Zen Vichaar

                                   The recent floods in Tamil Nadu and neighboring states have caused massive destruction which includes lives, property, vehicles and other consequential losses. Standard policies in fire, marine cover the floods under the STFI peril or what is called the AOG perils. For Act of God(AOG) perils the 72-hour clause is applied by the insurance companies in construction all risk insurance policies.   The clause states that any loss of or damage to the insured property arising from a single fire peril (which includes all fire perils) during the period of 72 consecutive hours shall be deemed as a single event and therefore subject to one deductible and one claim limit. Standard policies usually cover loss of or damage to the property and or interests of the insured directly caused by the perils men...

Error and negligence are made easily but understanding the impact of the error/omission is necessary for a professional. Negligence and faulty service affect the third party and  disturb the confidence reposed in a professional by the  receiver of service whether from a doctor, dentist, lawyer, architect etc. Errors & Omissions  insurance protects companies and professionals against claims of inadequate work or negligent actions made by clients. Companies often obtain E&O insurance if they provide services to a customer for a fee. Professional liability insurance, also known as Errors and Omissions (E&O) coverage, is to protect businesses against claims from customers. Claims that arise due to the  professional advice or services  provided and which caused  financial harm to the customer due to actual or alleged mistakes or a failure to perform a service. What E&O insurance covers Damages resulting from p rofessional liability arising out ...

  Commercial General Liability Policy covers liability like personal injury, bodily injury and property damage that occur on the business premises arising out of business operations or products. CGL operates as a combination of Public Liability and Product Liability Policy and offers various supplementary covers. Commercial  general liability  is comprehensive insurance though it does not cover all the risks of a business. What is the coverage? Public Liability & Product Liability Public Liability Covers : Premises related liability  or general liability  Any claim for legal liability arising due to an accident causing bodily injury and property damage to third parties arising from  manufacturing operations,  pollution etc.             Details of Cover:       Coverage A – Bodily Injury & Property damage          ...

What is an endorsement on an insurance policy? It is an extension, addition, deletion  or expression to the existing subject matter. It is a confirmation of there being a correction/alteration to the present situation, subject matter insured, location etc. An insurance endorsement is  an add-on to an existing insurance contract and it  adds to the terms of the original policy for proper clarity in the interpretation of the policy . Endorsements are  legally binding changes to an existing policy. An endorsement can be issued at the time of purchase, mid-term or at renewal time. Insurance premiums may be affected and adjusted as a result. An endorsement brings further transparency to the policy coverage by adding or modifying the policy wordings. Is an  endorsement as valid as a policy? Yes, an endorsement is an insurance policy  that either changes or adds to the already existing policy for the purpose of more clarity on the subject matter covered either the...

We often read in newspapers that there was a theft while the residents were away and thieves have looted the entire house. On a detailed read we understand whether the entry was silent or violent into the house. A silent entry means the use of a duplicate key/known area or having the help of a known person from the house whereas a violent entry would mean breaking open the doors or windows and causing visible damage to the premises. If we have to differentiate between burglary and theft it would be a difficult task as both look the same. Burglary means the  illegal entry into a building with intent to commit a crime, especially theft. Theft means taking someone's property but does not involve the use of force.  Insurance policies define burglary and theft and the difference between the two is clearly laid out. Theft cover is usually taken as an add-on with burglary policy for which an additional premium  is charged. Definition of burglary and theft under IPC sections The ...

  Professional indemnity insurance is a standardized insurance protection available to most professionals like, doctors, lawyers, chartered accountants, etc. This policy offers protection to the insured persons against claims made by third parties on financial losses suffered by them due to any error or negligence of the insured person or their authorized representatives. With the rapid growth of services sector there are now various specialized professionals operating in the formal economy, viz., management professionals, corporate secretaries, etc., The list if fast growing. There are quite a few professionals like insolvency professionals, registered valuers, etc. who have evolved in response to changes in the regulatory landscape, viz., Companies Act 2013, Insolvency & Bankruptcy Code (IBC) 2016, etc. The roles and responsibilities of these professionals are majorly dictated by the relevant regulations, professional guidelines and standards. These aspects will impact ...

Provisions of workmen’s compensation policy   The tunnel collapse at Uttarakhand has brought many issues to the fore. Workers in the tunnel are trapped for more than a week and rescue efforts are on. Workers were into ‘excavation & tunnelling connected with mining, quarrying and tunnelling work’. Such risks are classified as high risks though unforeseen, and insurance policies exclude such risks from the scope of the policy . Policy wording of workmen’s compensation policy states that “ if at any time during the period of insurance any employee or employees of the insured shall sustain injury by accident arising out of and in the course of his employment in the business, for which the insured is liable to pay compensation under any law(s) specified in the schedule, then the company shall indemnify the insured up to the limit of indemnity against all sums for which the insured shall be so liable, including costs and expenses for defending any such claim incurred with the c...