FAQs on General Insurance

Last Updated: Tue, Apr 28, 2009 06:37 hrs



  • Householders' FAQs


  • Travel Insurance FAQs


  • What is covered by the Householder's Insurance policy?


  • Are electronic items covered under the Householder's Insurance policy?


  • What the Premium rate for the Householder's Insurance policy?


  • What are the exceptions against cover within the purview of the Householder's Insurance Policy?


  • What are the exceptions for cover towards plate glass under the householder's Insurance policy ?


  • Are their any deductibles in the Professional Indemnity Insurance for Doctors and Medical Practitioners?


  • What is the Jurisdiction applicable in Professional Indemnity policies?


  • What is the period of cover under Professional Indemnity policies?


  • What procedure should the Insured follow on receipt of a Notice of Claim from an injured party?


  • Will an insurance company admit a liability regarding Professional Indemnity insurance after the policy has expired?


  • What are the common allegations made against doctors and medical establishments?


  • Is there any time limit for the insured to notify claims to the insurance company?


  • Notification Extension Clause


  • What is the coverage available for a series of claims arising out of same cause of neglect, error or omission?


  • Claim Series Clause


  • What is scope of cover under the Doctor's Protection Shield policy ?


  • How Medical Establishment shall be rated under the Doctor%u2019s Protection Shield policy ?


  • What is the scope of cover under the Medical Establishment Professional Negligence policy ?


  • Are Short Period policies permitted under the Medical Establishment Professional Negligence policy ?


  • What is the Jurisdiction applicable under the Professional Indemnity policy ?


  • What are the special benefits under the Professional Indemnity policy for doctors and medical practitioners ?


  • For whom is Professional Indemnity Insurance Policy available ?


  • Which liabilities can be covered under Director's and Officer's Liability Insurance ?


  • Can ex-directors be covered under Director's and Officer's Liability?
    Householders' FAQs

    What is the Householders' package policy about ?

    The Householders' package policy is a policy which offers covers that are suitable for a household. Instead of taking different policies the client can opt for multiple sections or covers of his choice under one policy.

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    How many sections are there under the Householders' package policy ?

    There are ten sections under the Householders' package policy:

    Section I Fire & Allied Perils
    Section II Burglary & Housebreaking including larceny or theft (Contents only)
    Section III All Risks
    Section IV Plate Glass
    Section V Breakdown of domestic appliances
    Section VI Television sets & VCR / VCP/ VCD
    Section VII Pedal cycle
    Section VIII Baggage
    Section IX Personal Accident
    Section X Public Liability Risks and Workmen's Compensation Risks

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    Are all the sections compulsory under the Householders' package policy ?

    Only section I B (fire) for contents is compulsory. In addition, two more sections need to be covered under the Householders' package policy.

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    Is there any discount available under the Householders' package policy ?

    If a client selects more than four sections, a discount of 15 percent is available. If he selects more than six sections, a discount of 20 percent is available on the non-tariff sections.

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    What are the tariff and non-tariff sections under the Householders' Package policy ?

    Under the Householders' Package policy - Fire, public liability, workmen's compensation are tariff sections while the rest are non-tariff sections.

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    Is there any limit of amount of insurance cover which can be taken under the Householders' Package policy ?

    There is NO limit on the amount of cover that can be availed of under the Householders' Package policy.

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    Under the Householders' Package policy, can a single amount be taken for all the contents of the household ?

    A single amount can be taken for all the contents only if the value of any single item exceeds 5 percent of the amount of insurance and the same is to be declared separately otherwise the value of that item will be considered of a maximum of 5 percent.

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    Under the Householders' Package policy, can jewellery be listed with the rest of the contents of the household ?

    Under the Householders' Package policy, jewellery should be listed individually along with the values.

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    Can jewellery lying in bank vaults be covered under the Householders' Package policy ?

    Under the Householders' Package policy, the client has the option to cover such jewellery also.

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    What is term period for the Householders' Package policy ?

    The Householders' Package policy can be issued for a maximum period of one year.

    Travel Insurance FAQs

    What is "Baggage Insurance" ?

    Baggage Insurance is insurance that covers the loss or damages to personal baggage of the policyholder or his family members due to fire, theft or accident during the course of journey anywhere in India including stoppage enroute.

    Who is entitled to an Executive Travel Policy ?

    Any Indian National over the age of 18 years residing in India is entitled for Executive Travel Policy against risks during their travel overseas and within India on the following basis:

    • Travel Overseas - All 24 hours during the covered trip up to 60 days only

    • Travel Within India - Travels by commercial plane as a ticketed passenger by train / licensed coach / taxi including private taxi, outstation use of company car and while as a pedestrian but excluding two wheelers or the public road transport system.

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    What is the maximum indemnity available under the Executive Travel Policy ?

    In case of personal accident, the maximum limit of indemnity is Rs.30 lakhs. In case of loss of checked baggage outside India, the maximum limit of indemnity is Rs.75,000/- and within India it is Rs.40,000/-

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    Who can opt for 'Suhana Safar Policy'?


    All domestic travelers can opt for this policy. It covers the risk of accident to the policyholder, spouse and dependent children and loss of baggage during the period of his outstation travel within India.

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    What is the extent of liability under Suhana Safar Policy ?


    Maximum liability available for personal accident is Rs.1,00,000 per person and liability for loss of baggage is limited to Rs.15,000/- where the number of people covered is 4.

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    What is the period of insurance under Suhana Safar Policy ?

    The coverage available under this package is for a single round trip to all the declared places (including places enroute) up to the scheduled date of return. The policy cover is available for trips up to 60 days only. However the policy can be extended to cover further 60 days on payment of additional premium.

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    What is the difference between the Suhana Safar Policy, the Executive Travel Policy and Overseas Mediclaim Policy ?

    Suhana Safar Policy Executive Travel Policy Overseas Mediclaim Policy
    This policy is specially designed to cover domestic traveler including baggage. This policy is designed to cover Indian Nationals traveling abroad. This policy is devised to cover people travelling abroad for business, pleasure, study and for employment.
    Period of insurance is 60 days. It can be extended to further 60 days on payment of additional premium. Period of insurance is 60 days. Period of insurance is 180 days for business and pleasure travel and for employment and study purpose, the policy is issued on annual basis.

    What is covered by the Householder's Insurance policy?

    The Householder's Insurance policy is designed to cover risks and contingencies faced by householders under a single package policy. It provides protection for property and interests as well as legal liability of the insured and his/her family members who permanently reside with the insured.

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    Are electronic items covered under the Householder's Insurance policy?

    NO. Electronic items, computers and their peripherals, dish antennae are not covered under the Householder's Insurance policy. A separate Electronic Equipment policy must be implemented to provide cover for them.

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    What the Premium rate for the Householder's Insurance policy?

    The premium rate for the Householder's Insurance policy is calculated at 0.65 per thousand rupees value of the Capital Sum Insured. The Capital Sum Insured is derived at the time of commencement of the policy from the Market Value of the property.

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    What are the exceptions against cover within the preview of the Householder's Insurance Policy?

    Under Section 1 (B) the Householder's Insurance policy, any loss or damage suffered to the following is treated as an exception and cannot be claimed.

    • Consumable articles

    • Money

    • Securities

    • Stamps

    • Stamp collection

    • Bullion

    • Livestock

    • Motor vehicles

    • Pedal cycle

    • Deeds

    • Bonds

    • Bills of exchange

    • Promissory notes

    • Shares

    • Books

    • Manuscripts

    • Loose precious stones

    • Jewellery and valuables

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    What are the exceptions for cover towards Plate Glass under the Householder's Insurance policy?

    Under Section 4 of the Householder's Insurance policy, the exceptions for cover of Plate Glass are

    • Breakage during removal

    • Alterations and/or repairs

    • Breakage of lettering

    • Frames and frameworks

    • Disfiguring or scratching for damage of glass other than fracture extending through the entire thickness of glass.

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    What is the Rate of Premium Payable for Plate Glass under the Householder's Insurance policy?

    Under Section 4 of the Householder's Insurance policy, the Premium Payable for Plate Glass is calculated at 10 percent of the Actual Value of the Plate Glass.

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    What is the Rate of Premium Payable for Television sets and VCRs under the Householder's Insurance policy?

    Under Section 6 of the Householder's Insurance policy, the Premium Payable for Television sets and VCRs is calculated at 10.05 percent of the Market value.

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    What are the perils against which Television sets and VCRs are insured under the Householder's Insurance policy?

    Under Section 6 of the Householder's Insurance policy, Television sets and VCRs are insured against the loss and/or damage that might arise from

    • Fire and allied perils

    • Burglary

    • Housebreaking or theft

    • Accidental external means and

    • Mechanical or domestic breakdown

    The admissible legal liability for damage to the insured's own surrounding property due to collapse of antenna is limited to Rs.25000/-

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    What is the Rate of Premium Payable for Bicycles under the Householder's Insurance policy?

    Under Section 7 of the Householder's Insurance policy, the Premium Payable for Bicycles is calculated at 20.05 percent of the Actual cost.

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    What are the exceptions for cover towards Bicycles under the Householder's Insurance policy?

    Under Section 7 of the Householder's Insurance policy, the exception for cover of Bicycles arises if and when the bicycle is not securely locked when left attended and subjected to loss through theft or damage.

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    What is the Rate of Premium Payable for Accompanied Baggage under the Householder's Insurance policy?

    Under Section 8 of the Householder's Insurance policy, the Premium Payable for Accompanied Baggage is calculated at 7.5 percent of the Actual cost.

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    What are the exceptions for cover towards Accompanied Baggage under the Householder's Insurance policy?

    Under Section 8 of the Householder's Insurance policy, the exception for cover of Accompanied Baggage arises if and when the loss arises within the Municipal limits of area where the insured resides permanently.

    The other exceptions are

    • Cracking, scratching or breakage

    • Loss caused by moths or mildew, worming

    • Any process of cleaning, dyeing, repairing or restoring and

    • Theft from unattended cars

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    What are the perils against which Accompanied Baggage is insured under the Householder's Insurance policy?

    Under Section 8 of the Householder's Insurance policy, Accompanied Baggage is insured against the loss and/or damage that might arise during an accident or misfortune whilst the Insured is traveling in India.

    Are their any deductibles in the Professional Indemnity Insurance for Doctors and Medical Practitioners?

    Contrary to the profess ional indemnity insurance for Medical Establishments, no deduction towards Excess under the Policy is made from claims arising out of errors, omissions or negligence of the doctors and medical practitioners.

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    What is the Jurisdiction applicable in Professional Indemnity policies?

    The Jurisdiction applicable in Professional Indemnity policies will be within Indian Courts only.

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    What is the period of cover under Professional Indemnity policies?

    For Professional Indemnity policies, the period of cover is always one year.
    No policies for shorter or longer periods can be issued.

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    What procedure should the Insured follow on receipt of a Notice of Claim from an injured party?

    The Insured should immediately notify the insurance company in writing and forward copies of writs, summons or notices along with all other relevant documents to them. No admission, offer, promise or payment should be made by the Insured without the written consent of the insurance company.

    The insurance company reserves the right to take over and conduct legal proceedings in the name of the Insured. Normally they become joint respondents to the case along with the insured.

    All amounts expended by the company in such proceedings constitute defence costs and form part of the claim payable under the policy subject to the limit of indemnity mentioned as Sum Insured in the policy.

    However, in cases where the insurance company feels that the insured has breached any of the conditions of the policy, it may relinquish the defence of the insured. In such cases, the Insured has to defend the case on his own, while the insurance company produces its own defenses.

    If the Court passes an Award against the insured and it is established that there was no breach of the terms and conditions of the policy, the insurance company not only satisfies the Court Award but also pays the expenses of the insured, reasonably incurred as legal costs and fees, subject to the limit of Sum Insured in the policy.

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    Will an insurance company admit a liability regarding Professional Indemnity insurance after the policy has expired?

    Yes, the insurance company is liable, in terms of the Extended Claim Reporting Clause attached to the Policy. According to this Clause, the insurance company will allow a time limit not exceeding 90 days from the expiry of the policy, for reporting of claims by the insured, provided the claim has arisen out of an accident during the currency of the policy.

    A doctor takes a policy for Rs.1 lakh for the period 1.1.2000 to 31.12.2000. He does not renew the policy for a further period. Arising out of a Caesarian operation conducted on 1.6.2000 on a lady, a claim arises and is notified to the doctor on 31.10.2000.

    The doctor intimates the claim to the insurance company, for reasons beyond his control, on 15.1.2000, i.e., after the policy has expired and no insurance is in force.

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    What are the common allegations made against doctors and medical establishments?

    Professional Indemnity Insurance claims against doctors and medical establishments are generally arising out of allegations of improper diagnosis, improper tests, lack of informed consent, improper administration of anesthetics and drugs and surgical errors.

    Improper diagnosis arises if a physician fails to bring to a diagnosis the proper degree of skill or care. However, a mistake in diagnosis caused by an error in judgement is not actionable if the physician has used the proper degree of skill and care.

    In other words, liability is not imposed on a physician for making an error in judgement, except when the error results form a failure to comply with a recognised standard of medical care that is exercised by prudent physicians in the same specialty under similar circumstances.

    Physicians have a duty to employ the proper tests and evaluation to determine the condition of a patient about to undergo a proposed treatment or operation.

    Whether the failure to make such tests or examinations constitutes a lack of due and reasonable care and skill depends on whether the standards of skill and care require such a test or an examination in a particular case.

    Lack of informed consent arises from the failure to disclose in advance the known, significant risks of a particular procedure or treatment. Surgeons normally take an undertaking from a patient of a Caesarian operation, indicating the risks thereof.

    However, this does not make him immune to liabilities arising out of errors and negligence conducted during the operation. Further, physicians and surgeons are not expected to disclose every conceivable risk, because excessive disclosure might do patients more harm than good.

    In most cases involving the question of negligence, physicians have been held liable for injuries to patients resulting from the administration of the wrong drug or medicine.

    Related causes of action include the failure to properly sterilise instruments, drugs or operative fields; breaking hypodermic needles; the use of harmful drugs instead of the proper ones; the improper use of spinal injections; and the death or injury of a patient under excessive or improper anaesthesia.

    Surgical errors arise when a surgeon who performs an operation and has the duty to exercise the reasonable care, skill and diligence that prudent surgeons in similar situations usually exercise, fails to do so.

    For example failure to remove instruments, surgical sponges, or other foreign substances from the patient%u2019s body before closing the incision, has been held to be negligence on the part of the operating surgeon.

    Other common allegations might be based on the following:

    • A surgeon%u2019s failure to continue care after the patient leaves the operating room

    • Negligent treatment of an organ donor or acceptor in connection with organ transplant

    • Improper treatment of fractures or dislocations caused by the improper application of a cast or a splint or other treatment;

    • Transfusions of the wrong type of blood or blood contaminated with serum hepatitis or the human immune deficiency virus (HIV) and

    • Improper implantations or insertion of a prosthetic device

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    Is there any time limit for the insured to notify claims to the insurance company?

    According to the policy conditions, the insured should immediately notify any claim or event that may lead to a claim under the policy forthwith.

    However, the time limit prescribed is governed by the Indian Limitation Act in force from time to time.

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    Notification Extension Clause

    Should the Insured notify the Company during the policy period in accordance with General Condition No. 10.1 of any specific event or circumstance which the Company accepts may give rise to a claim or claims which form the subject of indemnity by this policy, then the acceptance of such notification means that the Company will deal with such claim or claims as if they had first been made against the insured during the policy period.

    The extension under the Clause will be subject to the maximum limit laid down under the Indian Limitation Act in force from time to time.

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    What is the coverage available for a series of claims arising out of same cause of neglect, error or omission?

    Where a series of claims arises out of the same cause, they are added together and treated as one claim.

    However, there is no coverage for claims arising from one specific cause but are made later than 3 years after the first claim of the series.

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    Claim Series Clause

    For the purpose of this policy, where a series of losses and/or bodily injuries and/or deaths are attributable directly or indirectly to the same cause or error or omission relating to discharge of professional services, all such losses and/or bodily injuries and/or death claims shall be added together and all such losses and/or bodily injuries and/or death shall be treated as one claim and such claim shall be deemed to have been made at the point in time when the first of the claims was made in writing.

    There shall, however, be no coverage for claims made arising from one specific cause which are made later than 3 years after the first claim of the series.

    What is scope of cover under the Doctor's Protection Shield policy?

    The Doctor's Protection Shield policy covers building, office contents, tenant's liability, money, fixed glass and sanitary-ware, fidelity guarantee, electronic equipment, cost of reinstatement of data and programme, portable computer, additional expenses, personal accident, breakdown of office appliances, baggage, liability, professional liability, accident on duty cover and Mediclaim.

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    How Medical Establishment shall be rated under the Doctor%u2019s Protection Shield policy?

    When a diagnostic centre is classified as a medical establishment as per the parameters laid down in the market agreement, the same shall be rated as medical establishment under the Doctor%u2019s Protection Shield policy.

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    What is the scope of cover under the Medical Establishment Professional Negligence policy?

    The Medical Establishment Professional Negligence policy is designed for hospitals, nursing homes, diagnostic centres, pathological laboratories, etc to cover any act committed by the professional or qualified assistants named in the policy engaged by the medical establishment which gives rise to third party legal liability.

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    Are Short Period policies permitted under the Medical Establishment Professional Negligence policy?

    Short period policies are not permitted under the Medical Establishment Professional Negligence policy. In case the policyholder desires cancellation, short period scale rates will be applicable.

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    What is the Jurisdiction applicable under the Professional Indemnity policy?

    Jurisdiction applicable under the Professional Indemnity policy will be within Indian Courts.

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    What are the special benefits under the Professional Indemnity policy for doctors and medical practitioners?

    The special benefits under the Professional Indemnity policy for doctors and medical practitioners are

    Retroactive Benefits

    This means that the policyholder will be covered for any professional act or omission occurring during the period of insurance provided the policy is renewed without interruption and is in force at the time of claim. Any claims arising out of act or omission of policyholder have to be made in writing during the policy period.

    For the purpose of this benefit, policy period means the period commencing from the date and hour mentioned in the policy and expiring at midnight on the expiry date mentioned in the policy.

    Notification Extension Clause

    This clause states that if the policyholder notifies any event or circumstance as a claim during the period of policy and if insurance company accepts it, then the company will deal with the claim.

    Extended Claim Reporting Clause

    This clause allows the policyholder a time limit up to 90 days from cancellation or non-renewal of policy to notify claims which had taken place during the period of insurance. And the only condition is that another policy does not exist.

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    For whom is Professional Indemnity Insurance Policy available?

    The Professional Indemnity Insurance Policy is available for all doctors, medical establishments, contractors, engineers, architects, interior decorators, chartered accountants, financial accountants, management consultants, lawyers, advocates, solicitors and counsel.

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    Which liabilities can be covered under Director's and Officer's Liability Insurance?

    Under Director's and Officer's Liability Insurance, all directors and officers can avail of cover against legal liability to the third party for a Wrongful Act which may arise due to actual or alleged breach of duty, breach of trust, negligent, error, omission, misstatement, misleading statement, breach of warranty of authority.

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    Can ex-directors be covered under Director's and Officer's Liability?

    Director's and Officer's Liability Insurance can be used to cover ex-directors and can also be extended to cover non-executive Directors, spouses of Directors and Officers, their estates, heirs, legal representatives in case of being deceased

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