What is Miscellaneous Insurance or Non-Life Insurance? Discuss its types.

List of Miscellaneous Insurance or Non-Life Insurance.

The miscellaneous insurance covers all the other fields that are not covered under fire, marine and life insurance. This includes fields like engineering, rural, social insurance and personal insurances like mediclaim, accidental insurance, etc.

Some non-life insurance includes:

• Burglary insurance.
• Jewelers block policy.
• Bankers Indemnity Policy.
• Money insurance
• Shopkeepers Policy.
• Householders policy.
• Suhana safar policy.
• All risk insurance policy.
• Mediclaim policy.
• Overseas mediclaim policy.
• Personal Accident policy.

Let its discuss some of the important covers under the personal lines of insurance.

Burglary Insurance.

The burglary insurance are of two types i.e., burglary of business premises and Burglary of private residence. The three types of policies in case of business premises are full value insurance which is effected for the full value of the property to be insured and first loss insurance which is for the improbability of total loss, a percentage of total stocks to be insured and stock declaration policies which are given here large stocks frequently fluctuate in quantity during the year. The three types of policies available are:

1. Full value insurance.
2. First loss insurance.
3. Stock declaration policies.

Exclusions: The exclusions to the policy are gold, watches, jewellery, precious stones, plans, designs, moneys business books, etc. and the loss or the damage in which the insured or the member of the insured household or of his business staff is concerned in the actual theft or damage.

The claim is not payable if the premises is left uninhabited for 7 or more consecutive days and nights and in the event of material alterations to the premises, and if the insurable interests has passed from the insured otherwise by will or by operations of law.

Jewelers Block Policy.

The policy is specially designed for the jewelers and the diamontaires i.e., those establishments that deal solely in diamonds. Depending upon the type of security provided for the premises the jewelers premises are categorized into class I, II and III. The policy has four sections and section I is compulsory.

Section 1: This section covers the loss or damage to jewellery, gold and silver ornaments or plates, pearls, precious stones, cash and currency contained in the premises and is insured by fire, explosion, lightening, burglary, house breaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism.

Section II: This policy covers the damage to things described in section I which is in the custody of the insured, his/her partners, employees, directors, sorters of diamonds or in the custody of the brokers, agents, cutters and goldsmiths.

Section III: This covers the damage or loss to things prescribed in Section I which is in transit by the registered parcel post and air freight.

Section IV: This section covers the loss or damage to trade or office furniture and fixtures in the premises which is insured due to fire, explosion, lightening, theft, burglary, house breaking, riot, robbery, strike, malicious damage and terrorism.

Exclusions: The exclusions include the loss or damage due to denting, scratching or breaking of lenses and glass or moth, mildew and vermin or during cleaning, dyeing or repairing or mechanical de-arrangement or over winding of clocks or watches or while being carried out by -a carrier under a contract of carriage.

Bankers Indemnity Policy.

This Policy is specially designed for banks to indemnify direct loss suffered by them (excluding Non-Banking Financial Institutions) in various contingencies in the form of a package cover. Insurance covers are listed in eight Sections viz. A to H. Banks are expected to get themselves adequately covered for all their branches. Brief details of the cover are as follows:

Section A: On Premises Money and/or Securities inside Bank premises against the perils of Fire, Riot and Strike and allied perils, Burglary or Housebreaking, Theft, Robbery or Hold-up.

Section B: In Transit Money and/or Securities being lost stolen mislaid misappropriated or made away with whether due to negligence or fraud of the employees of the insured or otherwise whilst in transit in the hands of such employees.

Section C: Forgery or Alteration Payment made by insured bank in respect of bogus or fictitious or forged or raised cheques and/or drafts and/or genuine cheques and/or drafts and/or travellers cheques and/or gift cheques and /fixed deposit receipts (excluding Bills of Discount and other credit facilities) issued by the insured.

Section D: Dishonesty or criminal act of insured’s employees with respect to loss of money and/or securities.

Section E: Hypothecated Goods Fraud and/Or dishonesty by the insured’s employees in respect of any goods and/or commodities pledged or hypothecated to the insured under the insured’s control.

Section F: Registered Postal Sendings Loss or robbery theft or by other causes whilst in direct transit or intended to be dispatched by Registered Insured Post. Liability of Insurer for any one consignment and/ or loss shall be limited to 10% of Basic Sum Insured or Rs. 1 ,00,000/- whichever is less.

Section G: Appraisers Lois due to infidelity or criminal act on the part of insured’s approved appraisers.
Liability of Insurer will by limited to 5% of Basic. Sum Insured or Rs. 50,000/— whichever is less.

Section H: Janata Agents/Pygmy Collectors – Loss due to infidelity Or criminal act on the part of these agents/collectors.Liabil ity of Insurer will be limited to 5% of Basic. Sum Insured or Rs. 20,000/- whichever is less. Liability of insurer for Sections A to E will be limited to the sum insured chosen by the Banks.

Money-in-Transit insurance.

The Money In transit Insurance Policy broadly covers loss of money in transit by the insured or insured’s authorized employee(s) occasioned by:

• Robbery, theft or any other fortuitous cause.
• Burglary or house breaking.
• Robbery or hold up whilst money is retained.
• Insured’s premises in safes or strong room.

Extensions include:

• Riots.
• Strikes.
• Terrorism.

Scope of Cover: Section I includes the money in transit under the following heads like cash, bank drafts, currency notes, treasury notes, cheques, postal orders and current postage stamps.

Section II. covers the money in safe/on premises. Basis of sum insured Sum insured should represent the estimated total annual amount of the Money in transit. Separate Sum Insured also needs to be given for the maximum amount of money held. in safe and on counters, if any. The Company’s limit of liability for any one loss is also arrived at and specified in the policy.

Exclusions: The Insurance Policy does not cover losses and/or damages due to floods cyclones earthquakes and other convulsions of nature war and war like operations civil commotion riots and strikes terrorist activities shortage due to error, omission terrorism. The Policy also does not cover losses caused: by use of keys to safe(s) or strong room (unless such keys are obtained by force or threat) while being carried under contract of affreightment by theft from unattended vehicle and consequential loss.

Shopkeepers Policy.

Building and contents of a small shopkeeper are covered under this insurance. It covers a number of risks under single policy. There are 11 sections in the policy as follows:

Section I: Building and contents This covers loss of or damage to (a) building and (b) contents by fire & allied perils.

Section II: Burglary & Housebreaking: This covers all contents in the premises against the above risks.

Section III: Money Insurance: This covers loss of money whilst in transit and whilst contained in a safe/steel cupboard/cash box under lock and key in the Insured premises.

Section IV: Pedal cycle: This covers pedal cycle against loss or damage by fire & allied perils, burglary/housebreaking and accidental external means.

Section V: Plate Glass: This covers loss of or damage to fixed plate glass in the Insured premises by accidental breakage.

Section VI: Neon Sign/Glow Sign Insurance: This covers loss of or damage to Neon Sign/Glow Sign by accidental external means, Fire, lightning or external explosion or theft, riot, strike or malicious act flood, inundation, Storm, etc.

Section VII: Baggage: (a) This indemnifies the Insured in respect of baggage inconnecti on with trade accompanying the Insured and/or his employees. (b) Personal baggage of the Insured and/or proprietors and/or partners accompanying them anywhere in India if lost or destroyed or damaged by a accident or misfortune.

Section VIII: Personal. Accident: This covers the insured and the spouse and the children aged between 5 and 70 against the bodily injury caused b the accident and resulting in death or disablement.

Section IX: Fidelity Guarantee: This indemnified the insured against direct pecuniary loss sustained by him and caused by the act fraud or dishonesty committed by any salaried person employed by the Insured in the premises.

Section X: Public Liability cover: This covers (a) legal liability to any third party for personal injury or property damage whilst caused at the Insured premises. Insured statutory liability in connection with his trade and business under Workmens Compensation Act,1923. Fatal Accidents Act, 1855 and at Common Law in respect of death of or injury to employees.

Section XI: Loss or profit: This covers the loss of profit due to interruption of business due to damage or loss sustained by the property insured under the section I of the policy due to insured perils.

Householder’s Policy.

Personal effects and household goods belonging to individual householders can be covered under this Insurance. It covers under single policy a number of risks.

Section I: Fire and Allied Perils (a) Building (b) Contents. This covers loss of or damage to the building/ contents by fire & allied perils, such as riot, strike, lightning, explosion, flood, cyclone, inundation earth quake etc.

Section II: Burglary and House breaking Including Larceny And Theft: This covers all contents in the premises against the above risks. The Sum Insured on contents under this section as well as Section I will be the same.

Section III: All Risks: This covers loss or damage to jewellery & valuables caused by accident whilst anywhere in India. Recent invoice/receipt or valuation Certificate should be obtained for items valued at more than Rs. 5000/- each.

Section IV: Plate Glass: This covers loss of or damage to fixed plate glass in the insured premises by accidental breakage.

Section V: Breakdown of Domestic Appliances: This Section Covers Loss or damage to domestic appliances caused by mechanical and/or electrical breakdown. Sum InsUred in respect of each item should be its new replacement value.

Section VI: Television Sets and VCR/VCP: This covers loss of or damage to the television apparatus and VCR/VCP in insured premises by fire and allied perils, burglary and/or house breaking or theft, accidental external means and mechanical or electrical breakdown.

Section VII: Pedal Cycle: This covers loss of or damage to pedal cycle belonging to Insured by Fire and allied perils & burglary.

Section VIII: Baggage: This covers loss or damage to Insured’s accompanied baggage by accident or misfortune whilst the Insured is on tour or holiday anywhere in India.

Section IX : Personal Accident: The Insured, his spouse and his children, all between the age of 5 and 70 years can be covered under this section. The insurance covers death, permanent total disablement, permanent partial disablement and Temporary total disablement.

Section X : Public Liability: (a) The Insured is indemnified in respect of legal liability up to a limit of Rs. 25,000/—. (b) The Insured is indemnified against the compensation to his employees that he becomes legally liable to pay under the Workmen’s Compensation Act 1923, Fatal Accidents Act, 1855 or at Common Law in respect of death of or bodily injury to such employees arising out of and in the course of employment.

Travel Insurance.

Travel insurance is insurance that is intended to cover medical expenses, financial default of travel suppliers, and other losses incurred while traveling, either within one’s own country, or internationally. Temporary travel insurance can usually be arranged at the time of the booking of a trip to cover exactly the duration of that trip, or a “multi-trip” policy can cover an unlimited number of trips within a set time frame. Coverage varies, and can be purchased to include higher risk items such as “winter sports”.

Health Insurance covers Universal Health Insurance Scheme (For families below the poverty line): Within the prescribed limits, the policy provides the reimbursement o hospitalization expenses and personal accident cover for the death of the earning head of the family due to accident and it also elvers the disability cover in which the compensation is paid if the earning head of the family is hospitalized due to illness or accident.

For the families below the poverty line the Government provides the subsidy of Rs.100/- per family. For an individual the premium is Rs. 1 per day (Rs. 365 per annum) and for a family of 5 it is Rs. 548/- per annum and for a family of 7 it is Rs. 730 per annum. Any pre existing diseases or all the diseases contracted during the first 30 days from the commencement date of the policy is not covered in the policy.

Mediclaim Policy.

The salient feature of the mediclaim policy is to provide protection from the financial worries due to hospitalization for illness, disease or accident, whether burden on individuals, families, employers and welfare including on or not which imposes heavy financial bodies. Mediclaim insurance policy has been devised under the aegis of the Government of India.

The policy provides the following benefits:

Reimbursement of hospitalization expenses which are reasonably and necessarily incurred, under the following heads:

• Room, boarding expenses as provided by the hospital/nursing home.
• Nursing expenses.
• Fees of surgeon, anesthetist, medical practitioner, consultant and specialist.
• Expenses on account of anesthesia, blood, oxygen, operation theater charges, surgical appliances, medicines and drugs, diagnostic material, X-ray, dialysis, chemotherapy, radiotherapy, cost of pacemaker, artificial limbs and cost of organs and similar expenses.

Overseas Mediclaim policy.

The salient features of the policy are:

• Policy covers the medical expenses while the beneficiary is outside the Republic of India.
• It covers medical expenses both a inpatient as well as outpatient while in a foreign country,

Various plans under the Overseas Mediclaim Policy are:

• Business and Holiday Travel cover for individuals.
• Study Policy for students undertaking studies abroad.
• Corporate Frequent Policy for Corporate sending their executives abroad.

Personal Accident Policy.

The policy compensates individual against death, loss of limbs, loss of eyesight, permanent total disablement, permanent partial disablement and temporary total disablement, solely and directly resulting from accidental injuries.

The different types of accident policy includes:

• Individual personal accident policy.
• Group Personal Accident Policy.
• Passenger Flight Coupon-Covering personal accident risk whilst traveling as a passenger on a scheduled flight.