended period. However, most of the types of life insurance do not provide any provision to get funds before their tenure ends. It is where a moneyback policy plays a vital role in solving the problem of liquidity.

As the name suggests, moneyback policies are one of the popular types of life insurance policies in India that give money back regularly.

It pays a percentage of the assured sum throughout the policy tenure, unlike other types of life insurance plans that offer no returns till maturity.

  1. Whole Life Insurance

As a life insurance policyholder, you get the benefits depending on the types of life insurance policies you have chosen. What distinguishes a whole life insurance plan from other life insurance types is that it provides insurance coverage to the insured for the entire life, up to 100 years of age.

Typically, the death benefit, under a whole life insurance, is payable to the beneficiary in the case of the untimely demise of the policyholder. On the other hand, you are eligible to receive a maturity benefit under a whole life insurance policy if you cross 100 years of age.

Another significant feature of such whole life insurance plans is that some offer the option to pay premium for the first 10-15 years while you get the benefits for the entire life.

  1. Group Life Insurance 

 Just like group health insurance, group life insurance is one of the types of life insurance policies that covers a group of people under one master policy. Such life insurance types are generally provided as part of an employment benefit.

A unique feature of these types of life insurance products is that you will get the insurance cover if you remain a part of the group. It is different from the individual types of life insurance plans in which the coverage continues throughout the chosen policy tenure.

  1. Child Insurance Plans 

 When it comes to life insurance types, a child plan is an investment + insurance plan that helps you meet your child’s financial needs. A child insurance plan will help you create wealth for your child’s future needs like education.

You can start investing in these plans from the birth of your child. You get the flexibility of investing your hard-earned money into several funds on the basis of your financial condition and goals in mind.

  1. Retirement Plans

 Retirement Plans are amongst the types of life insurance policies that provides financial security and help you with wealth creation after your retirement. With Retirement Plan, you will get a sum of money as pension in the vesting period.

In case of your untimely demise during the policy term, your nominee will get the death benefits. Retirement Plans comes with death benefit as well as vesting benefit providing protection to you and your family members.

Health Insurance

  1. Individual Health Insurance

 An Individual Health Insurance is a policy which you may buy to cover you, your spouse, children and parents. This type of insurance policy covers your medical expenses for injury & illnesses related hospitalization, surgery costs, room rent, day-care procedures and more.

Every member covered under the Individual Health Insurance plan will have an Individual Sum Insured. For example, if you take an Individual health policy of 3 lakh’s sum insured covering your spouse, 2 kids and yourself, then each person covered will have an individual sum insured of Rs.3 lakh’s. Though it makes the premium comparatively higher.

Individuals like you who fall in the age bracket of 18 years to 100 years can choose to buy this plan. The best part of buying an Individual Policy is that it offers individual Sum Insured limit for each covered member.

  1. Family Floater Health Insurance

 If you want an affordable health insurance policy for all the members of your family then Family Floater Health Insurance should be your choice.

Under a Family Floater Health Insurance, single Sum Insured floats for all the members covered under the policy. A Family Floater Health Insurance Plan is beneficial because the premium is comparatively lower than the Individual Health Insurance policy. This policy can cover yourself, your spouse, children and parents.

You should not consider adding members of your family who are above 60 years of age. They are more prone to illness and hence it will impact the premium.

If you or the eldest member of your family is below 60 years of age, then you should buy a family floater policy.

  1. Group Health Insurance

 A Group Health Insurance policy is designed for a group of employees working together. So, if you own a start-up or a corporate house, you should buy such plans for your employees. It is a kind of benefit offered to the employees. As an employer, you can buy the cover to boost the rate of employee retention.

Group Health Insurance Plan comes with a low-cost premium. Some insurance companies allow to refill the sum insured, that too, unlimited times, if it is exhausted. A Group Health Insurance Plan covers you for hospitalization due to accident, illness, critical illness, psychiatric illness, and maternity.

Buying a Group Health Insurance policy not only offers coverage to your employees but also enhance the goodwill of your company. A very crucial point here is that the employees are covered only till the time they work with your company.

  1. Senior Citizens Health Insurance

The health insurance policy which is dedicatedly designed for old people above the age of 60 years is called Senior Citizen Health Insurance Plan. If your parents or grandparents are above 60, then this cover is a good choice for you.

A Senior Citizen Policy will offer coverage for cost of medicines, hospitalization arising out of accident or illness, pre and post hospitalization and treatment. Along with these, some other benefits like Domiciliary Hospitalization and Psychiatric benefits are also covered.

Add-ons like “Zone Upgrade” helps to meet the city-wise price escalation for treatment. Other than this, you can also choose to buy alternative treatment (AYUSH) cover as an addition.

Some insurers may ask for a complete body check-up before they sell a Senior Citizen Health Insurance Policy. The maximum entry age limit has been pushed to 70 years of age with lifetime renewability. And, as we know, the senior citizens are more prone to illnesses, these plans are more expensive than other health insurance policies.

  1. Maternity Health Insurance

 A Maternity cover can be bought as a rider along with the basic health insurance plan. All the expenses incurred in the prenatal stage, delivery and post-natal stage are covered.

Newly married couples or families who are planning a baby in the coming years should buy this policy. It covers for child-delivery (including medically necessary terminations), infertility expenses and coverage for the new born baby up to its first 90 days. The Maternity Cover has a minimum waiting period of 2 years.

  1. Critical Illness Insurance

 The occurrence of the lifestyle-related diseases is on the rise. Keeping this in mind, the insurance companies have offered the Critical Illness Policy.

Dedicatedly designed for middle-class families, this health plan covers diseases like:

  • Cancer
  • Stroke
  • Kidney Failure
  • Paralysis
  • Coronary Artery Bypass Surgery
  • First heart attack
  • Pulmonary Arterial Hypertension
  • Multiple Sclerosis
  • Aorta Graft Surgery

Getting treatment for these diseases is an expensive affair. Under the Critical Illness Plan as soon as you are diagnosed with the disease, it will pay you a predefined amount irrespective of the actual cost of treatment incurred.

Nothing can be a smart move than buying a Critical Illness Policy as it prevents any impact on your savings. The policy has lifetime renewability. If you take the Critical Illness Policy, then you should survive for 30 days after diagnosis of the illness.

It will be wise to buy this policy if you have had a family history of some diseases. Other than the lump sum amount, a Critical Illness Policy reimburses you the cost of care and hospitalization expenses. You can also avail the benefit of the complementary health check-ups.

But you should remember that once a claim is filed, then the Sum Insured is released in lump sum. After the release of the Sum Insured, the policy terminates.

  1. Top-Up Health Insurance

You can buy a top-up policy if you seek coverage for higher amounts. But such plans come with a “Deductible Clause”. So, in case of a claim the payment will be made over and above a defined limit mentioned in the policy.

Like if you have taken a cover for 15 lakh’s and it has a deductible of Rs.3 lakh’s, then you will have to bear claim up to Rs.3 lakh’s. The amount over and above this, will be paid by the insurer.

So, if you seek a wider cover over and above your basic health insurance policy, then you can buy this plan.

  1. Daily Cash Allowance Plans

Under the Health Insurance Plans, you also get a Daily Cash Allowance offered by the insurance company. These are daily expenses reimbursed for 30-45 days and are separate from the hospitalization expenses.

  1. Out Patient Department (OPD) COVER

Out Patient Department (OPD) Expenses are usually paid under Pre and Post Hospitalization cover along with Inpatient treatment only. Nowadays, some plans come as exclusively OPD coverage and some plans extend OPD coverage as rider or in built benefit. Premium will be calculated based on the insured’s age, family members, coverage amount and term.

  1. Personal Accident Cover

Personal Accidents Policy covers Accidental Death, Complete Total Disability, Permanent Total Disability (PTD) like loss of entire Hand, Leg and Vision, Permanent Partial Disability (PPD) like loss of fingers, toe, speech and other disabilities, Temporary Total Disability (Period from admission date to date of ready work), Treatment expenses, Ambulance charges, Daily cash allowance for admission period, lump sum benefit for modification of vehicle, home, multi bone fracture, coma, loan repayment, medical policy premium waiver and educational grant, etc.,

Individuals and family members can take retail policies. Companies can take for their employees through Group Personal Accident policies. Coverage amount will be provided based on monthly salary or income. Premium will be calculated based on the insured’s occupational risk class and term.

  1. Overseas Mediclaim Cover

Overseas Mediclaim Policy is mandatory for some foreign countries. It covers Insured Person’s Accidental Death, Disability, Emergency Medical Expenses, loss of passport/baggage, flight delay in departure/arrivals, misconnection, hijack, trip interruption or cancellation due to relative’s demise and third party liability in foreign country.

Businessmen can take multi trip policies and students can take long term policies. Others like Tourists can take a maximum 180 days, but extend after the term. Premium will be calculated based on the insured’s age, pre existing diseases condition and term.

General Insurance:

  • Property Insurance (MOTOR, HOUSE, SHOP, MACHINERY, STOCK)
  • Marine Insurance.
  • Fire Insurance (FIRE, BURGLARY AND NATURAL PERILS)
  • Liability Insurance (PUBLIC LIABILITY, PROFESSIONAL INDEMNITY)
  • Guarantee Insurance

Property Insurance

Motor Insurance Policies

  1. Third Party Car Insurance Policy

As per the Motor Vehicles Act of 2019, it is mandatory to avail a Third-Party Cover. Without it, you will be driving your car unlawfully on the road and would result in a penalty and/or fine. This cover offers coverage against legal liability caused to a third party due to your car or vehicle. In simple terms, Third Party insurance covers injury or death caused to a third person by your vehicle along with damage caused to a property. Here’s one interesting feature of the cover. As per the Motor Vehicles Act, the claimant is not obliged to prove negligence of the driver that was responsible for the accident. As the name suggests, Third Party Insurance only covers third party liabilities. It does not cover damage to your vehicle or theft. Considering the nature of the cover, the premium is also low.

  1. Own Damage Car Insurance Policy

An Own Damage car insurance policy​ helps you stay covered against the damages caused to your car due to accidents like fire, theft, etc.

In case of an accident, an own damage cover compensates you for expense to repair or replace parts of your car damaged in the accident.

This policy covers the cost of damages to your car due to Natural calamities like floods, earthquake, fire and more

Man-made calamities like vandalism, riots and terror attacks

Damage to your car or the belongings in the car in case of an accident

Theft or malicious acts

  1. Comprehensive Car Insurance Policy

​With comprehensive car insurance​, you get the benefits of Third-Party Liability cover along with Own Damage coverage. As the name indicates, it offers in-depth, end-to-end protection for you and your car. The key feature of this insurance is that it covers theft of the car in addition to damage due to a number of reasons. If you have this cover and your car gets stolen, you can breathe easy knowing the fact that it will be covered. Comprehensive insurance covers a number of perils such as vandalism, fire damage, floods, damage due to natural calamities like tornado, wind storm etc, glass breakage (e.g. windshield), damage due to falling object and so on. You can also amplify your protection with add-on covers such as Personal Accident cover, Electrical Appliances cover, Zero Depreciation cover and much more.

Importance of Motor Insurance in India

With the update in the Motor Vehicle Act 2019 it has become even more essential to know about the various aspects that affect you as an owner of a vehicle. Motor insurance is a major aspect that you need to know about.​​​​​​​

Now a days a car has become very much important than a luxury. Going or planning for long-distance travelling, most of the people prefer to travel in the ease and comfort of their cars instead of using other forms of transport. Whenever you buy a car, motor insurance policy is equally valuable & important.

Purchasing a decent policy is becoming a overall responsibility for people everywhere as motor insurance​ policy is actually mandatory in most of the countries. Because of the high premium rates today, many buyers believe that it’s a waste of money. However, motor insurance policy, over the long run-in future, becomes a very important & valuable investment. Motor insurance is becoming necessary for everyone who owns a car no matter how perfect they drive a car or how super driver they are.

Accidents may be caused by anyone, and motor insurance policy helps to ensure that you as well as your car to stay safe. Lots of insurance providers not merely buy insurance policy for destroys & damages to the car but in addition also go for a medical insurance as a part of the policy. In this way, if anything at all happen to you in your vehicle, your insurance policy will take care of all the expenses for that as well. Nowadays an additional advantage to motor insurance is third party liability. Because of this benefit, anyone that gets injured due to any sort of accident he is involved in, it could also be covered under your insurance policy.

The best perfect motor insurance policy is available for you will help you to decide that depending on whatever your needs and requirements are. Due to the vast market of insurances, you can find lots of competitors in the market today, lots of insurance companies provides you with customized insurance policies. If in case more than one person drives the car in your family, he ensures your insurance policy protect them as well. The best motor insurance policy includes damage or loss to your car because of burglary and theft, natural disasters, riots and malicious acts, fire and explosions, etc. A number of motor insurance policies include a feature which is known as the no-claim bonus – this is applicable during the time when you don’t a claim for insurance in quite a long time, so in this case the motor insurance provider will provide you with a discount on your premium rates.

A motor insurance policy has to match the size of your pocket without being a strain on your expenses. With the ideal amount of insurance coverage and exclusions, your insurance policy is going to be effective for your vehicle and situation. Even though if you are planning to purchase motor insurance policy for your child’s car, it’s advisable to purchase it on your own name, as younger drivers get extra expensive insurance rates. Many insurance companies in India include loyalty discounts, therefore if you’ve bought some other insurance policy from them, they may give you a price reduction or discount on your motor insurance premium.

Add On Covers for Your Car Insurance Policy

We have so many additional covers to increase the vehicle’s safety:​

  1. Nil Depreciation Cover: We can opt this cover with a little additional premium to protect additional depreciation charges at the time of claim.
  2. NCB Retention Cover: We can opt this cover to protect our No Claim Bonus even after claim in running policy.
  3. Total Cover: We can get insured our additional cost of vehicle, this cover allow benefit to get reimbursement of the amount spent on Registration Cost, Road Tax and Insurance at the time of Total Loss, Constructive Total Loss or Theft Claims.
  4. Engine Protector Cover: An engine is the heart and soul of your car. The Engine add-on cover offers compensation for expenses incurred while fixing the indirect damage done by water ingression or leakage of lubricating oil leading to loss or damage
  5. Consumables Cover​​: Sometimes, a bunch of seemingly insignificant expenses can create a big dent in your pocket. All expenses incurred on consumable items are covered in case they are damaged due to perils covered our policy. Consumable items such as nuts and bolts, screws, washers, grease, lubricants, clips, AC gas, bearings, distilled water, engine oil, oil filter, fuel filter and break oil are covered. ​

Motor insurance policy is available for people in each of the avenues of life. Whatever your age, which model car you have or what number of people you want to cover, you will get a policy that well suited for you. With the wide variety in the insurance business today, it’s very simple to find a motor insurance policy that is customized to meet your requirement. Buying a comprehensive car insurance policy is very important for all vehicle owners today – Buy one perfect & best suited motor insurance policy and stay protected.​​

 Why Buy Property Insurance           

 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.

What Property Insurance to Buy

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.

Fire Insurance

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, go downs 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.

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).

Burglary Insurance

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

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?

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

Dos and Don’ts for Property Insurance

Property Insurance: Some Dos and Don’ts

A fire or burglary in your home is enough to devastate you. A fire insurance policy protects you from all this and more. Doing all the right things while buying your policy goes a long way in assuring your peace of mind and also giving you the right protection at the time of need.

Here are some Dos and Don’ts for buying Property insurance

Dos

When you buy a property insurance policy you should:

  • Know you can insure only property you own
  • Be sure you have the documents to prove ownership and value at the time of a claim
  • Give a complete and correct description, address and location of the property to be covered
  • Ask the intermediary or insurer to give information and explain the basis of fixing the Sum Insured. It can be
    • Market Value basis where depreciation is taken into account or
    • Reinstatement Value basis where the cost of replacement of the property is taken into account. This is the basis on which the claim is paid.
    • Information regarding add-ons; choose them as per your needs

Don’ts

  • Don’t allow anyone else to fill your proposal form
  • Don’t conceal or misstate any facts about the property and its fixtures
  • Don’t miss declare the value of your property and face disputes at the time of a claim

General Advice for Property Insurance

When you decide to buy an insurance policy:

  • Check if the company selling the policy is registered with IRDAI
  • Make sure you buy the policy through a genuine licensed agent or broker. Ask for an identity card or license
  • You can also buy policies from the company directly
  • Read the policy brochure/ prospectus carefully and get to know what the policy covers and does not cover

Mobile Insurance

The concept of mobile insurance is rather recent and not many smartphone owners are aware of it, or willing to purchase it. Theft of smartphones has become a very common occurrence, making it all the more important for owners to insure their devices. For higher end smartphones, this protection is even more important as they are very lucrative targets for theft.

Over the past few years, the smartphone industry has undergone massive changes. From being an item of luxury, smartphones have now become a necessity, aiding us in almost everything that we do. When first introduced, smartphones offered very basic features. However, the smartphones being rolled out now are equipped to allow you to manage your entire personal and professional life on one single device. Beyond the functionality they offer, smartphones have become a status elevator in terms of spending abilities and style.

As opposed to previous years, customers are now spending more than ever on smartphones, the cost of which can easily go up to a lakh. Just like any other article of value, a smartphone too, is at a potential risk of being stolen. Beside theft, being an electronic gadget, smartphones are very prone to hardware or software damage or failure which may occur due to an accident, drop, water spillage, screen crack, or a variety of other reasons. Considering all that, it is only wise for you to get your smartphone insured, to help protect in case of any internal or external damage which may be caused to the device.

Mobile Insurance Covers:

Mobile insurance policies provide protection against a variety of perils and damages to the phone. Given that smartphones are electronic devices, they could be prone to software failure which can often render the device useless. Besides internal damage, external damage can also occur due to various reasons. Listed below are some of risks and damages which are commonly covered under mobile insurance policies.

  • Damage to the internal parts workings of the phone due to water spillage.
  • Hardware Failure like malfunctioning touchscreen, faulty earphone jack or charging port problem.
  • Damage due to fire.
  • Damage occurring due to riot, strike, terrorist activities.
  • Damage caused due to malicious intent.
  • Screen cracks.
  • Loss of device due to theft, house break-in, burglary.
  • Loss of device from a securely locked vehicle or building.
  • Damage to the interior or exterior components of the device.

Mobile Insurance Exclusions:

Some of the common exclusions under mobile insurance policies are listed below. The coverage is not valid:

  • If the phone has gone missing mysteriously.
  • If the phone is stolen from an unattended building or vehicle. Theft of the mobile phone from vehicles that are left unattended.
  • If any damage occurs or the phone is lost during the period when it was being used by a third party, other than the owner of the phone.
  • If the phone suffers a mechanical or electronic breakdown.
  • If the device has been overloaded or experimented with under any abnormal conditions.
  • If any damage was caused due to routine wear and tear of the device.
  • If any damage occurs due to change in climatic/atmospheric conditions.
  • If the damage was due to any wilful or malicious act caused by the owner of the insured device.
  • Any defects or damage that has been caused during the process of repairing or cleaning the device.

List of companies Providing Mobile Insurance:

  1. AppsDaily – AppsDaily offers anti-theft protection for mobile phones through its app. The app also supports 14 other features that include cloud scan, call management, battery optimizer, etc.
  2. OneAssist – OneAssist is a one-stop-shop platform that provides insurance protection for items of daily use, such as mobile phones and tablets, wallets, laptops, and home appliances. The company provides cashless repair services using spare parts that are 100% original. Free doorstep pickup and drop services are other benefits of getting insured with OneAssist.
  3. SyncNScan – SyncNScan offers insurance protection for your mobile device to safeguard it from theft and damages by violent means. The system automatically backs up data and restores it when needed. Tracking and deleting viruses/spam messages and finding/locking the lost phone are other features of the app.
  4. OnsiteGo – OnsiteGo enables you to protect your electronic devices in a hassle-free and transparent manner. The company’s one flagship product protects your devices even after the manufacturer’s warranty has expired. The coverage under the mobile insurance plan includes physical or liquid damage as well.
  5. Times Global Insurance – The insurance solutions provided by the company include coverage for liquid damage, screen damages, theft of the device, malfunctioning, display/camera issue, accidental damage, or breakdown. There is no need for elaborate documentation for the insurance purchase. No Claim Bonus facility is offered to customers who do not raise any claims in a year.

Jewellery Insurance

 Jewellery Insurance Overview:

Precious Jewellery needs to be protected both for monetary and emotional purposes. The most common and traditional way to safeguard precious Jewellery are bank lockers. Jewellery insurance is another way to protect your Jewellery. Although you can avail this type of insurance along with a home insurance policy, there are some standalone Jewellery insurance products in the market as well. If taking a home insurance policy, you can choose to go for contents cover that includes valuables and Jewellery protection.

Benefits of Jewellery Insurance:

Having a lot of Jewellery locked up at home is not really a safe option anymore. It is very important to shield the Jewellery you own as it has many benefits:

Jewellery comes to rescue when you are faced with a misfortune and are in sudden dire need of funds.

Having an insurance on the Jewellery saves you from the trouble of opening a locker with the bank.

Bank lockers are not fully safe and there is always a certain amount of risk associated with it.

Jewellery Insurance Covers:

Jeweller Insurance covers theft of jewellery, accidental loss, burglary or damage to jewellery kept in some fixed bank lockers. Some insurance policies offer protection to jewellery worn in person as well. Typically, there is a sub-limit on the jewellery to be insured. However, some policies provide a separate all-risk cover for valuables and jewellery where you can choose a suitable sum assured.

Process of Applying for Jewellery Insurance:

The following factors play an important role in applying for jewellery insurance:

Valuation – While applying for jewellery insurance, you are required to present a list of items that will be covered along with their valuation. Valuation certificates of the jewellery can be attained from a reputed jeweller as it may be required for items of high-value.

Cost Factor – Premium towards jewellery insurance depends on the total sum assured. However, you can always try to avail discounts from the insurance company.

Filing a Claim – In case of loss of the insured jewellery, you must file a claim with the insurance company. The claim form needs to be filed along with the details of the loss and valuation of the jewellery. You are also required to provide a report from the fire department in case of fire and an FIR in case of theft of jewellery. It is also advisable to keep a copy of the insurance policy.

All-risk Cover – The insurance should be an ‘all risk cover’ which provides protection against fire, burglary and other perils. Some covers are 100% insured, while some are on a ‘first-loss limits’ basis, which implies a portion of the jewellery’s value is insured. The insurance company determines the maximum probable value that can be lost in as single incident. This value is termed as the first loss sum insured.

Exclusions:

Jewellery insurance cover excludes loss of jewellery or damage during war, terrorist attack or riot. The cover also excludes any damage to jewellery caused by a wilful act by the proposer, his or her domestic staff, family member or disappearance of items. Insurance companies also do not cover for any loss of jewellery owing to a theft or burglary from a home left unoccupied for 30 days continuously.

Money Insurance

 Money Insurance Overview:

An insurance on your money may sound conceited, but big businessmen often have large sums of money either in their house safes or in transit. You may be carrying huge sums of money to the bank, post office, office or any other place where the money is needed. There is always a fear of robbery or theft during such a conveyance and burglary at homes, as you may have read in the local newspaper several times. It is at such times that you might want to buy a money insurance or cash insurance to protect your hard-earned money.

Benefits Of Money Insurance:

You may need to insure your cash in the following circumstances:

  • Suppose you are carrying cash from your bank to the factory to distribute wages to the workers. If your vehicle is waylaid and you are robbed of the money, you will have no way to get back your earnings except through an insurance payment. The police may or may not find the culprits and get your money back, but an insurance is a surer way to retrieve at least a part of your money.
  • You may be robbed when you are carrying cash from your home or office to the bank or any financial institution for safe depositing. Money insurance ensures that you get your money back through insurance claim.
  • If you have money stored in your home safe overnight or over a bank holiday, and your house is burgled, then money insurance will be helpful in getting back the amount.
  • If you are a banking institution and you are carrying cash to deposit in an ATM, you could be robbed. Cash insurance protects you against this loss.
  • The premium amounts are affordable and justifiable as protection to your cash.

The sum assured will depend on 3 main points:

  1. Maximum liability of a company for a loss (single carrying limit)
  2. Approximate amount that may be in transit during a year
  3. The actual amount in transit/safe

The cash amount insured should, of course, be legitimate and declared with the Income Tax Department for you to avail a money insurance. The insurance policy has to be renewed at least once a year.

Money Insurance Covers:

Money insurance protects your cash equivalents such as:

  • Cash
  • Bank Drafts
  • Currency Notes
  • Treasury Notes
  • Cheques
  • Postal Orders
  • Current Postage Stamps

The money is protected in the following circumstances, against events such as robbery, burglary, theft, hold-up, kidnapping or other unexpected circumstances:

  1. Cash or cash equivalent in transit
  2. Money in safe deposits in banks or on your home premises

The policy can be extended at a higher premium to include risks from fraud, infidelity of employees, terrorism, disbursement risks, and foreign currency coverage. You can also get extra protection for assault on the authorized cash-carrying person during the theft or robbery, leading to death or disability of the person.

Money Insurance Exclusions:

The following reasons for loss of cash are usually not considered for payout claims by most insurance companies in India, unless any specific event is covered under the terms of the policy:

  • Shortage in cash due to error or omission
  • Losses due to the fraud/dishonesty of the employee entrusted with the money
  • Losses covered by other policies
  • Loss or damage due to riot, strike, civil commotion
  • Loss or damage due to flood, cyclone, earthquake and other natural disasters, and wars and terrorism
  • Loss or damage due to misplaced or duplicated keys to a safe that held the cash, unless it is a case of robbery where the keys were forcefully taken
  • Loss because the money was given to an unauthorized person or a carrier/courier
  • Loss when the person insured or an employee is either the principal or accessory, unless the dishonesty is discovered within 2 days
  • Loss when the money was being carried under contract of affreightment
  • If the money was kept at home or office premises 48 hours after being withdrawn from a bank
  • Loss when the money was not kept in a safe or strong-room
  • Loss due to legal liability
  • Inexplicable disappearance of money
  • Theft from an unsecured vehicle

Liability Insurance

What is Liability Insurance?

Businesses could incur several unintentional liabilities, even if the business tries hard not to. For instance, even an accidental harm or injury caused to a customer might land the company or a professional in a lawsuit, costing millions. Fortunately, there are various liability insurance products available in the market to help one overcome financial loss due to such situations.

Types of Liability Insurance

A liability insurance is an amalgamation of various types of insurance. Each type is according to the industry and the requirement of that business. Some of the most popular types of liability insurance are:

  • Product Liability Insurance: A product liability insurance policy protects you against customer claims arising due to accidents caused by your product’s performance. For example, a cell phone customer may sue the manufacturer of the phone if it explodes while charging or if it injures the customer in anyway. Such lawsuits can cost the company millions in the absence of a proper product liability insurance. Packaged food companies may also face claims related to health and wellness damage due to food consumption.
  • Professional Liability Insurance: This liability insurance covers you from financial and legal costs associated with claims made against you or your company due to lapses in the performance of professional services. A professional liability insurance can come in handy if you face liabilities due to such damage.
  • Public Liability Insurance: Public liability insurance protects you from claims made against your company, products or employees which might have harmed general public. In India, it is mandatory for business operating in hazardous areas to enroll into a public liability insurance as per the Public Liability Insurance Act, 1991. For other businesses, it is not mandatory, but is highly recommended.
  • Third Party Liability Insurance: A third party liability insurance is mandatory when you buy a new vehicle. You are not allowed to drive the vehicle unless you have a third-party liability insurance. Any human injury or property damage caused to a third party by your vehicle is covered under this insurance.
  • Employers’ Liability Insurance or Workmen’s Compensation Insurance: The employers’ liability insurance covers the owner or management of the company against claims by the employees. Employees may claim compensation for any kind of losses or injuries caused due to the organizational environment or infrastructure. For instance, a worker may get injured due to the chemicals he works with in a factory, or an employee might suffer from food poisoning due to the canteen food. Such unexpected situations might require you, as a business owner, to compensate the employees for such damage. Under such circumstances, employers’ liability insurance can indemnify your employees against any such unfortunate events and save you from hefty financial outgoes and legal hassles.

What is all Liability Insurance Covers?

For product liability, it covers the following:

  • Death, injury or accidental damage to the property, in case of any problem in the product manufactured by the insured

For public liability, it covers the following:

  • The plan compensates claims due to accidents, injury and damage taking place on your premises in connection to your business

For professional liability, it covers:

  • Various categories of professions like doctors and lawyers
  • Liabilities falling on them due to any omission or mistake done by them while offering the service

For employers’ liability insurance, it covers the following:

  • Death or injury or occupational disease taking place during the course of the employment

How Liability Insurance Functions

Before deciding to buy a liability insurance, you should be aware about how it works.

  • Evaluate the kind of business you deal with and the type of liability insurance you are eligible for
  • Evaluate the types of risks you can face in your business and the losses you will have to bear in case of any untoward incident
  • The above two points will help in deciding the premium amount
  • Compare the companies and policies well by reading the documents and policies
  • Opt for the policy that gives the best deal
  • Fill in the proposal form and submit the required documents
  • In case a claim is needed, fill in the claim form and supplement it with the needed documents
  • Once the scrutiny is done, the insurance company will either approve or reject the claim
  • In case the insured is not satisfied, he/she can approach the court of law

Eligibility Criteria

Let us look at various sections that should go for a liability insurance policy in order to lead a happy life and carry on peacefully with their businesses:

  • Manufacturing companies because there is a high risk of the general public getting harmed due to organizational operations
  • Places like schools, hospitals, BPOs, IT firms, etc. can consider availing public liability insurance with non-industrial risks
  • Professionals like medical practitioners, chartered accountants, lawyers, consultants, architects, designers, etc.
  • Business whose product is consumed or exposed to the public at large

Liability Insurance Claim Process

In case any business or organization needs to make a claim under liability insurance, you can follow the below mentioned steps:

  • Read your policy documents to understand whether you can be compensated and, if yes, then how can it be done
  • Inform the provider about the problem either by calling them, mailing them or visiting the nearest branch office
  • Report the concern or the issue to the authority concerned, for instance the police in case of a theft or death. You need to submit this report to the insurance company along with the claim form and other required documents
  •  Arrange for the evidence
  • A supervisor appointed by the provider will scrutinize the case and accordingly will give a nod or a rejection for it. He/she will also decide the compensation amount accordingly
  • Don’t forget to follow up regularly to know the status of your claim

Documents Required for Claim Process

In order to make claims under various types of liability insurance, you should know what documents to submit. Let us look at them:

  •  Dully filled in claim form
  • Copies of necessary reports, depending on the case, such as an FIR report or other reports needed from the hospital, fire department or civic authority
  • Details of the business
  • Photographs of the loss and its witness
  • Photo copies of required licenses, certifications and permits
  • Surveyor report

Cases Where You Can’t Claim Liability Insurance (Exclusions)

  • Intentional damage
  • Lacking contractual obligations. For example, the company might reject the claim for damage due to fire, if you have not kept fire extinguishers in your factory, which is mandatory as per the law.
  • Injuries caused due to mental loss, loss of reputation, defamation and other similar matters
  • Costs due to recall of any product
  • Liability due to pollution
  • Illegal personal profit
  • Dishonest acts

  Important Aspects

Before purchasing the liability insurance, you should be aware of all the aspects related to each type of insurance so that you get the best deal for your business. Let us look at some points:

  • The premium is based on risk perception and past data available with the insurance company
  • Your business turnover is also an important factor in considering the sum insured and the premium payable. The history of your business and past claims may also influence the premium payable for your liability insurance
  • Under public liability insurance, an extra payment can help in getting pollution and contamination coverage and transportation coverage

Advantages of Buying Liability Insurance

A liability insurance is a must for businesses that deal with public in some way or the other. Let us look at some of the advantages of buying a liability insurance

  • It covers any accidental injuries caused to the insured
  • Covers damage caused to another person or property
  • Protects the insured from any wrongful activity
  • Helps minimize risks

FAQs

Q1. Is it mandatory for me to avail a liability insurance if I have a small business?

Unless the nature of your business involves a hazardous environment according to the Environment Protection Act of 1986, availing a liability insurance is not mandatory. But it definitely is recommended.

Q2. Why do I need a liability insurance if I am practicing medicine?

As a doctor, patients might claim compensation from you for any kind of harm that might have been accidentally caused to them as a result of your treatment. A professional liability insurance in this scenario would aid you financially.

Q3. How much will I have to spend every year if I purchase a liability insurance?

The premiums that you pay can be set by you based on the insurance provider that you choose and the kind of cover you require. Generally, the amount you pay in premiums would be much lower than the amount you would end up paying for such liabilities.

Fidelity Bond Insurance

Fidelity Guarantee Insurance Overview:

Leading insurance companies offer an innovative product called fidelity bond/guarantee insurance. This type of insurance is basically a contract of insurance and guarantee. The standard principles of general insurance is not applicable to fidelity bond/guarantee insurance, and this makes the product really unique.

Though it is impossible for fidelity guarantee insurance to ensure that every employee in the organization is completely honest yet it does compensate the organization for any financial loss incurred as a result of dishonest activities conducted by employees. Please note that the organization will be compensated for the financial loss undergone, only within the stipulated limits (as stated in the policy wordings) of the insurance policy.

Benefits of Fidelity Bond Insurance:

As this insurance protects organizations from any financial loss suffered as a result of acts of dishonesty conducted by an employee, it is of utmost importance for every company to but this policy. The benefits of holding a called fidelity bond/guarantee insurance policy have been stated below –

  • As an organization which employs different kinds of people, nobody can take guarantee that they will be completely honest throughout their employment tenure. It is pretty common for certain employees to indulge in acts of dishonesty and forgery and harm the company in turn. This insurance policy safeguards the company from financial losses arising due to forgery, money misappropriation (defalcation), embezzlement, and other dishonest acts by employees. These situations usually arise due to misuse of the employment capacity by cashiers, accountants, etc.
  • Fidelity guarantee insurance assures that as an organization your hierarchy is maintained and your employees are weary of performing any malpractices.
  • It protects the reputation, standing and employee reputation and the employer.
  • It ensures absolute transparency in accounts checking and standard supervision within the organization.

Fidelity Insurance covers:

As per this insurance policy the insurer covers the insured organization against a pecuniary loss (only if it is direct) due to acts of fraud/dishonesty conducted by any employee, under the following situations –

  • You will be entitled for coverage on and after the day the insurance policy commences.
  • Coverage shall also be provided during unhindered service with the organization, and its discovery during the existence of the policy. This is also valid within a year/12 calendar months of the policy expiration.
  • In case of demise, termination or retirement of the employee with 12 calendar months of such an event; whichever event occurs earlier.
  • Depending on the requirement of this cover being applicable to a single employee or a group of employees there are three types of plans, namely individual policy, collective policy, and floating policy.

Fidelity Guarantee Insurance Policy Exclusions:

  • The called fidelity bond/guarantee insurance doesn’t provide coverage for –
  • There is no coverage for any consequential loss, unlike a pecuniary loss.
  • If the loss incurred is not in terms of finances or goods of the organization, then it isn’t covered.
  • The act of dishonesty by the employee should be committed during the tenure of the specified duties.
  • If an employee under the policy had quit the organization earlier, but was re-employed again, any loss resulting out of this act will not be covered (if the consent of the insurer hasn’t been obtained before reappointing him).
  • If the loss has been incurred due to wrong/bad accounting process, and not as an act of dishonesty; it is not covered.

Types of Fidelity Guarantee Insurance:

  • Individual Policy – This policy provides coverage to an individual for a stipulated amount.
  • Collective Policy – This policy provides coverage to a group of employees. It depends on the organization to place the guarantee amount on each employee (depending on their position and job roles).
  • Blanket Policy – Sometimes an organization buys the policy not by naming individuals to be guaranteed, but on the basis of groups/categories/teams. It could usually be accounts team, store-keeping team, clerical team, etc.
  • Floater Policy – Only one amount is depicted in the policy. This is representative of the Insurer’s liability. This is valid in context to one person and also total liabilities of the entire set of guaranteed employees. The minimum number of guaranteed individuals required to avail this policy is 5.

The limit for each employee can be either fixed independently or together in a group. In either case, the compensation for any loss incurred will be provided only up to the stipulated limit as mentioned in the policy contract. The higher the limit (depending on the need), the better it is for the organization and the employees.

Fidelity Insurance Claims Process:

To settle a fidelity bond/guarantee insurance claim, the organization must inform the insurance company immediately about any act of fraud conducted by any employee. It should immediately suspend/default/take disciplinary action against the employee depending on the situation. The ‘act of infidelity’ must be furnished with every possible proof, indicating the same. If the loss incurred has come into light only during the time of stock-taking, or due to some security failure, the insurance company is not liable for the same. To settle the claim, you must provide a “proof of loss” to the insurance company stating the amount of recovery.

A forensic audit must be done, and the cost of paying these auditors is also included the cover. These auditors shall verify and approve the amount lost by the insured. Please note, that coverage is not provided to the policyholder’s overhead and in-house expenses.

It is a universally known fact that such high profile frauds are extremely complicated, and that is the reason the policyholder is required to furnish the insurance company with so much proof. It is the policyholder’s responsibility to ensure investigation, forensic audit, accounts tallying, flawless documentation, and other proofs substantiating the claim of financial loss.

Hence, to settle a fidelity bond/guarantee insurance claim without any hassle, an organization must be adept at the following –

  • Investigation
  • Interrogation
  • Documentation
  • Proof of Loss
  • Law Enforcement Liaison
  • Forensic Accounting

REAL ESTATE

Like all investments, real estate involves risks – and the expected returns on investment usually vary commensurately with the riskiness of a particular project. Here, we review some of the more basic risks involved with all kinds of investments. Risk is the possibility of suffering adverse consequences.

Real estate investing can be lucrative, but it’s important to understand the risks. Key risks include bad locations, negative cash flow, high vacancies, and problem tenants. Other risks to consider are the lack of liquidity, hidden structural problems, and the unpredictable nature of the real estate market.

Copyright © Twins Consultancy all rights reserved. DISCLAIMER : The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Twins Consultancy Group is not liable for any decision arising out of the use of this information.