Month: August 2022

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Insurance

What is Workmen Compensation Insurance? (Meaning, Examples & more)

workmen insurance

What is Workmen Compensation Insurance? (Meaning, Examples & more)

Employers in India are mandated under the Fatal Accident Act 1855, and Workmen’s Compensation Act 1923 to provide financial coverage to their employees in the event that their workers get maimed or killed during working on site.

Such a policy generally covers workmen in industries like mining, construction, ship building, plantations, sewage disposal, radioactive jobs, etc. The compensation provided under this scheme covers the cost of hospitalization, rehabilitation, diagnosis, etc. Further, if the worker dies, the family is compensated for their loss.

Topics covered:

  • Importance and benefits of Workmen Compensation Insurance
  • The extent of coverage provided
  • Add-ons
  • Example
  • Inclusions and exclusions of Workmen Compensation Insurance

Importance and benefits of Workmen Compensation Insurance

Let us elucidate some of the most important benefits of Workmen Compensation Insurance:

  • The worker is provided insurance coverage that will act as a protective cushion in the event of an unfortunate work accident.
  • In the event of death, the insured worker’s family will get compensated for the loss of their loved one.
  • Workmen insurance policies can be customizable as per the requirements of the employer and the nature of the employee’s job. This provides great flexibility.
  • It is mandated that businesses having more than 20 employees have a Workmen Compensation Insurance policy in place, as per The Employees’ State Insurance Act, 1948.

The extent of coverage provided

Let us now understand the extent of coverage and protection provided to the employees in different scenarios.

Type of claim

Compensation provided

Death due to accident

Rs.1,20,000 or 50% * age * wages (Whichever is higher)

Temporary disability

25%* number of days of absenteeism/disability * wages / 15

Permanent disability (Total)

Rs.1,20,000 or 60% * age * wages (whichever is the higher amount)

Permanent disability (Partial)

Loss of the workers earning capacity ascertained by a registered doctor / % extent of disability * wage / 15

Add-ons

  • Acts of terror add-on
  • Sub-contractors add-on
  • Terrorism coverage
  • Cashless add-on
  • Compressed air diseases add-on

Example

Let us understand how Workmen Compensation Insurance works with the help of a real world example.
Let us assume that Mr. Sashikant, a workman, working in a car factory met with an unfortunate accident while assembling a car and died.

As he was covered under Workmen Compensation Insurance, Mr. Sashikant’s family was compensated to the tune of Rs.40 Lakhs. His family used this money to fund the education of Mr. Sashikant’s daughter, and the rest of the funds were utilized for running the daily chores of the house.

Inclusions and exclusions of Workmen Compensation Insurance

Inclusions

Exclusions

Injuries caused while working

Employees not considered workmen

Diseases caused while working

Death caused due to being under the influence of alcohol

Death

Disability caused due to being under the influence of alcohol

Partial and total disability

Intentionally flouting the safety norms laid down by the employer

Accidents

Death or disability caused due to being under the influence of illicit drugs.

Temporary disability

Accidents of non-workers

Occupational illness

Diseases under Section ‘C’ of The Workmen’s Compensation Act

Health care coverage

 

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Frequently asked questions about Workmen Compensation Insurance

  • Who bears the cost of the Workmen's Insurance?

    The cost of insurance is borne by the employer.

  • Is Workmen's Compensation Insurance mandatory?

    It is mandatory for employers employing more than 20 workmen in their business.

  • How do I file a workmen's compensation insurance claim?
    1. Inform the insurance company
    2. Provide all necessary documents and identification
    3. Explain the nature of the claim
    4. Follow-up for claim redressal. 
    • Categories
    Motor Insurance

    Understanding ZD, EP, & CM in car insurance? (In very Simple Terms)

    car insurance

    Understanding ZD, EP, & CM in car insurance? (In very Simple Terms)

    Ever wondered what are the multiple add-on covers provided in car insurance? Well, you have come to the right place.

    Let us talk about the following:-

    • Zero depreciation cover (ZD)
    • Engine protection cover (EP)
    • Consumables cover (CM)
    • Personal liability cover (PL)
    • Key protector cover (KP)

    Zero depreciation cover (ZD)

    When opting for a Zero/nil depreciation cover, the insurance company is entitled to settle the claim amount without taking the depreciation cost of various parts of the car into consideration. This particular cover helps the policyholder claim the full amount for car parts that would depreciate due to normal wear and tear, or in case of any accidental damage.

    Engine Protection cover (EP)

    This particular add-on cover insures the policyholder against any losses due to damages or breakdown of the car engine. It covers the costs of expenses arising out of any mechanical/ electrical breakdown of the insured’s. This cover insures parts like gearbox, piston, crankshaft, etc against any damage.

    Consumables cover (CM)

    This add-on cover in the car insurance policy pays for consumable items used in the maintenance of cars like air conditioner’s gas, grease, engine oil, fuel oil, lubricant clip, break oil, filter oil, bolts, screws, nuts, etc.

    This cover can help the policyholder save a lot of money for consumable items that are used in the daily maintenance of the car at just a little extra premium.

    Personal Liability cover (PL)

    Personal liability coverage comes into play when the policyholder is at fault in an accident. It covers the medical costs of the opposite driver and the passengers.

    Note that this cover will not provide any compensation for the insured’s car or the cost of his medical expenses in case of any injury.

    A simple example of Personal Liability cover (PL)

    Let us assume that Mr. Subhash has opted for a personal liability cover along with a comprehensive car policy.
    Further, let’s assume that Mr. Subhash accidentally breaks the signal and runs his car into another person, injuring another driver and causing him a fracture.

    Since Mr. Subhash had opted for a personal liability cover, the insurance company will be liable to cover medical expenses of the driver as well and the car damages.

    Key Protector cover (KP)

    As the name suggests, this cover reimburses the policyholder in case of any loss, theft, or damage to the insured’s car key. One should bear in mind that the KP rider is an additional rider that the insurance company offers in charge of some extra premium.

    A simple example of KP in car insurance

    Mr. Kapoor purchased a KP rider along with a comprehensive car insurance policy. A few weeks later he lost his car keys. As he opted for a KP rider, the company is liable to pay him compensation for his lost keys.

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    Frequently asked questions about factory and warehouse insurance

  • Is it compulsory to buy add-on covers in car insurance policy?

    No, it is not compulsory to buy an add-on cover, although it is recommended, as it will provide the policyholder a higher blanket of safety towards their vehicle.

  • Are add-on covers widely available?

    Yes, add-on covers are widely offered by many insurance companies.

  • Can we buy multiple add- on covers at one time?

    Yes, you can opt for multiple add-on covers depending on your requirements.

    • Categories
    Insurance

    What is factory and warehouse insurance? (A Simple Guide)

    A factory

    What is factory and warehouse insurance? (A Simple Guide)

    As a factory/warehouse owner, the integrity and safety of your factory or warehouse is integral to the survival of your business. That being said, there are a many perils that a factory owner has to face. From natural fires, electric fires, thunderstorms, thefts, public liabilities, breakdown of machines, terrorism and more such dangerous events.

    How can a factory owner counter these dangerous perils and ensure the smooth functioning of their business? The answer is factory and warehouse insurance.
    This article will discuss some of the most pertinent points concerning factory insurance. They are:-

    • Meaning of factory and warehouse insurance
    • Importance
    • Types
    • Coverage and exclusions
    • FAQs

    Meaning of factory and warehouse insurance

    A factory and warehouse insurance is simply an insurance policy that a factory owner purchases in order to safeguard his factory against various unfavorable conditions (such as fires, thefts, acts of terror, electric fires and more) that would result in monetary loss for the factory owner.

    Let us understand this with the help of a simple example. Let us say Mr. Dixit owns a clothing factory in Mumbai and has purchased a factory insurance policy from HDFC ERGO. A few months later, there is an electric fire in his factory that destroys all the inventory and causes severe damages to his machinery.

    As Mr. Dixit bought factory insurance, he was in a position to recover all his losses from the insurance company and ensure the continuity of his business.
    Had he not bought a factory insurance policy, he would have to declare bankruptcy. That is the importance of factory insurance.

    Importance

    Let us now elucidate some of the most important factors of factory and warehouse insurance:

    Coverage: The primary importance of any insurance policy is the coverage that it provides. Factory insurance is no different. The policyholder pays a premium to the insurance company, and in exchange the insurance company covers a plethora of risks faced by the policyholder.

    Peace of mind: A factory insurance policy provides a great deal of peace of mind to the business owner. The business owner knows that the insurance company has his back in the event of an unfortunate situation. This peace of mind can have a cascading effect on the performance of a business and its decision making abilities.

    Protection against public liabilities: A business is liable against any damages it causes to society. A factory insurance policy covers these risks. For instance, there could be the maiming of a factory worker while working at a factory, the insurance company would provide a coverage against such risks and indemnify the factory owner.

    Continuity of business: When it comes to business, continuity is paramount. A single major shock like fire to the factory can send the entire business in a tailspin, and the business may not have the ability to recover from such a catastrophic event. A factory insurance policy cannot stop such an event from happening, but it can surely compensate the policyholder against the loss caused. The policyholder can then use the funds dispersed by the insurance company to repair his factory, thus resulting in his business’s continuity.

    Highly customizable: Insurance companies provide various custom factory insurance plans and policies that cater to the specific needs of a factory owner. This customizability provides a great deal of flexibility to the policyholder.

    Widely available: This kind of policy is widely available in the insurance market, and every business owner should make it a point to opt for it.

    Types

    Floater policy: This kind of policy covers various factories across various locations. A policyholder can take a single floater policy that provides coverage to all of his factories and warehouses.

    Comprehensive policy: This policy, as the name suggests, provides comprehensive protection against all risks associated with running and maintaining a factory.

    Replacement and reinstatement policy: This policy ensures that the factory owner is compensated for the costs associated with the replacement and reinstatement of a particular asset.

    Specific policy: Under this policy, the coverage will only extend up to the specific amount mentioned within the policy bond. Any losses occurring over and above the specific amount will not be compensated for.

    Valued policy: This policy reimburses the business owner keeping in mind the market value of the damaged goods.

    Coverage and exclusions

    Let us now list some of the general coverages provided under a factory insurance policy.

    Coverages:

    • Natural calamities like storms, earthquakes, lightning, floods, etc.
    • Theft and burglary
    • Terrorism
    • Electric fires
    • Breakdown of machines
    • Public liabilities
    • Fidelity coverage
    • Breakdown of electronics

    Exclusions:

    • Intentional damages caused to the insured property
    • Damages caused due to war
    • Regular wear and tear
    • Damage caused due to radiation
    • Damages caused due to illegal activities

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    Frequently asked questions about factory and warehouse insurance

  • Is taking a factory insurance mandatory?

    Taking health insurance for factory workers is mandatory as per IRDA circular.

  • How can I buy factory insurance?

    There are a multitude of insurance companies that provide factory & warehouse insurance services. You can either contact them directly or you can contact us at InsuranceLiya.com, and we will take your query ahead.

  • What are the inclusions in factory insurance?

    Inclusions include:

    • Natural calamities
    • Fidelity coverage
    • Machinery damages
    • Coverage of public liabilities
    • Acts of terror
    • Theft
  • What are the exclusions under factory insurance?

    Exclusions include:

    • Intentional damage
    • Damages caused due to illegal activities
    • Radiation damage
    • War
    • Damage caused due to regular wear and tear
  • Is buying factory insurance a smart choice?

    Indeed it is. Buying a factory & warehouse insurance can be one of the most important business decisions a business owner can take.

    • Categories
    Motor Insurance

    What is Cons and KP in Car Insurance? (Simple Guide)

    a moving car

    What is Cons and KP in Car Insurance? (Simple Guide)

    So, you’re planning to buy car insurance for your car and have come across the terms such as ‘Cons’ and ‘KP’ insurance? This simple guide will tell you everything you need to know about both these terms, so you can make an informed decision and buy the perfect car insurance policy for your car.

    Understanding the meaning of these terms will assist you in effectively navigating through any motor insurance brochure and insurance bond.

    This article will talk about the following:-

    • What are consumables in car insurance?
    • What is KP (Key Protect) in car insurance?

    What are consumables in car insurance?

    Consumables are basically all the things that your car consumes while running. Things like oil, coolants, steering oil, gear oil, AC lubricants, grease, etc. It should be noted that fuel (i.e petrol/diesel/CNG) does not come under consumables. A motor insurance policy will generally not cover the costs of any consumables, and you being the customer must be aware of this.

    What is KP in car insurance?

    KP stands for Key Protect rider. If the motor insurance policy provides KP, the insured is protected against loss and theft of their vehicles key. In the event of loss, theft, or damage to the insured’s car key, the insurance company will compensate the policyholder for this loss.

    You should keep in mind that the KP rider is generally an additional rider that the insurance company offers. You will most likely need to make a small additional payment to the insurance company to get the Key Protect rider.

    The decision on whether to opt for the KP rider should be based on the potential cost incurred by the vehicle owner if he/she loses access to their car key.

    Example of KP in car insurance

    Mr. Sham opted for a KP rider while buying his motor insurance from HDFC ERGO. A month later, he met with an unfortunate theft of his car key. As he opted for a KP rider, HDFC ERGO paid him compensatory damages to compensate him for his car key loss.

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    Frequently asked questions

  • Is a KP rider mandatory?

    No. You can opt to not buy a KP  rider if you want.

  • Does fuel come under consumables in car insurance?

    Fuel does not come under consumables when it comes to car insurance.

  • Is KP widely available?

    Yes, the Key Protect rider is widely available across the Indian insurance market.

    • Categories
    Insurance

    Top 10 best insurance brokers of India (As of 2022)

    research

    Top 10 best insurance brokers of India (As of 2022)

    Have you come across the term insurance brokers while planning to buy an insurance policy? This content-piece will attempt to explain to you what is an insurance broker, its role, and the top 10 insurance brokers in India. All topics covered within are:

    • What is an insurance broker?
    • What is the role of an insurance broker?
    • Top 10 insurance brokers in India

    Let us begin!

    What is an insurance broker?

    An insurance broker is simply an entity, other than an insurance company that sells insurance. The prospective buyer can either buy insurance directly through an insurance company or can buy insurance through an insurance broker. The insurance company remunerates the broker for sales that the broker company generates on behalf of the insurance company.

    What is the role of an insurance broker?

    An insurance broker fulfils the following important roles:-

    Guidance to the customer:  A broker knows the intricate technicalities of the insurance business, the vast array of policies, and the regulations of the insurance industry. The brokers high knowledgeability ensures that the customer gets the perfect insurance policy for himself.

    Increasing penetration of insurance: An insurance broker taps into markets where insurance companies cannot directly reach. This leads to more people getting under the umbrella of insurance, making for a safer and more stable population.

    Middleman: The broker is a middleman between the customer and the insurance company. In the event the policyholder has any grievances or queries, he/she can have two points of contact rather than one. If the insurance company fails the assist the customer, the customer than attempt to get a resolution through the insurance broker.

    Provides variety of insurance policies: An insurance broker generally deals with a plethora of insurance policies and plans across many insurance companies. This variety is ideal for customers looking to comparison shop and find the best and most relevant insurance policy for themselves.

    Top 10 insurance brokers in India

    Let us now look at the top insurance broking companies in India.

    1.) Aditya Birla Insurance Brokers

    Aditya Birla Insurance Brokers got their broking license in 2003 and have since been going strong in the insurance broking industry. The company has collected a total of 4.2 thousand crores in insurance premium in FY-20 alone. The company is part of the reputed Mahindra Group of India.

    2.) Marsh India Insurance Brokers

    Marsh India Insurance Brokers got their broking license in 2002 and have been steadily increasing their presence in the insurance broking industry ever since. The company was awarded the prestigious “Broker of the Year” award at the Asia Insurance Industry Awards in 2018, 2019, and 2020. Marsh India provides a plethora of insurance broking services from healthcare, reinsurance, real estate, cyber, hospitality, and more.

    3.) Landmark Insurance Brokers

    This Pune based insurance broking company was incorporated in 2020, and has already accumulated over 3.5 Lakh customers Pan-India. Services offered range from motor insurance, travel insurance, cyber insurance, health insurance, and POSP services.

    4.) ACME Insurance Brokers

    ACME Insurance Brokers provides standard insurance and even reinsurance services across India. The company was incorporated in 2000 and has clients in various industries like manufacturing, FMCG, IT, Clothing, and more.

    5.) K.M. Dastur Reinsurance Brokers

    K.M Dastur Reinsurance Brokers was incorporated in the year 1973, making it one of the older reinsurance companies in India. Not only is K.M Dastur one of the older reinsurance companies in India, it is also one of the most successful. The company boasts of over 500+ employees that serve the company by brining business through various industries like healthcare, real estate, aviation, energy, motor, and more.

    6.) Unicorn Insurance Brokers

    Founded in 1964, Unicorn Insurance Brokers provides life, health and general insurance services ever since. The company also provides reinsurance, risk management, group insurance, and life insurance pension schemes to its clientele.

    7.) Tata Motors Insurance Broking

    Tata Motors Insurance Broking and Advisory Services Limited (TMIBASL) is a closely held insurance broking company under the prestigious Tata Group of India (founded in 1868). TMIBASL provides retail insurance, corporate insurance, and reinsurance services.

    8.) Maruti Suzuki Insurance Broking

    Incorporated in the year 2002, Maruti Suzuki Insurance Broking boasts of massive 4 Cr+ customer base throughout the company’s history. The company is part of the well-known Maruti Suzuki Group, famous for their motor vehicles throughout Asia.

    9.) First Policy Insurance Brokers

    First Policy Insurance Brokers are one of the first insurance brokers to get an IRDA broking license. This Pune based broker specializes in marine insurance, property insurance, construction insurance, among others.

    10.) Helios Insurance Brokers

    As of 2022, Helios Insurance Brokers boast of over 5000+ customers and 3500+ claims settled. The company specializes in group health insurance, group term insurance, group gratuity insurance, liability insurance, fire insurance, and engineering insurance. A total list of all insurance services provided by the company can be found here.

    As of 2022, the IRDA has licensed a total of 573 entities that can act as insurance brokers in India.
    A complete list of all insurance brokers in India can be found here.

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    Frequently asked questions

  • Is buying through an insurance broker mandatory?

    Absolutely not. You can buy through the insurance company directly if you wish.

  • How many insurance brokers are there in India?

    As per the IRDA, a total of 573 insurance brokers are licensed in India.

  • How do insurance brokers make money?

    Insurance brokers get sales commissions from insurance companies.

  • Are insurance brokers regulated?

    Yes. Registered insurance broking companies are regulated by the IRDA.

  • What are some of the differences between an insurance agent and an insurance broker?

    An insurance agent will generally sell insurance policies from a single company. An insurance broker will generally have ties with various insurance companies, and will have the ability to provide more variety to the customer.

    • Categories
    Health Insurance

    OPD vs IPD – Differences, full-form and meaning

    What are the Main Differences Between OPD and IPD?

    Terms like OPD and IPD are used quite frequently in the health insurance sector. Has it ever occurred to you what these terms mean? This article will explain to you the meaning of OPD and IPD, the difference between OPD and IPD, and the full form of OPD and IPD. Let us begin.

    Full form and meaning of OPD and IPD

    OPD stands for Out-Patient Department. IPD stands for In-Patient Department. The main difference between an OPD and IPD is the fact that a person does not need to get admitted to the hospital if he/she requires a consultation, diagnosis, minor treatments, ophthalmic procedures, minor surgeries, and minor investigations. The OPD department at a given hospital deals with such cases.

    Whereas, if a person requires serious intervention, where hospital admission is required, the doctor will recommend hospitalization. The In-Patient Department in a hospital will deal with such cases where hospitalization is required.

    Examples of OPD and IPD

    Example of OPD

    A very simple example of an OPD case is where a person simply wants to consult with a doctor in a given hospital. No hospitalization is required. The entire process is managed with the OPD department of a hospital.

    Example of IPD

    A simple example of an IPD case is where a person has suffered an accidental injury and the doctor recommends the person to get immediately admitted to the hospital and undergo surgery with post-surgery rehabilitation, having an approximate stay of 10 days in the hospital.

    Such cases, where the person has to get admitted to the hospital and stay in the hospital for longer periods of time are handled by the In-Patient department of a hospital. Most hospitals have both and In-Patient Department and an Out-Patient Department.

    OPD vs IPD (Differences between OPD and IPD)

     

    OPD (Out-Patient Department)

    IPD (In-Patient Department)

    Duration of stay

    No overnight stay

    Overnight stay

    Types

    Doctor consultations, dental services, minor surgeries, routine check-ups, etc.

    Major surgery, major rehabilitation, longer term observation, etc.

    Health insurance coverage

    Generally covered (However a person should check whether his health insurance provider provides OPD coverage)

    Covered

    Costing

    The costing is generally lower compared to IPD admissions

    The costing is generally higher compared to OPD admissions

    Author Bio

    This article is written by Team InsuranceLiya.com, an independent website that writes about insurance, finance, health, and more. Our writers have a wealth of knowledge, experience, and degrees in the fields of insurance, finance, economics, and beyond.

    FREQUENTLY ASKED QUESTIONS

  • Do hospitals have both OPD and IPD departments?

    Yes, most reputed hospitals will generally have both an Out-Patient Department and an In-Patient Department to cater to both type of requirements.

  • What is the duration of an OPD stay?

    OPD stays are generally under 24-hours. This is where the person does not require an overnight stay within the hospital.

  • What is the duration of an IPD stay?

    An IPD stay will be any stay which is more than 24 hours. This is where the patient gets admitted to the hospital for treatment.

  • What is the importance of IPD?

    An IPD department deals with more critical cases compared to an OPD department, thus can be considered more important compared to an OPD department.

  • Do health insurance companies provide coverage for OPD?

    Yes, health insurance companies will generally provide coverage for an OPD case. That being said, you must be careful and check the fine print of your health insurance policy to ensure it provides OPD coverage.

  • Does OPD treatment provide tax benefits?

    Yes, OPD treatments provide tax benefits under Section 80D of the Income Tax Act. 

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    Categories
    Max Life Insurance

    Max Life Insurance claim settlement ratio over the years

    99 percent

    Max Life Insurance claim settlement ratio over the years

    Max Life Insurance has been a mainstay in the Indian life insurance sector for many years, and has a proven track record for over the course of many years.

    This article will aim to give the reader an understanding of Max Life Insurance’s claim settlement ratio over the course of the last few years, as knowing the claim settlement ratio is crucial for a customer before buying any life insurance policy.

    First, let us understand what a claim settlement ratio is.  Quite simply, a claim settlement ratio is the percentage of claims an insurance company settles in a given period of time.

    For instance, if an insurance company gets a 100 claims a year and settles 95 of those 100 claims, the insurance company has a claim settlement ratio of 95%.

    Let us now look at Max Life Insurance’s claim settlement ratio over the years.

    2015-16

    96.95%

    2016-17

    97.81%

    2017-18

    98.26%

    2018-19

    98.74%

    2019-20

    99.22%  

    2020-21

    99.35%

    2021-22

    99.34%

    Source

    As you can see, the company boasts of a very impressive claim settlement ratio throughout the years, and are only improving their CSR over the years. This is a promising sign that implies that your insurance claim will most likely be settled by the company. Further, it is also important to note that the applied claim should be genuine.

    In 2016, the total number of claims made by Max Life customers stood at 9821, and the number of claims settled by the company stood at 9606. Rejected claims stood at 212. By 2020, the company’s settled claims went up to 19,922 claims settled, doubling their claims settled from 2016.

    As of 2022, Max Life Insurance has the highest claim settlement ratio amongst all its competitors in the Indian insurance sector, making it a reliable life insurance company.

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