| Managing risk properly is indispensable for successful
business. Insurance is an essential tool to protect yourself against
losses that could devastate your business. Various commercial product
lines are aimed at businesses of all kinds and sizes. |
| |
| There several
types of business insurance |
| Fire Insurance |
A fire at a business can devastate a business.
The structure may be damaged beyond repair. Business revenues are
disrupted as the business cannot remain open. It is a risk that must
be insured against.
It is a commercial policy covering building, offices, machinery, contents
and personal belongings of the office. It mitigates the risk of loss
of customers arising from fire breakout. The insured should take all
possible steps to minimize the loss. |
| It also protects your business against fire and
associated perils that might happen due to: |
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Natural calamities,
such as fire, lightning, earthquake, landslide, rockslide, flood,
inundation, storm, tempest, typhoon, hurricane, tornado, or
cyclone |
|
Man-made calamities,
such as domestic gas explosions, overflow and bursting of water
tank or pipes, damage caused by aircrafts, riots, strikes, malicious
or terrorist acts. |
|
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| There are additional risk covers that
provide for: |
|
Terrorism cover |
|
Debris removal
cost |
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Costs to comply
with building regulations following damage |
|
Professional
fees towards architects, surveyors, etc. for superintending
a building during rebuilding |
|
Cost of moving
contents of your home to a temporary residence |
|
Automatic increase
in sum insured for a period of 15 days before and after wedding
of any of your family member |
|
Loss of rent
for landlord |
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Additional rent
expenses for tenant. |
|
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| Calculation of Fire Insurance Amount/Premium: |
| Reinstatement
value |
| Your shop's value is
assessed as per its reinstatement value i.e. only the cost of reconstructing
it completely. For example, if your shop is 1000 sq. ft. and the going
construction rate is Rs.1, 400 per sq. ft., the sum insured for your
shop is Rs. 14, 00,000. |
| |
| Value of the
content of the shop/office |
| The contents in a shop
are assessed on their value at the time of purchasing the shopkeepers'
insurance policy, i.e. the cost of buying a similar new item, after
deducting appropriate depreciation, based on the age of the item.
This valuation includes electrical and mechanical appliances. |
| |
| Cash in safe |
| The amount of cash
is there in the safe. |
| |
| Cash in transit |
| Ideally the amount
of cash in safe should be equal to the cash in transit. |
| |
| Fire Insurance
Claim Procedure |
|
Individuals/corporate must inform insurer as early as possible,
in no case later than 24 hours. |
|
Provide relevant information to the surveyor/claim representative
appointed by the insurer. |
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The surveyor then analyzes the extent/ value of loss or damage. |
|
The
claim process takes anywhere between one to three weeks. |
|
| |
| Documents Required
for Fire Insurance Claim |
|
True
copy of the policy along with schedule. |
|
Report
of fire brigade |
|
Claim
Form |
|
Photographs |
|
Past
claims experience |
|
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| Marine Insurance |
| Marine Insurance covers
the loss or damage of ships, cargo, terminals, and any transport or
property by which cargo is transferred, acquired, or held between
the points of origin and final destination. It is taken to reduce
business risks. Policy does not cover loss or damage due to willful
misconduct, ordinary leakage, improper packing, delay, war, strike,
riot and civil commotion |
| |
| Cover |
| It covers transit of
goods. |
|
By
Sea. (All ocean voyages and inland water ways) |
|
Send
by post or parcels |
|
Bay
rail/road/Air. |
|
| |
| The policy
covers loss/damage to the property insured due to: |
|
Fire
or explosion; stranding, sinking etc. |
|
Overturning,
derailment (of land conveyance) |
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Collision |
|
Discharge of
cargo at port of distress |
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Jettison |
|
General average
sacrifice, salvage charges |
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Earthquake, lightning
|
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Washing overboard
|
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Sea, lake, river
water |
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Total loss of
package lost overboard or dropped in loading or unloading |
|
War and SRCC
is specifically covered |
|
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| Basis of Sum
Insured |
| Marine Insurance policies
are issued on ‘agreed value basis’ and should be based
on invoice and covering incidental expenses. |
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| Different types
of Marine Insurance are available: |
|
Inland
Transport. |
|
Export |
|
Import |
|
| |
| For Inland
transport |
Specific Policy-Covers
a specific single transit.
Open Policy -Covers
transit of regular consignments over the same route .The policy can
be taken for an amount equivalent to three months dispatches and premium
paid in advance. As each consignment is dispatched, a declaration
giving details of the consignment including GR/RR No. is to be sent
to the insurer and the sum insured gets reduced by the amount of the
dispatched consignment.
Special Declaration Policy
Covers inland transit of goods wherein the value of goods
transported during one year exceeds Rs.2 Crores. Premium for the estimated
annual turnover is needed to be paid in advance, attractive discounts
in premium are available.
Multi-transit Policy -
Covers multiple transits of the same consignment including intermediate
storage and processing. For e.g. covering goods from raw material
supplier's warehouse to final distributor's godown of final product. |
| |
| For Import/Export |
| Specific Policy
- Covers a specific import/export consignment. |
| Open CoverCovers
the consignments to be imported or exported during the policy period
of one year .Rates, terms and conditions are agreed upon by the insured
and insurer .A declaration is to be made to the insurance company
as and when a consignment is to be sent along with the premium at
the agreed rate. The insurance co. will then issue a certificate covering
the declared consignment. |
| Custom duty
cover Covers loss of custom duty paid in case goods arrive
in damaged condition. This policy can be taken even if the overseas
transit has been covered by an insurance company abroad, but it has
to be taken before the goods arrive in India. |
| |
| Calculation
of Marine Insurance Amount/Premium: |
| Amount of premium depends
on factors like nature of cargo, scope of cover, packing, mode of
conveyance, distance and past claims experience. Premium can be paid
on a monthly/quarterly/half-yearly/yearly basis. |
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| Marine Insurance
Claim Procedure: |
|
Take immediate
steps to minimize loss. |
|
In case of loss/damage
in transit, a monetary claim should be lodged with the carrier
within the time limit to protect recovery rights. |
|
In case of damage
to goods whilst on ship or port, arrange for joint ship survey
or port survey. |
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Appointment of
surveyor or claim representative in agreement with the insurer
to determine the nature, cause and extent of loss/damage. |
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The surveyor
informs the insurer of the approximate value of loss incurred. |
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The claim procedure
takes from one to three weeks. |
|
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| Documents Required
for Marine Insurance Claim: |
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Original
Invoice & packing List - if forming part of Invoice |
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Document of declaration
of consignment |
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Damage Certificate
from the carrier |
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Bill of Lading
/ AWB/GR |
|
Copies of correspondence
exchanged with carriers. |
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Copy of notice
served on carriers along with acknowledgment/receipt. |
|
Shortage/Damage
Certificate issued by carriers. |
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