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Insurance

What is the meaning of an appointee in insurance?

trust

What is the meaning of an appointee in insurance?

The term “Appointee” is synonymous with the term “Nominee.” Both terms can be used interchangeably. The appointee is basically the nominee, and the nominee can also be referred to as an appointee.

Let us now talk about the role, meaning, and importance of an appointee in insurance.

Meaning of an appointee

Let us understand the concept of an appointee with the help of a simple example. Let us assume that Mr. Dastoor has a life insurance policy with SBI Life Insurance. A life insurance policy needs a benefactor.

The appointee acts as the benefactor of a policy. So, Mr. Dastoor decided that the benefactor of his life insurance policy will be his wife, thereby making his wife the appointee of his life insurance policy.

It is a lesser known fact that having an appointee/nominee is not mandatory. That being said, it is absolutely imperative that the policyholder mention an appointee within his policy for streamlining the entire claims disbursement process.

Role of an appointee

  • The appointee/nominee can lay claim to the benefits extended by the insurance policy.
  • The appointee can enter into correspondence with the insurance company on account of death or disability of the policyholder.
  • The appointee can disburse the funds under the policy as he chooses fit. For instance, if the brother is a nominee of a policy, he can choose to distribute the sum assured with his sister.

Importance of an appointee

  • Having an appointee saves time and makes the entire process of disbursing the sum assured seamless and streamlined. If there is no appointee, the sum assured will get disbursed equally within all the legal heirs of the policyholder.
  • Having an appointee ensures that the money goes to the right hands. The policyholder can specifically choose his desired appointee, ensuring that there is no ambiguity during the claim settlement process. The money goes where the policyholder intended it to go!
  • The policyholder can have more than one appointee for any given policy. This provides a great deal of flexibility to the policyholder when it comes to distributing the policy benefits.
  • The policyholder can also add successive appointees within a policy. Having successive appointees means that the insurance company will first approach the 1st appointee, if he does not correspond, the insurance company will approach the 2nd appointee to settle the sum assured.

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Frequently asked questions about appointees in insurance

  • Is it mandatory to have an appointee in an insurance policy?

    No, but it is highly recommended.

  • Can I add successive appointees in a policy?

    Yes. you may add successive appointees in an insurance policy.

  • Is appointee and nominee the same?

    Yes, both are the same.

  • What happens to the sum assured if the policy does not have an appointee?

    The sum assured will be divided across the legal heirs of the policyholder in the event of no nomination of an appointee.

    • Categories
    IRDA

    How to download The IRDA Surveyor list (Easy Guide)

    list

    How to download The IRDA Surveyor list (An Easy Guide)

    An insurance surveyor is one who assesses the damages that have occurred to the insured object/person. It is the role of the surveyor to investigate the case, note down the observations, and disburse a case report to the insurance company.

    Once the insurance company has received the surveyor’s report, the insurance company will take a decision on whether or not to disburse the claim amount.

    As you can imagine, the role of an insurance surveyor is pivotal in the insurance sector, and all surveyors need to be registered with the IRDA of India.

    Let us now see how you can download the complete list of IRDA registered surveyors from the official IRDA website.

    How to download The IRDA Surveyor list?

    Step 1: Go to Google and type in ‘IRDA surveyor list’

    google IRDA surveyor list

    Step 2: Click on the first official IRDA result

    click on the IRDA result

    Step 3: Download the desired excel sheet

    IRDA surveyor page

    Here, you can download a complete list of authorized IRDA corporate surveyors as well as IRDA individual surveyors.

    Step 4: Find out if a surveyor is registered with the IRDA

    list of IRDA corporate surveyors

    Once you have downloaded the list, you can skim through the list and find out whether any given surveyor is registered with the IRDA. It is imperative that you check if a surveyor is registered and regulated by the IRDA before handing over sensitive details and access to him.

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    Frequently asked questions about IRDA surveyors

  • How many corporate surveyors are registered under the IRDA?

    You can find the complete list of all IRDA registered corporate surveyors here.

  • How many corporate individual surveyors are registered under the IRDA?

    You can find a total list of all individual surveyors registered under IRDA here.

  • Is it mandatory for surveyors to be registered under IRDA?

    Yes. it is mandatory for corporate as well as individual surveyors to be registered with the IRDA of India.

    • Categories
    IRDA

    What are the top 10 most important powers of the IRDA?

    government office

    What are the top 10 most important powers of the IRDA?

    The IRDA of India is the apex regulator of the insurance sector of India. It was formed by Parliament of India in 1999 and later began its role as the chief regulator of the insurance business in India.

    Let us look at the top 10 most important powers bestowed upon the IRDA by the Indian Parliament.

    Top 10 most important powers of the IRDA

    1. Licenses: The IRDA has the power to accept or reject the application of any company that may want to operate within the insurance sector in India. No insurance company can operate without a license from the IRDA.
    2. Claim settlements: The IRDA has put in various mechanisms in place that encourage the swift and honest settlement of a policyholder’s insurance claim.
    3. Grievances: The IRDA has the ability to mediate between the policyholder and the insurance company in the event of a grievance. In fact, the IRDA has setup a specialized online grievance redressal system called IRDA IGMS.
    4. Audits: The IRDA has certain powers bestowed upon it, whereby it can conduct timely audits of the books of insurance companies, and ensures that their books are in alignment with the tenets laid down by the IRDA. This auditing system inspires confidence among policyholders.
    5. Regular regulations: The IRDA has the ability to survey the insurance market and enforce new regulations that it seems fit. It can change, modify, and remove any regulation that it may deem fit.
    6. Discourage malpractices: The entity has a no-nonsense outlook when it comes to malpractices and strictly penalizes insurance companies in case of any malpractices.
    7. Regulates insurance premiums: IRDA has the power to enforce regulations on insurance premium. This is done with the view of keeping insurance premium rates as low as possible and increase the penetration of insurance by making it affordable.
    8. Monitoring investments: IRDA monitors all investments made by insurance companies. This is done to ensure the fidelity and financial stability of insurance companies.
    9. Increasing rural insurance penetration: IRDA specifies a certain percentage of business that is to be carried out in rural areas of India, thereby increasing penetration and bringing the insurance product to the rural masses.
    10. Growth of the industry: IRDA is assigned with managing the sustainable growth of the insurance industry. It does so by enforcing all of the above tenets as and when it deems fit. The insurance sector has seen tremendous growth post the establishment of the IRDA.

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    Frequently asked questions about IRDA

  • When was the IRDA formed?

    The IRDA was formed in the year 1999.

  • Who regulates the Indian Insurance business?

    IRDA of India.

  • Who recommended the formation of the IRDA?

    Shri. R.N Malhotra recommended the formation of the IRDA through The Malhotra Committee in 1999.

  • What is IRDA IGMS?

    IRDA IGMS is IRDA's online grievance redressal system. This is where a troubled policyholder can lodge a complaint.

  • Who is the current Chairman of IRDA?

    Debasish Panda (as of 2022)

    • Categories
    IRDA

    Which committee recommended the establishment of IRDA (And Why?)

    regulation

    Which committee recommended the establishment of IRDA (And Why?)

    The Insurance Regulatory and Development Authority (IRDA) was recommended by The Malhotra Committee in the year 1999. The purpose of The Malhotra Committee (headed by R.N Malhotra) was to recommend the Government the best course of action pertaining to the growth, regulation, and structure of the Indian Insurance Sector.

    The committee was formed in 1993 and provided its recommendations in 1999.

    Recommendations of the Malhotra Committee

    Let us briefly list the most important recommendations of this committee:

    • Liberalization of the Indian Insurance Industry.
    • The formation of a governing body (IRDA).
    • Divestment of Government Insurance companies up to 50%.
    • Amendments to the Indian Insurance Act.
    • Foreign entrants into the domestic insurance sector.
    • Digitalization and computerization of the insurance business.

    Why was the formation of IRDA recommended?

    RN Malhotra
    Mr. R.N Malhotra

    The Malhotra Committee wanted the governance and regulation of the insurance sector to move away from the finance ministry to an independent governing body (which would later be the IRDA). This recommendation was made with the understanding that an industry specific institution would better regulate the industry due to its specialized nature.

    The IRDA was formed in 1999 under the watchful eye of the Indian Parliament through the IRDAI Act, 1999.
    The committee also recommended certain primary functions of The IRDA which we will touch upon below.

     

     

    Primary functions of The IRDA

    • Regulate the insurance sector by having the ability to disburse or reject the license of any insurance company.
    • Regulating insurance premiums.
    • To safeguard and protect the interest of policyholders.
    • Increasing transparency and trust within the industry.
    • Eliminating malpractices
    • Increasing insurance penetration in India.
    • Growing the insurance market sustainably.
    • Conducting audits of insurance companies.
    • Recommendations of margins to be kept by insurance companies to ensure financial integrity of an insurance company.
    • Penalize non-complying insurance companies.

    Formation of the IRDA along with the liberalization of the Indian Insurance Sector were two major inflection points that unleashed the explosive potential of the insurance sector in India.

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    Click on “Next” to begin!

    Frequently asked questions about IRDA , and The Malhotra Committee

  • When was the IRDA formed?

    The IRDA was formed in 1999.

  • What is the composition of the IRDA
    • Chairman
    • 5 full-time members
    • 4 part-time members
  • Who headed The Malhotra Committee?

    Shri. R.N Malhotra (RBI Governor)

  • How can I lodge a complaint with The IRDA?

    You can lodge a complaint with IRDA through the use of their online IGMS system.

  • Who is the current Chairman of IRDA?

    Shri. Debasish Panda

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    Categories
    Insurance

    Does the Government have monopoly in the insurance sector?

    government office

    Does the Government have monopoly in the insurance sector?

    In simple words, No! The Government of India does not have a monopoly in the insurance sector of India. There are vast number life and general insurance companies from the private sector. As a matter of fact, there are a total of 57 insurance companies in India, and a vast number of them are from the private sector.

    In fact, The Government of India has vastly liberalized and privatized the insurance industry in India to the extent of even giving eligible foreign private corporations to participate in the Indian insurance industry.

    When was the Indian Insurance sector liberalized?

    The insurance sector in India was privatized and liberalized in the year 2000. This liberalization drive resulted in the entry of domestic as well as foreign private players into the market, thereby ending the monopoly of the GOI in the insurance sector.

    The liberalization drive was undertaken with the objective of increasing competition within the industry, and increasing insurance penetration in the country due to entry of new players. This liberalization drive has yielded tremendous dividends to the insurance sector over the years.

    The entry of dynamic and high tech entrants have led to an upsurge in competition within the sector, leading to competitive pricing and other similar benefits that have been naturally passed down to policyholders. Further, the Union Budget of 2021 increased FDI limit in the insurance sector from 49% to 74%, liberalizing the industry even more.

    This is a stark difference from the pre-liberalization time, where only a few large and lumbering Government owned insurance companies provided limited and sub-standard services to policyholders.

    The privatization of this industry has also let to an explosion of job creation in the insurance sector which is also boosting the Indian economy.

    So, to sum it up, there was a time when the Government had monopoly over the insurance sector, but post 2000, the Government has reduced regulation, introduced liberalization and privatization measures, thereby ending its monopoly over the sector.

    Total Insurance Companies
    (As of 2022)
    General Insurance Companies
    (As of 2022)
    Life Insurance Companies
    (As of 2022)

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    Frequently asked questions about IRDA claim settlement ratio

  • Does the Government have monopoly in the insurance sector?

    No, it does not.

  • Which is the largest insurance company in India?

    Life Insurance Corporation of India (LIC)

  • When was the insurance sector liberalized in India?

    The year 2000

  • How many insurance companies are there in India?

    57 insurance companies are registered with the IRDA of India.

  • Is LIC a private company or Government entity?

    Major share of the LIC is still with the GOI.

    • Categories
    IRDA

    Check the status of an insurance agent through IRDA Pan Look up (Guide)

    look up

    How to Check the Status of any Insurance Agent through IRDA Pan Look up

    It is imperative that you buy any insurance policy directly through an insurance company or through a registered insurance agent. That being said, how do you verify if the insurance agent is registered with the IRDA?

    Ensuring that your insurance agent is registered with the IRDA is of paramount importance. Ensuring this leads to transparency, trust, and safety. So, How do you know for sure that your insurance agent is registered with the IRDA?

    Well, you can find this out through the IRDA PAN Look up page. We’ll talk about the IRDA PAN Look up page in depth, and the steps you need to follow to find out if your insurance agent is registered with the IRDA of India.

     

    • IRDA Pan Look up
    • IRDA Pan look up guide
    • Importance of being registered under IRDA

    IRDA Pan Look up

    The Insurance Regulatory and Development Authority of India (IRDA) regulates and authorizes all insurance agents. A legitimate insurance agent must be registered under the IRDA database. You can find out if your agent is registered under the IRDA by using the IRDA Pan Look up feature on the official IRDA website.

    All you have to do is either punch in your insurance agent’s Aadhar ID or PAN ID, enter the captcha and press on enter. Once this is done you will immediately be redirected to the results page where you will be shown whether your agent is a registered agent or not.

    IRDA Pan look up guide

    Step 1: Search for the Official IRDA website on your preferred search engine

    irda pan look up google search

    Click on the official website.

    Step 2: Enter the PAN ID or Aadhar ID of your agent in the box

    IRDA pan look up google search

    Enter the captcha and press “Submit”

    Step 3: Check the Results

    IRDA pan look up details page

    You will be able to find out the following information within the results page if your agent is registered under the IRDA:

    • Agent’s date of birth
    • Insurer name
    • Agency code
    • Date of appointment
    • Status of the agency
    • Status change (if any)
    • License No

    Importance of being registered under IRDA

    • The IRDA looks out for the well being of the policyholder by regulating the industry.
    • A registered agent must follow a strict protocol laid down by the IRDA. This leads to a safer business environment for the agent as well as the customer.
    • It is compulsory for official insurance agents to be registered within the IRDA.
    • You can check if the agent’s agency is still in force.

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    Frequently asked questions about IRDA Pan Look up

  • How can I check if my agent is registered with the IRDA?

    You can find out if your agent is registered with the IRDA by using the Pan Look up feature

  • Is it mandatory for an agent to be registered with the IRDA?

    Yes, it is mandatory.

  • Does IRDA have an official website?

    Yes. irdai.gov.in

    • Categories
    Insurance

    Complete claim settlement ratio as per IRDA (As of 2022)

    ratios

    Complete claim settlement ratio as per IRDA (As of 2022)

    One of the most important things a potential policyholder needs to look at before buying a policy is the claim settlement ratio of the insurance company. It is paramount that the person knows the claim servicing record of the insurance company before he parts with his hard earned money to buy an insurance policy.

    All insurance companies in India are regulated by the IRDA, and the IRDA provides a complete yearly list of the claim settlement ratio of all registered insurance companies every year.
    Let us go ahead and investigate the complete claim settlement ratio of all insurance companies as per IRDA (As of 2022)

    Claim settlement ratio of life insurance companies (As of 2022)

    Sr. No

    Company

    No of policies

    Claim settlement %

    Claim rejection %

    1

    LIC

    933889

    98.62%

    0.69%

    2

    Aditya Birla Sunlife

    6455

    98.0%

    1.79%

    3

    Aegon

    398

    99.25%

    0.75%

    4

    Ageas Federal

    1716

    95.07%

    2.11%

    5

    Aviva

    1034

    98.01%

    1.99%

    6

    Bajaj Allianz

    14115

    98.48%

    1.49%

    7

    Bharti AXA

    1875

    99.05%

    0.95%

    8

    Canara HSBC OBC

    1844

    97.10%

    1.58%

    9

    Edelweiss Tokio

    487

    97.01%

    2.59%

    10

    Exide Life

    4978

    98.54%

    0.22%

    11

    Future Generali

    1163

    94.86%

    4.49%

    12

    HDFC Life

    16639

    98.01%

    0.49%

    13

    ICICI Prudential

    14518

    97.90%

    1.95%

    14

    India First Insurance

    2886

    96.81%

    2.68%

    15

    Kotak Mahindra

    4336

    98.50%

    1.14%

    16

    Max Life

    19922

    99.35%

    0.64%

    17

    PNB Metife

    5218

    98.17%

    1.83%

    18

    Pramerica Life Insurance

    638

    98.61%

    1.24%

    19

    Reliance Nippon

    9274

    98.49%

    1.47%

    20

    Sahara Life Insurance

    860

    97.18%

    1.81%

    21

    SBI Life

    31855

    93.09%

    3.80%

    22

    Shriram Life

    3506

    95.12%

    3.72%

    23

    Star Union

    1569

    95.96%

    3.55%

    24

    Tata AIA

    4556

    98.02%

    1.94%

    Source: IRDA

    Also, it is pertinent to not just look at the claim settlement ratio singularly. One must also look at the total number of policies written by the insurance company. For instance, Aegon has a claim settlement ratio of 99.25%, which makes it marginally higher than LIC, but LIC has written and serviced a massive 933889 compared to Aegon Life’s paltry 398 policies.

    Claim settlement ratio of health insurance companies (As of 2022)

    Sr. No

    Company

    Claim settlement %

    1

    Reliance Health Insurance

    100%

    2

    Niva Bupa Health Insurance

    96%

    3

    DIGIT Health Insurance

    96%

    4

    Care Health Insurance

    95%

    5

    Aditya Birla Health Insurance

    94%

    6

    Liberty Health Insurance

    94%

    7

    Future Generali Health Insurance

    92%

    8

    Star Health Insurance

    90%

    9

    Oriental Health Insurance

    89%

    10

    Royal Sundaram Health Insurance

    89%

    Claims settled by LIC
    (In 2017)
    Claims settled by Max Life
    (In 2017)
    Claims settled by Bajaj Allianz
    (In 2017)

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    Frequently asked questions about IRDA claim settlement ratio

  • How often does the IRDA issue claim settlement ratio numbers?

    The IRDA issues claim settlement numbers of insurance companies every year.

  • Are insurance companies mandated to be registered with the IRDA?

    Yes, They are mandated under Indian Law.

  • What does claim settlement ratio mean?

    Claim settlement ratio means the total percentage of claims settled by the insurance company. For instance, if policyholders have made 100 claims/year and the insurance company has serviced 99 of the 100 claims, the insurance company's claim settlement ratio will be 99%.

  • Which life insurance company has the best claim settlement ratio?

    Max Life Insurance has the best claim settlement ratio of 99.35% (As of 2022).

  • Which health insurance company has the best claim settlement ratio?

    Reliance Health Insurance has the best claim settlement ratio of nearly 100% (As of 2022).

  • What is claim rejection ratio?

    The total percentage of claims that an insurance company has rejected in a calendar year is referred to as the company's claim rejection ratio.

    • Categories
    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
    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.

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    Insurance

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

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    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.