CORPORATE

Standard Fire and  Special Allied Perils

Although called Fire Insurance, it is an umbrella insurance policy covering many risks. The policy is technically named as Standard Fire and Special Allied Perils. Under this insurance, the perils insured are fire, lightning, explosion / implosion, impact damage, aircraft impact, bursting / overflowing of water tanks / pipes / apparatus, sprinkler leakage, storm, cyclone, typhoon, hurricane, tempest, tornado, flood, inundation, subsidence, landslide (including rock slide), riots, strikes, malicious damage, missile testing operations. Additionally, there are options to insure Earthquake and Terrorism risks and a host of other add-on covers.  
Properties that are covered:
All moveable/ immoveable properties of the proposer on land (excluding those in transit) broadly categorized as follows :

• Building (including plinth and foundations, if required):
• Whether completed or in course of construction (excluding the value of land).
• Interiors, Partitions and Electricals.
• Plant & Machinery, Equipments & Accessories (including foundations, if required)
• Bought Second hand.
• Bought New
• Obsolete Machinery
• Stocks:
• Raw Material
• Finished Goods
• In process
• In trade belonging to Wholesaler, Manufacturer and Retailer.
• Other Contents such as
• Furniture, Fixtures and Fittings
• Cables, Pipings
• Spares, Tools and Stores
• Household goods etc.
• Specific Items such as bullion, unset precious stones, curios, work of arts, manuscripts, plans, drawings, securities, obligations or documents, stamps, coins or paper money, cheques, books of accounts, computer system records, explosives.

---

This policy is a Comprehensive Package Policy which covers almost all risks and perils, which a large industry may face during its operation. This policy covers Buildings, Machinery, Furniture, Fixtures, Fitting & Electrical installations on Reinstatement value, while the Stock is covered on market value basis. Policy also covers equipments and machinery sent for repairs outside the premises for a period of 60 days. Transit risk inside the compound of an industry is also covered.

Section I - Material Damage

• Architects', Surveyors and Consulting Engineers' Fee clause
• Designation of Property Clause
• Escalation Clause
• Omission to insure additions, alterations or extensions clause
• Temporary Removal of Stocks clause

Section II - Business Interruption

• Suppliers' and Customers' Premises extension
• Failure of Utility services at the terminal ends

---

• Contractors All Risk

Wherever there is the construction of buildings or civil works, there is a risk of loss or damage. The contract governing the works will place the responsibility for this loss or damage with either the Contractor or Employer. Contractors All Risks (CAR)  provides annual cover for contractors, or protection for individual constructions contracts. It provides protection against physical loss, destruction or damage to construction works during the course of a construction contract. 
The policy comprises of 2 Sections :

• Section I-Material Damage- It provides coverage for the property lost, damaged or destroyed by any cause, other than those specifically excluded in the Policy, necessitating replacement or repair. The Policy will pay or make good all such loss or damage up to an amount not exceeding the sum specified in respect of each of the items and not exceeding in the whole the Total Sum Insured.

• Section II-Third Party Liability- provides coverage towards: a)legal liability for accidental loss or damage caused to property of other persons b) legal liability for fatal or non-fatal injury to any persons other than the Insured's own employees or workmen or employees of the owner of the works or premises due to construction of any property.

---

Machinery Breakdown Insurance, is designed to provide cover against unforeseen and sudden physical loss or damage to the machinery by any cause subject to excepted risks. The policy covers sudden and unforeseen damages arising from mechanical and electrical breakdowns and accidental external means to insured’s plant and machinery. This insurance policy is extremely useful to protect manufacturing industry against heavy expenses necessitated in repairing of the machinery under breakdown, thus ensuring business continuity.

• This policy covers the unforeseen and sudden accidental physical damage to insured machinery, plant and equipment
• while at work / rest
• whilst being dismantled or removed or re-erected, within the same premises
• It also covers loss or damage due to faulty operation, adjustment, casting, vibration, entry of foreign objects, loosening of parts, self-heating, and centrifugal force

Basis of Compensation

• Partial Loss (where repairing is feasible) - In cases where damage to an insured item can be repaired, the company will pay expenses towards restoring the damaged machine to its former state of serviceability plus the cost of dismantling and re-erection as well as ordinary freight to and from a repair shop, customs duties and dues.
• Total Loss - In cases where an insured item is destroyed with repairs not being feasible, the company will pay the actual value of the item (by deducting proper depreciation from the replacement value of the item) including costs for ordinary freight, erection, customs duties and charges for dismantling after adjusting the salvage value, if any.

---

Every Project under erection needs complete protection against potential loss. Projects under erection are exposed to host of risks which can put a break in implementation, cause financial burden and leave you feeling you have no control.  This Policy offers comprehensive insurance for erection projects and provides cover during Storage, Erection and Testing of property at the insured site.  The Policy is provided for the entire period of the project rather than on an annual basis

There are 2 Sections in the Policy.

• Section I - provides coverage for the property lost, damaged or destroyed by any cause, other than those specifically excluded in the Policy, necessitating replacement or repair. The Company will pay or make good all such loss or damage up to an amount not exceeding the sum specified in respect of each of the items and not exceeding in the whole the total Sum Insured specified.

• Section II - provides coverage towards: a) legal liability for accidental loss or damage caused to property of other persons b) legal liability for fatal or non-fatal injury to any persons other than the Insured's own employees or workmen or employees of the owner of the works or premises due to construction of any property.

 

---

Boiler and Pressure Plant Insurance covers damage other than by fire, to boilers & pressure plant, damage to surrounding property, Third Party legal liability arising due to explosion and collapse of the boiler/ pressure plant during its normal course of working.

The Policy covers the insured Boiler and other Pressure Plants against the following risks:

• Damage to the Boiler and/or Pressure Plant described in the Policy Schedule due to accident (other than by fire)
• Damage to surrounding property of the Insured described in the schedule or property held in trust or on commission for which the Insured is responsible due to accident to the insured property (other than by fire)
• Liability towards death of or bodily injury to any person or damage to property not belonging to the Insured in the event of explosion or collapse of the Insured Boiler/Pressure Plant.

---

Every successful business be it a large Corporation or a SME, needs complete protection against potential loss. Modern businesses use lot of Electronic Equipments like Computers, Servers, Audio/Video and security equipments and Industry specific Electronic Equipments that are exposed to various risks. Any damage or breakdown to them can put a break in your growth plan by putting a financial burden and stress.

The Policy is divided into three sections - Material Damage (Equipment), External Data Media and Increased cost of working.

• Section I - Material Damage: The policy pays for physical loss or damage caused to the equipments covered under the policy, necessitating repair or replacement, due to any cause, other than those specifically excluded under the Policy.
• Section II - External Data Media: If the external data media and the information stored in such media, which can be directly processed in EDP systems suffers any material damage due to the peril covered under Section 1 of this Policy, the Company will indemnify the Insured for such loss or damage. This cover is applicable while the insured data media are kept on the Premises. Coverage against restoration of data under this Section will be granted only if backup system is available.
• Section III - Increased Cost of Working: The Company will indemnify the Insured for all additional costs which the Insured incurs to ensure continued data processing on substitute equipment if such costs arise as an unavoidable consequence of an indemnifiable loss or damage to property insured under the Section I of this Policy.

The Policy covers damage caused by the following perils:-

• Smoke, soot, dust, corrosive gases etc.
• Water and Humidity.
• Short circuit and Electrical fire risk.
• Faulty operations, lack of skill.
• Falling object and entry of foreign bodies
• Fire, lightning, explosion.
• Riot and strike and malicious damage and terrorism.
• Theft and burglary.
• Natural calamities - flood, inundation, storm, cyclone and earthquake
• Subsidence, landslide, rockslide.

---

Marine Open Policy

Marine cargo insurance that provides blanket cover against loss or damage to all goods transported by sea, road, rail or air or by a specific shipper, during a stated period. Under its terms, the insured is required to periodically provide the insurer with the description, quantity, and value of goods shipped during that period. Also called open cover.
Transportation of goods can be broadly classified into three categories:

• Inland Transport
• Import
• Export

Add on covers
Inland transit policies can be extended to cover the following perils on payment of additional premium :

• SRCC - Strike, riot and civil commotion (including terrorist act)
• FOB - Where the inland transit is required to be extended to cover the goods till they are loaded on board the vessel , this extension can be taken.

Export /Import policies can be extended to cover War and /or SRCC perils on payment of an additional premium.

• Marine Specific policy  

Marine specific is a single voyage or transit policy. The policy will be issued before the voyage starts. The coverage will cease immediately on completion of the voyage. The specific voyage policy must show complete details of the risk. It should contain particulars of conveyance/Vessel name/ Bill of Lading or Way bill and date sum insured terms and conditions of cover voyage cargo description etc like all other marine policies.

• Marine Hull policy 

Marine Hull covers any loss or damage to ships tankers bulk carriers smaller vessels fishing boats and sailing vessels. The policy covers loss/damage to the property insured due to:

• Fire or explosion; stranding sinking etc.
• Overturning derailment (of land conveyance).
• Collision.
• General average sacrifices salvage charges.

All risks relating to Vessels, Floating Dry Docks, Jetties and Shipowners' Interests including Hull & Machinery (H&M), Freight, Disbursements, Increased Value, Premium Reducing, Excess Liabilities, Protection and Indemnity (P&I) Liabilities, Charterers' Liabilities, Charterers' Freight, Charterers' Hire and/or Disbursements, General Average Disbursements, Ship Repairers' Liabilities, Shipbuilding Risks, Shipbreaking Risks and other allied interests of whatsoever nature required to be insured in India.
Types of Marine Hull Insurance Policies

• Ocean Going Vessels
• Coastal Vessels
• Inland Vessels
• Port Crafts
• Ship Building
• Sailing Vessels
• Charter’s Liability Fishing Trawlers, etc.

---

Directors & Officers Liability

Directors and officers liability Insurance (often called D&O) is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously. Intentional illegal acts, however, are typically not covered under D&O policies. It has become closely associated with broader management liability insurance, which covers liabilities of the corporation itself as well as the personal liabilities for the directors and officers of the corporation.
Common D&O risk scenarios

• Employment practices & HR issues
• Shareholder actions
• Reporting errors
• Inaccurate or inadequate disclosure (e.g. in company accounts)
• Misrepresentation in a prospectus
• Decisions exceeding the authority granted to a company officer
• Failure to comply with regulations or laws

---

Professional indemnity (PI) is an insurance product that will protect you in the event that your business is sued by a client. This could happen if a client is unhappy with the work you’ve produced or professional advice you’ve provided. Even if you haven’t made a mistake you may still have to fight a claim.  If you’re a professional business that provides advice and services to your clients, PI cover should be seen as an essential consideration for your business insurance package.
Regardless of how many years experience your firm may have, there is always the possibility you (or one of your team) could make a mistake. Professional indemnity insurance covers against a wide range of scenarios, including:

• Professional negligence (i.e. making a mistake in a piece of work for a client)
• Loss of documents or data
• Unintentional breach of copyright and/or confidentiality
• Defamation and libel
• Loss of goods or money (your own or for which you are responsible)

The policy is meant for following professionals:-

• Doctors and medical practitioners - which covers registered medical practitioners like physicians, surgeons, cardiologists, pathologists etc.
• Medical establishments - which covers legal liability falling on the medical establishment such as hospitals and nursing homes, as a result of error or omission committed by any named professional or qualified assistants engaged by the medical establishment.
• Engineers, architects and interior decorators.
• Lawyers, advocates, solicitors and counsels.
• Chartered accountants, financial accountants, management consultants.

---

A standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability. The CGL policy was introduced in 1986 and replaced the "comprehensive" general liability policy. CGL policies typically are written on standard policy forms developed by nationwide insurance industry organizations.  Because CGL policies are products of insurance industry draftsmanship, courts in most jurisdictions construe any ambiguities in favor of the policyholder.
CGL policy covers a wide range of liability loss exposures of commercial organizations. The
loss exposures come under following broad categories:

• Premises and Operation Liability Risks
• Products and completed operations Liability Risks
• Limited Contractual liability
• Personal and Advertising injury liability
• Medical payments
• Supplementary Payments

The origins of liability in CGL Policy are i) Common Law, ii) Contract and iii) Statute. Common forms of Torts that are covered in CGL Policy are as usual Negligence, Nuisance, Trespass, Strict Liability, Libel and Slander, Liability for occupier’s premises.
Specific Coverage Offered by Commercial General Liability Insurance
Bodily Injury :  It may be difficult to imagine how your business could cause another person serious harm or even death. But it’s good to know that if you are ever held responsible for someone else’s sickness, injury, or disease, your general liability insurance policy would pay for:

• Medical care costs
• Loss of services
• Court-awarded compensation for deaths that result from an injury

Property Damage  : Even if you’re careful and take precautions, it’s still possible that something your business does – or something it doesn't do – could damage another person’s property. It’s also possible that your actions might prevent the property’s owner from being able to use it. In such cases, your business liability insurance coverage compensates for:

• Physical damage to the property, or
• Loss of use of the property

It is important to note that property damage liability coverage often does not cover damage caused to client property you are working on or have in your possession.
Products-Completed Operations  : Commercial general liability insurance policies generally include liability protection for services or products completed by your company. So if something your company manufactures or a service your company provides causes an injury, your policy would pay for any resulting legal expenses, as well as damages up to your policy's limit.
Contractual Liability :  Your commercial liability insurance coverage would cover liability you might take on when you enter into various contracts, such as:

• Easement-of-license agreements
• Building leases
• Elevator maintenance agreements
• Agreements to indemnify a municipality, if required by ordinance

Fire, Explosion, or Lightning Damage : The property insurance portion of your general liability insurance covers damage you may cause to other people’s property as a result of fire, lightning, or explosion, whether you own your business property or rent it. This coverage even applies to other areas in your building that may be damaged as a result of negligence on your part. Let’s say a fire in your office on the building’s second floor causes damage to another company’s offices below. Your liability policy will pay for the damage to the downstairs office space.

Legal Defense Expenses  :  Even if your company is not found liable for a claim, the process of mounting a defense is expensive without insurance. A business liability insurance policy will generally pay for:

• The cost to defend or investigate a suit or claim against you, including court costs, witness fees, attorney's fees, and police report costs
• If the insurance company asks you to assist in your defense against a claim, it will pay your reasonable expenses, such as the loss of your income for a day in court
• It will pay the judgments or settlements resulting from covered suits, including interest required on the judgment and the injured party’s medical expenses, if your defense is unsuccessful
• When a court requires you to post a bond to ensure you can pay a potential judgment in a liability suit, this insurance will pay the premium for the bond

---

• Group Medical Policy

Group health insurance coverage (GMC) is a policy that is purchased by an employer and is offered to eligible employees of the company (and often to the employees' family members) as a benefit of working for that company. A group health insurance plan is a key component of many employee benefits packages that employers provide for employees. One of the advantages for employees in a group health plan is the contribution most employers make toward the cost of the health coverage premium. These plans are generally uniform in nature, offering the same benefits to all employees or members of the group.

Any Group/ Association/ Institution/ Corporate body with a certain minimum number of employees can apply for the Group Medical Insurance policy.  The  policy covers:

• Hospitalization expenses incurred within the country, due to illness, disease and/or due to accidental injury during the policy period
• Relevant pre- and post-hospitalization expenses
• Room, boarding expenses of hospitalization; nursing home expenses
• Surgeon, anesthetist, medical practitioner, consultants, specialist fees
• Anesthesia, blood, oxygen, operation theatre charges, surgical appliances and medicines
• Diagnostic material and x-ray, dialysis, chemotherapy, radiotherapy, cost of pacemaker, artificial limbs, cost of organs and similar expenses

---

• Group Personal Accident

Unforeseen circumstances often interrupt the efficiency of employees and thus directly affecting business operations. To cushion against this disturbances, an employer may opt to take the Group Accident Cover so as to try and ensure that employees remain able to contribute the success of the business. This is generally a Personal Accident Cover for each employee, Named/Un-Named: Policy based on clients requirement. It differs from an Individual Personal Cover because the company itself pays premiums for each employee. The benefits payable under this policy may be fixed as multiples of employee’s earnings or as fixed sum per person. The GPA policy covers:  
  •   Death
  •   Permanent total disability
  •   Permanent partial disability 
  •   Temporary total disability(weekly benefits) 

---

• Burglary Insurance

An insurance policy covering losses resulting from a burglary, which is the act of entering a building unlawfully with the intention of committing a crime, usually but not always theft. Burglary insurance for businesses is usually part of a larger policy.
Policy is designed to cover business premises only like godown, factory, office etc. There are three types of policies available :-

• Full Value Insurance: The policy must be effected for the full value of the property to be insured.

• First Loss Insurance: In the event of improbability of total loss, proposer can opt for a percentage of total stocks to be insured

 

• Stock Declaration Policies: These policies are given where large stocks frequently fluctuate in quantity during the year. The sum insured is fixed at the maximum value of stocks which the insured anticipates he will hold at any one time. A deposit premium of 100% of the annual premium will be paid at the beginning of the insurance. Monthly declarations of value are to be sent to the company and the "deposit" premium will be adjusted at the end of the policy period based upon the average of the monthly declarations.  The Scope of cover :
• Loss or damage to the property insured by theft following upon actual, forcible and violent entry into the premises.
• Damage to the premises following upon entry as above or any attempt thereat

---

Every successful business be it a medium enterprise or a SME, needs complete protection against potential loss. In business, handling money, be it in transit or in cash counters or in your safe often causes anxiety for everyone. Incidence like burglary or theft make you feel helpless. The policy also cover loss by burglary or housebreaking whilst money is retained at Insured's premises in safe(s) or strong room.

Scope of Cover

Section I: Covers money in transit under the following heads: Cash, Bank Drafts, Currency Notes, Treasury Notes, Cheques, Postal Orders and current Postage Stamps.

Section II: Covers money in safe / on premises
Should you need further clarifications, feel free to email us at marketing@navnitinsurance.com

• Jewellers Block Insurance

Jewellers Block coverage is offered for physical loss or damage to precious and semi precious stones, jewels, jewelry, precious metals and other related property usual to the jewelry trade. This includes property of others entrusted to the insured or property of an insured entrusted to others. Jewellers premises are categorized into Class I, II or III depending upon the type of security provided for the premises.  The policy comprises four sections which are optional except for section I which is compulsory.
Section I : Covers loss or damage to jewelry , gold and silver ornaments or plates , pearls, precious stones, cash and currency notes whilst contained in the premises insured, by fire, explosion, lightning, burglary, house breaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism.
Section II : Covers loss or damage to jewelry, gold etc. as described in Section I whilst it is in the custody of the insured, his/her partners, employees, directors, sorters of diamonds or whilst such property (excluding cash and currency notes) is in the custody of brokers, agents, cutters and goldsmiths.
Section III : Covers loss or damage to property described in Section I whilst in transit by registered parcel post, air freight or through angadia.
Section IV : Covers loss or damage to trade and office furniture and fixtures in insured premises due to fire, explosion, lightning, burglary, house breaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism.

 

---