Directors’ and Officers’ Liability insurance provides cover for
1. Personal liability arising out of a wrongful act
2. The entity for reimbursement of those Directors and Officers
3. The entity for liability arising out of securities related lawsuits
Policies are underwritten on a worldwide jurisdiction basis to clients
domiciled around the world.
We advise organizations in diverse industry segments and offer tailored
solutions to suit individual clients’ needs.
As a member of the board or an executive officer of a company, you may
be personally held liable for any actual or alleged breach of duty, trust, breach warranty,
authority, neglect, errors, misstatement, or omissions by anyone
in company and can be sued for transactions alleging in financial losses. Exposure varies
from shareholders, creditors, business partners, competitors, regulators and employees.
The policy reimburses the company to the extent it has been insured with
respect of such claims, under its Articles of Association or any other contract that effects
its Directors and Officers.
- An outside or non-executive or independent director in a company is also covered.
- The policy can additionally be endorsed to cover the directors and officers of its
subsidiaries, including those acquired or created during the policy period.
- Specific coverage can be afforded to directorships held in outside boards/ nominee
directorships held at the request of the company.
- Defence costs shall be payable under alleged criminal cases, if the directors and
officers are finally acquitted of the wrongful act.
- The wrongful act is that are discovered after the director leaves the company.
- Incase of a director’s death, the insurer will defend the director and prevent
spillover liabilities from affecting their heirs, estates and legal representatives.
Property of any kind whether manufacturing units,warehouses, shops,
schools, hotels, hospitals, offices, residential, storage units, trading and services or
c9ommercial complexes could be exposed to loss or damage due to Fire & Allied Perils
Insurance and Fire Consequential Loss. In addition, we offer package policies against risks
of burglary, money, employee Infidelity, all Risk Insurance (for portable equipment),
machinery breakdown Insurance (for plant & machinery), electronic equipment insurance, plate
glass, travel baggage covers etc.
Perils insured are fire, lightning, explosion / implosion, impact
damage, aircraft impact, bursting / overflowing of water tanks / pipes / apparatus,
sprinkler leakage, storm, cyclone, typhoon, hurricane, tempest, tornado, flood, inundation,
subsidence, landslide including landslide, riots, strikes, malicious damage, missile testing
operations. Other perils which can be insured as add-on covers are earthquake, terrorism,
removal of debris, spontaneous combustion etc.
This policy covers loss of profits of a business due to reduction in
turnover caused by a loss or damage covered under Standard Fire Insurance. This also
includes cover for Increased Cost of Working following the loss of standing charges.
To the insured’s premises or contents caused by actual or attempted
burglary/robbery (excluding valuables unless specifically insured).
Money in Transit: Loss of money in transit to the specified
destinations
against robbery, theft or any other unfortunate event. Transit for the purpose of this
policy commences with the taking over of the money for the purpose of transit and ends as
soon as the money reaches the place of delivery.
Money in Safe: Loss of money that is kept in safe which have to
be paid as salaries towards employees or petty cash kept in safe.
Any direct pecuniary loss caused by the act of fraud or dishonesty committed by any salaried
person employed by the insured during the course of the business provided:
Such loss is committed by the employee with the primary intention to
obtain personal financial gain and such loss is first discovered during the policy period
This section covers breakdown of any business appliances such as
photocopying machine, deep freezers, money counting achines, AC’s, chillers, DG sets,
lifts/elevators, sewage treatment plan, water treatment plan, etc. solely as a result of
electrical or mechanical breakdown.
This is an all risk cover and losses or damages due to any cause other
than those specifically
excluded are covered. Damage to media data and cost of reproduction of lost data can also be
covered. Items insured under this section need not to be insured under Fire & Burglary
sections.
Covers any losses or damage due to accidents, fire and allied perils,
riots and strikes to the
neon / glow signs.
Insures the risk of accidental damage to portable equipments such
as laptops and other
electronic equipments, test & measuring instruments, etc. Also covers these equipments at
any
location and including whilst in transit in the personal custody of the employees of the
business.
Fixed plate glass in the interior of the business premises is expensive
and is prone to
accidental and/or malicious breakage. Plate glass insurance covers the risk of accidental
damage
to plate glass installed in the business premises. It covers repair/replacement of such
glass
and reasonable costs.
Technology companies face unique risks and require specific insurance
coverages to protect their business from financial loss. Technology professional indemnity
insurance is a key element of risk management for a technology company in today’s world.
E&O insurance covers your legal liability arising from professional services in the event of
a third party claim stemming from professional negligence. Professionals may owe a duty of
care to anybody who might reasonably rely upon the service or advice they have provided. In
today’s commercial world, clients expect high standards of service and are more inclined to
resort to litigation when such standards have not been met.
Typical reasons that professional indemnity claims are made against a
technology company include:
- Programming error
- Poor customer communication
- Problems with large integration/installation projects
- Development problems
- Problems with combining or integrating software or hardware components
- Customer changing project scope (often referred to as “project creep”)
- Turnover of key personnel
- Short cuts during testing
- Poor accounts receivable controls that require the tech company to sue their
customer for fees owed and this results in a countersuit for negligence in the
performance of the tech services/products
- Shortfall in externally furnished products or externally performed tasks
Scope of Cover:
- The Policy: provides indemnity for losses arising from civil liability
(including liability for claimant’s costs and expenses incurred) arising in
connection with your professional services including:
- Breach of professional duty
- Infringement of copyright or intellectual property rights
- Breach of confidentiality
- Defamation – and other types of civil liability.
- Insured Person: cover extends to include you, partners (or members of limited
liability partnerships), directors, employees and their personal representatives in
the event of death, incapacity, insolvency or bankruptcy.
- Fraud and Dishonesty Cover: liability of your business to any third party resulting
from fraudulent or dishonest conduct.
- Lost Documents Cover: costs of replacing or restoring documents lost or damaged ‘in
transit’ or in your custody.
- Specialist Consultants Cover: claims resulting from any wrongful act of your
specialist consultants, designers or subcontractors engaged in the performance of
your professional services.
A commercial crime policy typically provides several different types
of crime coverage including employee dishonesty, forgery or alteration, computer fraud,
funds transfer fraud, money & securities and money orders and counterfeit money.
Every company is susceptible to white collar crime. Initially offences
may seem inconsequential, over time however, they multiply and cause significant losses to
an organization.
- Theft by employees or management includes direct theft of cash or business assets,
falsification of claim expenses or payroll fraud.
- Collusion between employee and a third party receiving bribes or commissions from a
supplier for awarding of a contract, failure of an employee to disclose financial
interest in a transaction.
- Computer fraud such as diverting funds from bank accounts, stealing intellectual
property, posing as a legitimate business on the Internet and obtaining payment for
goods or services.
- Employee Theft Coverage: Loss of money, securities or other property by theft or
forgery by an identifiable employee of the Insured.
- Premises Coverage: Losses from destruction, disappearance or wrongful abstraction
or computer theft of money or securities from the Insured premises by third parties.
- Transit Coverage: Losses sustained due to the destruction, disappearance or
abstraction of money and securities outside the Insured’s premises by a third party,
while being conveyed by the Insured, an armoured motor vehicle company or any person
authorised by the Insured.
- Depositors Forgery Coverage: Losses from instruments such as cheques fraudulently
drawn on Insured’s accounts by a third party.
- Computer Fraud Coverage: An extension to cover losses sustained and expenses
incurred by an insured due to a computer fraud or violation by a third party.
Cyber Insurance is designed to protect commercial businesses against a
wide range of first and third-party liability occurring out of cyber exposures associated
with e-business, internet, networks and information assets. Companies with access to private
& confidential information about their customers have a responsibility to keep it secure.
Equally, companies who have a web presence or a dependency on technology have emerging
content and transactional exposures. Cyber risk is steadily increasing concerns around data
security affecting hundreds of millions of records a year and reporting of breaches continue
to rise at a dramatic rate. The introduction of viruses and unauthorized access are well
known examples.
First Party Cover:
- E-Theft is a loss incurred in the process of transferring funds or property or any
given value, due to the fraudulent input of data into a computer system or through a
network into a computer system.
- E-communication is a loss caused due to a customer having transferred funds or
property or given any value, on the faith[1] of any fraudulent communication for
which loss you are held legally liable.
- E-Threat exemplifies loss including the cost of a professional negotiator and any
payment made or any fund or property surrender intended as an extortion payment.
- E-Vandalism covers losses even when the vandalism is caused by an employee.
- E-Business interruption including extra expenses
- Privacy Notification Expenses including the cost of credit monitoring services or
similar services for affected customers. (Subject to a sub limit)[2]
- Crisis Expenses including the cost of public relations consultants. (Subject to a
sub limit) .
- Reward Expenses, including informant costs. (Subject to a sub limit).
Third party liability:
- Disclosure Liability including customer claims due to system security failures
resulting in unauthorized access to or dissemination of private information on the
Internet.
- Content Liability including claims for intellectual property, trademark and
copyright infringement.
- Reputational Liability includes claims alleging disparagement of products or
services, libel, slander, defamation and invasion of privacy.
- Conduit Liability including claims arising from system security failures that
result in harm to third-party systems.
- Impaired Access Liability includes claims due to system security failure resulting
in systems being unavailable to customers.
- Defense Costs cover any cost incurred in defending any claim brought by a
government agency or licensing or regulatory organization.
- Defence Costs in advance of the final disposition of any cyber liability claim and
within 30 days of receipt of invoice for such costs.
- Claims definition includes Extradition proceedings.
- Prior Notice Exclusion: Excludes prior notice of a fact or circumstance that has
been accepted by the previous insurer rather than notice given.
- Full Severability of Exclusions : Knowledge of one Insured Person is not imputed to
another and only knowledge possessed by the Chief Executive Officer, Chief Financial
Officer or the Chief Operating Officer of the Organization will be imputed to the
Organization.
This policy protects your business from financial losses, includes
legal costs and compensations arising from property damage or bodily injury caused to any
third party due to –
- The services rendered
- In-course of business operations
- Negligence of any employee
- Includes,non-professional negligent acts; Up to the prescribed limits fore-mentioned
by the polic
- While visiting your business, a customer trips on loose flooring and is injured.
- An employee in your painting or construction business accidentally leaves water
running, causing substantial damage to a customer’s home.
- A class action lawsuit is filed against your business, alleging advertisements
constituted misleading information.
Standard CGL includes:
This cover provides protection against losses from the legal liability
for bodily injury or property damage to others arising out of non-professional negligent
acts or for liability arising out of their premises or business operations. Mental injuries
and emotional distress can be considered bodily injuries, even in the absence of physical
bodily harm.
Personal and advertising injury protects an insured against liability
arising out of offences, such as:
- Libel
- Slander
- False arrest
- Infringing on another’s copyright
- Malicious prosecution
- Use of another’s advertising idea
- Wrongful eviction, entry or invasion of privacy
Medical payments includes limited coverage for injuries sustained by a
non-employee caused due to an accident that takes place on the insured’s premises or when
exposed to the insured’s business operations. CGL pays for all necessary and reasonable
medical, surgical, ambulance, hospital, professional nursing and funeral expenses for a
person injured or killed in an accident taking place at the insured’s premises or arising
from business operations.
A ‘Claims Made Policy’ is where the claim would occur and has to be
lodged within the policy period. This is usually given in conventional CGL policy & would
only become relevant when the policy is not renewed subsequently.
Occurrence Based Policy is relevant to CGL Policy where the claims,
which have taken place during the currency of the policy, can be lodged even after the
expiry of the policy period, even if the policy is not renewed
Employees are key business strength and their good health will reflect
on the profitability of your business. To ensure smooth and profitable business operations
enterprises offer their employees and dependents access to timely medical care.
The fact that any illness can strike us without warning and eat up our
savings should not be overlooked.
Key Benefits:
- Covers hospitalization charges due to illness or accident of employees and
dependents.
- Covers any disease/ injury that can be treated medically/ surgically by
hospitalization at nursing home/ hospital in India as in-patient.
- Covers relevant medical expenses under pre and post hospitalization.
- Covers Reasonable and necessary:
- Room expenses in hospital/ nursing home
- Ambulance charges
- Nursing expenses
- Medical practitioner fee
- Treatment cost
- Medicines/ diagnostic cost
- Blood/ oxygen
- Cost of pacemaker/ artificial limbs/ Organs transplantation charges
- Operation theatre charges
- Surgical appliances
- Dressing, ordinary splints & plaster casts
- Physiotherapy – Following a surgical event only
- Covers maternity expenses of employees and spouses.
- Covers Pre-existing ailments with no waiting period.
- Sum insured are provided on individual as well as family floater basis.
- Child is covered from the time of birth.
Human life is very precious. However, eventualities like death,
disability and loss of earning capacity cannot be eliminated and when such eventualities
happen, it leaves the individual’s family devastated.
Group Personal Accident Insurance policy covers the employees against
death, disablement or loss of earning capacity due to unforeseen accidents.
Accident or Accidental means a sudden, unforeseen and unexpected
event happening by chance that results in the Insured Person suffering Death, Disablement or
Bodily Injury.
Geographical limit: 24-hour world-wide coverage.
Capital Sum Insured (CSI) means the monetary amounts shown
against insured person(s) which is maximum limit of liability against said insured
person.
Accidental Death(AD): Death due to accident
Permanent Total Disablement(PTD): Disablement of permanent
and irrecoverable nature i.e. the person is prevented from engaging in gainful
employment of any kind. e.g. loss of sight of both eyes, physical separation of two
entire hands.
Permanent Partial Disablement(PPD): Similar to PTD with the
only difference being that the disablement is partial e.g. loss of toe or a finger.
The applicable compensation is payable on the % of loss, which is
mentioned in a table and if not available in the Table, as per doctor’s assessment.
Temporary Total Disablement(TTD): Disablement is total but
for a temporary period. Eg Fractures
Children Education Grant: Children Education Grant is for 2
dependent children in case of death of employee. The cover can be 10% of Principal SI or
INR 100,000/- whichever is lower.
- Family Transportation Allowance: Family Transportation and House or Vehicle
Modification expenses payable up to INR 50,000/-
- Repatriation of Remains: The insurer provides reimbursement for expenses
incurred for repatriation of remains up to maximum of INR 5,000/-
- Animal attack or Snake Bite
- Terrorism is included
- Perils of Sea
- Ambulance Charges
Death, injury or disablement of insured person as a result of:
- Intentional self-injury, suicide or attempted suicide
- Influence of drugs or liquor
- Committing breach of law with criminal intent
- Insect Bite
- War, invasion, act of foreign enemy, hostilities (whether war be declared or
not) civil war, rebellion, revolution, insurrection, mutiny, military or usurped
power, seizure, capture, arrests, restraints and detainment of all kinds
- Childbirth or pregnancy or in consequences thereof
- Venereal diseases
A commercial crime policy typically provides several different
types
of crime coverage including employee dishonesty, forgery or alteration, computer fraud,
funds transfer fraud, money & securities and money orders and counterfeit
money.
Every company is susceptible to white collar crime. Initially
offences
may seem inconsequential, over time however, they multiply and cause significant losses
to
an organization.
- Theft by employees or management includes direct theft of cash or business
assets,
falsification of claim expenses or payroll fraud.
- Collusion between employee and a third party receiving bribes or commissions
from a
supplier for awarding of a contract, failure of an employee to disclose
financial
interest in a transaction.
- Computer fraud such as diverting funds from bank accounts, stealing intellectual
property, posing as a legitimate business on the Internet and obtaining payment
for
goods or services.
- Employee Theft Coverage: Loss of money, securities or other property by theft or
forgery by an identifiable employee of the Insured.
- Premises Coverage: Losses from destruction, disappearance or wrongful
abstraction or
computer theft of money or securities from the Insured premises by third
parties.
- Transit Coverage: Losses sustained due to the destruction, disappearance or
abstraction of money and securities outside the Insured’s premises by a third
party,
while being conveyed by the Insured, an armoured motor vehicle
company or any person authorised by the Insured.
- Depositors Forgery Coverage: Losses from instruments such as cheques
fraudulently
drawn on Insured’s accounts by a third party.
- Computer Fraud Coverage: An extension to cover losses sustained and expenses
incurred by an insured due to a computer fraud or violation by a third party.
Group term life insurance is designed to offer life insurance to a
group of people under a single policy. A group insurance is not limited to employer-employee
group only because it extends to other groups like banks, NGOs, etc.; also.
- Default insurance cover: Group policies provide ‘auto cover’ to members simply by
being part of that group. The policy ensures at least a basic insurance cover for
those who are without any life insurance policy.
- Free cover limit: As the insurance is offered to all members of the group,
irrespective of their health condition, it is of great value to people who belong to
a high-risk group or find difficulty in buying a policy.
- Tax benefits: As in many cases, employers get tax benefits on group insurance plans,
and the policy can help them in reducing their tax liability.
- No need to worry about premium payment: As the premium is directly deducted from the
employee’s salary, there is any chance of missing the premium payment. It also
reduces the chances of policy lapse due to non-payment of premium. In some cases,
the policy is offered at free of cost.
- Easy premium payment options for employers: Depending on the organization’s needs,
the employer can choose monthly, quarterly, half-yearly and annual premium payment
mode as per their convenience.
- Useful for employees’ wellbeing: Group term life insurance policies play an
important role in the employee welfare and retention scheme and it offers financial
security to the family even in the absence of the employee.
- Coverage can be extended with riders: By adding riders to the main group insurance
policy, the insurer can expand the coverage. Riders like education allowance,
repatriation allowance, accidental death, etc.; offer multitude of benefits and
thus, can be bought along with the main insurance policy to get comprehensive
coverage.
- Life cover for all the group members under one policy.
- Easy and hassle free financial help to the employee’s family, in case of an
unfortunate event
- Cost-effective method to buy a high cover at a low premium
- GTI cover for future service gratuity liability
- Serves as strong retention tool
- Premiums paid by the employer is tax deductible u/s 37 (1) of the Income Tax Act,
1961
- Simple procedures for addition and deletion of members in to the policy
- Adequate financial support to loved ones against his accident, illness or untimely
death
- Convenience of no medical tests till free cover limits
- Cover for housing or vehicle loans given by you to your employees
- Death benefits exempt from tax under Section 10(10D)
Keyman insurance can be defined as an insurance policy where the
proposer as well as the premium payer is the employer, the life to be insured is that of the
same employer’s key employee (Keyman) and the benefit, in case of a claim, goes to the
employer.
Keyman insurance helps a business recover from the loss of its valuable
assets viz the persons who run it and/or own it. Individual talents are becoming critical to
the success of many companies and employees are also becoming an important factor in
investors’ valuation of the entities. Every business has at least a few very valuable
employees who contribute significantly to the running and growth of the company. It makes
sense to insure against the unfortunate event of their untimely demise. It is here that
Keyman insurance comes into play.
