Zen Vichaar

    With the cost of health insurance rising consistently every year, a health insurance policy has become mandatory. However, health insurance comes with its own set of terms and conditions and an important feature of this policy is the moratorium period.   Moratorium period is a term in a health insurance policy which indicates the time period where the policyholder will not be covered for any pre-existing illness in spite of having a health insurance policy. This is also known as the waiting period.   Let us look at the moratorium period in more detail in this blog.   How does the moratorium period work?   When you decide to buy a health insurance policy, you will be required to fill a questionnaire by the insurance company where you will have to disclose information about any history of illnesses or medical conditions you may have. If any of your responses fall under the category of pre-existing illness, the insurer will ask you to wait for the...

  A liberalization clause is a clause that, at no additional cost or premium, automatically applies any favourable modifications to the policy wording to the insured at any time throughout the policy term. Although they are more frequently found in property insurance wordings, this kind of clause is now being increasingly used in liability insurance plans. Many insurers have different policy wordings to suit the particular client requirements. The variance in policy wordings might be with regard to lower percentage of deductibles, coverage’s in terms of extension, viz., lower percentage of major shareholding exclusion, higher level of auto inclusion of new subsidiaries, etc.,. Higher level of customization of wordings will normally follow higher limits of indemnity. Though higher customization normally entails higher costs, it need not necessarily result so in all cases.       The liberalization clause is advantageous to both the insured and the insur...

  Mitigation costs in Directors and Officers (D&O) insurance policies are expenses incurred to prevent or reduce the severity of potential losses that could be covered by the policy. The costs of mitigation can be from claims related to wrongful acts such as breach of fiduciary duty, Errors and Omissions, etc., These costs help avoid larger claims and are related to proactive actions taken by the insured. Understanding and managing these costs are crucial for both insurers and policyholders. The terms and conditions of this extension with regard to its quantum, insurer consent, exigencies of the case, etc., are important factors.     Let us learn more about costs of mitigation in this blog. Key aspects of mitigation costs in D&O insurance policies Definition and Scope : Mitigation Costs : These are costs incurred to prevent, mitigate, or minimize a claim that could be covered under the D&O policy. They can include legal fees, con...

  Directors and Officers (D&O) insurance provides coverage for the personal liability of directors and officers as individuals, and for the company itself. This insurance is crucial for protecting these key individuals and the organization (in specific situations) from claims related to their management decisions. D&O insurance primarily covers legal fees, settlements, and other costs associated with claims of wrongful acts, mismanagement, or negligence.    Another important coverage provided by D&O insurance policies is for the costs relating to claims or legal costs related to breach of any Occupational Health and Safety (OHS) law or regulation that includes death but is not limited to it. Let us look at the Occupational Health and Safety Defense Costs in D&O policies in more detail.   Claims related to OH&S issues   Directors and officers can be held personally liable for failing to ensure a safe working environment. If an empl...

  One of the important exclusions in liability insurance policies is the antitrust exclusion. Antitrust exclusion indicates a clause that excludes coverage for claims or losses arising from antitrust violations.  Antitrust can be understood as “regulations that encourage competition by limiting the market power of any particular firm thereby preventing or controlling monopolies so as to promote fair competition in business”   Insurance policies include exclusions for certain types of risks, and antitrust exclusion specifically addresses the risks associated with antitrust lawsuits. Antitrust exclusions are part of liability policies to help limit insurers from exposure to potentially large and unpredictable losses that can arise from antitrust lawsuits. Apart from this, antitrust cases can result in substantial legal fees, settlements, and judgments, which can be financially burdensome for insurers. In D&O policies, the antitrust exclusion refer to claims such...

      Liability policies such as D&O policy, Professional liability, Public liability, CGL policy and product liability policies have exclusions like every other insurance policy. An important exclusion is the criminal act exclusion in liability policies.   Criminal act exclusions in liability insurance policies are provisions which exclude coverage for claims arising from criminal acts committed by the insured. The criminal act exclusion makes the insurance contract void if it is evident that the insured is making a claim for a loss that has occurred due to criminal actions or lawless behavior by the insured. In short, the criminal act exclusion means that if the insured is involved in an illegal activity or commits a crime, the insurance policy will not cover any resulting claims or damages. Purpose of the criminal act exclusion The primary purpose of this exclusion is to prevent individuals or entities from using insurance coverage when they...