PRESENTATION ON HOUSEHOLDER INSURANCE

POLICY

Householder Insurance Policy

1. Who can take householder Insurance Policy?

Ans. All householders staying in rented or own accommodation.

Why do I need a Householder Insurance Policy?Home is an environment offering affection & security. To ensure complete security against accidental damages householder policy provides cover both to building & its contents.

Who can take Householder Insurance Policy?This policy may be issued to a householder whether staying in a rented or own accommodation provided premises is of pucca construction. Single Householder policy shall be issued to a Householder. Multiple policies are not permitted.

How to select the Sum insured?For building:- The sum insured must cover the full cost of rebuilding the property including architect fee etc & the cost of clearing away the debris & cost of obtaining sanction of any new building regulations or by – laws.For content:- The sum insured should be the replacement value except for section III (All Risks) where it should be market value where for jewellery it shall be market value less 10% (making charges) or purchase cost.For the remaining sections the sum insured is as opted by the proposer

What does the Householder Insurance Policy cover?Householder Insurance Policy offers comprehensive shelter for residential building & its contents against a variety of risks. This is a composite policy split into ten sections covering number of contingencies. Minimum of three sections are necessarily to be taken, out of which Section IB relating to coverage of contents against Fire & allied perils is compulsory. Section-wise coverage is as follows:-

Salient Features:-1. 15% (fifteen percent) of the sum insured is waived for the purpose of under insurance for section I.2. All items having value of more than 5% (five percent) of the total sum insured under Section I B should be separately specified along with their values.3. Section 1 B & Section II also cover temporary removal of property for a maximum period of 120 days in any one policy period. Company’s liability shall be limited to 1/10th of the total sum insured under the section.

4. Under the All Risks Section (Section III) any article valued at more than 10% (ten percent) of the sum insured has to be separately specified along with its value.5. Jewellery & valuables kept in the bank locker may be covered on first loss basis under Section III. While giving this coverage complete list of jewellery & valuables to be kept in locker should be taken along with the proposal form. Proposer should also indicate the percentage of the total value, which may be used by him or his family members at any point of time.

6. Personal computers, lap tops & related equipment installed in Insured’s home may be covered against the risk of fire, housebreaking & electrical & mechanical breakdown.7. For taking coverage under more than four (04) sections 15% (fifteen percent) discount is allowed. For more than six (6) sections 20% (twenty percent) discount is allowed

8. Annual as well as long term policies may be issued. Maximum period for long-term policy is four (4) years. The long-term policies are allowed at the rate of annual compounded discount of 7.5% in the rate.9. There is no upper limit for sum insured either on building or contents.

10. Artwork, show pieces may be covered provided these are valued by govt. approved valuers.11. Terrorism risk can be covered at additional premium @0.10% per thousand (mille) with an excess of 0.50% of sum insured.12. Housing societies having their own security arrangement can be given discount of up to 20% for Section II. Housing societies can also be given volume discount.

Excess

1. All Risks (Sec.III)

2. Breakdown (Domestic Appliances), Personal Computer & Baggage (Section V, VI, & VIII)

3. Fire & Allied Perils (sec.I)

4. Bicycle (Sec. VII)

1. For act of God Perils – 5% of claim amount subject to minimum of Rs 10,000 /- for each & every claim.

For rest of the Perils – Rs 10,000 /- for each & every claim.

2. Rs 2,500 /- for each & every claim.

3. Rs 1,000 /- for each & every claim.

4. Rs 250 /- for each & every claim.

Assignment Form:- Duly witnessed Assignment form in respect of persons covered under Personal Accident sections should always be obtained.Jurisdiction:- Territorial jurisdiction is India except for Section VI C (Lap Top), Section VIII (Baggage) & Section IX (PA) & Indian law shall apply. All disputes shall be subject to Indian law.

Acceptance Limit:- The acceptance limit of Regional Office is Rs.15 crores for Section 1 & Rs.2 (two) crores per se for the remaining sections. Any proposal for higher amount shall need to be referred to H.O depending on risk perception & evaluation BM/DM may allow discount of up to 5%, RO underwriter up to 15% & nominated HO underwriter up to 25% on the package rates by recording the reasons for allowing discount.

DiscountsA). Sectional Discount:- For taking coverage under more than four section 15% discount is allowed. For

more than six sections 20% discount is allowed.B). i) Renewal Discount:- Renewal discount (similar to the one allowed in Office Umbrella Policy) may also be

allowed at the following scale:-1st Renewal 5% on Gross Total Premium

2nd Renewal 10% on Gross Total Premium3rd Renewal 15% on Gross Total PremiumThis discount is subject to there being no known or

reported loss. In case of a claim no discount be allowed at renewal.

The Grace Period for availability of renewal discount would be 30 (Thirty) days.

ii) Loading:- In case of a claim affecting one policy period the premium should be loaded by 10% at renewal. If two policy periods have been affected by claims then at subsequent renewal premium should be loaded by 25% & so on.ii) Long Term Discount:- Long Term Policies for up to 4 years can be issued for which annually compounded discount @ 7.5% may be allowed.NB: The accounting for long term policy will be as per usual accounting procedure.C). Risks located in housing societies having permanent security arrangement may be allowed discount of 20% on Section II.

D). D). If a number of houses / flats located in a If a number of houses / flats located in a housing society are insured, volume discount at housing society are insured, volume discount at the following scale may be allowed on gross total the following scale may be allowed on gross total premium.premium.No. of Houses / FlatsNo. of Houses / Flats Discount (% age)Discount (% age)50 – 10050 – 100 5% on Gross 5% on Gross

Total PremiumTotal Premium

101 – 200101 – 200 10% on Gross 10% on Gross Total PremiumTotal Premium

201 onwards201 onwards 20% on Gross 20% on Gross Total PremiumTotal Premium

E). Underwriter’s discount:-The nominated underwriter at RO/HO may consider good features discount on the gross premium. The nominated underwriter at RO may consider discount on the Internal Package Rate not exceeding 15% & nominated HO underwriter may consider discount on the Package Rate not exceeding 25% (including 15% at RO level). The reasons for allowing such discount have to be recorded in writing.

F). Direct Business Discount:- 15% discount for direct business may be allowed in lieu of Agency Commission.The various discounts will be granted in such a manner that the minimum net premium after allowing al discounts before direct business discount will not be less than 50% of Gross Total Premium.The sequence of various discounts on Section-wise Revised Package Rate OR on Gross Total Premium as the case may be will be as under:-1. Long-term discounts2. Section discounts3. Renewal discounts4. Underwriter’s discounts5. Volume discounts6. Direct Business Discount as per IRDA prescribed limit.

Short period premium:- Annual policy shall be issued but in case there is a mid-term cancellation by the insured, the company shall refund the premium at short period scale subject to there being no known or reported claim under the policy.

For a period not exceeding 15 days 10% of the Annual rateFor a period not exceeding 1 month 15% of the Annual rateFor a period not exceeding 2 months 30% of the Annual rateFor a period not exceeding 3 months 40% of the Annual rate

For a period not exceeding 4 months 50% of the Annual rateFor a period not exceeding 5 months 60% of the Annual rateFor a period not exceeding 6 months 70% of the Annual rateFor a period not exceeding 7 months 75% of the Annual rateFor a period not exceeding 8 months 80% of the Annual rateFor a period not exceeding 9 months 85% of the Annual rateFor a period exceeding 9 months The Annual amount rate

If the Company cancels the policy. The refund of premium shall be on proportionate basis subject to there being no reported claim under the policy.Settlement of Claims:- RO’s authority for settlement of claims shall depend on the section under which the claim has arisen. The table below details the same:-

Rs in lacs CRM RCC1 DGM I/c RCC 2

Fire. 75 100 200 150Engg. 50 80 200 150Misc. 10 15 20 25

Reinstatement of sum insured:- The sum insured’s covered by Section I (Fire & allied perils except Temporary Removal Extension), Section II (Housebreaking, larceny & Theft except Temporary Removal Extension), Section III (All risks), Section IV (Plate Glass), Section V (Break down of electrical, electronic & mechanical appliances), Section VI (Personal Computers), shall not be reduced by the amount of any damage but the prorata premium on the amount of damage from the date of occurrence of damage to expiry of policy period shall be payable by the insured. The applicable additional premium shall be deducted from the net claim amount under the poilicy.Clarifications:- For any clarification in respect of these guidelines the Regional Office shall make reference to Head Office.

2. Coverage available & premium thereof:COVERAGESection IBuilding & contents – fire & allied perils:-1. Fire, lighting explosion of gas in domestic appliances.2. Bursting & overflowing of water tanks, apparatus or

pipes.3. Aircraft or articles dropped therefrom.4. Riot, strike or malicious act.5. Earthquake (fire & or shock), subsidence & landslide

(including Rockslide).6. Flood, Inundation, Storm, Tempest, Typhoon,

Hurricane, Tornado or Cyclone.7. Direct impact damage.8. Subsidence & landslide including rockslide.9. Missile testing operations.10. Leaking from automatic sprinkler installations.11. Bush fire.(Extension for temporary removal of contents to temporary

residence up to 120 days any one policy period subject to maximum liability being 10% of the sum insured).

PREMIUM (%o)

0.30 %

What is not covered?1. Loss to money, securities, stamps collection, bullion, livestock, motor vehicles & Pedal Cycles, articles of consumable nature & damage to plate glass.2. Loss to deeds, bonds, bill of exchange, promissory notes, shares & stock certificates, business books, manuscripts, documents of any kind, unset precious stones & jewellery & valuables unless specifically declared.

Section II A (House breaking including Larceny & Theft). Rate@ 1.00%o. Risks located in Housing Societies having permanent security arrangement may be allowed discount of 20%.What is not covered?1. Loss by housebreaking where any member of the Insured’s family is concerned as principal or accessory.2. Loss to livestock, motor vehicles & pedal cycles.3. Loss to money, securities, stamps, bullion, bills of exchange, promissory notes, stock & share certificates, business books, manuscripts, documents of any kind, unset precious stones & jewellery & valuables, unless specifically declared.

Section II B (House Breaking Excluding Larceny & Theft). Rate@ 0.35%o. Risks located in Housing Societies having permanent security arrangement may be allowed discount of 20%.(Extension for temporary removal of contents to temporary residence up to 120 days any one policy period subject to maximum liability being 10% of the sum insured).What is not covered?Same as section II-A.

Section III All Risk (Jewellery & Valuables). Rate@ 8.00%o.By Accident or Misfortune whilst anywhere in India.What is not covered?1. Loss due to cracking, scratching or breakage of lens or glass whether part of any equipment or otherwise or to china marble, gramophone records & other articles of brittle or fragile nature unless such loss or damage arises from accident to railway train or ship or aircraft or vehicle by which such property is being conveyed.2. Loss by moth, mildew, vermin or any process of cleaning, dyeing, repairing or restoring to which the property is subjected. 3.Theft from car except from car of fully enclosed saloon type having all the doors windows & other openings securely locked & properly fastened.

4. Loss caused by mechanical derangement or over winding of watches & clocks.5. Loss to any electric or electronic machine, apparatus, fixtures or fittings (including electrical fans, electrical household or domestic appliances, wireless sets, radios, tape recorders, television sets & the like) or to any portion of electrical installation arising from or occasioned by overrunning, excessive pressure, short circuiting, arcing, self-heating or leakage of electricity from whatever cause (lightning included).6. Loss whilst being conveyed by any carrier under contract under contract of affreightment.7. The first Rs.2,500/- (Two Thousand & Five Hundred) each & every loss.

Section IV (Plate Glass by accidental breakage). Rate@ 8.00%o.What is not covered?1. Damage due to fire, lightening, external, riot, strike, malicious act, flood, inundation, storm etc.2. Breakage during removal, alterations &/or repairs on or about the Insured premises.3. Breakage to framework of any description unless specifically declared.

4. Breakage of lettering unaccompanied by breakage or damage of glass.5. Disfiguration or scratching or damage to glass other than fracture extending through the entire thickness of glass.6. Embossed, silvered, lettered, ornamental, curved or any glass whatsoever other than glass which is plain & of ordinary glazed, unless the same be specifically declared.7. Breakage of glass not completely & securely fixed.

Section V (Break down of Domestic Appliances) Rate@ 2.00%o. Electrical/electronic appliances, apparatus or gadgets unforeseen & sudden physical damage caused by &/or solely due to mechanical &/or Electrical Breakdown of domestic, electrical, electronic (except for computers & its accessories) or mechanical appliances, apparatuses or gadgets (including television & its accessories)

What is not covered?1. Loss due to faults or defects existing at the same time of commencement of this insurance & known to the insured regardless of whether such faults or defects were known to the company or not.2. Loss for which the manufacturer or supplier of the property is responsible either by law or under contract.3. Cost of transport to the repair shop & back to the Insured’s premises of any insured item arising out of any damage to such item.4. Loss to external equipments such as antenna or fittings by theft.

5. Loss arising out of or traceable to erection, repairing or dismantling of the appliance.6. Liability assumed by the insured by agreement unless such liability would have attached to the insured notwithstanding such agreement.7. Loss to any insured item by perils which are insurable under any other Section of the policy.8. Any Domestic Appliance 10(Ten) years old or more is not covered.9. Insured shall bear himself the first Rs1,000/- (One Thousand) for each & every loss.

Special Conditions1. Sum Insured:- Sum Insured shall be equal to the cost of replacement of the insured property by new property of the same kind & capacity.2. Basis Of Indemnity:-a) Where Damage to an insured item can be repaired the company shall pay expenses to restore the damaged item to its former state of serviceability. If the cost of repair exceeds the actual value of the insured item immediately before the occurrence of the damage the settlement shall be made on the basis provided for in (b) below:-b) In case of total loss claim shall be paid subject to depreciation of 10% (Ten Percent) per year from the date of manufacture. The maximum depreciation however shall not exceed 50% (fifty percent) of the sum insured of the item in respect of which a total loss claim is admitted under the policy.

Section VI-A (Personal Computers & its Accessories) Any unforeseen, sudden, physical loss or damage due to any cause other than those specifically excluded.A) Personal Computers & its accessories.B) Data carrying materials .Whilst contained or fixed in the insured premises & such damage occurring during normal usage after installation.

What is not covered?1. Loss caused by any faults or defects existing at the time of commencement of the present insurance within the knowledge of the insured or his representatives, whether such faults or defects were known to the company or not.2. Loss due to wear & tear, gradual deterioration, atmospheric conditions such as rust, corrosion etc.

3. Any cost incurred in connection with the elimination of functional failures unless such failures were caused by an indemnifiable loss.4. Any cost incurred in connection with the maintenance of the insured items.5. Loss due to defects of design material or workmanship or for which the manufacturer or supplier of the insured items is responsible either by law or under contract.

6. Loss to rented or hired equipment for which the owner is responsible either by law or under a lease &/or maintenance agreement.7. Cessation of work, total or partial.8. Consequential loss of any kind.9. Any computer 5(five) years old or more is not covered.10. Insured shall bear upon himself the first Rs1,000/- (Rupees One Thousand) only each & every occurrence.

Amount PayableReasonable & necessary expenses in order to restore the damaged item to its former state of serviceability OR pay the actual value of machine. Following expenses also payable if specifically included in the sum insured:-a) Cost of dismantling & re-erection incurred for purpose of effecting the repairs.b) Ordinary freight to & from a repair shop.

Section VI-B Cost Of Reinstatement Of Data.In the event of damage to data contained in data carrying materials or to programmes caused by insured perils covered (Section VI) the company shall indemnity the insured against the cost of reinstating such data & for programmes replaced.

What is not covered?1. Data carrying material not stored in accordance with or stored for a larger period than stated in the maker’s instructions.2. Erasure, destruction or corruption resulting from an unidentifiable occurrence.3. Any cost arising from false programming, punching, labeling or inserting, inadvertent canceling of information or discarding of data & from loss of information caused by magnetic fields.

4. Loss discovered more than six calendar months after its occurrence.5. Cost incurred for alteration or improvement of data/programming.6. Intrinsic value of data/programme.7. Programme which can not be exchanged by user.8. Insured shall bear upon himself the first Rs1,000/- (Rupees One Thousand) only each & every occurrence.Amount PayableAny expenses incurred by insured within a period of 12(twelve) months as from the date of occurrence strictly for the purpose of restoring insured external data &/or programs top a condition equivalent to that existing prior to the occurrence & necessary for permitting data processing operations to be continued in the normal manner.

Section VI-C (Portable Computer (Laptop)Portable Computer belonging to insured & in personal custody of insured, his family members whilst anywhere in the World for the purpose of business or profession. Damage to data carrying material being carried for normal functioning of portable computer also covered.What is not covered?This Sub-Section Covers the same perils & is subject to same terms, conditions, exclusions, warranties & provisions as those of Section VI-A & VI-B.

Section VII (Pedal Cycle) Rate@ 10.00%o.A) i) Fire, Lighting or External Explosion.ii) Riot, Strike or Malicious Act.iii) Housebreaking &/or Theft.iv) Accidental External Means.v) Flood, Cyclone, Storm, Tempest & other similar convulsions of nature & atmospheric disturbance.vi) Earthquake (Fire &/or Shock).

B) Compensation & litigation expenses limited to Rs10,000/- in any one period of insurance incurred for accidental death of or bodily injury to any person other than a member of the Insured’s family or a person in the Insured’s service or being conveyed on such cycle &/or accidental damage to property not belonging to or in the custody or control of the Insured or any member of the insured’s family or being conveyed on such cycle in the Insured of accident.

What is not covered?1. Any loss, whilst Pedal cycle is being used for hire or reward or outside India.2. Damage caused by over loading, strain or mechanical breakdown.3. Loss by theft unless the Pedal Cycle is stolen at the same time.4. Loss whilst being used for racing or pace making.5. The Insured shall bear upon himself the first Rs250/- (Twp Hundred & Fifty) on each & every loss.Special Condition:- The Pedal Cycle Should be securely locked when left unattached.

Section VIII (Baggage)Rate @ 5.00%oBaggage Insurance whilst traveling anywhere in India whilst on tour or holidays by ACCIDENT OR MIS - FORTUNE.What is not covered? 1. Loss due to cracking, scratching or breakage of lens or glass whether part of any equipment or otherwise or to china marble, gramophone records & other articles of brittle or fragile nature unless such loss or damage arises from accident to railway train or ship or aircraft or vehicle by which such property is being conveyed.2. Loss by moth, mildew, vermin or any process of cleaning, dyeing, repairing or restoring to which the property is subjected.

3.Theft from car except from car of fully enclosed saloon type having all the doors windows & other openings securely locked & properly fastened. 4. Loss caused by mechanical derangement or over winding of watches & clocks.5. Loss to any electric or electronic machine, apparatus, fixtures or fittings (including electrical fans, electrical household or domestic appliances, wireless sets, radios, tape recorders, television sets & the like) or to any portion of electrical installation arising from or occasioned by overrunning, excessive pressure, short circuiting, arcing, self-heating or leakage of electricity from whatever cause (lightning included).6. Loss whilst being conveyed by any carrier under contract under contract of affreightment.

7. Loss to money, securities, manuscripts, deeds, bonds, bill of exchange, promissory, notes, stock or share certificates, stamps, business books or documents, jewellery, watches, furs, precious metals, precious stones, gold & silver ornaments, travel tickets, cheques & bank drafts.8. Loss to articles which did not from part of the contents of any of the packages when the journey commended unless specifically declared & accepted by the company.

9. Loss to articles of consumable nature.10. Loose articles such as Sticks, Straps, Umbrellas, Sunshades, Fans, Deck, Chairs, property in use on the voyage &/or journey or articles or clothes whilst being worn on the person or carried about.11. Loss caused by leakage, spilling or exploding of liquids, oils or materials of a like nature or articles of dangerous or damaging nature.12. Any tour or travel undertaken within the municipal limits of the village, town or city wherein the insured is permanently residing.13. The insured shall bear upon himself the first Rs1,000/- (One Thousand) each & every loss.

Section IX (Personal Accident)Insured or such members of his/her family permanently residing with him/her sustain & directly caused by accidental, violent external & visible means resulting in death or disablement within 12(Twelve) calendar months of occurrence of such injury.

Table Of Benefits

1. Death2. Permanent Total & Absolute

disablement disabling the insured person from engaging in any employment or occupation of any description whatsoever.

3. Total & irrecoverable loss ofi) Sight of both eyes or of the actual loss

by physical separation of the two entire hands or two entire feet or of such loss of sight of one eye & loss of entire hand/one entire foot.

Percentage Of Individual Capital Sum Insured (C.S.I)

100%

100%

100%

ii) Use of two hands or two feet, or of one hand & one foot or of such loss of sight of one eye & such loss of use of one hand/one foot, without physical separation.

4. Total & irrecoverable loss of i) The sight of one eye or of the

actual loss by physical separation of entire hand or one entire foot.

ii) Use of a hand or a foot without physical separation.

iii) Hearing (both ears).

5. Temporary Total Disablement for the period of Hospitalization of the Insured person following accident for maximum of 52 weeks.

100%

50%

50%

50%

1% of C.S.I orRs5,000/- (Five Thousand only) Whichever is lower per week.

6. In the event or death of the Insured person due to accident outside his/her residence meant of expense incurred for transportation of Insured person’s dead body to place of residence subject to a maximum of 2% (Two Percent) of C.S.I or Rs2,500/- (Two Thousand Five Hundred Only) whichever is less. This also includes funeral expenses.7. Damage to the clothing of any Insured Person caused by accident to a limit of Rs1,000/- (One Thousand Only) any one person.8. Ambulance Charges incurred for transportation of the insured person to the hospital subject to a limit of Rs1,000/- (One Thousand Only) any one person.

Special Provision:- On payment of 20% extra premium, medical expenses incurred are admissible & the re-imbursement shall be as Actual Expenses incurred OR 10% of the C.S.I OR 50% of the admissible P.A claim amount, whichever shall be less.

What is not covered?1. Compensation under more than one of the foregoing benefits 1 to 5 in respect of the same period of disablement.2. Any other payment after a claim under one of the foregoing benefits (1,2,3,4) has been admitted & becomes payable.3. Payment of weekly compensation until the total amount shall have been ascertained & agreed.4. Directly or indirectly caused by venereal disease or insanity.

5. Intentional self injury, suicide or attempted suicide whilst under the influence of intoxicating liquor of drugs, whilst engaging in Ballooning or Aviation, whilst mounting into, dismounting from or traveling in any Balloon or Aircraft other than as passenger (fare paying or otherwise) in any duly licensed standard type of Aircraft anywhere in the world.6. Directly or disablement resulting directly or indirectly caused by childbirth or pregnancy or in consequence thereof.7. Resulting from the insured person committing any breach of law with criminal intent.

Interpretation for Section 8:-1. Insured person shall mean the Insured or dependent members of his/her family aged b/w 16 years & 65 years.2. Temporary Total Disablement for hospitalization period shall mean the period the insured is hospitalization following accident & is totally disabled from engaging in any employment or occupation. The period after discharge from the hospital is excluded for the purpose of benefit of Temporary Total Disablement under this Section.3. Physical Separation means separation at or above wrist & or above ankle of the hand & foot respectively.

Special ConditionCumulative BonusCompensation payable under clauses (1), (2),(3) & (4) of this section viz. death, loss of limb or sight & permanent Total Disablement arising out of accidental injuries shall be increased by 5% thereof in respect of each completed year during which the policy shall have been in force, prior to the occurrence of an accident for which capital sum becomes payable but amount of such increases shall not exceed 50% (Fifty Percent) of the capital sum insured stated in the schedule herein.The earned Cumulative Bonus shall not be lost if the policy is renewed within 30 (thirty) days after its expiry.

Section X (Public liability). Rate@0.40%o.A) As compensation & litigation expenses in respect of accidental death or bodily injury to any person other than the Insured or his family members or a person under the Insured’s service &/or accidental damage to property of any person excluding the member of the Insured’s family or the Insured’s employee caused by or through the fault or negligence of the insured or of any member of the Insured whilst caused in or about the premises.

B) As compensation to his employees engaged in the Insured premises under the Fatal Accidents Act, 1855, Workmen’s Compensation Act, 1923 or any amendment thereto or common law in respect of death of or bodily injury to such employees arising out of & in the course of employment any interest &/or penalty imposed on the Insured on account of failure to comply with the requirements laid down under the Workmen’s Compensation Act, 1923 & subsequent amendments of the said Act are not covered.