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Research and Methodology:
Research methodology is a methodology for collecting all sorts
of information and data pertaining to the subject in question. The
objective is to examine all the issues involved and conduct situational
analysis. The methodology includes the overall research design,
sampling procedure and finally the analysis procedure.
The methodology used in the study consistent of sample survey
using both primary and secondary data. The primary data has been
collected with the help of questionnaire as well as personal
observation book, magazine; journals have been referred for
secondary data. The questionnaire has been drafted and presented
by the researcher himself
Objective of study:
This project gives a practical exposure and helps in acquiring the on road
skills. The objectives of study are as follows:
a. To know about the industrial insurance in India
b. To know the type of industrial insurance policy
c. To know the Role of reinsurance in industry
d. To know the need of industrial insurance
OVERVIEW OF INDIAN INSURANCE SECTOR
INTRODUCTION
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.
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.
NAME OF THE INSURANCE COMPANY AND THE SHARE HOLDING
PATTEN
Name of the Insurance Company Shareholding
Agricultural Insurance Co Bank and Public Ins
Co
Bajaj Allianz General Insurance Co. Ltd. Privately Held
Cholamandalam MS General Insurance Co. Ltd. Privately Held
Export Credit Guarantee Company Public Sector
HDFC Chubb General Insurance Co. Ltd. Privately Held
ICICI Lombard General Insurance Co. Ltd. Privately Held
IFFCO-Tokyo General Insurance Co. Ltd. Privately Held
National Insurance Co. Ltd. Public Sector
New India Assurance Co. Ltd. Public Sector
Oriental Insurance Co. Ltd. Public Sector
Reliance General Insurance Co. Ltd. Privately Held
Royal Sundaram Alliance General Insurance Co.
Ltd.
Privately Held
Tata AIG General Insurance Co. Ltd. Privately Held
United India Insurance Co. Ltd. Public Sector
There are a total of 13 life insurance companies operating in India, of which
one is a Public Sector Undertaking and the balance 12 are Private Sector
Enterprises.
What is mean by insurance?
Whenever there is uncertainty there is risk. We do not have any control
over uncertainties which involves financial losses. The risk may be certain
events like death, pension, retirement or uncertain events like theft, fire,
accident, etc.
Insurance is financial service for collecting the saving of the public and
providing them with risk coverage. The main function of insurance is to
provide protection against the possible chances of generating losses. It
elements worries and miseries of losses by destruction of property and death.
It also provides capital to the society as the funds accumulated are invested
in productive heads.
Insurance comes under the services sector and while marketing this
service due care is to be taken in quality product and customers satisfaction.
While marketing the services, it is also patients that they think about the
innovative promotional measures. It is not sufficient that you perform well
but it is also important that you let others know about the quality of yours
positive contributions.
The creativity in the promotional measures is the need of the
hour. The advertisement, public relation world of mouth
communication need due care and personal selling requires our
intensive care.
The insurance business is based on the skill and excellence of
agents and this makes a strong case in favor of personal selling.
HISTORY OF INSURANCE
Forms of insurance were known to the Romans and to some extent
were practiced among the Collegial. In certain respects these bodies
resembled our benefit societies. For example, they provided for burial and
also made some form of provision for promotion among the soldiers in their
organizations. In reality, then, they were based on the insurance principle
since they accepted from their members a certain stipulated sum and in
return agreed to perform certain services. Demosthenes describes marine
loans made to the ancient Greeks; we also have record that insurance existed
among the Chinese 2500 years ago. In none of these early instances,
however, did insurance reach anything like large proportions. In fact, so far
as we know, it entirely disappeared, many centuries passing before there was
a revival. It is true that certain laws among the Romans governing annuities
necessitated a mortality table, but it was, however, for this sole purpose and
apparently not in any sense an insurance matter.
The business of insurance is divided into four main branches: marine
insurance, fire insurance, life insurance and casualty insurance. The first
three state the form of disaster against which insurance is provided. The
fourth—originally accident insurance—includes all forms not embraced in
the other three .An idea of the variety of events against which insurance is
offered.
Marine insurance antedates every other form, its history dating back over
seven centuries. It appears to have been practiced in the Mediterranean, and
at least one old policy has come down from the thirteenth century, proving
that marine insurance was an established practice among the commercial
countries of that time. A broad gap exists between that period and the
continuous history running back now some four hundred years, but since
that time insurance has been an established business among those engaged in
maritime adventures.
Fire insurance, the second oldest form to become permanently established,
dates from the great London fire of 1666.
Life insurance followed a little later, although not until 1760 was a company
founded on a modern basis.
Casualty insurance owes its origin to the application of steam to railway
travel; its more common name of accident insurance was due to the fact that
the first events to be insured against were those of accidents to the person on
a railway journey. It originated in England in the first half of the nineteenth
century.
DEFINITION of insurance
A promise of compensation for specific potential future losses in exchange
for a periodic payment. Insurance is designed to protect the financial well-
being of an individual, company or other entity in the case of unexpected
loss. In exchange for payments from the insured (called premiums), the
insurer agrees to pay the policy holder a sum of money upon the occurrence
of a specific event. In most cases, the policy holder pays part of the loss
(called the deductible), and the insurer pays the rest.
Insurance can also be defined as:-Insurance is a provision for the distribution
of risks; that is to say, it is a financial provision against loss from
unavoidable disasters. The protection which it affords takes the form of a
guaranty to indemnify the insured if certain specified losses occur.The
insurer, in accepting risks, so distributes them that the sum total of all the
amounts paid for this insurance protection will be sufficient to meet the
losses that occur.
Insurance, then, indicates divided responsibility. This principle is introduced
in most stores where a division is made between the sales clerk and the
cashier's department, the arrangement dividing the risk of loss. The
insurance principle is similarly applied in many other cases of divided
responsibility. As a business, however, insurance is usually recognized as
some form of securing a promise of indemnity by the payment of a premium
and the fulfillment of certain other stipulations.
DEFINATION OF INDUSTRY
As per Section 2(j) of Industrial Disputes Act, 1947 “Industry” means any
systematic activity carried on by co-operation between an employer and his
workmen (whether such workmen are employed by such employer directly
or by or through any agency, including a contractor) for the production,
supply or distribution of goods or services with a view to satisfy human
wants or wishes (not being wants or wishes which are merely spiritual or
religious in nature), whether or not,-
i. any capital has been invested for the purpose of carrying on
such activity; or
ii. such activity is carried on with a motive to make any gain or
profit, and includes-
a. any activity of the Dock Labors Board established under
section 5-A of the Dock Workers ( Regulation of
Employment)Act,1948( 9 of 1948);
b. any activity relating to the promotion of sales or business
or both carried on by an establishment,
But does not include-
1. Any agricultural operation except where such agricultural
operation is carried on in an integrated manner with any
other activity (being any such activity as is referred to in
the foregoing provisions of this clause) and such other
activity is the predominant one.
Explanation:- For the purposes of this sub-clause ,” agricultural operation”
does not include any activity carried on in a plantation as defined in clause
(f) of section 2 of the Plantation Labor Act,1951; or
2. hospitals or dispensaries; or
3. educational, scientific, research to training institutions ;
or
4. institutions owned or managed by organizations wholly
or substantially engaged in any charitable ,social or
philanthropic service; or
5. khadi or village industries ; or
6. any activity of the Government relatable to the sovereign
functions of the Government including all the activities
carried on by the departments of the Central
Governments dealing with defense research , atomic
energy and space ; or
7. any domestic service ;or
8. any activity ,being a profession practiced by an
individual or body of individuals ,if the number of
persons employed by the individuals or body of
individuals in relation to such profession is less than ten;
or
9. any activity , being an activity carried on by a co-
operative society or a club or any other like body of
individuals , if the number of persons employed by the
co-operative society ,club or other like body of
individuals in relation to such activity is less than ten;
Definition of Industrial Dispute
As per Section 2(k) of ID Act,1947
“industrial dispute” means any dispute or difference between employers and
employers ,or between employers and workmen, or between workmen and
workmen , which is connected with the employment or non-employment or
the terms of employment or with the conditions of labour , of any person;
Definition of Workman
As per Section 2(s) of ID Act,1947
“workman” means any person (including an apprentice) employed in any
industry to do any manual ,unskilled ,skilled ,technical ,operational ,clerical
or supervisory work for hire or reward ,whether the terms of employment be
express or implied ,and for the purposes of any proceeding under this Act in
relation to an industrial dispute ,includes any such person who has been
dismissed ,discharged or retrenched in connection with ,or as a consequence
of ,that dispute ,or whose dismissal ,discharge or retrenchment has led to
that dispute ,but does not include any such person-
i. who is subject to the Air Force Act,1950 (45 of 1950),or the Army
Act,1950(46 of 1950), or the Navy Act,1957(62 of 1957); or
ii. who is employed in the police service or as an officer or other
employee of a prison; or
iii. who is employed mainly in a managerial or administrative capacity; or
Who, being employed in a supervisory capacity, draws wages exceeding one
thousand six hundred rupees per menses or exercises, either by the nature of
the duties attached to the office or by reason of the powers vested in him,
functions mainly of a managerial nature.
What is Industrial Insurance?
Whether an injured worker is covered by L&I’s Washington State Fund, or a
self-insured employer, he or she is entitled to no-fault accident and disability
coverage. This “industrial insurance” covers medical expenses and pays a
portion of wages lost while a worker recovers from a workplace injury
Insurance premiums paid by both workers and employers finance these
benefits.
Unlike other types of insurance, L&I can cover injuries only if they happen
at a definite time and place at work. Also, claims for occupational diseases
are accepted only if your work and medical history shows you have an
illness or infection that was directly caused by the work you do, and not by
something else.
We all work hard to prevent accidents that result in injuries or exposure to
hazardous substances that may cause occupational diseases. Still, nearly
175,000 work-related injuries and occupational diseases are reported to L&I
each year. Another 64,000 on-the-job injuries and diseases are reported each
year to self-insure companies.
If you suffer an on-the-job injury or occupational disease, we encourage you
to maintain contact with your employer. Let your employer know how you
are doing. If you are unable to return to your old job for a while, talk to your
employer about lighter-duty work you may be able to do during your
recovery. Many return-to-work options may be pursued. Some are outlined
in this guide. Read it and know your rights.
Need and importance of industrial insurance
Running a business today involves a certain amount of risk;
I. Many unforeseen events can occur that present challenges to the
modern business owner. Accidents in the workplace, employee
illness, mechanical failure of plant and equipment, even lawsuits
from disgruntled clients:
II. All of these may have to be dealt with at one time or another. Since
the cost of dealing with any one of these could be enough to force
closure of the business, it is essential that insurance is purchased
that will adequately protect against any such events the business
may face.
III. Industrial insurance (also known as commercial insurance or
business insurance) is the collective name for the various types of
insurance that pertain to business and industry.
IV. It Depending on the laws of the countries in which the business
operates, some of these types of insurance are likely to be
compulsory, while some may only be optional. Whichever of these
is the case, it is advisable to purchase as much insurance as can be
reasonably afforded: though doing so may be expensive,
V. It would be much more costly – in time and to the company’s
reputation as well as in monetary terms – to have to deal with an
accident or lawsuit while uninsured One type of insurance that is
usually compulsory is public liability insurance
VI. It is a key part of the insurance protection needed by any business
as it protects against claims made as a result of accidents and
problems resulting from the company’s interaction with the public.
VII. Examples of this are, for instance, if material from a building site
falls and damages a vehicle parked nearby or if a member of the
public slips and falls during a visit to premises owned and operated
by the company
VIII. Variations of this, professional indemnity insurance and product
liability insurance protect those providing services to the public
(for example lawyers and accountants) and protect against claims
on faulty products supplied to the public respectively.
IX. Another type of insurance that is compulsory in many countries is
employers’ liability insurance which indemnifies a business
against claims made by employees
X. Without such insurance a business would be vulnerable to claims
resulting from accidents, alleged discrimination, constructive
dismissal and a variety of other employee grievances
XI. Though there can be exemptions to the compulsory need for this
insurance (for instance government departments and family
businesses where all employees are related to the owner), in
general it is required for all businesses that are not sole traders.
XII. Aside from compulsory insurance there are many other types of
insurance that it is advisable for businesses to purchase. Common
types include motor insurance health insurance and buildings
Insurance but there are some types that are specific to certain
industries.
XIII. Tradesmen’s Insurance Cover, for example, covers traders using
tools and equipment in the course of their business, while print
companies, couriers and construction firms are just a few of the
types of company that have insurance tailored to them. All
specialized businesses should research if there is insurance that
suits their particular needs.
Role of reinsurance
Comprehensive US reinsurance regulatory reform: An imperative for
sustained industry performance
An important contribution from a strong and viable insurance industry is to
help foster a sound economy. Insurers and their reinsures have a shared
responsibility to sustained, solid financial performance in order to be able to
protect critical assets for years to come.
This is why Swiss Re believes it is in everyone’s best interest to take a
comprehensive approach to reinsurance regulation consistent with today’s
realities and the global nature of the reinsurance business. The existing U.S.
regulatory system has served the industry well in an environment where
reinsurance regulation as well as accounting and reporting systems varied
widely. Historically, it struck a good balance between competing interests.
But the world has changed, as reflected by the global nature of reinsuranc
capacity and enhancements in regulatory oversight in other parts of the
world.
Swiss Re is a global reinsure and seeks to manage its capital and risk on a
global basis. In doing so, we can ensure that the capital we hold is
commensurate with our worldwide risks and make sure that the funds we
need to support our clients are accessible when and where they are most
needed.
To provide this necessary fungibility of capital while at the same time
providing strong financial support to our clients so that they can fulfill their
obligations to policyholders, we must recognize that:
We need to strive for “best practices” in risk management techniques.
This includes the use of internal models which enable companies to
assess their internal risk landscape in the most accurate manner and,
consequently, to determine more accurately company-specific
solvency capital requirements;
Diversification is a fundamental part of value creation in the insurance
sector and ultimately provides efficient and effective policyholder
protection. Diversification is achieved by spreading risks across
different geographical regions and lines of business in order to
increase the number of mutually independent risks. As a result, loss
events within product lines or local markets can be absorbed by the
return on other policies not affected by those events;
Capital requirements should be reduced for risk mitigation techniques,
including not only traditional but non-traditional instruments. This is
particularly necessary to ensure that sufficient capacity exists for
natural catastrophes and other major risks that we face;
Reinsures need to be active globally to be able to balance their
portfolio. If this were not the case, reinsures would not be able to
absorb peak risks. A prerequisite for global scope is the ability of
reinsures to operate on a cross-border basis. For international
diversification to work, reinsures need the ability to use their
worldwide premium income to pay local claims. Restrictions on the
free flow of capital results in reinsures’ inability to move capital to
cover major events, making reinsurance coverage more expensive.
A global business must be supported by a strong, centralized
regulator. Swiss Re believes that these objectives can best be achieved
through an optional federal charter for reinsures. A move to a more
effective and efficient US regulatory system for reinsures will
ultimately make the US a more competitive and more responsive
jurisdiction and result in lowering regulatory costs while maintaining,
or enhancing, the safety and soundness of the industry.
Types of industrial insurance
1) Boiler and pressure plant insurance policy
Scope of cover
The policy broadly covers boilers and other pressure vessels, both fired
and unfired against losses due to explosion or collapse.
Sum insured
Sum insured should be reinstatement cost of the boiler.
Premium
Premium chargeable depends on the type of boiler, type of fuel and the
age of equipment. Discount is allowed for seasonal factories and stand by
facilities
Significant exclusions
The policy does not cover loss and/or damage arising from
Fire and allied perils
War and nuclear perils
Loss arising out of overload experiments
Gradual wear and tear of parts
Failure of individual tubes, loss due to chemical reactions
Willful acts or gross negligence
Loss which is manufacturer's or repairer's responsibility
Consequential loss from explosion or collapse
Main extension
Surrounding property of the Insured (including the property held in
trust or on commission)
Legal liability for third party bodily injury and property damage
Express freight, air freight and additional customs duty can also be
covered by payment
2) Electronic equipment insurance policy
Introduction
Covers loss or damage to the contractor's property due to any cause that is
accidental and external in nature.
Scope of cover
Cover operates when the insured property is at work or at rest or being
dismantled for the purpose of cleaning/overhauling or during subsequent re-
erection.
The policy broadly covers:
Material damage to electronic equipment (which can include systems
software) due to sudden and unforeseen events, under Section I
Cost of external data media, including cost of reconstruction of data
under Section II, as also increased cost of working under Section III.
While Section I is compulsory, Section II and Section III are optional.
Sum insured
Section I: New replacement cost of the insured property including
freight, erection cost, and customs duty, if any.
Section II: Cost of restoring the external data media by replacing lost
or damaged data media by new material and lost information.
Section III: Sum Insured should represent the hiring charges per hour
for substitute equipment for ensuring continued data processing for the
period of indemnity specified, including personnel and transportation
charges.
Premium
Rate of premium: 1 % For equipments valued more than Rs 1, 00,000, a valid
maintenance agreement is required to be in force, failing which 100 %
loading is attracted.
Significant exclusions
The policy does not cover losses/ damages due to:
Wear & tear
War, willful act or willful negligence
Aesthetic defects and consequential loss.
3) Machinery breakdown insurance policy
Scope of cover
The insurance policy broadly covers loss due to all kinds of accidental,
electrical and mechanical breakdowns due to internal and external causes.
Cover is granted during the time the machinery is in operation or rest or in the
process of dismantling, overhauls or during subsequent re-erection at the
same premises.
Sum insured
Value proposed for insurance should be equal to new replacement cost
including freight, erection cost, and customs duty, if any.
Premium
Rate of premium depends upon the type of machinery. Discounts are
offered in respect of stand-by facility, availability of spares and favorable
claims experience, subject to rules laid down in the tariff.
Significant exclusions
The insurance policy does not cover loss and/or damage from fire and allied
perils, theft, overloading experiments, willful acts or gross negligence,
gradually developing flaws and deterioration from normal use.
Main extension
Air freight
Express freight (excluding air freight) overtime & holiday wages
Insured's own surrounding property
Third party liability
4) Machinery loss Of profits insurance policy
Scope of cover
All perils under the machinery breakdown policy can be covered under
MLOP. Hence the main perils covered are electrical/mechanical breakdown,
voltage surge, impact damage etc.
The amount payable as indemnity is in respect of reduction in
turnover/output is the gross profits lost on account of the shortage in turnover
or output during the indemnity period in consequence of the material damage
under machinery breakdown policy.
Sum insured
The sum insured is to be declared as annual gross profits estimated
during the policy period.
This can be arrived at by either considering gross profits on difference basis
which is revenue - variable expenses or additions basis which is net profit +
standing charges.
Premium
The premium will depend on the following factors:
Replenishment time required for equipment's
Availability of spare equipment
Criticality of the equipment
Your contractual arrangements with Suppliers
Replacement time
Ability to make up for the loss
Your profit forecasting pattern
Significant exclusions
The underlying material damage policy for this MLOP cover would be
machinery breakdown policy. Hence all the exclusions of the machinery
breakdown policy would be applicable for MLOP cover. The major exclusions
would be fire and allied perils, theft & burglary, nuclear perils,
radioactive/ionization perils wear & tear.
5) Erection all risk
Covers plant and machinery under erection
Erection all risks (EAR) policy is designed to cover plant and
machinery under erection. Interest of suppliers/manufacturers, contractors,
subcontractors can be recorded in the policy
Scope of cover
This policy covers risks associated with storage, assembly/erection
and testing of plant and machinery. EAR insurance provides comprehensive
cover. All perils are covered unless specifically excluded. Cover incepts
from the time of unloading of the first consignment at the project site and
terminates on completion of testing or handing over of the project to the
Principal, or the period chosen, whichever is earlier.
Sum insured
Sum to be insured is the completely erected value of the plant and
machinery inclusive of freight, custom duty and cost of erection.
Premium
Premium depends on type, value, and duration of the project and the period
of testing
Main extension
Policy can be extended on payment of additional premium to cover
Escalation
Maintenance
Clearance and removal of debris
Damage to owner's surrounding property
Third party liability
Additional customs duty
Express freight
Holiday and overtime rates and wages
6) Contractor's plant & machinery
Introduction
This is an annual policy designed to cover construction equipment like
bulldozers, cranes, excavators, compressors, etc.
Scope of cover
This Policy broadly covers loss or damage to the contractor's property due to
any cause that is accidental and external in nature. Cover operates when the
insured property is at work or at rest or being dismantled for the purpose of
cleaning/overhauling or during subsequent re-erection.
Sum insured
Sum Insured of each item of machinery shall be the present day replacement
cost. Sum insured is computed from replacement cost including freight, cost
of erection and custom duty, if any.
Premium
Premium depends on the type of equipment and the location of operation.
Main extension
Main policy can be extended on payment of additional premium to cover:
Third party liability.
Owner's surrounding property.
Clearance and removal of debris
Overtime, express freight.
Additional customs duty.
7) Contractor's all risk policy
Covers all types of civil engineering projects
Contractors all risk (CAR) policy is designed to cover all types of
civil engineering projects like buildings, dams, flyovers, etc. It is possible to
record the interest of principal, contractors and subcontractors in the policy.
Scope of cover
This policy broadly covers the risk of accidental physical loss or
damage in respect of the contract works, during the execution of a civil
project. CAR insurance provides an 'all risk 'cover. All perils are covered
unless specifically excluded.
Cover incepts from the commencement of work or after unloading of first
consignment at project site, whichever is earlier and terminates on handing
over of works to the principal or expiry of policy, whichever is earlier.
Sum insured
The sum insured shall be the fully completed value of the contract works
inclusive of all materials, wages, freights, and custom duty and materials or
items supplied by the principal.
Industry Specific Insurance
Although industrial companies and businesses are broadly defined as
belonging to a sector that is involved in technical production, manufacturing
and construction, in reality these companies can be so diverse that the
insurance industry has had to develop several different types of policies in
order to adequately cover their unique requirements. Some insurance
companies offer job-specific policies (for instance courier insurance), whilst
others offer customized combinations of the many different types of cover
available. Finding the right policy for your business may be as simple as
matching the job with the relevant polic
1) Tradesman Insurance
Tradesmen are a particular type of industrial professional that many insurance
companies offer specialized plans for. Generally known as 'Tradesman
Insurance' or 'Tradesman's Insurance Cover', these policies include the
necessary public liability and employers liability policies but can be extended
to also include tools and equipment. Depending on the nature of the job the
tradesman carries out, it may also be necessary to include motor vehicle
insurance for the van or vehicle used, and professional indemnity insurance.
Another factor to bear in mind is that often insurance companies will not cover
tools when they are stored in vehicles so this may also have to be asked for
specifically in any new 'Tradesman Insurance' policy.
2) Manufacturing Sector
The manufacturing sector is another which has its own type of cover offered
by most insurance companies. This policy will include public and employers'
liability but will also cover product liability, business contents, business
interruption and loss of accounts receivable. Some policies can be extended to
include cover of goods in transit, engineering insurance, machinery and plant
inspection and even deterioration of stock.
3) Printing Companies
Printing companies may also want to look for specialized policies, such as
those offered by most of the major commercial insurers. Because printing
companies can be both commercial and industrial and can suffer from
machinery break-down, such companies should look for cover for business
contents and business interruption as well as cover for product liability, public
and employers' liability and loss of accounts receivable. If possible cover for
computer repair and data retrieval should also be organized as this may not be
included in the 'business interruption' element of the policy.
4) Other Specific Industries
Other industry specific policies include construction liability insurance,
wholesale insurance, courier insurance and contractors combined insurance.
Each offer basic cover with additional elements such as van insurance, cover
for goods in transit and cover for loss or damage to tools and machinery.
Courier insurance is especially popular due to the high demand for effective
couriers.
Industrial Insurance
Industrial and commercial business insurance is a major sector of the
insurance industry, and it is becoming ever more important: with increases in
public liability claims, a greater responsibility of employers to employees, and
a wider awareness of the myriad of damages, losses and costs claimable on
insurance policies, having a comprehensive policy is one of the most crucial
elements of any successful business. Industrial insurance can be divided up
into several key areas, with each area having separate policies and often
needing to be included individually on a business' insurance package. It is
important that business owners and employees are aware of the many different
areas of industrial insurance so that full compliance can be achieved and
maintained with minimal hassle. After all, the last thing any successful
business wants is to find it uninsured in a key area of operations.
Types Of Cover Available
Although by law there are really only three types of compulsory insurance that
are of relevance to industry, there are many non-compulsory types of cover
that are highly recommended. Employers' liability insurance is the main
compulsory cover of importance, though businesses that supply products will
also have to have product liability insurance and companies that rely on
commercial fleets will, of course, have to ensure that each vehicle has third
party insurance. Although not strictly compulsory, public liability insurance is
a wise investment, as is professional liability cover for businesses that offer a
professional product or service.
1. commercial insurance
2. business insurance
1) Commercial Insurance
There are often also certain types of commercial insurance cover available or
even recommended for specific industries. Individual tradesmen,
manufacturers, print companies, construction companies, couriers and many
others have insurance tailored to their needs. Any company involved in such
an industry should look at this type of insurance rather than settling for
generic, cross-industry cover as the latter can leave the company exposed to
unnecessary risk.
2) Business Insurance
There are many types of business insurance cover available to businesses that
though not compulsory are certainly advisable. Property and contents
insurance falls into this category, indemnifying against a base of operations
being out of action in the event of any serious incident, as does the insurance
of tools and equipment: this protects against crime and accidental damage and
minimizes costly downtime when no goods or services can be produced.
Similarly, any company that uses motor vehicles in its operations should
consider the type of motor insurance needed: the wrong insurance policy can
be either too costly or not give the cover needed.
Health cover may also be worth considering, for both the business owner and
the staff. Not only can it reduce time off due to sickness, but a competitive
healthcare package can help attract staff to the company in the first place
What to Do if You Are Injured at Work
1. Report your injury or exposure to your employer as soon as possible. Your
employer needs to know about your condition and what caused it.
Otherwise, he or she may ask us to deny your claim.
2. File your claim with L&I by completing a Washington State Fund Report
of Industrial Injury or Occupational Disease. Usually, a doctor will help you
fill out this form when you are first seen for your workplace injury or
condition. Still, it is your responsibility to make sure it is filed. You
complete the first section. After examining you, the doctor will
complete the second section and send copies to L&I. Injury claims must be
filed within one year. Occupational disease claims must be filed within two
years of receiving written notice from a doctor that the condition exists and
is work-related.
3. Stay in touch with your employer. Let your employer know how you are
doing and when you expect to return to work. If you are unable to do your
old job, discuss the possibility of other work you may be able to do during
your recovery.
4. Communicate with your doctor. Good communication between your doctor
and your claim manager is essential to the smooth delivery of benefits. You
can help by making sure your doctor regularly sends in the paperwork we
require verifying you cannot work because of your injury. Your doctor must
clearly explain the medical findings and restrictions that keep you from
working. Your claim manager also needs medical reports from your doctor
with a current treatment plan.
5. Work closely with your claim manager. Your claim manager will be
responsible for seeing that you get all benefits to which you are entitled. Your
claim manager’s name and phone number will appear on the notice enclosed
with your first time-loss compensation check. For best service, always include
your claim number when you write to us and have it ready when you call. Let
us know immediately if you move, change phone numbers, change doctors or
cannot keep a claim-related appointment.
APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE
SECTOR
There is an 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 let
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.
Primary data
ICICI Ltd
1. What is role of re-insurance in industrial insurance?
Ans-: role of reinsurance is to analysis the risk insurance company and give
the support to main or primary insurance company
2. Which type of policy industrial normally taken?
Ans-: I) Boiler and pressure insurance policy
ii) Electronic insurance policy
iii) machinery equipment insurance policy
iv) machinery loss of profitable insurance policy
v) erection of all risk
vi) contractor all risk policy
3. Is there any special policy introduce for the industries?
Ans-: yes, group mediclaim policy
4. Are the policy provided to the industries beneficial to the company?
Ans-: yes this policy helps to company to their cover risk partially or fully.
5. Impact of recession industrial insurance?
Ans-: there is no huge impact on recession, on these policy as it is affecting
on the company point of view
6. How industrial insurance work?
Ans-: industrial insurance has many policy group insurance policy, group
mediclaim or labour policy insurance employee pay the premium for
employee. It also give addition cover to company employee and health
secure
7. Are there policies in your company which have been crafted only as per
company actual value?
Ans-: not really are protecting as it cover almost each and every part of it.
8. Who are the players in industries insurance sector?
Ans-: ICICI Lombard, Bajaj alliance New Life Insurance etc.