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INTRODUCTION OF INSURANCE

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalization) Act,

1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and

other related Acts. With such a large population and the untapped market area of

this population Insurance happens to be a very big opportunity in India. Today it

stands as a business growing at the rate of 15-20 per cent annually. Together with

banking services, it adds about 7 per cent to the country’s GDP .In spite of all this

growth the statistics of the penetration of the insurance in the country is very poor.

Nearly 80% of Indian populations are without Life insurance cover and the Health

insurance. This is an indicator that growth potential for the insurance sector is

immense in India. It was due to this immense growth that the regulations were

introduced in the insurance sector and in continuation “Malhotra Committee” was

constituted by the government in 1993 to examine the various aspects of the

industry. The key element of the reform process was Participation of overseas

insurance companies with 26% capital. Creating a more efficient and competitive

financial system suitable for the requirements of the economy was the main idea

behind this reform. Since then the insurance industry has gone through many sea

changes. The competition LIC started facing from these companies were

threatening to the existence of LIC .since the liberalization of the industry the

insurance industry has never looked back and today stand as the one of the most

competitive and exploring industry in India. The entry of the private players and

the increased use of the new distribution are in the limelight today. The use of new

distribution techniques and the IT tools has increased the scope of the industry in

the longer run.

HISTORY OF INSURANCE SECTOR

India had the nineteenth largest insurance market in the world in 2003. Strong

economic growth in the last decade combined with a population of over one billion

makes it one of the potentially largest markets in the future. Insurance in India has

gone through two radical transformations. Before 1956, insurance was private with

minimal government intervention. In 1956, life insurance was nationalized and a

monopoly was created. In 1972, general insurance was nationalized as well.255 But,

unlike life insurance, a different structure was created for the industry. One holding

company was formed with four subsidiaries. As a part of the general opening up of

the economy after 1992, a government-appointed committee recommended that

private companies should be allowed to operate. It took six years to implement the

recommendation. The private sector was allowed into the insurance business in

2000. However, foreign ownership was restricted. No more than 26 percent of any

company can be foreign-owned.

The term general insurance is used in Britain and other Commonwealth countries.

Elsewhere, the equivalent term is property-casualty insurance or non-life

insurance.ndian Insurance Market – History

Insurance has a long history in India. Life Insurance in its current form was

introduced in 1818 when Oriental Life Insurance Company began its operations in

India. General Insurance was however a comparatively late entrant in 1850 when

Triton Insurance company set up its base in Kolkata. History of Insurance in India

can be broadly bifurcated into three eras: a) Pre Nationalisation b) Nationalisation

and c) Post Nationalisation. Life Insurance was the first to be nationalized in 1956.

Life Insurance Corporation of India was formed by consolidating the operations of

various insurance companies. General Insurance followed suit and was

nationalized in 1973. General Insurance Corporation of India was set up as the

controlling body with New India, United India, National and Oriental as its

subsidiaries. The process of opening up the insurance sector was initiated against

the background of Economic Reform process which commenced from 1991. For

this purpose Malhotra Committee was formed during this year who submitted their

report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in

1999. Resultantly Indian Insurance was opened for private companies and Private

Insurance Company effectively started operations from 2001.

Insurance Market- Present

The insurance sector was opened up for private participation four years ago. For

years now, the private players are active in the liberalized environment. The

insurance market have witnessed dynamic changes which includes presence of a

fairly large number of insurers both life and non-life segment. Most of the private

insurance companies have formed joint venture partnering well recognized foreign

players across the globe.

There are now 29 insurance companies operating in the Indian market – 14 private

life insurers, nine private non-life insurers and six public sector companies. With

many more joint ventures in the offing, the insurance industry in India today stands

at a crossroads as competition intensifies and companies prepare survival strategies

in a detariffed scenario.

There is pressure from both within the country and outside on the Government to

increase the foreign direct investment (FDI) limit from the current 26% to 49%,

which would help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed.

Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has

issued the first licence for a standalone health company in the country as many

more players wait to enter. The health insurance sector has tremendous growth

potential, and as it matures and new players enter, product innovation and

enhancement will increase. The deepening of the health database over time will

also allow players to develop and price products for larger segments of society.

State Insurers Continue To Dominate There may be room for many more players in

a large underinsured market like India with a population of over one billion. But

the reality is that the intense competition in the last five years has made it difficult

for new entrants to keep pace with the leaders and thereby failing to make any

impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and

over 26.53% of the non-life market, the public sector companies still call the shots.

The country’s largest life insurer, Life Insurance Corporation of India (LIC), had a

share of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers – New India Assurance, National

Insurance, Oriental Insurance and United India Insurance – had a combined market

share of 73.47% as of October 2005. ICICI Prudential Life Insurance Company

continues to lead the private sector with a 7.26% market share in terms of fresh

premium, whereas ICICI Lombard General Insurance Company is the leader

among the private non-life players with a 8.11% market share. ICICI Lombard has

focused on growing the market for general insurance products and increasing

penetration within existing customers through product innovation and distribution.

Reaching Out To Customers No doubt, the customer profile in the insurance

industry is changing with the introduction of large number of divergent

intermediaries such as brokers, corporate agents, and bancassurance.

The industry now deals with customers who know what they want and when, and

are more demanding in terms of better service and speedier responses. With the

industry all set to move to a detariffed regime by 2007, there will be considerable

improvement in customer service levels, product innovation and newer standards

of underwriting.

Intense Competition In a de-tariffed environment, competition will manifest itself

in prices, products, underwriting criteria, innovative sales methods and

creditworthiness. Insurance companies will vie with each other to capture market

share through better pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the next few years,

increased competition will drive insurers to rural and semi-urban markets.

Global Standards While the world is eyeing India for growth and expansion, Indian

companies are becoming increasingly world class. Take the case of LIC, which has

set its sight on becoming a major global player following a Rs280-crore investment

from the Indian government. The company now operates in Mauritius, Fiji, the

UK, Sri Lanka, Nepal and will soon start operations in Saudi Arabia. It also plans

to venture into the African and Asia-Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a series

of catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfully

managed to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurance

premiums being 0.65% of GDP, the opportunities in the Indian market place is

immense. The next five years will be challenging but those that can build scale and

market share will survive and prosper.

LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956 by an

Act of Parliament, viz., Life Insurance Corporation Act, 1956, with capital

contribution from the Government of India. The then Finance Minister, Shri C.D.

Deshmukh, while piloting the bill, outlined the objectives of LIC thus: to conduct

the business with the utmost economy, in a spirit of trusteeship; to charge premium

no higher than warranted by strict actuarial considerations; to invest the funds for

obtaining maximum yield for the policy holders consistent with safety of the

capital; to render prompt and efficient service to policy holders, thereby making

insurance widely popular.

Since nationalisation, LIC has built up a vast network of 2,048 branches, 100

divisions and 7 zonal offices spread over the country. The Life Insurance

Corporation of India also transacts business abroad and has offices in Fiji,

Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the

field of insurance, namely, Ken-India Assurance Company Limited, Nairobi;

United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance

Corporation (International) E.C. Bahrain. The Corporation has registered a joint

venture company in 26th December, 2000 in Kathmandu, Nepal by the name of

Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group

Limited, a local industrial Group. An off-shore company L.I.C. (Mauritius) Off-

shore Limited has also been set up in 2001 to tap the African insurance market.

Some Areas of Future Growth

Life Insurance

The traditional life insurance business for the LIC has been a little more than a

savings policy. Term life (where the insurance company pays a predetermined

amount if the policyholder dies within a given time but it pays nothing if the

policyholder does not die) has accounted for less than 2% of the insurance

premium of the LIC (Mitra and Nayak, 2001). For the new life insurance

companies, term life policies would be the main line of business.

Health Insurance

Health insurance expenditure in India is roughly 6% of GDP, much higher than

most other countries with the same level of economic development. Of that, 4.7%

is private and the rest is public. What is even more striking is that 4.5% are out of

pocket expenditure (Berman, 1996). There has been an almost total failure of the

public health care system in India. This creates an opportunity for the new

insurance companies.

Thus, private insurance companies will be able to sell health insurance to a vast

number of families who would like to have health care cover but do not have it.

Pension

The pension system in India is in its infancy. There are generally three forms of

plans: provident funds, gratuities and pension funds. Most of the pension schemes

are confined to government employees (and some large companies). The vast

majority of workers are in the informal sector. As a result, most workers do not

have any retirement benefits to fall back on after retirement. Total assets of all the

pension plans in India amount to less than USD 40 billion.

Therefore, there is a huge scope for the development of pension funds in India. The

finance minister of India has repeatedly asserted that a Latin American style

reform of the privatized pension system in India would be welcome (Roy, 1997).

Given all the pros and cons, it is not clear whether such a wholesale privatization

would really benefit India or not (Sinha, 2000).

MARKET SHARE OF INDIAN INSURANCE INDUSTRY

The introduction of private players in the industry has added value to the industry.

The initiatives taken by the private players are very competitive and have given

immense competition to the on time monopoly of the market LIC. Since the advent

of the private players in the market the industry has seen new and innovative steps

taken by the players in this sector. The new players have improved the service

quality of the insurance. As a result LIC down the years have seen the declining

phase in its career. The market share was distributed among the private players.

Though LIC still holds the 75% of the insurance sector but the upcoming natures

of these private players are enough to give more competition to LIC in the near

future. LIC market share has decreased from 95% (2002-03) to 81 %( 2004-

05).The following companies has the rest of the market share of the insurance

industry. Table 3 shows the mane of the player in the market.

PRESENT SCENARIO OF INSURANCE INDUSTRY

India with about 200 million middle class household shows a huge untapped

potential for players in the insurance industry. Saturation of markets in many

developed economies has made the Indian market even more attractive for

global insurance majors. The insurance sector in India has come to a position

of very high potential and competitiveness in the market. Indians, have

always seen life insurance as a tax saving device, are now suddenly turning

to the private sector that are providing them new products and variety for

their choice.

Consumers remain the most important centre of the insurance sector. After

the entry of the foreign players the industry is seeing a lot of competition

and thus improvement of the customer service in the industry.

Computerisation of operations and updating of technology has become

imperative in the current scenario. Foreign players are bringing in

international best practices in service through use of latest technologies

The insurance agents still remain the main source through which insurance

products are sold. The concept is very well established in the country like

India but still the increasing use of other sources is imperative. At present

the distribution channels that are available in the market are listed below.

Direct selling

Corporate agents

Group selling

Brokers and cooperative societies

Bancassurance

Customers have tremendous choice from a large variety of products from

pure term (risk) insurance to unit-linked investment products. Customers are

offered unbundled products with a variety of benefits as riders from which

they can choose. More customers are buying products and services based on

their true needs and not just traditional moneyback policies, which is not

considered very appropriate for long-term protection and savings. There is

lots of saving and investment plans in the market. However, there are still

some key new products yet to be introduced - e.g. health products.

The rural consumer is now exhibiting an increasing propensity for insurance

products. A research conducted exhibited that the rural consumers are

willing to dole out anything between Rs 3,500 and Rs 2,900 as premium

each year. In the insurance the awareness level for life insurance is the

highest in rural India, but the consumers are also aware about motor,

accidents and cattle insurance. In a study conducted by MART the results

showed that nearly one third said that they had purchased some kind of

insurance with the maximum penetration skewed in favor of life insurance.

The study also pointed out the private companies have huge task to play in

creating awareness and credibility among the rural populace. The perceived

benefits of buying a life policy range from security of income bulk return in

future, daughter's marriage, children's education and good return on savings,

in that order, the study adds.

APPLICATION OF INFORMATION TECHNOLOGY IN

INSURANCE SECTOR

There is a evolutionary change in the technology that has revolutionized the entire

insurance sector. Insurance industry is a data-rich industry, and thus, there is a

need to use the data for trend analysis and personalization.

With increased competition among insurers, service has become a key issue.

Moreover, customers are getting increasingly sophisticated and tech-savvy. People

today don’t want to accept the current value propositions, they want personalized

interactions and they look for more and more features and add ones and better

service

The insurance companies today must meet the need of the hour for more and more

personalized approach for handling the customer. Today managing the customer

intelligently is very critical for the insurer especially in the very competitive

environment. Companies need to apply different set of rules and treatment

strategies to different customer segments. However, to personalize interactions,

insurers are required to capture customer information in an integrated system.

With the explosion of Website and greater access to direct product or policy

information, there is a need to developing better techniques to give customers a

truly personalized experience. Personalization helps organizations to reach their

customers with more impact and to generate new revenue through cross selling and

up selling activities. To ensure that the customers are receiving personalized

information, many organizations are incorporating knowledge database-

repositories of content that typically include a search engine and lets the customers

locate the all document and information related to their queries of request for

services. Customers can hereby use the knowledge database to mange their

products or the company information and invoices, claim records, and histories of

the service inquiry. These products also may be able to learn from the customer’s

previous knowledge database and to use their information when determining the

relevance to the customers search request.

There is a probability of a spurt in employment opportunities. A number of web-

sites are coming up on insurance, a few financial magazines exclusively devoted to

insurance and also a few training institutes being set up hurriedly. Many of the

universities and management institutes have already started or are contemplating

new courses in insurance. Life insurance has today become a mainstay of any

market economy since it offers plenty of scope for garnering large sums of money

for long periods of time. A well-regulated life insurance industry which moves

with the times by offering its customers tailor-made products to satisfy their

financial needs is, therefore, essential if we desire to progress towards a worry-free

future.

INSURANCE BUSINESS

INDIAN PERSPECTIVE:

The Insurance Sector in India dates back to 1818 when the first insurance

company was established the Oriental Life Insurance Company at Calcutta.

This was followed in quick succession with the establishment of Bombay

Life Asurrance Company (1823) and Madras Equitable Life Assurance

Society (1829). In the general insurance business Triton Insurance Company

(1850) was the first to be established. Prior to 1871, Indians were charged

about 15 percent more premium as compared to Europeans. Bombay Mutual

Life Assurance Society (1871) was the first company not to differentiate

between Indians and Europeans in the matter of fixation of premiums. The

first attempt at regulation of the insurance business in India was through the

Indian Life Assurance Companies Act in 1912. This was later broad-based

and the Insurance Act came into existence from the year 1928 onwards.

The Insurance Act was subsequently reviewed and a comprehensive

legislation was enacted called the Insurance Act, 1938. The nationalisation of

Life insurance business took place in 1956 when 245 Indians and Foreign

insurance and provident societies were first amalgamated and then

nationalized. The Life Insurance Corporation of India (LIC) came into

existence and has enjoyed a monopoly over the life insurance business in

India. The milestones in the Insurance sector 1912 onwards can be

summarised as under. The insurance sector witnessed the following

development:

1912 : The Indian Life Assurance Corporation Act eancted as the first

statute to regulate the life insurance business.

1928 : The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life

insurance businesses.

1938 : Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956 : 245 Indian and foreign insurers and provident societies taken over by

the central government and nationalised. LIC formed by an Act of

Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore

from the Government of India.

The General insurance business in India, on the other hand, can trace its

root to the Triton Insurance Company Ltd., the first general insurance

company established in the year 1850 in Calcutta by the British. Some of

the important milestones in the general insurance business in India are:

1907 : The Indian Mercantile Insurance Ltd. set up , the first company to

transact all classes of general insurance business.

1957 : General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound

business practices.

1968 : The Insurance Act amended to regulate investments and set

minimum solvency margins and the Trariff Advisory Committee set up.

1972 : The General Insurance Business (Nationalisation) Act, 1972

nationalised the general insurance business in India with effect from 1st

Jannuary 1973. 107 insurers amalgamated and grouped into four companies

viz., the National Insurance Company Ltd., the New India Assurance

Company Ltd., the Oriental Insurance Company Ltd, and the United India

Insurance Company Ltd. GIC incorporated as a company.

ICICI LOMBARD INSURANCE

INTODUCTION:

ICICI Lombard presents a completely new look to the Mediclaim

concept. Health Insurance (popularly known as Mediclaim) offers protection in

case of unexpected medical emergencies. In case of a sudden illness or accident,

the health insurance policy takes care of the hospitalization, medical and other

costs incurred.

We offer a range of innovative policies to choose from. Each plan offers something

unique (in addition to the usual mediclaim policies) to suit your specific needs.

Buy insurance policy online with your ICICI Bank, Citibank & HDFC Bank Credit

Card and pay premium at interest free installments.

HEALTH PLANS:

Health and medical insurance is a recent origin in India. Health insurance

covers two types of benefits. One is reimbursement of medical expenses

related to specific diseases and the other is related to hospitalization. Health

insurance covers operations in two ways – cashless and cash reimbursable

ones. The health insurance has changed the way medicine is dispensed and

sold in most of the parts of the world. In India, the introduction of the

new famous policy ‘mediclaim’ has made a huge difference to an ordinary

citizen’s usage of insurance for medical cover purpose.

The mediclaim policy covers the following expenses:

1. Boarding expenses in a hospital as per the description provided in the

policy.

2. Surgical fees, anesthetist fees, medical practitioner and consultants fees

etc.

3. Nursing expenses.

4. Blood, oxygen, operation theatre charges, surgical appliances,

medicines, diagnostic reports, dialysis, chemotherapy etc.

The total expenses covered under such a policy should not exceed the

total sum assured under the policy , for each such disease as

mentioned in the schedule by the insurance company at the time of

taking the policy. Reimbursement is not commonly used as a claim

settlement system in mediclaim and permitted only when the treatment

is taken at a hospital or as per criteria prescribed in the policy.

HEALTH ADVANTAGE PLUS INSURANCE:

A unique policy that covers hospitalization and Outpatient Department

Expenses (including Dental treatment, cost of medicines and drugs) and enables

optimum tax savings of up to Rs. 5099 u/s 80D

FAMILY FLOATER PLAN:A single policy that secures the

hospitalization expenses of your entire family

TAX GAIN HEALTH ADVANTAGE PLUS INSURANCE:

This unique health policy covers you not only for the usual medical emergencies,

but also for Out Patient Department (OPD) expenses (such as reimbursement of

cost of medicines, drugs, ambulance charges and dental expenses) and emergencies

arising out of terrorism or acts of terrorism. What's more?

You can save tax up to Rs. 5099 under Section 80 D of the Income Tax Act

This Plan is available for all ages between 5-65 years and senior citizens aged 66

and above (renewable up to 70 years).

Moreover, the 45 year age limit for ‘no health check-up’ for policy insuance is now

extended to 55 years of age.

Family Floater Health Plan

Introduction

Enjoy the benefits of covering your entire family under one policy. Pioneer in the

floater concept, ICICI Lombard's Family Floater policy takes care of the medical

expenses during sudden illness, surgeries and accidents. Also secure your family

against terrorism and acts of terrorism.

POLICY COVERAGE:

The policy covers medical expenses:

1.Incurred as an inpatient during hospitalisation for more than 24 hours, including

room charges, doctor/ surgeon's fee, medicines, etc.

2.30 days prior to hospitalisation

3.60 days post hospitalisation

4.Day Care expenses incurred on advanced technological surgeries and procedures

like Dialysis, Radiotherapy, and Chemotherapy, requiring less than 24 hours of

hospitalisation.

KEY BENEFITS:The benefit of coverage against Terrorism. The Family Floater

Health Plan covers claims arising out of Terrorism or acts of Terrorism.

One Policy – One Premium for the entire family. The floater health plan covers

your entire family under one policy with one sum insured and one premium. This

takes care of hospitalisation expenses in case of a sudden illness, accident or

planned surgery of the entire family.

2.5% discount on premium for every claim free year

3.Digitally signed policy is available 24X7 online, customer can take prints

instantly. The hard copy of the policy is couriered the same day (or next day if

customer buys after 6 PM) and will reach him/her within 2-3 working days.

4.No health check up required upto the age of 55 years (as on last birthday).

5.Medical Tests at the rate of Rs. 600 (per insured member).

ADDITIONAL BENEFITS:

Up to 2-year Cover- We offer a continuous 2-year protection with no increase in

premium in the second year. This one time payment of premium for 2 years takes

care of your renewal hassles next year. The sum insured is reinstated to the full

sum insured after the first year. Option for 1 year cover also available.

Single Policy- Single document, single premium, and single date to track. No need

for separate policy for family members.

ELIGIBILITY:

1.The enrollment age (of the senior most family member) should be between 19

years to 60 years

2.Other members in the plan can be less than 19 years of age (i.e. up to 91 days).

3.The insured child aged between 91 days to 5 years must be accompanied by at

least 1 Adult Member.

4.The policy cover is renewable till the age of 70 years.

5.The customer can buy the policy for any family member(s).

6.For the purpose of income tax exemption u/s Sec. 80D, the policy should be

bought only for self, spouse, dependent children and dependent parents.

NEED FOR FLOATER

1. The plan covers you against hospitalization expenses that occur due to Terrorism

and Acts of Terrorism.

2. Healthcare costs have been rising at more than 20 percent on an annualised basis

and out of pocket spending on healthcare still continues to be around 75 percent.

Source TOI

3. Protect your entire family with a single policy against unforeseen medical

contingencies

4. Save Tax up to Rs. 5099/- under section 80 D of the Income Tax Act*

5. Supplements employer-based health plans with higher sum insured and medical

benefits

6. Individuals require to have an insurance that caters solely to their health needs,

apart from life insurance and investments, that provides cover against expenses

incurred during hospitalization, as well as before and after

7. Avail cashless hospitalisation through ICICI Lombard's network of 3500 +

hospitals across In

HOME INSURANCE:

INTRODUCTION:

Home insurance, also commonly called hazard insurance or homeowners insurance

(often abbreviated in the real estate industry as HOI), is the type of property

insurance that covers private homes. It is an insurance policy that combines various

personal insurance protections, which can include losses occurring to one's home,

its contents, loss of its use (additional living expenses), or loss of other personal

possessions of the homeowner, as well as liability insurance for accidents that may

happen at the home. It requires that at least one of the named insured occupies the

home. The dwelling policy (DP) is similar, but used for residences which don't

qualify for various reasons, such as vacancy/non-occupancy, seasonal/secondary

residence, or age. It is a multiple line insurance, meaning that it includes both

property and liability coverage, with an indivisible premium, meaning that a single

premium is paid for all risks. Standard forms divide coverage into several

categories, and the coverage provided is typically a percentage of Coverage A,

which is coverage for the main dwelling

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ICICI LOMBARD HOME INSURANCE

INTRODUCTION:

It is imperative that you secure your home from natural and man-made

catastrophes. Our Home Insurance Plan ensures you peace of mind by protecting

the structure and the contents of your home.

POLICY COVERAGE:

You can choose to buy insurance for only the building (structure) of your home, or

only the contents (belongings) or both.

The policy covers the losses to the structure and contents of your home due to any

natural and man made calamities.

CALAMITIES COVERED:

Fire

- Riot, strike & malicious damage

- Explosion & implosion

- Earthquake

- Lightning

- Storm, cyclone, tempest, tornado, hurricane, flood & inundation

- Damage due to impact by vehicles

- Missile testing operation

- Subsidence, landslides and rockslides

- Leakage from automatic Sprinkler installations

- Aircraft damage

- Bursting and/or overflowing of water tanks, apparatus and pipes

Burglary and Theft cover (only for contents):

The contents of your home are also covered against loss due to burglary or an

attempted burglary / housebreaking including larceny and theft. It also covers loss

of jewellery, silver articles and precious stones kept under lock and key, up to 25%

of the total content sum insured or Rs. 1 Lac, whichever is lower.

Optional covers:

Terrorism cover - Covers any damages and losses to the structure and / or contents

of your home due to acts of terrorism.

Additional expenses of rent for alternative accommodation – If you are forced to

shift into an alternative accommodation because your home is destroyed or

damaged by any insured peril, the policy will cover you against the additional rent.

KEY BENEFITS:

1. Comprehensive cover - Covers both structure and contents of your home.

2. Optional covers available - Terrorism and Additional expenses of rent for

alternative accommodation

3. Alternate Covers - A Home Insurance cover allows you to avail an optional

cover for alternative rent & Terrorism cover.

NEED FOR POLICY:

1. FICCI surveys show that realty rates may escalate 10%-15% in next 6 months of

2007.

2. According to official statistics, the Maharashtra floods on July 26, 2005, has led

to damages to over 1,87,000 houses all over the State, affecting eight lakh families.

3. Protect your single largest investment against losses due to natural or man-made

calamities like fire, floods, burglary, earthquake.

4. Cover your household contents including furniture, durables, clothes, utensils,

jewelry, at market value to accommodate inflation.

HOME STRUCTURE:

The home insurance policy insures the structure of your home for its reconstruction

value (and not for market value). Reconstruction value is defined as the cost

incurred to reconstruct the home if it is damaged. On the other hand market value

is a combination of cost of land, demand & supply scenario, etc.

Sum insured is calculated by multiplying the built up area of your home with the

construction rate per sq. feet, e.g. if your built up area of your home is 1000 sq.

feet and the construction rate is Rs. 800 per sq. feet, the sum insured for your home

structure is Rs. 8,00,000.

We recommend the rate of construction for your location when you are buying

online. However, this value can be revised appropriately if expensive material -

like marble flooring, etc. – has been used in construction. If your home has lawn /

garden surrounded by a perimeter wall, the construction rate can be revised to

include the cost of construction of this wall in home structure sum insured.

MOTOR INSURANCE:

Vehicle insurance (also known as auto insurance, car insurance, or motor

insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary

use is to provide protection against losses incurred as a result of traffic accidents

and against liability that could be incurred in an accident.

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ICICI LOMBARD VEHICLE INSURANCE:

Car Insurance – Introduction

ICICI Lombard brings to you a comprehensive Package Policy for your four-

wheelers, which covers Loss or damage to the vehicle insured, Personal Accident

and Third Party Liability.

Policy Coverage

Our Motor insurance Policy is governed by the Indian Motor Tariff. It covers you

for:

Loss or damage to your vehicle: The policy covers you against any loss or damage

caused to the vehicle due to the following natural and man made calamities.

Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood,

typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide,

rockslide.

Personal accident cover: The motor insurance provides compulsory personal

accident cover of Rs. 2 lakhs for individual owner driver of the vehicle insured

while travelling in, mounting or dismounting from the car. You can also opt for a

personal accident cover for passengers.

Third party legal liability: This protects you against legal liability arising due to

accidental damages

- Any permanent injury/ death of a person

- Any damage caused to the property.

Key Benefits

1. You can avail of our cashless claim facility at our Cashless Garage Network all

across India.

2. You can claim towing charges up to Rs 1,500 in the event accidental damage or

loss to your vehicle as specified under the policy.

Need for Policy

1. The number of road accidents in India is estimated to be three times vis-a-vis

developed countries. The number of accidents for 1000 vehicles in India is as high

as 35 while the figure ranges from 4 to 10 in developed countries

2. Comprehensive Car Insurance serves as an add-on to the mandatory third-party

cover and protects the car owner from financial losses, caused by damage or theft

of the vehicle.

Sum Insured

The vehicles are insured at a fixed value called the Insured’s Declared Value

(IDV). IDV is calculated on the basis of the manufacturer’s listed selling price of

the vehicle (plus the listed price of any accessories) after deducting the

depreciation for every year as per the schedule provided by the Indian Motor

Tariff.

Two Wheeler Insurance - Introduction

Two- wheeler riding calls for a constant alertness from theft and accidents. Two-

wheeler policy guarantees safety for your vehicle and yourself, thereby making

your ride stress- free

Policy Coverage

A composite policy that protects you against an unfortunate accident, third party

liability, injuries and damages.

Two-wheeler insurance policy is governed by the Indian Motor Tariff. It covers

you for:

1. Loss or damage to your vehicle: The policy covers you against any loss or

damage caused to the vehicle due to the following natural and man made

calamities.

2. Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake,

flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost,

landslide, rockslide.

3. Personal accident cover: The motor insurance provides compulsory personal

accident cover of Rs. 1 lakh for individual owner driver of the vehicle insured

while travelling on, mounting or dismounting from the vehicle. You can also opt

for a personal accident cover for passengers.

4. Third party legal liability: This protects you against legal liability arising due to

accidental damages for

- Any permanent injury/ death of a person

- Any damage caused to the property.

Sum Insured

The vehicles are insured at a fixed value called the Insured’s Declared Value

(IDV). IDV is calculated on the basis of the manufacturer’s listed selling price of

the vehicle (plus the listed price of any accessories) after deducting the

depreciation for every year as per the schedule provided by the Indian Motor

Tariff.

If the price of any electrical and / or electronic item installed in the vehicle is not

included in the manufacturer’s listed selling price, then the actual value (after

depreciation) of this item can be added to the sum insured over and above the IDV.

STUDENT MEDICAL INSURANCE

Plus Plan – Introduction

Student Medical Insurance covers unexpected and unplanned medical and non-

medical expenses when you are studying abroad. In order to faciliate greater access

to quality health care, we have partnered with leading US-based Health Care

provider UnitedHealth Group, to provide you access to United Health Care's

network of hospitals and physicians when in the US.

Student Medical Insurance Plus Plan is an add-on cover to fulfill the various

criteria of universities abroad. It covers treatment for mental and nervous disorders,

including alcoholism and drug dependency, in-patient medical expenses related to

pregnancy, medical expenses for inter-collegiate sports injuries, cancer screening

& mammography examinations and childcare benefits. Click here to find your

university specific insurance details.

Policy Coverage

1. Treatment for mental and nervous disorders - US$ 1,000 - Treatment for mental

and nervous disorders including alcoholism and drug dependency, is covered under

this policy.

2. In-patient medical expenses related to pregnancy - US$ 500 - In-patient medical

expenses related to pregnancy are covered to a maximum limit of US$ 500, after a

waiting period of 10 months.

3. Medical expenses for inter-collegiate sports injuries: Medical expenses for inter-

collegiate sports injuries are covered under this policy as part of the medical cover.

These expenses will be treated as any other medical expenses for an accident, and

will be subject to the terms of conditions mentioned in the policy.

4. Cancer screening and mammography expenses - US$ 2,000 - Cancer screening

and mammography expenses examinations on recommendation from physician

will be paid under this policy. Expenses would be paid for the usual and customary

charges incurred for these test. Any tests done as a part of preventive health check-

up is not included under this benefit.

5. Childcare benefits - US$ 100 - If the child is above 90 days of age, and is

hospitalized for more than 2 days, for any ailment, hospital cash benefit of US$

100 per day will be paid, subject to a maximum of 7 days.

Key Benefits

1. Buy the policy in Indian rupees, which is 1/3 the cost of buying abroad.

2. Accepted by most of the foreign universities as a substitute for their compulsory

insurance.

3. ICICI Lombard has partnered with leading US-based Health Care provider

UnitedHealth Group, to provide better health care benefits and services to be

availed when in the US.

4. Plans available with second year extension option, thereby covering you for the

entire period of study.

5. Extend your policy 3 months in advance – Now you do not have to wait till

policy expiry to extend your Student Medical cover, extend your policy 3 months

in advance.

6. Policy coverage for 2 years – Student Medical Insurance is now available with a

continuous cover for 2 years. Now cover your entire period of study and rid

yourself of policy extension hassles with a policy duration of 365+365 = 730 days.

7. Medical outpatient expenses covered.

8. No pre-medical check-up required.

Eligibility

1. Minimum age of insured persons is 16 years.


3. Non-insurable persons: professional and semi-professional sportsmen.

4. The policy can be bought by students already studying abroad.

Need for Policy

1. Medical insurance is mandatory for most foreign universities including popular

destinations like Australia, US, Canada, New Zealand, etc.

2. Majority of universities abroad allow waiver from on-campus health insurance

with comparable domestic insurance policies.

3. Available at 1/3rd the university premiums abroad, ICICI Lombard Student

Medical covers major medical, repatriation, evacuation, dental expenses, etc. and

can be combined with the Plus Plan for additional coverages like medical expenses

related to pregnancy, Mental disorders, Cancer screening, Mammography and

Sports injuries.

Gold Plan - Introduction

Student Medical Insurance provides cover against unexpected medical and non-

medical expenses during your study abroad. To provide quality health care

overseas, we have partnered with UnitedHealth Group (leading US-based Health

Care provider), thus providing you access to it's network of hospitals and

physicians in United States.

Student Medical Gold Plan is a comprehensive health cover against medical

expenses, dental treatment, repatriation of remains, checked baggage loss, personal

accident, personal liability, bail bond, study interruption, sponsor protection and

compassionate visit.

Policy Coverage

Key Benefits



insurance.








in advance.






Eligibility


2. Maximum age of insured persons is 35 years.



Need for Policy









Sports injuries.

Bronze Plan – Introduction

Student Medical Insurance covers unexpected and unplanned medical and non-

medical expenses when you are studying abroad. In order to faciliate greater access

to quality health care, we have partnered with leading US-based Health Care

provider UnitedHealth Group, to provide you access to United Health Care's

network of hospitals and physicians when in the US.

A composite policy that covers you against sponsor protection, study interruption,

compassionate visit, personal liability, bail bond, checked baggage loss and

personal accident.

Policy Coverage

1. Sponsor Protection– US $10,000 - Reimbursement of tuition fees in case of

demise of person paying for studies due to an accident.

2. Study Interruption– US $7,500 - Reimbursement for the remaining part of the

current school semester fee, if studies are interrupted on account of a medical

condition or compassionate reasons on the family front.

3. Compassionate Visit– US $7,500 - In case of hospitalization (exceeding 7 days)

of student or a family member, where a family member visits student or student

visits India. Round trip economy class tickets for student/ family member, and

accommodation for the family member visiting abroad, will be reimbursed.

4. Bail Bond– US $5,000 - For the bail amount, if arrested or detained by police or

judicial authorities of the place, for any bailable offence whilst abroad.

5. Personal Accident– US $10,000 - Compensation paid in case of death or

permanent total disability.

6. Checked Baggage Loss– US $1,000 – Compensation for the permanent loss of

checked-in baggage.

Key Benefits



insurance.








in advance.






Eligibility


2. Maximum age of insured persons is 35 years.



Need for Policy









Sports injuries.

Business Products

The key to successful business is proper risk management. It’s all about managing

risk effectively. Our comprehensive commercial product line is aimed at

businesses of all kinds and sizes. We offer products that match your personal and

business needs and provide you a perfect protection cover.

Fire Insurance

Every business has a specific set of requirements. Our range of business products

is especially designed to meet your business needs across the commercial

spectrum. It is pivotal to get adequate insurance cover for your business to mitigate

risk.

Fire and Special Perils Policy (Material Damage)

Scope of cover

The Insurance Policy broadly covers losses due to:

1. Fire, lightning, explosion and implosion.

2. Aircraft damage, riot, strike, malicious damage and terrorism.

3. Storm, tempest, flood and inundation.

4. Impact damage, subsidence.

5. Landslide/rockslide.

6. Bursting and/or overflowing of water tanks, apparatus and pipes.

7. Missile testing, leakage from automatic sprinkler installations and bush fire.

Sum Insured

Property can be insured on depreciated cost (market value) or replacement cost

basis. In order to get full protection, insurance on reinstatement (replacement) basis

is recommended.

Premium

1. Premium rate depends on construction of building and occupancy.

2. Discount/ loading in premium is given based on past claims experience for risks

exceeding Rs. 50 crores sum Insured at any location and installation of Fire

Extinguisher Appliances.

Significant Exclusions

The Insurance Policy does not cover the first Rs.10,000 (or as applicable) of each

and every claim. Losses arising out of war and allied perils, theft, willful act or

gross negligence, loss of earnings, loss to bullion, documents, currency etc. for an

amount exceeding Rs. 10,000, unless expressly stated.

Excess

5 % of every claim resulting from Lightning, Storm, Tempest, Flood and

Inundation, Subsidence and Landslide

Main Extension

1. Earthquake (Fire & Shock).

2. Spontaneous Combustion.

3. Deterioration of stocks in cold storage.

4. Impact Damage due to own vehicles.

5. Omission to insure additions.

6. Architect, Surveyors & Consulting engineer’s fees in excess of 3 % of claim

amount.

7. Debris removal in excess of 1 % of claim amount.

8. Industrial All Risk

Scope of cover

This Policy offers comprehensive cover against all perils excepting those

specifically excluded. The Policy covers loss or damage due to :

1. Fire and Special Perils.

2. Burglary.

3. Machinery Breakdown/ Boiler Explosion/ Electronic Equipment Breakdown.

4. Business Interruption due to Fire and Special Perils, burglary and other

accidental damage.

Sum Insured

Sum to be insured for the Material Damage part is the Reinstatement cost of the

property. For the Business Interruption portion, annual gross profit is to be insured.

Premium

Premium depends on the exact cover opted, claims experience, deductible and risk

assessment report of the engineer.


Inherent vice, normal wear and tear, collapse, faulty or defective design material or

workmanship, pollution, contamination, inventory losses, fraud, larceny,

interruption of the water supply, gas, electricity or fuel systems or failure of the

effluent disposal systems etc.

Policy is subject to compulsory deductible excess as under:

1. Material Damage Claims: 5% of claim amount subject to aminimum of Rs 5 lacs

andmaximum of Rs. 50 lacs.

2. Business Interruption Claims: 3 days gross profit subject toa minimum of Rs. 5

lacs and maximum of Rs. 50 lacs.

Rural Insurance

At ICICI Lombard, investing in rural markets is seen as a keen social

responsibility. The protection provided to the rural class is specified and

customized according to their needs. Through a multiple channel system we not

only provide agricultural protection but also health, motor and other covers.

Products we offer

Health Insurance

We provide protection to the health of the rural folk through our comprehensive

Family Health Insurance plan, which covers the entire family in one policy.

Home Insurance

Our comprehensive policy protects much more than just the home. Through our

network channels, we ensure that the houses in the rural sector are insured against

natural and other perils.

Tractor Insurance

Tractors are one of the most precious assets to the rural folks. Our comprehensive

package policy covers not just own damage but also third party liability and

personal accident.

Weather Insurance

Weather Insurance is an insurance cover against losses incurred due to

uncertainties in climatic conditions. It can be used to hedge any vulnerability of

assets or any other damage incurred due to erratic and irregular weather.

Shop Insurance

Shop Insurance is a comprehensive policy that covers both the structure and the

contents of a shop and protects it against any financial loss in case of an

unfortunate incident.

Family Health Floater

Life is full of surprises, some bitter some sweet. For medical emergencies like

surgeries, accidents and sudden illnesses, ICICI Lombard General Insurance

Company Limited brings you Family Health Insurance Plan that is flexible enough

to cover all members of your family.

This unique single family policy provides coverage upto the total sum insured to

every individual family member

Policy Coverage

1. Medical expenses incurred as an inpatient during hospitalization* for more than

24 hours.

2. Pre-hospitalization up to 30 days.

3. Post-hospitalization up to 60 days.

4. Day care procedures like dialysis, cataract, hospitalization also covered

radiotherapy etc. that require less than 24 hours.

There are certain ailments which are covered in cases of less than 24-hrs of

hospitalization. These are:

1. Cataract.

2. Lithotripsy.

3. Tonsillectomy and / or Adenoidectomy.

4. Dialysis.

5. Dialatation and Curatage.

6. Chemotherapy.

7. Radiotherapy.

8. Cardiac Catherisation/ Coronary Angiography.

KEY BENEFITS:

1. Floater Cover - The entire family is covered under one Sum Insured, hence any

member of the family can claim up to Sum Insured, any number of times during

the policy period.

Example – Mr. Singh and his wife are covered for 50000 each and his son is

covered for 25000, under regular health policy. Total sum insured is 1.25 lakh and

each one is covered for 50000 or 25000 only.

In a floater policy of 1.25 lakh Mr. Singh, his wife and son will be covered up to

the sum insured. Any member can claim up to this amount any number of times.

Thus Mr. Singh does not require buying policies for every family member

separately.

2. Cashless Facility - You can avail of cashless hospitalization across the country

at network hospitals of the TPA appointed by the company. A list will also be sent

to you with your policy and ID card.

3. Comprehensive Cover - Pre-existing disease covered after 4 years.

4. Income Tax Benefit - The premium payable is eligible for tax rebate as per Sec.

80D of Income Tax Act. (Premium payable only by cheque.)

5. No Claim Discount - If no claim made in a year, a discount of 5% will be given

on renewal premium.

ELIGIBILITY:

1. Individuals between age 91 days to 60 years.

2. Proposer can take cover for himself or his family.

3. Family members comprise of spouse, dependent children, dependent parents and

dependent brothers and sisters.

4. Medical examination is required for people aged 56 yrs and above.

Tractor Insurance

Tractors are one of the most precious assets of the farmers. ICICI Lombard's

comprehensive package policy for tractors covers not just Own Damage but also

Third Party Liability and Personal Accident.

Policy Coverage

Loss of or Damage to the Vehicle Insured (Own Damage)

The Company will indemnify the insured against loss or damage to the vehicle

insured against following:

i. Fire, Explosion, Self ignition or Lightning

ii. Burglary, Housebreaking, Theft, Riot and Strike

iii. Earthquake (fire and shock damage), Flood, Typhoon, Hurricane, Storm,

Tempest

iv. Inundation, Cyclone, Hailstorm, Frost

v. Accidental external means

vi. Malicious acts

vii. Terrorist activity

viii. Landslide, Rockslide

ix. Whilst in transit by road, rail, inland waterway, lift, elevator or air

Subject to a deduction for depreciation at the rates mentioned below in respect of

parts replaced:

- For all rubber/nylon/plastic parts, tyres, tubes, batteries and air bags - 50%

- For fibre glass components - 30%

- For all parts made of glass - Nil

- Rate of depreciation for all other parts including wooden parts will be as per the

schedule.

In the event of the vehicle being disabled by reason of loss or damage covered

under this policy, the Company will bear the reasonable cost of protection and

removal to the nearest repairer and re-delivery to the insured not exceeding

Rs.2500/- for commercial vehicles in respect of any one accident.

Liability to Third Parties

The Company will indemnify the insured in the event of an accident caused by or

arising out of the use of the vehicle against all sums including claimant's cost and

expenses, which the insured shall become legally liable to pay in respect of:

- Death of or bodily injury to any person caused by or arising out of the use

(including the loading and/or unloading) of the vehicle.

- Damage to property caused by the use (including the loading and/or unloading) of

the vehicle.

Personal Accident Cover for Owner-Driver

The Company undertakes to pay compensation as per the following scale for

bodily injury/ death sustained by the owner-driver of the vehicle in direct

connection with the vehicle insured or whilst mounting into/dismounting from or

traveling in the insured vehicle as a co-driver, caused by violent accidental external

and visible means which independent of any other cause shall within six calendar

months of such injury result in:

- Death - 100%

- Loss of two limbs or sight of two eyes or one limb and sight of one eye - 100%

- Loss of one limb or sight of one eye - 50%

- Permanent total disablement from injuries other than named above - 100%

Policy Exclusions

1. Any accidental loss or damage and/or liability caused sustained or incurred

outside the geographical area.

2. Any claim arising out of any contractual liability.

3. Any accidental loss or damage and/or liability caused sustained or incurred

whilst the vehicle insured herein is

- Being used otherwise than in accordance with the ‘Limitations as to Use’ or

- Being driven by or is for the purpose of being driven by him/her in the charge of

any person other than a Driver as stated in the Driver's Clause.

4. Losses such as:

- Any accidental loss or damage to any property whatsoever or any loss or expense

whatsoever resulting or arising there from or any consequential loss.

- Any liability of whatsoever nature directly or indirectly caused by or contributed

to by or arising from ionizing radiations or contamination by radioactivity from

any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.

For the purposes of this exception combustion shall include any self-sustaining

process of nuclear fission.

5. Any accidental loss damage or liability directly or indirectly caused by or

contributed to by or arising from nuclear weapons material.

6. Any accidental loss or damage/liability directly or indirectly or proximately or

remotely occasioned by, contributed to by or traceable to or arising out of or in

connection with war, invasion, the act of foreign enemies, hostilities or war like

operations (whether before or after declaration of war), civil war, mutiny,

rebellion, military or usurped power or by any direct or indirect consequences of

any of the said occurrences and in the event of any claim here under the insured

shall prove that the accidental loss damage and/or liability arose independently of

and was in no way connected with or occasioned by or contributed to by or

traceable to any of the said occurrences or any consequences thereof and in default

of such proof, the Company shall not be liable to make any payment in respect of

such a claim.

Weather Insurance

The need for risk mitigation in agriculture has been long felt. Agriculture

contributes 24% of the GDP and any change has a multiplier effect on the

economy as a whole. The target of 7-8% economic growth depends significantly

on agricultural growth. Weather insurance is an indemnity for losses that may arise

due to abnormal weather conditions. These abnormal weather conditions can be

events such as excess of rainfall, shortfall in rainfall or variations in temperature,

wind speeds and humidity.Key Benefits

The benefits that weather insurance offers are:

1. It is transparent and thus leads to high level of client comfort.

2. It is easy to administer and thus leads to low management expenses.

3. It is scientifically developed and objective.

Weather insurance has multiplier effect on the economy as it enables access to

factors of production. Adequate protection offered through the weather insurance

product enhances the risk taking capacity of the farmers, banks, micro-finance

lenders and agro-based industries. This in turn would result in boosting the entire

rural economy.

Further, as the product is developed on the foundation of universally acceptable

parameters, it is easier to transfer the risk to international financial markets through

reinsurance. This allows for global pooling of risk and thereby more competitive

“portfolio adjusted” pricing for the insurer and ultimately for the farmers.

Product Structure

1. Peril Identification: Peril identification involves appreciation of agronomic

properties of the crops or nature of the economic activity. Detailed correlation

analysis is carried out to ascertain the way weather impacts yields of the crops/

output of other economic activities.

2. Index Setting: In weather insurance, the claim is settled on the basis of a

transparent index. The index is created by assigning weights to critical time periods

of crop growth. The past weather data is mapped on to this index to arrive at a

normal threshold index. The actual weather data is then mapped to the index to

arrive at the actual index level. In case there is a material deviation between the

normal index and the actual index, compensation is paid out to the insured on the

basis of a pre-agreed formula.

3. Back testing for payouts: In order to ensure the robustness of the structure, the

normal index is extensively tested based on historical data to ascertain if the

payouts made on the basis of the chosen indices would have adequately

indemnified the loss in the past or not.

4. Pricing: Pricing is determined based on components of expected loss, volatility

of historical losses and management expenses.

5. Monitoring: This entails collection of weather data during the policy period and

concurrent assessment of the ground conditions.

6. Claims Settlement: The claim settlement is a hassle-free process, as the

beneficiary is not required to file a claim for loss to receive a payout. Instead ICICI

Lombard will compensate the beneficiary at the end of the crop season for any

deviations from the normal conditions on the basis of the data collected from an

independent source accessible to all, like a local weather station, thus removing the

need for carrying out field surveys.

Deals Initiated

1. Oranges in Jhalawar, Rajasthan: Orange crop suffers yield losses in case

adequate rainfall is not available for flowering or if there is a dry spell subsequent

to flowering. 782 farmers (7% of all the Orange cultivators in the district) were

provided a cover for 613 acres for a sum insured of Rs. 18.3 mn.

2. Various crops in Andhra Pradesh: Weather Insurance was offered to the farmers

of AP for groundnut, castor and cotton crops. A unique distribution model through

the Micro-finance institutions and Self Help Groups was followed to reach out to

the farmers in the remote areas. The product provided cover against losses due to

deficit rainfall. In this kharif season about 800 farmers covering 1100 acres

purchased it. Sum Insured for these covers was Rs. 5.7 mn.

3. Weather insurance for crop loan portfolio: Repayments of crop loans given to

farmers is a function of the revenue from agriculture. This revenue is in turn

dependent on the rainfall in the area as good rains give good yields. Keeping this

correlation in view Weather Linked Loan Portfolio Insurance was offered to a

NBFC lending agricultural loans. The claim payouts from this cover would

compensate the loss of repayments. Sum Insured for this cover was Rs. 7.5 mn.

Shop Insurance-Introduction

Shop Insurance is a comprehensive policy offered by ICICI Lombard General

Insurance Company for your shop. It covers both the structure and its contents of

your shop and protects you against financial loss in case of an unfortunate incident

of fire, earthquake, fraud, burglary, etc. It also provides compensation of liability

claims and accidental benefits.

Scope of Cover

1. Fire (Building and Contents) - Covers losses caused by fire, lightening, riot,

strike, storm, cyclone, flood and terrorism.

2. Burglary - Protects contents of your shop against any loss or damage caused by

burglary or attempted burglary.

3. Burglary of cash in safe - Provides for losses resulting from the burglary of cash

kept in safe.

4. Cash in transit- Covers losses because of burglary of cash while it is being

carried from the bank/ATM to your shop.

5. Glass breakage - Covers loss or damage to any fixed plain glass caused by any

accident, external and visible means.

6. Damage to neon sign - Covers neon or glow signs displayed at your shop

premises against damage caused by fire, accident, riot, and flood.

7. Cheque forgery - Covers loss caused by forgery or material alteration of

cheques, drafts or any other negotiable instruments issued by you or in your

favour.

8. Fidelity - Covers direct financial losses sustained due to fraud or any dishonest

act by your salaried employees.

9. Tenant’s legal liability - This cover provides for legal liability imposed on you

by the property owner on account of damage to property by fire, earthquake, flood

and riots.

10. Employer’s liability - It provides for legal liability to your employees.

We also offer the following additional products , which you can opt for:

1. Health – Family Floater – This cover will take care of your hospitalization and

post-hospitalization expenses. The sum insured spread over the members can be

utilized in any proportion necessary.

2. Hospital Cash - A fixed sum of money will be paid per day of hospitalization.

The cover will be for a fixed number of days within the insurance tenure of one

year..

3. Double Benefit - Under this cover a lump sum amount of money will be paid to

the insured in case both the insured and the spouse are hospitalized together for a

period of 72 hours or more.

4. Medical Expenses to Insured – Covers medical expenses to the extent of sum

insured under this cover, incurred by the proposer for the hospital treatment against

any accident.

5. Personal Accident - This cover provides for the bodily injury sustained by you

because of an accident resulting in death or permanent total disability. It also

provides for ambulance charges up to Rs. 2000 and in the event of death for the

carriage of dead body.

6. Professional Indemnity - This cover will protect you from any legal liability

arising out of the dissatisfaction caused to any of your clients towards the services

rendered by you.

7. Terrorism cover - Loss or damage due to terrorism can also be covered under

this Policy by taking an add-on cover in the form of an endorsement.

Benefits / features

1. Lightening fast claims

Lots of additional optional covers available making it the most comprehensive

policy.


Under Insurance- If the actual value of the insured property at the time of loss

under the Fire is found to be greater than the sum insured chosen by you, then the

claim would be proportionally reduced.

Conclusion

pundalik

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