TRAVEL INSURANCE AND POLICIES

Invariably  the travel insurance cover  offered by  insurance companies are a  combination of health cover and cover against other miscellaneous  risks. In India  both the public and private sector non-llife  insurance companies market  travel  insurance plans as generic products or under  different brand names. The benefits  and the premium may vary  marginally from company  to company  depending  upon the package. The claim are subject  to deductibles as shown in the schedule , and wherever  the claim is less than the deductible  , no claim is payable. A standard travel  insurance plan offers the following benefits. FLIGHT RISKS: The plan covers  death and dismemberment in the event of an air transport accident  . It may also include  coverage for delayed or cancelled  flights. It is a advisable  that the insured should carefully read the details and ascertain  what constitutes a “ cancelled” or “ delayed” flight.

   LOSS OF CHECKED IN BAGGAGE: The plan covers the cost of replacing  luggage and all its contents. A traveller  should be aware that airlines are usually not obligated to provide  any compensations  exceeding  the amount agreed up to by the international air carries in various conventions , the latest being the Montreal  Protocol. The present limit is US $ 20 per kilogram and the total  compensations is limited to $ 300. International  carries  do not settle  the claims straight  away. It involves a lot of procedures and is a  time-consuming process.  A travel  insurance package  covers losses exceeding  what is a  payable by the international carriers.   DELAY OF CHECKED  BAGGAGE.:  The plan covers  delays exceeding twelve hours  in the  arrival of the checked in luggage. It covers  expenses towards the purchase of essentials  to replace  the delayed  items to the extent specified in the schedule .   LOSS OF PASSPORT: The insurance covers the expenses  the insured  had to essentially incur to obtain  a new passport  in the event of loss of the old passport.  PERSONAL LIABILITY: Wherever the insured  in his/her private capacity  becomes legally liable  for paying compensations  due to bodily injuries  suffered by a third party or losses to third properties, the policy indemnifies the liability according to the terms set in the schedule  of insurance. 

EVACUATION FOR MEDICAL TREATMENT: The plan provides reimbursement for costs associated with evacuation  from a remote site for  medical treatment,. It also provides reimbursement for actual treatment  while away from home as per the terms of the contract.  In additional to the above , there are policies  that are designed to provide  indemnifications  for the cancellations  of vacations , delayed flights, damages to rented cars, etc.,  Some of the policies are yet to be marketed in India.  Indian private insurance  companies vie with each other to offer innovative travel insurance policies. 

  Some of the innovative  features of the insurance covers offered by the companies like Bajaj Allianz , Tata AIG, and ICICI Lombard , In addition to the regular benefits include.  Meeting the travel expenses  of one of the parents or an immediate member of the family in the event that their presence is required  abroad  due to the ward falling sick  and being hospitalized  for seven consecutive  days. The travel cost is provided  by a round -trip economy -class air ticket and accommodation  expenses.  Facility for the reimbursement of the term fee paid in advance  if the student falls sick and is not in a  position  to attend classes and has to discontinue  the studies.  Provision for the payment of future fees if the sponsor is permanently  disabled due to an accident or dies in an accident or due to some diseases  . the insurance company  then pays all the future fees and relieves  the student of his financial worries. 

  Provision  to bail out  the insured in case he or she is imprisoned  for any reason. Policies like that Corporate Frequent Travellers Policy. Globetrotter Overseas  Corporate  (Group) Travel insurance by  ICICI Lombard, and the International Business Travel Policy of HDFC Chubb are some of the annual policies issued to companies to cover executives  who frequently fly abroad in connection with their company work. The Executive  Travel Policy, the Annual Multi-Trip Business Travel Policy, Executive Guard etc., are policies that offer round the clock cover to executives  against  loss of baggage passport, etc.,  irrespective of the fact whether  they are in India or abroad.  Some of the travel insurance policies, like the Suhana Safar Policy, cover personal accident and baggage for any family for travel within India for a maximum period of 60 days by any mode of transport. The insurance cover is available  for periods ranging from 30 days  to one year (comprising 365 days. ). The rate of premium varies from  company . Even within the same company, the premium depends  upon the  type of the plan chosen.  Tata AIG has three types  of plans covering travel insurance, and ICICI Lombard has two types. The benefits also depends upon the type of plan chosen

SETTLEMENT OF CLAIMS AND INSURANCE

 Settlement of the claims is the  culmination of a contract of life insurance . It will not be an exaggeration  to say that the image of an  insurance company , created in the minds of policy holders in a  particular and the insuring public in general, depends, on the  efficiency and effectiveness  with which claims are processed and settled. The speed  with which they are settled acts like a booster to the morale of the marketing  force of a company . Claim  settlement , therefore  occupies an important place in the total operations of an   insurance company.

 In fact the  insurance Regulatory  and Development Authority  (IRDA)  has issued instructions  to all  insurance companies to settle  claims within a period of 30 days failing which they should pay a penel interest at the rate of 10 percent for the   the period of delay . This impose a statutory obligation on every  insurance company. Basically the following  two types of claim which come before an  insurance company:  1. Maturity claims,  2.  Death Claims:  1.  MATURITY CLAIMS: Maturity claims come up for payments in the following manners: (1) All  endowments  types of policies have pre-determined date of maturity which is shown  in the policy bond.   (2) Under joint  life policies on the lives of couples  claim by way of maturity arises in the following ways:  (a) Both the lives survive the date of maturity  in which case maturity claim is payable.  (b)  During the term of the policy. one of the lives dies and death  claims paid. Even thereafter  the second surviving  life remains covered till the maturity date. . In the event of the second life surviving  up to the maturity date, the sum  assured becomes payable as maturity  claim. The insurer  therefore, has to keep track of the cases that may come up as maturity claims.  

3. Under Fixed Term Marriage/ Educational Annuity Plan, benefits  are payable on the maturity date even if the policy holder dies before that date. The only effect of death  will be that further premiums  cease. Thus, claim under the policy is also   payable as maturity claim.   4.  Under Money Back Plains , survival  benefits become due for payment after regular interval of 4 or 5 years depending  upon the terms of the policy. These survival  benefits are treated claims by maturity  because date of payments is pre-determined.  CLAIMS INTIMATIONS: Claims by maturity and their date of maturity are known  before hand . Therefore every  insurance company  prints. Claims  Intimation Registers well in advance of the date of maturity. Then printed letters are usually sent to the policy holder to inform them to comply with the requirements  for payments of claim amount . It gives instructions  for obtaining  payments. A copy of this is also endorsed to the agent so that he is able to maintain his liaison with the claimant . This letter of instructions for obtaining the payment is called the claim intimations letter.   

BASIC REQUIREMENT FOR SETTLEMENT OF  MATURITY CLAIMS: The requirements are as under:  (a) Original  policy bond, if loan was availed from the insurer, (b) Discharge form  duly completed and executed. ( C ) Age of proof  , if age was not admitted  previously . The salesmen are advised to realises the importance  of age admission at the time of obtaining policy. Their attention is also drawn to Section 45 to Insurance Act whereby it is obligatory  on the part of the life assured to furnish  age proof at the time of claim settlement.  (d) If any assignment or re-assignment was executed  by a separate  deed or deeds, such deeds must be submitted  along with the other documents as listed above:. (e) Insurer’s  office sends the Discharge Form as per item (b) above along with the claim intimation  letter. The policy holder  has to return  their Discharge  Receipt  duly completed  with the policy bond.  If the policy stands assigned in favour of a Bank or an institution or some individual  the discharge  form will be return by the institution or the individual along with the policy bond.

 A nominee  has no locus standi in the event of claims by maturity.   2.  DEATH CLAIMS: Life  insurance is basically for providing financial  security to the families of deceased policy holder. Death claim settlement naturally assumes very great importance in the total operations of any life  insurance company. Despite  several problems  encountered,  Life  insurance companies  struggle to efficiently and effectively attend to this  function. The death claims are generally  divided into a two category  viz, normal death claim  and premature claim. If the assured dies after two years of the commencement of the policy it is treated as normal death claim. In case, the assured dies within two years  of the commencement  of the policy, it is called premature claim. The actual procedure involved in death claim is as follows.

FUNCTIONS OF FIRE INSURANCE POLIECES

  The true functions of fire insurance is to equalize heavy fire losses of a few individuals by distributing  them over  a large number of persons  held together by the ties of insurance  . The greatest  advantage  of fire insurance lies in a the fact of individual enterprise  and security  but his this does not counteract  the fire waste in any  way:  on the other hand it actually  encourages the dishonest insurance to burn their own property and realize  its cash value from an insurance company  which would not be possible but for  insurance. Of course  by the better system of rating and fixing  premium according  the actual  risk, the insurance does  reduce the fire waste to some extent.  

FEATURES OF FIRE INSURANCE:  The following  are the features of fire insurance: 

  (1)  ESSENTIALS OF A VALID CONTRACT: Like any other  ordinary contract a fire insurance contract must fulfil the essential elements  of a valid contracts.   ( 3)  GOOD FAITH :   A fire insurance contract being a  contract of utmost good faith requires  the insured and the insurer to disclose everything  which is a the  in their knowledge and which   might affect the contract.  (4)  INSURABLE INTEREST : A fire policy is a valid only if the policy holder has an insurable interest  in the property insured.   (5)  CONSIDERATION:  Fire insurance policy is a issued for a  lawful consideration I.e. premium.   

(6)  TENURE OF THE POLICY:  Fire insurance policies are issued usually for one year durations  but in some cases for shorter  periods also.  (7)  SCRAP: The scrap of whatever is left  of the goods or properties after damage or destroyed by fire automatically pass on the hands of the insurer after the payments of the claim under fire insurance.  (8)  SEVERAL POLICIES: In case of several policies for the same property  each insurer is a entitled to contributions  from other insurers  . After indemnifications  the insurer is subrogated  to the rights and the interest of the policy holder. 

  (9): NO CLAIM WHEN A FIRE IS  DELIBERATE:  Nothing can be recovered from fire insurance company  if the fire is caused deliberately.  (10) NO CLAIM UNDER CERTAIN CONDITION: Fire policies generally  contain conditions  exonerating the insurer from liability  under certain circumstances  like riot, civil, disturbances, war etc., In the absence of any specific  exceptions  the insurer  is liable  for all losses caused by the fire whatever  may be its causes.  (11)  INDIRECT RISKS: The fire insurance also includes indirect risks such as a comprehensive  risks, consequential  risk caused by fire and reinstatement  or rehabilitations risks which occur after the fire destroys  the goods or properties.  (12)  ASSIGNMENT:  Fire policies can be assigned  with the prior  consent of the insurer. 

  (13). INTIMATION OF FIRE: On occurrence of the fire, the insurer should be intimated immediately  so that he could salvage the remainder of the property and can also  determine the amount of loss.  (14) COVER NOTE:  In fire insurance  cover a note is a  issued in advance of the policy and usually contains the same terms and conditions  on which a policy is to be issued  . If any  a loss  occurs before the policy is issued. Cover note will sufficient to prove the insurance.  (15)  SETTLEMENT  OF CLAIM: The claim  may be settled in case or by reinstating or rehabilitating   the goods or properties damaged by fire under the fire insurance.