Fire Insurance ON u/w & Claims Settlement at NCIL, Narendrapur on 11.01.2014

Fire Underwriting (MD)All India Fire tariff consists of 8 (eight) sections :

Section I - General rules & regulations ;Section II - Standard Fire & Special Perils Policy ;Section III- Dewellings, Offices, Hotels, Shops etc. located outside the compounds of Industrial/ Manufacturing Risks;Section IV Industrial / Manufacturing Risks ;Section V Utilities located outside the compounds of ndustrial / Manufacturing Risks;Section VI - Storage risks located outside the compounds of Industrial/ Manufacturing Risks;Section VII- Tank Farms/ Gas Holders located outside thecompounds of Industrial/ Manufacturing risks;Section VIII - Add-on Covers.

Fire UnderwritingSection I - General rules & regulations :

1.Policy 2.Valued Policy/ Policies3.Long Term Policy/ Policies4.Mid-term Cover5.Payment of Premium6.Minimum Premium7.Partial Insurance8.Rates for Short period Insurance9.Loading for kutcha construction10.Rules of cancellations

Contd..

Fire UnderwritingSection I - General rules & regulations :

11.MID-TERM REVISION IN Sum Insurance ;12.Escalation Clause ;13.Floater Policy ;14.Declaration Policy ;15.Floater Declaration Policies ;16.Claims Experience Discount / Loading ;17.Fire Extinguishing Appliances Discount ;18.Rating of Risks in Multiple Occupancy Industrial Estate ;19.Silent Risks ;20.Voluntary Deductibles .

SECTION - II STANDARD FIRE & SPECIAL PERILS POLICY

1.FIRE2.LIGHTNING3.EXPLOSION/ IMPLOSION 4.AIRCRAFT DAMAGE5.RSM & TERRORISM DAMAGE6.STORM, CYCLONE, TYPHOON, HURRICANE, TORNADO, FLOOD & INUNDATION (STFI)7.IMPACT DAMAGE

SCOPE OF COVER (contd.)STANDARD FIRE & SPECIAL PERILS POLICY

8. SUBSIDENCE & LANDSLIDE incl. ROCKSLIDE

9. BURSTING & OVERFLOWING OF WATER TANKS, APPARATUS & PIPES

10. MISSILE TESTING OPERATIONS

11. LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATIONS

12. BUSH FIRE

GENERAL EXCLUSIONS(The policy does not cover)1.EXCESS : AOG-5% OF CLAIM, MIN. RS.10,000/- OTHERS - RS.10,000/-(Please refer current HO Circular dated 17.05.2011 in this matter) 2.LOSS DUE TO WAR, INVASION etc.3.LOSS DUE TO IONISING RADIATION etc. 4.LOSS TO INSURED PROPERTY BY POLLUTION OR CONTAMINATION5.LOSS TO SPECIFIED ITEMS LIKE BULLION etc.

GENERAL EXCLUSIONS (contd.)(The policy does not cover) 6.LOSS TO STOCKS DUE TO CHANGE IN TEMPERATURE IN COLD STORAGE 7. DYNAMO CLAUSE 8.ARCHITECTS & DEBRIS REMOVAL IN EXCESS OF 3% & 1% OF CLAIM RESP. 9.LOSS OF EARNINGS OTHER CONSEQUENTIAL OR INDIRECT LOSSES IN NATURE10. LOSS BY SPOILAGE

GENERAL EXCLUSIONS (contd.)(The policy does not cover)11.LOSS BY THEFT DURING OR AFTER INSURED PERILS

12. LOSS DUE TO EQ., VOLCANIC ERUP OR OTHER CONVULSIONS OF NATURE

13. LOSS TO PROPERTY IF REMOVED EXCEPT PLANT & MACHINERY REMOVED FOR REPAIR ABOVE 60 DAYS

GENERAL CONDITIONSThere are 15 conditions for Standard & Special Perils Policy. Out of which some conditions are related to misrepresentation, non-disclosure of material facts, fraudulent activities of the Insured, arbitration matter, re-instatement of the sum insured & etc.

SECTION - IIIDewellings, Offices, Hotels, Shops etc. located outside the compounds of industrial / manufacturing Risks :

Rule 1.Buildings & Contents of risks shall be rated Per se ;

Rule 2.Stocks belonging to Insured stored in the open area adjacent to the Insureds premises are held covered;

Rule 3.Incidental Operations such as grinding of lenses in optical frame shop, polishing & / or varnishing in furniture shop, occasional repairs etc. are permitted;

Rule 4. For Seasonal storage of crackers, a loading of 10% shall be charged on the rates applicable to the contents;

Rule 5.Presence of Hazardous goods not exceeding 5% of Total Value may be ignored;

SECTION - IIIRule 6.Reduction in premium for deletion of STFI & / or RSMTD Perils at inception of the Policy by reducing 0.15%o & 0.10%o for STFI & RSMTD respectively.

Rule 7.Pump House, Garage, Compound Wall & ancillary equipment or other utilities shall carry the respective occupancy rate .

Rule 8.Detached / Segregated Blocks protected by automatic sprinkler installation as per TAC rules may be allowed 5% reduction on basic rate.

Rule 9. Long term Policies shall be issued to house / flat owners on two methods subject to conditions below : a) Minimum period of 3 yearsb) No refund for mid-term cancellationc) Mid-term inclusion of perils not allowedd) Premium shall be collected in advance

SECTION IVIndustrial & Manufacturing RisksRule 1.Rates provided are for the entire property in the same industrial compound;

Rule 2.In case of production of more than one product highest rate shall be charged;

Rule 3.If two or more factories in the same compound if located detached per se rating shall be applicable;

Rule 4.Dwelling houses in the factory compound shall be rated per se;

Rule 5.In case of any doubt a provisional rate of Rs. 2.50%o may be charged;

Rule 6. Detached / Segregated blocks within a risk protected by automatic sprinkler installation shall be allowed 5% reduction in the basic rate;

Rule 7. Reduction for deletion of STFI & RSMTD at the inception of the Policy is Rs. 0.25%o & Rs. 0.10%o respectively;

SECTION VUtilities located outside the compounds of Industrial / Mfg. RisksRule 1.Reduction in premium for deletion of STFI & RSMTD at the inception of the Policy shall be Rs. 0.25%o & Rs. 0.10%o respectively;

Rule 2.Detached/ Segregated blocks protected by automatic sprinkler installation shallbe allowed 5% deduction in the premium rate.

SECTION VI Storage Risks located outside the compounds of Industrial / Mfg. Risks.Rule 1. Operations such as packings/ selecting/ assorting/ mending/ stitching etc. which do not materially alter the nature of the risks are allowed to be carried out in premises.Rule 2.The presence of hazardous goods of higher category not exceeding 5% of the total value of the stocks may be ignored.Rule 3.Utilities & Miscellaneous blocks shall be rated at Rs. 1.00%o.Rule 4.The reduction in premium rates for deletion of STFI ( Materials in godown & Materials in open ) and RSMTD ( Materials in godown & Materials in open ) shall be Rs. 0.25%o and Rs. 1.50%o for STFI & Rs. 0.10%o for RSMTD respectively.Rule 5.Incidental open storage upto 2% of sum insured can be allowed.Rule 6. Detached / Segregated blocks protected by automatic sprinkler installation may be allowed 5% reduction on basic rate.

SECTION VIITank farms/ Gas Holders located outside the compound of Industrial/ Mfg. RisksRule 1. All Tanks located in the same dyke shall carrying the highest rate applicable to any one tank overall.

Rule 2.Utilities & Miscellaneous blocks shall be rated at Rs. 1.00%o.

Rule 3.Pumping stations, compressor houses / blower houses etc. shall be rated at par with the respective Gas holders/ bullets / spares / vessels / tanks.

Rule 4.The reduction in premium rates for deletion of STFI & RSMTD at the inception shall be Rs. 0.25%o and Rs. 0.10%o respectively.

SECTION VIIIADD ON COVERS1.Architects, Surveyors and Consulting Engineers fees (in excess of 3% claim amt.)

2.Removal of Debris (in excess of 1% claim amount)

3.(A) Detoriation of Stocks in Cold Storage premises due to accidental power failure consequent to damage at the premises of Power Station due to an insured peril.

(B) Detoriation of Stocks in Cold Storage premises due to change in temperature arising out of loss or damage to the Cold Storage machinery (ies) in the Insureds premises due to operation of Insured peril

SECTION VIIIADD ON COVERS (CONTD.)4. Forest Fire

5.Impact Damage due to Insureds own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the like and articles dropped therefrom.

6. Spontaneous Combustion

7. Omission to Insure additions, alteration or extensions

SECTION VIIIADD ON COVERS (Contd.)8.Earthquake (Fire & Shock )

9.Spoilage Material Damage Cover

10Leakage & Contamination Cover

11.Temporary Removal of Stocks

12.Loss of Rent

13.Additional Exps. of Rent for an Alternative Accommodation14.Start up Expenses.

Terrorism Cover Rates & TermsTotal S . I .Premium on Overall ( MD + LOP ) ( MD + LOP ) Total S. I. Liability cap per LocationTSI upto Rs. 1000 cr.Rs. 0.25 %o ( Industrial risks ) Rs. 0.15 %o ( non-industrial risks ) Rs. 1000 crores

TSI exceeding Rs. 1000 cr.a) Rs. 0.25 %o ( Industrial risks ) but not exceeding Rs. OR Rs. 0.15 %o (non-industrial risks) 2500 Crores ON THE FIRST 1000 CRORES Rs. 1000 crores b) Rs. 0.20 %o ( Industrial risks ) OR Rs. 0.12 %o (non-industrial risks) ON THE BALANCE TSI

Above Rs. 2500 cr.Balance of Rs. 2500 : 0.15%o (for Industrial) 0.10%o (for Non-Industrial).

Business Interruption PolicyThe Indemnity under MD Policy does not provide full protection to the Insured, who may suffer Trading Losses due to total or partial stoppage of Manufacturing process. The object of B I Policy is to take care of some of the trading losses.

The Policy covers :

Loss of GP due to reduction of Turnover / Output Increase in cost of working

Contd. ..

Business Interruption PolicyImportant definition under BI Policy :

A) Net Profit : Margin of income of the Insured over all expenses;B) Standing Charges : Overhead expenses, such as salaries/ wages, taxes, interest & etc. continued to be incurred by the Insured inspite of the stoppage of the business.C) Increased Cost of working : Abnormal expenditure incurred by the Insured to maintain the business as far as possible so that, loss under Net Profit & Standing Charges can be avoided/ minimised.

Business Interruption PolicyIncrease in cost of working :This is the additional expenditure that has to be incurred in order to avoid or diminish the reduction in Turnover following a payable loss under Fire MD section.Standing Charges :Interest on loans to travelling expenses, insurance premium, salaries to permanent staff, office expenses, contribution to PF Fund, contribution to Gratuity fund, maintainance of building, plant & machinery, depreciation ( excluding stocks), auditors fees etc.

Business Interruption PolicyFactors to determine Sum Insured :The basis for SI is Annual GPGP shall represent Net Trading Profit + Insured Standing ChargesThe Standing charges which are to be insured have to be specifiedIndemnity Period :Indemnity period is the maximum period required to put business back into normal operation after damage to insured propertyIndemnity period shall vary from 6 months to 3 years.Upto an IP of AGP should be the Sum insured. Thereafter GP should be in proportion to IP selected.

Business Interruption PolicyAdditional Cover on payment of additional Premium :Suppliers premisesCustomers premisesLoss due to accidental failure of public electricity / gas / water supply

Business Interruption Policy

Proviso for Admissibility of Liability under BI :

1) Fire & Other Perils must occur at the Insureds premises ;

2) Property used for business at the insureds premises must be destroyed or damaged ;

3) Business must be interrupted or interfered arising out of above damage ;

4) The Claim under BI Policy will be paid only if the MD Claim is paid or payable.

Business Interruption PolicyIdea about Basis rate : 1)The basis rate for BI shall not be less than the 1.25 times the full Average Fire Rate of the items covering the contents of the process blocks occupied by the Insured for the purpose of the business.

2)The contents of storage/ utility blocks even if they are communicating with the process block should not be taken into consideration.

3)For rating purpose pilot plans & laboratories are taken as a process blocks.

4)Where no manufacturing process is carried on, the basis rate shall be 1.25 times of the average fire rate of the contents of the whole premises.

5)The basis rate for BI Section under Industrial Risks Policy shall also be computed as above, with a discount of 10% .

Business Interruption PolicyThe Policy does not cover :Loss not admissible under MD sectionDepreciation of undamaged stocks after a fireCost of preparation of claimsLitigation cost connected with claimsThird Party claimsFailure to recover book debts owing to destruction of recordsLoss of goodwillLoss of MarketFines & Penalties due to delay fulfilment or cancellation of sale contractWar or warlike situationNuclear power reaction or radiation

Business Interruption PolicyProvision for refund of premium If the insured declares, at the latest 12 months after the expiry of the policy, that the GP earned during the accounting period of 12 months almost concurrent with the policy period, as certified by the Insureds auditor was less than the SI thereon, a pro-rata return of premium not exceeding 50% of the premium paid on such insured for such period of insurance shall be made in respect of the difference.

Business Interruption Policy

Calculation for Claim Amount payable :The loss of profit is measured by comparing the turnover / output / revenue during the indemnity period with the turnover during the corresponding period in the previous year ( known as Standard Turnover)

Hence loss of GP = Rate of Gross profit x Reduction in Turnover

= Gross profit x Reduction in turnover Annual Turnover

CLAIM SettlementPoints to be considered during processing of the claim as under :1)Insurable Interest2)Description of the premises where the loss occurred;3)Involvement of Banks / Financial Institution;4)Cause of loss;5)Application of exclusions if any;6)To check the adequacy of the sum insured;7)Application of proper depreciation when the settlement is on indemnity basis;8)Verification of completion / confirmation of reinstatement of property damage;9)To check the appropriate adjustment for betterment & modification;10)Proper adjustment in stock losses for dead / obsolete items;11)To check as to whether proper procedure towards salvage realisation;12)Proper checking of the books of accounts;13)Collecting of investigating reports from various Govt. Agencies like Police authority, fire brigade, investigator & etc.

Terrorism Cover Rates & TermsDEDUCTIBLES :

Industrial Risks - 0.5 % of TSI subject to a minimum of Rs. 1 Lac & maximum of Rs. 10.00 crs.

Non industrial Risks - 0.5 % of TSI subject to a minimum of Rs. 25,000/- & maximum of Rs. 10 lacs. Minimum Rs. 10,000/ - & maximum of Rs. 5.00 lac (for shops & Resdence)

No mid term cover shall be granted for RSMD and Terrorism cover.

For loss liability limits in excess of Rs. 1000 crores, insurers can obtain rates from reinsurers.

ADD ON COVERS1.Architects, Surveyors and Consulting Engineers fees (in excess of 3% claim amt.)

2.Removal of Debris (in excess of 1% claim amount)

3.(A) Detoriation of Stocks in Cold Storage premises due to accidental power failure consequent to damage at the premises of Power Station due to an insured peril (B) Detoriation of Stocks in Cold Storage premises due to change in temperature arising out of loss or damage to the Cold Storage machinery (ies) in the Insureds premises due to operation of Insured peril .

ADD ON COVERS (contd.)4. Forest Fire5.Impact Damage due to Insureds own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the like and articles dropped therefrom.6.Spontaneous Combustion7.Omission to Insure additions, alteration or extensions

ADD ON COVERS (contd.)8. Earthquake (Fire & Shock )9.Spoilage Material Damage Cover10.Leakage & Contamination Cover11.Temporary Removal of Stocks 12.Loss of Rent13.Additional Exps. Of Rent for an Alternative Accommodation14.Start up Expenses.15.Terrorism Cover.

BONUS MALUS SCALE(RISKS HAVING S.I. ABOVE RS.50 CR.) Focus - Claims Exps. Not Insurance Co.**CLMS. RATIO FOR 3 YRSDISC./LOADING% Upto 5% -15 Above 5 % & upto 10 %-10Above 10 % & upto 15 %-05Above 15 % & upto 30 %nilAbove 30 % & upto 40 % +2.5Above 40 % & upto 55 %+5.0Above 55 % & upto 75 %+10Above 75 % & upto 100%+15 **Above 100% Refer to TAC

FEA DISCOUNTTYPE OF INSTALLATION DISCOUNT %

a) H A & Trailer pumps/Fire Engine2.5b) H A & Hydrant System5.0c) H A & Independednt Sprinkler/ Fixed Water Spray System7.5d) Hydrant System + c 10

FEA DISCOUNTDetached / Segregated block(s) within a risk which are protected by automatic sprinkler installation with its own independent pumping arrangements, etc. as per TACs rules for sprinkler installation shall be allowed 5% reduction on the basic rate (s).

Voluntary DeductiblesDeductible amount DiscountAOG Perils Other Perils ( % )5 % of claim amount Rs. in Millionssubject to minimum of Rs. in Million10.5 2 2 1.0 4 3 1.5 66 3.0 8 10 5.0 10 >10 >5.0 TAC

LONG TERM POLICY FOR DWELLINGS(House & flat Owners)

Conditions:Minimum Policy Period - 3 YearsNo Refund for Mid-term CancellationMid term Peril inclusion prohibitedPremium collected upfront for full Policy Period

Terrorism Cover Rates & Terms

Total S . I .Premium on Overall ( MD + LOP ) ( MD + LOP ) total S. I. Liability cap per LocationTSI upto Rs. 200 cr.Rs. 0.50 %o ( Industrial risks ) Rs. 0.3 %0 ( non-industrial risks ) Rs. 200 crores

TSI exceeding Rs. 200 cr.a) Rs. 0.50 %o ( Industrial risks ) but not exceeding Rs. OR Rs. 0.30 %o (non-industrial risks) 2000 Crores ON THE FIRST 200 CRORES Rs. 200 crores b) Rs. 0.375 %o ( Industrial risks ) OR Rs. 0.225 %o (non-industrial risks) ON THE BALANCE TSI

.

Terrorism Cover Rates & Terms (contd.)Total S . I . Premium on Overall ( MD + LOP ) ( MD + LOP ) total S. I. Liability cap per Location

TSI exceedinga) Rs. 0.50 %o ( Industrial risks ) Rs. 2000 Crores OR Rs. 0.30 %o (non-industrial risks) ON THE FIRST 200 CRORES b) Rs. 0.375 %o ( Industrial risks ) OR Rs. 0.225 %o (non-industrial risks) Rs. 200 croresON THE NEXT RS. 1800 CRORES

c) Rs. 0.30 %o ( Industrial risks ) OR Rs. 0.18 %o (non-industrial risks) ON THE BALANCE TSI IN EXCESS OFRS. 2000 CRORES

Terrorism Cover Rates & Terms (contd.)DEDUCTIBLES :

Industrial Risks - 0.5 % of TSI subject to a minimum of Rs. 1 Lakh

Non industrial Risks - 0.5 % of TSI subject to a minimum of Rs. 25,000/-

No mid term cover shall be granted for RSMD and Terrorism cover.

For loss liability limits in excess of Rs. 200 crores, insurers can obtain rates from reinsurers.

FIXING SUM INSUREDBUILDING

MARKET VALUEREINSTATEMENT VALUEMACHINERY

MARKET VALUEREINSTATEMENT VALUE

FIXING SUM INSUREDSTOCKSRAW MATERIALS -PROCUREMENT COST (MARKET VALUE + FREIGHT, HANDLING ETC.)FINISHED PRODUCT -NET MANUFACTURING COST (R.M. COST + Processing cost incl. Overheads)STOCK-IN-PROCESS -MANUFACTURING COST TILL THAT STAGE OF PRODUCTION

LOSS SETTLEMENTBuilding, Plant & MachineryMarket value basis :Gross Assessed LossLess DepreciationLess SalvageLess Under InsuranceLess ExcessReinstatement value basis :Gross Assessed LossLess SalvageLess Under InsuranceLess ExcessContd.

LOSS SETTLEMENTSTOCKMarket Value basis :Gross Assessed LossLess SalvageLess Under InsuranceLess Excess

FOCUS ON MACHINERY INSURANCE

SCOPE OF COVER COVER AGAINST UNFORSEEN and SUDDEN DAMAGE DUE TO : Faulty Material, Design, Construction or ErectionVibration, Maladjustment, MalalignmentDefective Lubrication, Loosening of Parts, Abnormal Stress, Molecular fatigue, Centrifugal Force contd.

SCOPE OF COVERExplosion/ ImplosionFailure of Insulation, Short CircuitFailure of Connected Machinery or Protective DevicesLack of Skill, CarelessnessMalice of PersonsFalling, Impact, Collision and the likeObstruction or the Entry of Foreign Bodies

SUM INSUREDMANDATORY REQUIREMENT CURRENT NEW REPLACEMENT VALUE INCLUDING FREIGHT TO SITE, CUSTOMS DUES, INSTALLATION COSTS OPTIONAL REQUIREMENTCOST OF OIL IN TRANSFORMERS & FOUNDATION COST

SUPPLEMENTARY COVERSDAMAGE TO SURROUNDING PROPERTYTHIRD PARTY LIABILITY (Property & Personal)OVERTIME, EXPRESS FREIGHT (Excluding Air Freight)AIR FREIGHTADDITIONAL CUSTOM DUTYESCALATION

RATE & EXCESSRATE (Generally in %)Machinery in Cold Storage - Tariff RatingMachinery in General - Separate Tariff

TARIFF EXCESSFunction of Sum Insured

FAVOURABLE FEATURESSCHEME FOR SPECIAL RATINGPROVISION FOR DISCOUNT FOR STANDBY/ SPARE EQUIPMENTSEASONAL FACTORY DISCOUNTSTANDSTILL PERIOD DISCOUNT

ELECTRONIC EQUIPMENT INSURANCE

EEI Policy is suitable for :-

Computer and allied peripherals,Medical Equipments,Electronic Type-Writer,Photo Type Setting Machine,Electrnic Control Panels for Machineries,Auxiliary Equipments like UPS, Stabilizer,Air Conditioner etc.Electronic Equipment Insurance

Electronic Equipment InsuranceEEI Policy should not be granted for :- Photo Copy MachineDish AntennaAny portable electronic equipment like laptop computer, portable sonograph

Electronic Equipment InsuranceScope of Cover - The Policy is divided into 3 sections as under : Section I :EquipmentsSection II :External Data MediaSection III :Increased Cost of Working

Electronic Equipment InsuranceSECTION - I This Section Covers the Equipment against "ALL RISKS" namely : Fire, Lightning, Explosion, RSMTD,Electrical & Mechanical Breakdowns,Heat, Smoke, Dirt, Foreign Body, Theft, Burglary, Larceny,Negligence,Lack of Skill,Carelessness,AOG Perils,Failure of A.C. System caused by an insured peril,Losses from structural damage to Building etc.

Electronic Equipment InsuranceSECTION II This Section Covers loss / damage to the External Data Media caused by any peril as mentioned earlier. The Cost involved in Reconstituting the Data can also be covered. SECTION III The Increased Cost of Working for use of substitute EDP equipment following indemnifiable damage to insured EDP equipments can be covered under this Section.

Electronic Equipment InsuranceGENERAL EXCLUSIONS : Inherent viceManufacturers ResponsibilityWilful Act Cessation of work whether total or partialWar perilsNuclear PerilsDerangement not accompanied by damage otherwise covered by this policy

Electronic Equipment InsuranceSUM INSURED : Section I:EquipmentsNew Replacement Cost including Freight, Customs Duties & Erection costsSection II:External Data MediaCost of Empty Data Media PLUSCost for Reproducing the Lost dataSection III:Increased Cost of WorkingRental Charge of substitute EDP system Indemnity Limit per Computer Working Hour - (a) Indemnity Limit of Hours per occurance - (b) Aggregate Indemnity Limit per occurance - (a x b ) Aggregate Indemnity Limit during the period of InsurancePersonnel Expenses - Limits to be SelectedCost of Transportation - Limits to be Selected

Electronic Equipment InsuranceRATING :- Section I : Individual Equipment having S.I. upto Rs. 1 LacPersonal Computers:1.00%Medical Equipments :1.00% with AMC :1.00% + 50% loading if without AMCOther Equipments:1.00%with AMC or Inhouse maintenance :1.00% + 50% loading otherwise

Electronic Equipment InsuranceIndividual Equipment having S.I. above Rs. 1Lac For having AMC:1.00%For not having AMC but having Inhouse Maintenance Facility Personal Computer:1.00% Other Equipments:1.00%Medical Equipments :1.00% + 50% loadingFor not having AMC as well as No Inhouse Maintenance Facility:1.00% + 100%(loading)

Electronic Equipment InsuranceANNUAL MAINTENANCE AGREEMENT Safety Checks,Preventive MaintenanceRectification of Loss or Damage or Faults arising out of Normal Operation as well as Ageing

Electronic Equipment InsuranceRATING : Section II :1.00% Section III :Varies between 0.30% to 1.00% Depends on Indemnity Period & Time Excess

Electronic Equipment InsuranceSUPPLEMENTARY COVERS

OVERTIME, EXPRESS FREIGHT (Excluding Air Freight)

AIR FREIGHT

ADDITIONAL CUSTOM DUTY

ESCALATION

Electronic Equipment Insurance

SPECIAL FEATURES : If the Sum Insured is Rs. 1 Crore and above, located in a single location, the policy is eligible for Special Rating. All such proposals should reach R.O. Within 6 months from the date of inception / renewal.

Depending upon the claims experience rates may be loaded or discount may be allowed.

Contd...

Electronic Equipment InsuranceSPECIAL FEATURES : The following Discounts can be allowed in Rates if the equipment are covered under Fire Policy seperately , thereby deleting the Fire & Allied Perils Cover from EEI Policy :

Equipment covered under EEI policy as also under Standard Fire & Special Peril Policy and Earthquake: 10 %

Equipment covered under EEI policy as also under Standard Fire & Special Peril Policy without any one or two of the additional covers such as STFI or RSMTD or EQ: 7.50 %

Equipment covered under EEI policy as also under Standard Fire & Special Peril Policy without STFI and RSMTD and EQ: 5 %

Focus onConsequential Loss (Fire) Insurance

PROFIT IS NOT A DIRTY WORDVARIOUS FORMS OF B I INSURANCE

MLOP (Machinery Loss of Profit)FLOP (Fire Loss of Profit)

MATERIAL DAMAGE PROVISOFIRE POLICY

Material Damage

Insurers liable ?

Indemnification under FIRE PolicyFLOP POLICY

Business Interruption

Liability

Indemnification under FLOP Policy

SCOPE OF COVERLOSS OF GROSS PROFIT(Also covers any Loss Minimising Expenses upto the costs thereby avoided)Due to reduction in Turnover and INCREASE IN COST OF WORKING(Subject to limit of Savings in Profit)

Indemnity Period and Time Excess.Standing Charges.Turnover.Annual Turnover.Standard Turnover.Gross Profit.Rate of Gross Profit.

Rating :Basis Rate

Direct Function of the Fire & Specials Perils Policy Rate.

Basis of Loss Settlement :Reduction in TurnoverRate of Gross ProfitIncrease Cost of Working

Focus onMACHINERY LOSS OF PROFIT Insurance

SCOPE OF COVERLOSS OF GROSS PROFIT(Also covers any Loss Minimising Expenses upto the costs thereby avoided)Due to reduction in Turnover and INCREASE IN COST OF WORKING(Subject to limit of Savings in Profit)

Indemnity Period and Time Excess.Standing Charges.Turnover.Annual Turnover.Standard Turnover.Gross Profit.Rate of Gross Profit.

Dependent of the following features:Indemnity Period Selected.Time Excess Selected.Relative Importance of machine.Capacity of Machines.Inventory of spare parts.Level of expertise of In-House Repair facility.Breakdown History.Imported or Indigenous Origin.

Rating administered by the TAC.Provisional Rates(Industry dependent)laid down by TAC-pending their finalization on the factors mentioned in the previous slide.

We will meet the requirements of our customers On time, Everytime

Thank You

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