New India Assurance General Insurance

New India Assurance Company Limited was founded by Sir Dorabji Tata in the year 1919. The company now operates in 28 countries and hence is considered as a multinational general insurance organization. With its headquarter in Mumbai, India, this general insurance company has crossed its global business of Rs.22, 270 crores in March of 2017. For the past 40 years, The New India Assurance Company is leading the Indian non-life insurance market.

The general insurance categories under which the company offers its various products are:

  • Personal Insurance
  • Industrial Insurance
  • Commercial Insurance
  • Liability Insurance

1. Personal Insurance:

The New India Assurance General Insurance products that come under personal insurance category are:

  • Property Insurance
  • Motor Insurance
  • Euromed Health Insurance
  • Personal Accident Insurance

Property Insurance:

To insure both commercial and personal properties against several risks, the New India Assurance has designed insurance covers. Under this plan, the company provides cover from a small hut to million dollars chemical plant. The basic risks against which the company provides coverage under this plan are:

  • Fire
  • Earthquake
  • Lightning
  • Flood, Typhoon, Storm, etc.
  • Burglary
  • Impact Damage
  • Business Interruption

The types of properties that are covered under this insurance type of the New India Assurance Company are:

  • Office Complexes
  • Residential Properties
  • Warehouses
  • Factories
  • Industrial Complexes, etc.

Motor Insurance:

New India Assurance Car Insurance is available in various countries of the world and provide coverage as per the local laws. In UAE, the motor insurance plans are issued for the vehicles that are registered with the RTAs of UAE. Under this category, the company provides motor insurance for two-wheelers, buses, cars, trucks, mobile cranes, mobile excavators, etc. The insurance covers provided under this category are:

  • Third-Party Insurance: This insurance plan provides cover against the liabilities of third-party only.
  • Comprehensive Insurance: This insurance plan provides cover against damage to the vehicle of the policyholder and covers the third-party liability also.

Health Insurance:

Under health insurance, the New India Assurance provides cover for several perils. Some of the major health insurance covers are provided under the below-mentioned plans:

  • Euromed Silver
  • Euromed Gold
  • Euromed Ri’ayah
  • Euromed Diamond
  • Euromed Platinum

Personal Accident Insurance:

In this insurance policy provides coverage against death or injury of the insured caused because of an accident. One has to select a sum insured and accordingly pay premiums.

2. Industrial Insurance:

The following insurance products are covered under this category:

  • Fire Insurance
  • Machinery Breakdown Insurance
  • Property All Risk Insurance
  • Contractors All Risk Insurance
  • Advanced Loss of Profit Insurance
  • Marine cum Erection / Storage Cum Erection Insurance
  • Offshore Oil and Energy Risk Insurance
  • Contractor Plant and Machinery Insurance

Fire Insurance:

The coverage provided under this insurance:

  • Lightning
  • Fire
  • Earthquake
  • Impact Damage
  • Flood, Typhoon, Storm
  • Add-on coverage for business interruption and burglary can as well be added

Property All Risk Insurance:

It covers the finished insurance properties against allied perils and fire.

Machinery Breakdown Insurance:

The coverage provided under this category of industrial insurance are:

  • Disruption of the rotating parts due to the action of the centrifugal forces.
  • Faulty workmanship or material of the machine.
  • Lubrication failure occurred due to the breakdown of the lubricating oil pump or its malfunction.
  • Failure or malfunction of the safety device.
  • Sudden or abrupt stoppage of the connecting machinery.
  • Electrical short-circuit such as electrical fire incurring due to the failure of insulation or due to under or over voltage conditions.
  • Foreign body entry in the running machine.
  • Sudden or abrupt stoppage of the connected machinery.

Contractors All Risk Insurance:

This policy comes in two categories:

  • Section 1: Material Damage: Covers physical loss, destruction, or damage to the insured property due to any reason but leaving those that are excluded in this policy’s document.
  • Section 2: Third-Party Liability: Covers the legal liabilities falling over the contractor who is insured. This liability can occur because of property damage or bodily injury occurring to third-party.

Marine cum Erection / Storage cum Erection Insurance:

The two sections included under this insurance are:

  • Section 1: Material Damage: To cover physical damage, destruction, or loss of insured property due to any reason but leaving those that are not included in this policy document.
  • Section 2: Third-Party Liability: To cover legal liabilities that fall over the contractor due to property damage or bodily injury that belongs to some third-party.

Advanced Loss off Profit Insurance:

The advanced loss of profit covers:

  • Loss of Gross Profit = Net Profit + Standing Charges

Or

  • Loss of Gross Earnings = Turnover  -  Specified Working Expenses

Or

  • Fixed Operation and Management Costs
    • Charges of debt service
    • Increased working cost
    • Special expenses for example penalties

Contractor Plant and Machinery Insurance:

This policy covers external, sudden, or accidental damage incurred to the machinery because of any reason other than the causes that are not included in the plan.

Offshore Oil & Energy Risk Insurance:

This insurance policy covers hydrocarbon services and oil rigs in downstream. Moreover, the coverage is offered for maintenance, E&P, and erection cost. The cover can as well be expanded.

3. Commercial Insurance:

The commercial insurance covers the following insurance products:

  • Property Insurance
  • Jewelers Block Insurance
  • Bankers Indemnity Insurance
  • Marine Cargo Insurance
  • Marine Hull Insurance
  • Fidelity Guarantee Insurance
  • Aviation Insurance

Property Insurance:

The New India Assurance provides coverage for both commercial and private properties against several risks. The risks against which the coverage is provided are:

  • Fire
  • Earthquake
  • Lightning
  • Flood, typhoon, storm, etc.
  • Burglary
  • Impact damage
  • Business interruption

Bankers Blanket Insurance:

The covers include:

  • In Transit: Under this, the securities and money are covered against loss, theft mislaid, or made away with while in transit. The loss can incur from the hands of employees either due to their negligence or fraud.
  • On-Premises: This insurance plan covers securities and/ or money that is in custody of or belongs to bank against destruction or loss as a result of a riot, fire, burglary, robbery, theft terrorist act, etc. on the premises of the bank or their banker’s premises.
  • Alteration or Forgery: As per the policy, it covers losses that are suffered because of payment of forged or bogus cheques or drafts.
  • Hypothecated Goods: The insurance company also covers losses that are suffered because of the dishonesty of employees in respect of the commodities or goods pledged to the insured bank.
  • Dishonesty: The loss of securities and/or money incurred due to the criminal or dishonest act of employees is also covered.
  • Registered Postal Service: This plan also covers the loss of registered postal sending happened due to theft, robbery, or any other reason provided every post parcel is insured with the post office.

Marine Cargo Insurance:

The New India Assurance Company is one of the leading marine insurance providers of Asia that insures the commodities that range from precious diamonds to bulk crude oil. The marine insurance product of the company can broadly be divided into two categories:

  • Import/Export Insurance
  • Inland Transit Insurance (road risks and all risks)

Marine Hull Insurance:

Marine hull insurance of New India Assurance company is provided for vessels going on ocean wherein the coverage is according to the Institute Time Clause (Hull). Herein, the following are included in the coverage:

  • Engine damage
  • Hull damage due to an accident
  • Third-party damage due to the accident
  • General salvage and average charges
  • Liability of ¾ collision

Fidelity Guarantee Insurance:

The fidelity guarantee insurance is provided:

  • After or on the date of the commencement of this insurance policy
  • In case of dismissal, death, or retirement of an employee.

Aviation Insurance:

The New India started participating in Aviation Insurance for Air India way back in 1946 and currently, it offers aviation insurance solutions and advice for both small aircraft and scheduled airlines. The following coverage is provided under this insurance:

  • Spares All Risk Insurance
  • Hull All Risk Insurance
  • Hull Deductible Insurance
  • Loss of License Insurance
  • Aviation Personal Accident

4. Liability Insurance:

The insurance products covered under this insurance plan are:

  • Public Liability Insurance
  • Products Liability Insurance
  • Professional Indemnity Insurance
  • Directors and Officers Liability Insurance
  • Workmen Compensation Insurance
  • Employers Liability Insurance

Public Liability Insurance:

The three types of policies are issued under this type of insurance of the New India Assurance:

  • Public Liability Non-Industrial Risk – Available for offices, hospitals, cinema halls, hotels, schools, etc.
  • Public Liability Industrial Risk – Available for factories, godowns, and factories.
  • Public Liability Insurance Act 1991 – This is one of the mandatory policies taken by the users, owners, or the transporters of substances that are hazardous as explained under the Environmental Protection Act 1986.

Products Liability Insurance:

Under this policy, the sales turnover of the company is covered, which can be domestic or/and export. This insurance plan does not cover any liability for product’s recall, pure financial loss, and product guarantee. The policy as well does not pay for the cost of repairing or modifying or reconditioning the defective parts of the product.

Professional Indemnity Insurance:

The policy also provides coverage for all the sums for which the insured professional gets legally liable to pay because of the damage to any third-party due to some error or/ and omission by him/her. All the legal costs for defending the insured with prior consent or intimation to the insurance company are also covered by the provider. However, the payable is dependent on the overall indemnity selected by the insured. Any liability that is arising because of some criminal act or some act committed due to a violation of any ordinance or law is not covered.

Directors and Officers Liability Insurance:

This insurance covers:

  • The loss that an organization encounters due to some mistaken action is taken Directors or other officers during pursuing their duties as per the Memorandum and Articles of Association.
  • Loss arising because of claims made against the Directors or officers due to any wrongful act as per their official capacity.
  • Legal expenses and costs incurred with the written consent of the insurance company arising because of prosecution of any officer/director and attendance on any investigation, inquiry, examination, or other proceedings by the authorities empowered for the same.
  • Provides indemnity for the estate of, legal representative, or legal heirs of the Director or officer if the officer or Director becomes insolvent.
  • Expenses occurred by the shareholders of the Organization to pursue claims against any officer/ director for which the Organization is legally obliged for paying or pursuing the order of a Court.

Workmen Compensation Insurance:

This insurance company provides coverage against the liability of the employer towards workers against accidents at the workplace as per the law of the jurisdiction power.

Employer’s Liability Insurance:

This insurance plan covers:

  • Pays the sums for which the insured is legally liable for paying to the employees in case of personal injury by disease or accident that is arising during the course of the employment.
  • The liability of the insured arising as per the Workmen’s Compensation Act 1923.
  • Expenses and costs incurred by the policyholder for defending the claims that are paid in addition. However, this can be done with the consent of the New India Assurance Company.