Underwriting Authority Manual_Rev1_1st Sept'2010

IFFCO-TOKIO General Insurance Co.Ltd

Rev 1 September 1st 2010 Page 1

Underwriting Authority Manual



CONTENTS 1 GENERAL REGULATION 3

2 PROPERTY & ENGINEERING 4

2.1 FIRE

2.1.1 UNDERWRITING AUTHORITY MATRIX 5

2.1.2 SEGMENTATION 7

2.2 ENGINEERING

2.2.1 UNDERWRITING AUTHORITY MATRIX C.A.R / E.A.R 9

2.2.2 UNDERWRITING AUTHORITY MATRIX MBD / BOP /CPM 12

2.2.3 UNDERWRITNG AUTHORITY MATRIX EEI 13

2.2.4 SEGMENTATION CONTRACTOR’S ALL RISK INSURANCE 14

2.2.5 SEGMENTATION ERECTION ALL RISK INSURANCE 15

2.3 DEVIATION AUTHORITY MATRIX 18

2.4 REFUND AUTHORITY MATRIX 19

2.5 POST LOSS ENDORSEMENT AUTHORITY MATRIX 20



GENERAL REGULATION

The authorities can be exercised by only those officers who are assigned the

functions of underwriting by the organisation.

SBU Heads/ State Heads/ Commercial & Retail Heads of Mumbai/ Delhi and

Head Mumbai Operations/ Corporate Underwriting Heads, by virtue of their

assignments, will be considered as officers assigned with the function of

Underwriting. They will carry the authority of the grade to which they belong.

The SBU heads etc. shall specifically assign the underwriting authorities to

employees under their control, consistent with the cadre of employee only,

specifying the class of business in which they can exercise their authorities.

Copy of the delegation shall be marked to respective Underwriting

Departments in Corporate Office as well as to Internal Audit Departments.

In case an Officer in any cadre applies for resignation, his authority will cease

w.e.f. the date of the submission of the resignation.

These supersede all previous circulars issued in this regard and come into

force with effect from 1st August, 2008.



PROPERTY &

ENGINEERING

Occupancy / Risk Colour

Code - Green

U/W Authority

(Total Value at Risk*- INR

Cr.)

Occupancy / Risk Colour Code -

Yellow

U/W Authority (Total Value at Risk*- INR

Cr.)

Occupancy / Risk Colour Code - Red

U/W Authority (Total Value at Risk*- INR Cr.)

M10 & Above All Actuals All Actuals All Actuals NIL

M9Green:All Risk codes 500

Yellow: All except Gas processing plants, Refinery & Petrochemical, Fertilizer, Cotton Gin and Press Plants, Contractor plant and Machinery 400

Red- Only Tyre and Tube Mfg Plants, Chemical Mfg plants, Industrial Gas Mfg., Sponge Iron Plants, Silent Risk, Plastic Goods Mfg, Building Under Course of Construction; 250

a) Policies with Transmission lines as an item in the schedule,

b) Nuclear Power station,

c) All policies with Mining risk (even as an item in schedule),

d) Offshore exposures like jetties, wet works, SBM, Oil platform, Sea pipelines, Drilling rigs

e) Policies with add-on: Deterioration of stocks in cold storage, Molten metal, Spoilage Material Damge, Forest Fire

f) Contingent Business Interupption (Supplier / Customer and Utility Extensions under FLOP)

g) Risk With MCOPE risk Grade C.

h) Risks where FLOP SI is more than INR 100 Crores.

i) Kutcha Construction

j) FLOP policies where Indemnity period is more than 24 months.

k) Policies on First Loss basis / Loss limit basis.

100

Hotels and Hospital: First Time / Once in three years / Incase of Material ChangeIndustrial Risk with S.I. less than 5 cr: No inspectionIndustrial Risk With S.I. between 5 to 100 cr: At the inception / Once in three years / in case of material changeIndustrial Risk With S.I. more than 100 Cr: At the inception / Once in two years / in case of material changeIndustrial Risk With S.I. more than 500 Cr: At the inception / Every year / in case of material change

M8Green : All Risk Codes 400

Yellow: All except Gas processing plants, Refinery & Petrochemical, Fertilizer, Cotton Gin and Press Plants, Contractor Plant and Machinery; 300

Red- Only Tyre and Tube Mfg Plants, Chemical Mfg plants, Industrial Gas Mfg., Sponge Iron Plants; 200 100 ……Do……

M7Green:All Risk codes 300 ……Do….. 200 …..Do…… 100 100 ……Do……

M6Green:All Risk codes 150 ……Do….. 100 - No Authority- - No Authority- 100 ……Do……

M5Green:All Risk codes 75 - No Authority- - No Authority- - No Authority- - No Authority-

M4Green:All Risk codes 50 - No Authority- - No Authority- - No Authority- - No Authority- 100 ……Do……

NOTE 5: Treaty Exclusions (Applicable for 2A (i) and 2A(ii) )

2) Nuclear Power station or any form of Nuclear Energy risks3) Wet Risks exposed to Marine Perils4) Offshore exposures like Jetty, Oil platform, SBM, Pipeline, Drilling Rigs, Pumping stations etc.5) All policies with Underground Mining Risks (even as an item in Schedule)6) Policies on First Loss Basis.7) Policies with following add on covers :

Deterioration of Stocks in Cold StoragesMolten Metal SpillageSpoliage Material DamageForest Fire

8) Policies on First Loss Basis / Loss Limit9) Business Interruption cover with an Indemntiy period more than 24 months10) Contingent Business Interruption (Supplier / Customer and Utility extensions)

1) Policies with Tansmission & Distribution Line for Electrical Energy, Telephone or Telegraphic Signals and all Communication signals (both audio and video) as an item in the schedule. This exclusion includes above or below ground conductors (eg Transmission & Distribution Lines) including wires, cables, poles, scaffolding, pylons and masts or any other property forming a part thereof or connected therewith, it also includes standalone Substations and Transformer stations.

NOTE 1 : Total Value at Risk is considering all policies at one location irrespective of ITGI share including MD and BI as applicable.NOTE 2 : Risk Rating shall be strictly as per Rating Tools. NOTE 3 : Coverage need to be strictly as per erstwhile tariffs.

a) Risk With MCOPE risk Grade B and C**

b) State Warehousing Corporation,

c) Mid term Inclusion of STFI, RSMD Cover, d) Policies with Transmission lines as an item in the schedule,

e) Nuclear Power station,

f) All policies with Mining risk (even as an item in schedule),

g) Offshore Exposures like jetties, wet works, SBM, Oil platform, Sea pipelines, Drilling rigs

h) Policies with Add-On: Deterioration of stocks in cold storage, Molten metal, Spoilage Material Damge, Forest Fire

i) Contingent Business Interupption (Supplier / Customer and Utility Extensions under FLOP)

j) Risks where FLOP SI is more than INR 100 Crores.

k) Kutcha Construction

l) FLOP policies where Indemnity period is more than 24 months.

m) Policies on First Loss basis / Loss limit basis.

ANNEXURE 2A (i)Risk Assessment Matrix U/W Authority Matrix for Fire/ IAR/ FLOP

RemarksSpecific Exclusions (Refer to Corporate

Office)

NOTE 4 : Treaty capacity is different for policies having Sum insured more than 2500 crores. Hence, these policies are to be referred to CO.

Authority as per the Segments(Occupancy / Risk Colour Code)

For list of risk codes in each segments refer Segmental Occupancy list

Risk Assessment Obligation

S.I. (INR Cr.)Risk Assessment

FrequencyProduct / Coverage

Hierarchy Level

Std. Fire and Special Perils/

FLOP/ IAR(excluding risks falling under the

purview of Petrochemical

Tariff)

Industrial & Non Industrial Risks excluding Standalone Stock Risk

Occupancy / Risk Colour

Code - Green

U/W Authority


Cr.)

Occupancy / Risk Colour Code -

Yellow

U/W Authority (Total Value at Risk*- INR

Cr.)

Occupancy / Risk Colour Code - Red


M10 & Above All Actuals All Actuals All Actuals NIL

M9Green:All Risk codes 50 Yellow 40 Red 25

a) Policies with add-on: Deterioration of stocks in cold storage, Molten metal, Spoilage Material Damge, Forest Fire

b) Risk With MCOPE risk Grade C.

c) State Warehousing Corporation

100

Hotels and Hospital: First Time / Once in three years / Incase of Material ChangeIndustrial Risk with S.I. less than 5 cr: No inspectionIndustrial Risk With S.I. between 5 to 100 cr: At the inception / Once in three years / in case of material changeIndustrial Risk With S.I. more than 100 Cr: At the inception / Once in two years / in case of material changeIndustrial Risk With S.I. more than 500 Cr: At the inception / Every year / in case of material change

M8Green : All Risk Codes 40 Yellow 30 …..Do…… 20 100 ……Do……

M7Green:All Risk codes 30 ……Do….. 20 …..Do…… 10 100 ……Do……

M6Green:All Risk codes 15 ……Do….. 10 - No Authority- - No Authority- 100 ……Do……

M5Green:All Risk codes 7.5 - No Authority- - No Authority- - No Authority- - No Authority-

M4Green:All Risk codes 5 - No Authority- - No Authority- - No Authority- - No Authority- 100 ……Do……

ANNEXURE 2A (ii) U/W Authority Matrix for Fire/ IAR/ FLOP Risk Assessment Matrix

Product / Coverage

Hierarchy Level



Specific Exclusions (Refer to Corporate Office)

Risk Assessment Obligation

S.I. (INR Cr.)Risk Assessment

Frequency Remarks

Standalone* Stocks Risk

Std. Fire and Special Perils/

FLOP/ IAR(excluding risks falling under the

purview of Petrochemical

Tariff)

NOTE 1 : Following Categories of Risk will be treated as Standalone Stocks Risks for the purpose of application of this Authority Matrix-(i) Proposals being rated under Section VI & Section VII of erstwhile All India Fire Tariff(ii) Proposals for Stocks & Stocks in Process being rated as Industrial or Non-Industrial Risks without a Corresponding Assets Policy

NOTE 3 : Risk Rating shall be strictly as per Rating Tools.

NOTE 4 : Coverage need to be strictly as per erstwhile tariffs.

a) Risk With MCOPE risk Grade B and C**

b) Short period policies for goods in open

c) State warehousing corporation,

d) Mid term Inclusion of STFI, RSMD Cover,

e) Policies with add-on: Deterioration of stocks in cold storage, Forest Fire

f)Stocks in Basement

e) Stocks in Open

NOTE 2 : Total Value at Risk is considering all policies at one location irrespective of ITGI share including MD and BI as applicable.

Preffered Occupancy (Green) Caution (Yellow) Extreme Caution (Red)Aerated water factories Paper Mills, Card board

Mills(Lamination)/Cardboard Box Mfg. / Gypsom board, Particle board

Foam Rubber Manufacturing

Atta & Cereal grinding, Dal Mill,Grain / seeds

disintegrating / crushing / decorticating factories

Book Binders, Envelop & Paper Bag Rubber Factories

Bakeries / biscuit factories Sugar Factories Rubber Goods Mfg with Spreading, without Spreading

Breweries Gas Processing Plants / LPG Bottling plants

Tyres and Tubes Manufacturing

Coffee curing, roasting & grinding Refining and Petrochemical Plants Foamed Plastics Manufacturing/Foam

rubber mfg. and / or converting plantsCondensed milk factories, milk pasturisings plants and dairies

Fertilizer Plants Tyre Retreading and Resoling factories

Ice candy & ice-cream mfg / Ice factories Silk Mills/Spun Silk Mills Chemical Manufacturing(Using materials

with Flash Point below 32OC), Bulk Drug Manufacturing

Confectionery mfg / Sugar candy mfg./ Sweet meat mfg.

Wind Power Plants Paint (others) & Varnish Factories

Distilleries Oil Extraction (Excluding Solvent Based) Paints - Nitrocellulose basedFruit products & condiment factory (including fruit pulp making)

Oil Mills/Oil Refining Camphor Mfg.

Rice mills (evaluate STFI exposure well) Ink Mfg. Candle WorksSea food / meat processing Cotton Gin & Press House Celluloid Goods Mfg.Cement Factories Steel / Aluminium / Copper Smelters Industrial Gas Mfg.Cement/ Asbestos/ Concrete Products Mfg. Coal / Coke / Charcoal Factories, Coal

washeriesNitro Cellulose Mfg.

Ceramic Factories, Crockery And Stoneware Pipe Manufacturing/ Clay Works/ Tile And Pottery Work

Chemicals with Flash point > 32 deg C Pan Masala Mfg.

Thermal Power Plants Cashewnut factories Textile Mills CompositeD.G. set based Power plants Velvet cloth Mfg Spinning MillsElectric lamp, TV picture tube mfg Standalone Cinema Theaters Cotton Seed Clng & DelintingElectronic goods mfg & assembly Contractor Plant & Machinery Jute MillsElectronic software parks Flour Mill, Ghee incl. Veg. Ghee Wool Cleaning & Pressing Fac

Segmentation Fire Portfolio

Engineering workshop- structural steel fabricators, sheet metal fabricators, pipe extruding, stamping, pressing, forging mills

Glass Mfg Press For Coir Yarn/Cotton/Senna

Engineering workshop- machines shops (excl. Plastic and rubber component mfg.), assembly of metallic components / metallic spare parts

Graphite Electrode Mfg, Industrial Gas Carpet / Drugget Mfg.

Manufacture and assembly of electrical switchgear and panels.

Printing Press Matress & Pillow Making

Metal/ tin printers Stone Querries Polyester/ BOPP Film Mfg.Ore processing (refining)/ metal extraction Resturant / Hotels Bitumenised Paper And / Or Hessian

Cloth Manufacturing.Automobile Manufacturing Shops dealing in Non-Hazardous Goods Shops dealing in Hazardous goodsMan made fiber Open Warehouse (Non Hazardous) Cigar and Ciggarette Mfg.Woolen mills Closed Warehouse (Category I Goods) Exhibition / Fate / MadapsTextile Process houses, Garment Mfg, Hosiery / lace / embroidery / thread factories, Yarn Processing, Weaving Mills

Cold Storage Premises Hydro Power Plant

Pharmaceutical, Toiletry Mfg, Detergent Manufacturing, Soap Mfg.

Cable Mfg. Solvent Extraction

Mineral Oil Blending & Processing Saw MillsUmbrella Assembly Sponge Iron PlantVermicelli Tobacco curing and RedryingTiny sector industries Open Warehouse (Category I Goods)Industrial Diamond Mfg Open & Closed Warehouse (Category II

& III Goods), Transporter Godowns, Container Freight Stations, Coir Waste, Coir Fibres, Caddies

Malt extraction Building Under Course of Construction

Starch Factories, Tapioca Factories Plastic Goods Mfg. (Excluding Foam Plastic)

Tea blending / Packing Rope works (Plastic) and Others Telephone Exchange Assembling of Plastic Goods such as

Toys and the likeManure Blending Works Silent RiskDwellings/ Residential society/ Malls/ Offices / BPOMotor vehicle showroomMultiplex incl. Cinemat TheaterClosed Warehouse (Non Hazardous Goods)

Occupancy / Risk Colour Code-Green

U/W Authority


Cr.)Occupancy / Risk

Colour Code-Yellow


Occupancy / Risk Colour Code-Red


M10 & Above All Risk codes Acutals All Risk codes Actuals All Risk codes Actuals Nil


CAR:Yellow: All risks except Roads, Sewage disposal system, railway lines. EAR:Yellow: All risks except Fetiliser plants, Hydro carbon processing plants, petroleum refineries, Power Plants of all kinds, OIl.Liquid chemical. LPG pipe lines,Gas works. 200 Red:- No Authori - No Authority-

M8Green:All Risk Codes 200 ……Do….. 150 - No Authority- - No Authority-


M6Green:All Risk Codes 100 - No Authority- - No Authority- - No Authority- - No Authority-



NOTE 1: Risk Rating shall be strictly as per Rating Tools provided.

Temporary access roads (please confirm the project sum insured includes temporary roads also)Minimum deductibles : 30 times of Normal deductibles

100 Mts X 3 unconnected sectionsOther areasInternal & Access roads of Hydro Power ProjectsEndorsement regarding Existing underground cablesSpecial conditions concerning safety measures with respect to precipitation, flood and inundation.Endorsement regarding crops, forests, cultivated areas



NOTE 4: Compulsory Endorsements for Project policies involving Roads (Township, Plain Areas & Hilly Areas)(Applicable for 2G(i) and 2G(ii) )Sectional ClauseFlood Prone Areas & Hilly Regions 300 Mts X 3 unconnected sections

500 Mts X 3 unconnected sections

Product / Coverage

Hierarchy Level

NOTE 2: All Proposals with ALOP cover should be referred to Co U/W .NOTE 3: The coverage shall be strictly as per erstwhile tariffs

Annexure 2G (i)

Contractor's All Risk/Erection

All Risk

U/W Authority Matrix for EAR/ CAR (New Projects/Policies)

Specific Exclusions(Refer to Corporate Office)

a) Penalty clauses (i.e. faulty or belated delivery of the insured objects) and guarantees of performance or production

b) Decennial Liability Insurance

c) Risks involving underground Works including tunnelling works.

d) Wet Civil risks like Dams, Bridges (in/on Water), Jetties, Wharfs, Breakwaters, Ports etc e) Oil, gas drilling and production rigs.

f) Difference in Conditions/Contingency Policies.

g) All project policies covering ALOP cover.

h) Hydro power projects.

i) Second hand Plant/ Machinery

j) Policies with dismantling cover

k) Policies with Testing period beyond 4 months.

l) Policies having period longer than 48 months including the maintenance period and/or maintenance period. m) Policies having Maintenance/Extended Maintenance Period more than 24 Months n) Proposals with design defect covers DE-4 and DE-5.

o) Contingent Business Interupption (Supplier / Customer and Utility Extensions under ALOP)

NOTE 8: Treaty Exclusions (Applicable for 2G(i) and 2G(ii) )

2) Nuclear Power station or any form of Nuclear Energy Risks3) Wet Risks or Risks exposed to Marine perils4) Offshore exposures like Jetty, Oil Platform, SBM, Sea pipeline, Drilling Rigs, Pumping stations etc.5) Extended / Visits Maintenance Period exceeding 24 months6) Protoype Risks7) Standalone / Midterm ALOP8) Policies with Testing Period beyond 4 months9) Hydro Power Projects10) Projects periods beyond 48 months11) Contingent extension of a ALOP section comprising of named or un-named Customers and Suppliers, Denial of Access and Public Utilities.12) Coverage in respect of Design defect wider than DE-4 for EAR and DE-3 for CAR.13) ALOP - Delay due to:a) Earthquake, volcanic eruption, tsunamib) Damage to Surrounding property and Contractor's Plant & Equipmentc) Damage to operating media or feedbackd) Shortage, destruction, deterioration of or damage to any materials necessary for the insured business.e) Restrictions imposed by a public authorityf) Non - availability of fundsg) Alterations, additions, improvements, rectification of defects or faults or elimination of any deficiancies carried out after the occurrence.h) Damage to items taken over or taken into use by the insured or for which cover under material damage section has ceased.i) Loss due to fitness or damages for breach of contract, for late or non-completion of orders, or for any penalties of whatever nature.

k) Damage to Second hand plant or machinery testing.j) Loss of business due to causes such as suspension, lapse or cancellation of a lessee, lcense or order etc., which occurs after the date actual

1) Policies with Transmission & Distribution line for Electrical Energy, Telephone or Telegraphic Signals and all Communication signals (both audio and video) as an item in the schedule. This exclusion includes above or below ground conductors (eg Transmission & Distribution Lines) including wires, cables, poles, scaffolding, pylons and masts or any other property forming a pert thereof or connected therwith; it also includes standalone Substations and Transformer stations. This exclusion applies to policies having Sum insured more than 1000 crores.

Endorsement regarding Damage to crops and Forests etc.Endorsement regarding stringingMninimum Deductibles -Normal and Testing Period Losses - 10 times the Normal deductiblesBurglary losses - 25% of claim amount subject to minimum of Rs. 1.5 lacs

Claims pertaining to each and every towe will be treated as single claimSpecial Conditions for applicability of Deductibles

Minimum deductibles : 30 times of Normal deductibles

NOTE 7: Compulsory Endorsements for Project policies involving Transmission, Distribution lines & Rural Electrification (Applicable for 2G(i) and 2G(ii) )Civil Engineering worksEndorsement for Fire / Explosion claims and Fire fightingEndorsement concerning storageEndorsement regarding safety measures

Other areas 750 Mts X 3 unconnected sectionsEndorsement regarding Existing underground cablesSpecial conditions concerning safety measures with respect to precipitation, flood and inundation.Endorsement regarding crops, forests, cultivated areasContract woks time schedule

Temporary access roads, if anyMinimum deductibles : 50 times of Normal deductibles

NOTE 6: Compulsory Endorsements for Project policies involving laying of Pipelines (Water / Gas / Liquid chemicals) & Cables (Applicable for 2G(i) and 2G(ii) )Endorsement regarding Open TrenchesFlood Prone Areas & Hilly Regions 500 Mts X 3 unconnected sections

Other areas 750 Mts X 3 unconnected sectionsEndorsement regarding Existing underground cablesSpecial conditions concerning safety measures with respect to precipitation, flood and inundation.Endorsement regarding crops, forests, cultivated areasContract woks time schedule

NOTE 5: Compulsory Endorsements for Project policies involving Canals / Culverts (Applicable for 2G(i) and 2G(ii) )Endorsement regarding Open TrenchesFlood Prone Areas 500 Mts X 3 unconnected section

Occupancy / Risk Colour Code-Green

U/W Authority


Cr.)Occupancy / Risk

Colour Code-Yellow


Occupancy / Risk Colour Code-Red


M10 & Above All Risk codes Acutals All Risk codes Actuals All Risk codes Actuals Nil


CAR:Yellow: All risks except Roads, Sewage disposal system, railway lines. EAR:Yellow: All risks except Fetiliser plants, Hydro carbon processing plants, petroleum refineries, Power Plants of all kinds, OIl.Liquid chemical. LPG pipe lines,Gas works. 150 - No Authority- - No Authority-





M4 - No Authority- - No Authority- - No Authority- - No Authority- - No Authority- - No Authority-

Contractor's All Risk/Erection

All Risk

a) Policies involving underground works including Tunnelling.

b) Policies involving Wet Civil risks like Dams, Bridges (in/on Water), Ports, Jetties, Breakwaters, Wharf etc c) Policies involving Difference in Conditions/Contingency Policies.

d) Policies involving ALOP cover.

e) Policies involving Hydro power projects.

f) Policies involving Second hand Plant/ Machinery

g) Policies with dismantling cover

h) Policies having Period longer than 48 months including Extended Maintenance period.

i) Policies having Maintenance/Extended Maintenance Period more than 24 Months

j) Policies with design defect covers DE-4 and DE-5.

m) Policies where proposed Extension Period is beyond 24 Months

k) Policies where the Loss Ratios under the existing Policy is in excess of 60%

l)Policies involving a Break between the expiry of the Policy and inception of Extension Period

NOTE 1: Risk Rating shall be strictly as per Rates Provided in Internal Rating Guide

NOTE 2: All Proposals with ALOP cover should be referred to Co U/W .

NOTE 3: The coverage shall be strictly as per erstwhile tariffs

Annexure 2G (ii) U/W Authority Matrix for EAR/ CAR (Extension of an Existing Policy)

Product / Coverage

Hierarchy Level



Specific Exclusions(Refer to Corporate Office)

M10 & Above All Risk codes Actuals Nil

M8 All Risk Codes 9

M7 All Risk codes 7.5

M6 All Risk codes 5


M4 All Risk codes 1

NOTE 5: Treaty Exclusions1) Standalone MBD and MBLOP policy for Gas Turbine Genenrators2) CPM policies covering TBMs3) MLOP cover with an Indemnity Period more than 24 months4) Prototype Machines

Annexure-2H U/W Authority Matrix for MBD/ BOP/ CPM

Product / Coverage Hierarchy Level

M9 All Risk codes 10

Machinery Breakdown/Boiler and Pressure Vessels

Insurance/Contractors' Plant and machinery

In respect of MBD, CPM, BOP it is mandatory to collect the serial number (identification number and other name plate specifications.)

No parts of the equipment should be insured separately except as for provision under engineering tariff.

RemarksSpecific Exclusions (Refer to Corporate Office)Occupancy / Risk Code

U/W Authority


Cr.)


Machinery breakdown insurance:1. Stone Crushers2. Rolling mill stands, pedestal bearing, Raymond mill.3. PVC/ Rubber lined Vessels4. Radios / Tapes recorders, TV sets, Electric measuring Instruments except under Home Protector policy5. Imported Machineries which cannot be repaired in India.6. Cupolas and Oil Fired Furnaces7. Pumps with Glass, Graphite, Rubber Impellers8. Pipe Lines9. Equipment in Foundries having induction furnaces10. Equipment in the plant/ area with lot of dust.11. Portable and Mobile equipment12. Small electrical motors of less than 10 HP13. Starters/ Switch fuse units (SFUs) for electrical motors up to 20 HP14. Thyrister converters 15. Washing machines/ Air-conditioners except under Home Protector policy16. Oil/ well/ ocean drilling machines under Machinery breakdown17. Single equipment costs more than Rs.5 Crs18. MLOP cover19. Machinery having an age more than 15 Years20. Policies having a Claims Experience of more than 60% in previous 5 years 21. Prototype machine Contractors' Plant and Machinery:1. Railway trackage2. Gas power-generating plant3. Locomotives and steam generating engines4. Site power-generating plant5. Cranes above 10 tonnes capacity6. Mobile diving rigs7. Drilling machines for water supply8. Tunnel Boring Machines9. Policies on first loss basis for CPM cover10. Extension of breakdown cover for CPM equipments.11. Single equipment costs more than Rs.5 Crs12. MLOP cover13. Machinery having an age more than 15 Years14. Policies having a Claims Experience of more than 60% in previous 5 years

Boliers and Pressure Plant Insurance:1. Non IBR equipment2. Boilers with conditional approval by Boiler inspector.3. MLOP cover 4. Non certified Boiler 5. Surrounding Propoerty to be specified.

NOTE 1: Risk Rating shall be strictly as per Rating Tables provided.

NOTE 2:All the above authorities for MBD are subject to proposals with fire policies. Stand alone policies should be referred to CO U/W.

NOTE 3: All Proposals with MLOP cover should be referred to Co U/W .

M10 & Above All Risk codes Actuals Nil

M9 All Risk codes 2.5 Nil

M8 All Risk Codes 2





Annexure-2I

NOTE 2:All the above authorities for EEI are subject to proposals with fire policies. Stand alone policies should be referred to CO U/W.

NOTE 3: All Proposals with MLOP/ ICOW cover should be referred to Co U/W .


Product / CoverageHierarchy

Level

Electronic equipment Insurance

Occupancy / Risk Code

U/W Authority

(Total Value at Risk*- INR Cr.)

U/W Authority Matrix for Electronic Equipment Insurance

RemarksIn respect of EEI it is mandatory to collect the serial number (identification number and other name plate specifications.)

No parts of the equipment should be insured separately except as for provision under engineering tariff.

Specific Exclusions (Refer to Corporate Office)

Electronic Equipment:1. Photocopiers2. Medical equipment like Sonography machine, X-ray machine, CT scan etc.3. Laser machine 4. Thyristor panels5. Portable equipments6. Single equipment costs more than Rs.1 Crs.7. Increased cost of working.8. Equipments having an age more than 10 Years8. Policies having a Claims Experience of more than 60% in previous 5 years

NOTE 1: Risk Rating shall be strictly as per Rating Tables provided.

PREFERRED SEGMENT (Green) CAUTION(Yellow) EXTREME CAUTION(Red)Residential and commercial buildings. Chimneys, Silos and Cooling Towers, TV Towers. Roads-In Hilly Areas

Theaters, Auditorium and Cinema Halls. Runways, Aprons and Air Taxiways at Airports. Water supply for cities and industrial areas.Factory sheds, Warehouses, Cold storages, Hangars. Roads-In Plain Areas Works in water-Bridges on rivers/ creeks, dams/ coffer

dams, aquaducts, via-ducts, barrages, structural works inwater.

Roads –In townships only Road bridges on land TunnelsInterior decoration works Reservoirs/Tanks Canals/ culvertsSubways on Land Water supply installations for housing colonies. Area reclamation work Underground and overhead water storage tanks for residential/commercial buildings and housing colonies

Sewage Disposal System

Pile Foundations alone in respect of buildings & other structures Ground leveling Railway Gauge conversion (Meter gauge to Broad gauge), Under ground cable ducting

Railway lines(Greenfield lines)

CONTRACTORS' ALL RISK INSURANCEAnnexure-2J

PREFERRED SEGMENT (Green) CAUTION(Yellow) EXTREME CAUTION(Red)Air Compressors Furnace(Electric arc,Induction/coal,gas,oil fired) Steel Plants/ Blast Furnace and Sponge Iron plantsAir Conditioning Plant Ariel Rope ways Explosives Factories Annealing Furnace Aluminum plants Gas Turbines/ Combined Cycle Power PlantsAsbestos Plant Boilers HVDC Transmission system (excluding transmission lines)/ HVDC

Back to Back Stations Ash Handling Plants Cable laying Hydro Power PlantsAuto Cycles Assembling Plants Cardboard Factories Laying of optical Cables below sea bedAir Separation Plant Cement Factories Water WorksAluminum products Manufacturing Ceramic Tiles Manufacturing Plants Transmission lines(including Electrification of rural areas and

railways)Food and Beverages plants Chemical Plants Power Plant (Biomass)Brick Works Coal Handling Plants Battery Manufacturers. Coke Oven PlantBelt Conveyor Systems Continuous Casting Plants Cable Works Colliery MineCellular Telephone Dyestuff ManufacturersCement Pipes Mfg. Electrification of factories/ buildings/roads.Chalk Factories Electrostatic Precipitators Chain/Chain links Mfg. Plants. Foundries Chilling Plants Fertilizer plant/Hydrocarbon Processing plant & Petrochemical

PlantsCigarette Factories Fabrication on land of Drilling & Production Platforms or any

sections thereof required in the exploration/ production of Oil andGas

Clinker Factories Flight Simulator (Environmental & Visual) Coal Crusher Gas WorksCold Storages Graphite electrode plantComputers/Electronic equipments Glass Works Control Panels LPG Plants/Gas Sweetening Plants/ LPG Bullets, Tank Farm Cotton Seed Processing Plants Oil/ Liquid Chemical/ Liquid Petroleum products/LPG pipelinesCranes Laying of Water PipelinesCycle Plants Material Handling EquipmentsCooling Towers Nylon Plant Diagnostic Equipments Ore Preparation Plant Dyeing Works Paint Factories

ERECTION ALL RISK INSURANCEAnnexure-2K

Effluent Treatment Plants Paper/pulp Factories Electric Motors Polyester Fibre Plant Electroplating Plant Power Plants-Diesel/Steam basedElevating Equipments Producer Gas PlantsEngineering workshop Petroleum products Pumping station Fire Fighting Systems Pig Iron PlantsForging Shops Precious Metals (Platinum, Gold, Silver etc.) Refining &

Fabrication Plants.Gas receiving Terminal /metering Terminal Rayon Plant Glass Fibre Mfg. Plants Solvent Extraction Plant Glass lined/ Graphite/ Car bate/Glass vessels Substations including TransformersHardboard Mfg. Plant Sugar Factories Heat Treatment Plant Synthetic Fibre PlantHospital Equipments Mfg Sintering Plant Instrumentation (All types) Ultrasonic Non-destructive Testing Equipments Insulator Mfg. works Video Tape & Pan Cakes Mfg. Plant Jib Hoist Wind Turbine GeneratorsJute Mills Laundries Leather Goods Factories Lifts Machine Tools Marble Works Match Factories Medical Treatment EquipmentsMetal Fabrication Mica Products Mfg.Mobile Cranes Pharmaceuticals Photo Film Mfg.Plastic Products Factories Plywood Factories Pottery Printing Press

Refrigeration Plant/ EquipmentsRinks Works Rolling MillsRubber Factories Saw Mill Soap Factories Solar Water Heating SystemSpinning MillsStationery Factories Steel Furniture Plant Steel Structure for Factories & Buildings. Stone Works Studio Equipments Sub Station Equipments,Switchgear-H.T.& L.T -Excluding Transformers

Surgical Equipments Manufacturing Plant TanksTanneriesTelephone ExchangeTextile Mills Machinery Tobacco Factories Tractor Mfg. Plant Varnish Factories Vehicle Assembly PlantsVeneer Factories Water Pumping Station Weaving Mills Weigh Bridge Wire Drawing UnitsWood WorksX-Ray Equipments

Sr No Product Type Hierarchy Level Deviation % Remarks

M10 & AboveActuals

M9 15%M8 10%

M7 7.5%

M6 5%

M10 & AboveM9M8M7M6

M10 & Above

M9M8M7M6

M10 & Above Actuals

M9 15%

M8 10%

M7 7.5%

M6 5%

Note 1: Deviation are in built into the siebel rating tool (mentioned as Marketing flexibility in the discount Tab of Siebel) and shall be recorded along with the reason and description for deviation.Note 2: Deviation recording shall be strictly as per the deviation process provided in the Property Underwriting Manual. Deviations considered are subject to Technical audit by corporate office.

4 EAR/CAR/EEI/MBD/BOP/CPM

As the LOP Premium rates are based on Fire rates, no separate deviation will be allowed for FLOP over and above deviation considered in Fire Section.

Section wise deviations to be considered, no additional deviation over the total IAR premium.

Deviation Authority Matrix for Property & Engineering

2

Std Fire and Special Perils Policy1

IAR

Consequential Loss of Profit3

Sr No Description Hierarchy Level Remarks

Refund due to.. FIRE Engineering General

M10 & AboveActuals Actuals

M9 INR 100,000 INR 100,000

M8 INR 50,000 INR 50,000

2. All refund notes shall be serially numbered starting from 0 each financial year with separate serial and shall be in the refund format.

M7 INR 30,000 INR 30,000M6 INR 20,000 INR 20,000


M9 INR 100,000 INR 50,000M8 INR 50,000 INR 30,000M7 INR 30,000 INR 20,000M6 INR 20,000 INR 10,000M10 & Above Actuals

M9 INR 100,000M8 INR 50,000M7 INR 30,000M6 INR 20,000

M10 & Above Actuals ActualsM6-M9



3

4

5

6

NA

Adjustment of Sum Insured for LOP Policies - No Authority-

Silent risk/ Standstill period- No Authority-

Early completion of Project- No Authority-

Annexure-4A

Refund Authority Matrix

Refund Authority (INR)

2

Finalisation of provisional Sum Insured, within 3 months of inception(Date of issue of endorsement in system)

1

1. All refund shall be authorised only by the SBU head / State head as per the refund authority matrix.

Cancellation of Policies including cancellations due to replacement by new policy / policies with same / larger SI

3. Reference of refunds to the corporate office shall be made along with following details:a) Refund Formatb) Refund Calculationc) Supporting documents, if any

Adjustment of Sum Insured on policies subject to declaration / annual adjustment for declaration / floater declaration Policies

No Description Hierarchy Level Exclusions

FIRE Engineering


Nil

M9

For risks within the underwritingauthority of M7 as per underwritingauthority matrix.


Changes to the RI cessions.

M8



Changes to the RI cessions.

M7 - No Authority- - No Authority-

M6 - No Authority- - No Authority-

Annexure-4D

Post Loss Endorsement Authority MatrixPost Loss Endorsement Authority

Approval of Post Loss endorsement

1

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Underwriting Authority Manual_Rev1_1st Sept'2010

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