Zen Vichaar

  Getting a health insurance policy has become necessary in today’s time of increasing medical costs. With a health insurance policy, one can access quality medical care without burning a hole in one’s pocket. But, not everyone is keen to buy a health insurance policy. This is influenced by the view that you do not require health insurance coverage if you are young or healthy or both. In India, 400 million people have no health insurance, which is about 30 percent of the population. There can be a multitude of reasons for not having health insurance coverage, affordability, lack of awareness, complex nature of health insurance policies, limited coverage in policies, absence of tailor-made products, or negative experiences with health insurance companies.  A significant factor that discourages individuals from buying health insurance is that the premium amount of the policy increases yearly. The proportional increase in the premium amount with every annual renewal is a majo...

  In India, Commercial General Liability (CGL) insurance policies provide coverage for liability arising out of bodily injury, property damage, and other associated risks due to the insured's business operations. While fire damage is not directly the primary focus of a CGL policy, it can be covered in specific circumstances under the property damage liability section. A CGL policy typically covers third-party property damage caused by fire. However, it is important to note that the coverage applies only to liabilities arising from fire incidents that affect third parties. Damage to the insured's own property or premises is not covered under CGL and requires separate property insurance. Here are more details on the in a CGL policy: Third-Party Property Damage If a fire occurs on the insured premises and damages third-party property , the CGL policy typically provides coverage for the resulting legal liability. For example: A fire originating in a factory damages a ne...

  A Commercial General Liability (CGL) policy grants insurance for third-party liabilities arising from bodily injury and property damage. The Medical Expenses coverage is one of the specific parts of the overall bodily injury liability coverage section under CGL policy. Let us look at how the Medical Expenses coverage usually applies in a CGL policy. Medical Expenses Coverage Purpose: The medical expenses coverage under a CGL policy is intended to pay for all resultant medical costs arising out of accidental bodily injury to third parties who are not employees arising on the insured business' premises or as a result of the operations of the insured company. Scope: It pays for reasonable medical costs, including, ·        Ambulance charges ·        Hospitalization expenses ·        Surgery costs ·        Consultations with medical practitioners ...

  The prior and pending litigation exclusion in liability policies is a clause designed to exclude coverage for claims related to legal disputes or circumstances already known, pending, or in progress before the policy's effective date. It’s an important exclusion because it limits the insurer’s liability for events that occurred before the policy began. Here are more details about this exclusion. Purpose of the Prior and Pending Litigation Exclusion Insurers include this exclusion to avoid covering claims or disputes that were known or existed before the policy started. It ensures that the underlying policy , Directors & Officers (DnO), Professional Indemnity (PI) policy, etc., only covers new claims that arise from professional errors, omissions, or negligence occurring during the policy period and not pre-existing or ongoing legal matters. What the Exclusion Covers Prior Litigation : Any lawsuit, claim, investigation, or l...

  Professional Liability Insurance in India, more commonly referred to as Errors & Omissions (E&O) insurance in the case of businesses, provides the business with insurance coverage against claims of negligence, error, or omission in the services rendered by the business under insurance. In this policy, one of the features includes mitigation cost coverage. Mitigation costs are sums of money that an Insured pays to avoid or lessen the possibility of a claim arising. For example, if a business finds an error in its work that may give rise to a potential liability claim, it may incur expenses to correct such error before it generates a claim. These costs will be incurred in trying to reduce the potential damage or liability and, therefore, may be covered under a professional liability insurance policy. However for mitigation cost section claim to trigger there needs to be a claim payable under the policy. Once the claim is determined to be payable under the policy, the miti...

Broadly speaking, a D&O insurance policy offers liability cover to companies' directors and officers for claims made by others resulting from decisions and actions made while undertaking their normal duties under the employment contract. The policy includes different types of exclusions; one of them is insolvency and bankruptcy exclusion. The insolvency and bankruptcy exclusion is a provision under a D&O policy that excludes coverage directly or indirectly from the insolvency or bankruptcy of the company. Purpose of the Insolvency and Bankruptcy Exclusion 1. Risk Management: The increased risk associated with a situation involving insolvency or bankruptcy is a consideration noticed by insurers while bringing forth this exclusion. In particular, claims tend to increase at times when a company is undergoing financial trouble and stakeholders are trying to recover their losses. 2. Moral Hazard: The exclusion helps cap moral hazard, whereby directors and officers may take more ...