Kind of insurance policies
Characteristics of various types of insurance policies, prevalent today are:
1) Shopkeeper's insurance policy
This is most comprehensive policy that covers almost every risk. The insured may not, however, opt for all risks except -those compulsory. The risks covered are :
a. Fire and Allied Perils : The insurer will indemnify in respect of loss of or damage to the building and / or contents whilst contained in the insured premises, by--
- Fire, lightning, explosion of gas in domestic appliances,
- Bursting and overflowing of water tanks apparatus or pipes,
- Aircraft or articles dropped there from,
- Riot, strike or malicious act,
- Earthquake, subsidence and landslide,
- Flood, inundation, storm, tempest, typhoon, hurricane, tornado or cyclone,
- Impact damage.
It, however, does not cover loss of or damage to livestock, motor vehicles, pedal cycles, money, securities, stamps, bullion, deeds, bonds, bills of exchange, promissory notes, stock and share certificates, business books, manuscripts, documents, unset precious stones and jewelry and valuables.
Average Clause - If the sum insured under this risk is less than 85% of the collective value of the property insured, the insured will bear a ratable proportion of the loss
b) Burglary and House breaking: The insurer will indemnity in respect of loss of or damage to the contents (except moneys and valuables) whilst contained in the insured premises by burglary and / or house - breaking.
c) Money Insurance : the insurer will indemnify in respect of --
- Loss of insured 's money in transit between any two places within a radius of fifteen miles from he insured premises,
- Loss of money / valuables kept in safe steel cupboards/ cash box, etc. under lock and key, by burglary / housebreaking, and
- Loss of money from cashier's till and / or counter during business hours, following assault, violence against the insured or his employee.
d) Neon Sign / Glow sign: the insurer will indemnify in respect of 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,
- Floods, Inundation, storm, typhoon, hurricane, tornado or cyclone.
e) Personal Accident: If the insured (or any named partner, director of member of managerial staff or employee permanently working with the insured) aged between 16 and 65 years, sustain bodily injury solely and directly caused by accidental, violent, external and visible means resulting in death or disablement, the insurance company shall pay to the victim or his assignee / legal representative, the specified sum.
f) Fidelity Guarantee: If the insured sustains direct pecuniary loss caused by act of fraud or dishonesty committed by any of his employees in the insured premises, the insurer will indemnify in respect of such loss.
g) Liability: The insurer will indemnify in respect of sums which the insured becomes legally liable to pay as
- Compensation and litigation expenses incurred by the insured , in connection with accidental death of or bodily injury to any person other than an employee, and / or accidental damage to property caused by or through the fault or negligence of the insured or his family member,
- Compensation to the insured employees under the Fatal Accident Act/ Workmen's compensation Act,
h) Business Interruption: The insurer undertakes to indemnify for losses arising out of business interruption i.e. cessation of normal commercial activity on account of or as a direct result of fire and allied perils (covered in clause "a" above)