Insurances for Pharma Industry

All properties have the risk of loss or damage caused by fire, earthquake, cyclone, Riot and Strike, Malicious Damage etc & such property can be protected against such risks by Standard Fire and Special Perils Insurance. 14 Nos. of add-on covers like Earthquake, Terrorism, Removal of Debris, Terrorism cover etc are available.

Policy offers a solution by covering profit lost due to reduction in turnover arising from interruption of business following damage to the property insured under Fire Policy. The major risks covered are loss of Net Profit, Payment of Standing Charges and Increased Cost of Working. This policy can be taken only in conjunction with Fire Policy.

It covers Loss or damage to the property by actual robbery, burglary etc. due to forcible and violent entry into the premises. It also pays for damage to the premises following upon such forcible entry or any attempt there at. Since there is remote possibility of entire items being stolen in one occurrence, Burglary cover can be taken on First Loss Basis to get adequate coverage at minimum premium cost.

It covers Loss or damage to the property by actual robbery, burglary etc due to forcible and violent entry into the premises. It also pays for damage to the premises following upon such forcible entry or any attempt there at. Since there is remote possibility of entire items being stolen in one occurrence, Burglary cover can be taken on First Loss Basis to get adequate coverage at minimum premium cost.

It is a package policy covering various sections as under:

  • Section 1: Fire & Allied perils as per Fire Policy for below items
    • Buildings
    • Contents such as Furniture, Safes, Fixtures, Fittings, stationery, Office Appliances/ Electronic equipment, Canteen Contents, Lift etc.
    • Extensions: Earthquake, STFI & Terrorism
  • Section 2: Burglary House breaking/robbery

    This is for the contents of the office (normally for contents covered under Fire Section).

  • Section 3: Plate Glass

    Loss/Damage to fixed plate glass in the insured premises by accidental breakage.

  • Section 4: Neon Sign/Glow Sign

    Loss or damage to Neon Sign/Glow Sign by accidental external means/Theft, burglary / RSDMD/Fire / Natural Calamities / Impact of Vehicles and Animals.

  • Section 5: Breakdown of Office Appliances

    Electrical/Mechanical Breakage of Office Appliances like Air Conditioners with Stabilizers (eg.Voltas), Water Dispenser, Xerox Machine with Stabilizer etc.

  • Section 6A: Electronic Equipment

    Loss/damage due to any cause to Electronic Equipment like Computers, Servers, UPS, Printers, Networking Equipment & Peripherals, EPABX , other electronic equipment

  • Section 6B: Portable Computers

    Loss or damage to Portable Computers while being used by the officials Of the Insured on journeys to places by Train or Road or Air/

  • Section 7: Loss of Money

    Loss of money in transit by Robbery, theft or any other fortuitous cause and loss of money by burglary, housebreaking, and robbery or hold up while money is retained at insured premises, in safe or strong room.

  • Section 8: Baggage

    All Risk

  • Section-9: Infidelity Insurance

    Indemnity against direct pecuniary loss caused by act of fraud or dishonestly committed by any salaried person permanently employed by or with the insured in the office up to the amount stated in the schedule.

  • Section 10: Third party Public Liability

This policy can be taken by any business who deal in large sums of money for their day to day transactions. It covers (i) Loss of money in transit by Robbery, theft or any other fortuitous cause and (ii) loss of money by burglary, housebreaking, robbery or hold up while money is retained at insured premises, in safe or strong room.

Direct pecuniary loss sustained by you as a result of any deliberate fraudulent or dishonest act of any Employee is covered by this policy. Apart from above, there are certain other liability insurances like specific event insurances, exhibitions / stalls, specialized Professional indemnity insurances , Banker’s Blanket bonds etc.

It is an annual policy that covers all kinds of accidental breakages of the plate glass fixed to display windows or show cases of commercial establishments. The policy covers the cost of making good accidental breakage of insured glass by any reason whatever, except those that are specifically excluded.

This policy cover starts from the moment of goods leave the supplier’s/manufacturer’s warehouse and remains continuously in force during ordinary course of transit until delivery at destination factory site/warehouse. After arrival of the goods at destination town, risk is covered up to 7 days and risks ceases after expiry of 7 days or delivery at destination warehouse, whichever occurs first. We suggest ITC- A Cover (popularly called All Risks cover) with SRCC Extension. In an "All Risks" policy, the individual risks/perils are not enumerated, the policy would, therefore, pay for all losses unless it has been caused by an excluded named peril.

Extensions: SRCC Extension Covers damages due to Strikes, Riots, Civil Commotion including Terrorism, Extended storage Risks at intermediate points

Safety of employees is more important to Employer. Extending benefit to the dependents of bereaved employee family enhances motivation in the Organization. This offers compensation in case of death or bodily injury to the insured person, directly and solely as a result of an accident, by external, visible and violent means. Coverage is available worldwide and round the clock irrespective of on duty or off duty. It is also ensured to extend the coverage not only in respect of road / rail accidents but also accidents like electric shock, drowning, snake bite etc.

We design the most comprehensive coverage under this policy extending:
  • Accidental Death (AD) – 100% Capital sum insured (CSI)
  • Permanent Total Disablement (PTD)
    • Loss of two eyes or two limbs or one eye &one limb 100%
    • Loss of one eye or one limb 50% of sum insured
    • Total Disablement permanently due to accidental injury (eg. broken spine) 100% sum insured
  • Permanent Partial Disablement (PPD) - Percentage of Capital sum insured ranging from 2% to 75%
  • Temporary Total Disablement (TTD)/ Weekly benefits (1% of 24 months salary)
Additional Benefits:
  • Coverage to Terrorism
  • The policy also provides additional Benefits like Children Education Benefit, Carriage of Dead Body and Funeral Expenses without additional premium.
Other Extensions:
  • Medical Expenses
  • Accidental Hospitalization Expenses
  • Emergency Medical Expenses

Health of employees is a major concern.

Coverage under this policy can be extended under Standard or Tailor made policies as detailed below:
  • Standard Group Mediclaim Policy provides restricted cover with many an exclusion and without certain extended benefits. It covers Expenses incurred by the insured for hospitalization for illness/ diseases or injury sustained. These include Hospital charges (Room, Boarding & Operation theatre) fees for surgeon, Anesthetist Nursing, specialist etc., diagnostic tests, cost of medicines, blood, oxygen etc., cost of appliances like pacemaker, artificial limbs etc.

    Exclusions under the policy: Policy excludes Pre-existing Diseases, All Diseases contracted during the first 30 days, certain specified diseases during first year/first two years and Maternity benefits.

    New born baby is covered from 91st day after birth, up on payment of premium. New Born baby is not covered during first 90 days.
  • Tailor-made Group Mediclaim policy: The Group mediclaim policy can be extended to cover below exclusions (exclusions under Standard Mediclaim Policy), on payment of additional premium
    • The coverage extends to include Pre-existing Diseases also. This is major Exclusion under normal Mediclaim policy.
    • The coverage extends to All Diseases/injuries, contracted during the first 30 days from the commencement date of policy. This is also Exclusion under normal Mediclaim policy.
    • Under normal Mediclaim policies the following diseases are not covered during first/second/third/fourth year of the policy:
      • Cataract
      • Benign Prostatic Hypertrophy
      • Hysterectomy for Menorrhagia or Fibromyoma
      • Hernia
      • Hydrocele
      • Congenital Internal diseases
      • Piles
      • Sinusitis and related disorders
      • There are a few diseases not covered during first two years/first four years which vary from Insurer to insurer.
      • The policy can be extended to cover above cited diseases also.
    • Maternity Benefits with option of deleting 9 months waiting period and coverage to new born baby from day one. Here also, a few insurers cover new born baby within sum insured of Maternity benefits and a few other insurers cover within overall family floater limit.

Group (term) Insurance Scheme is meant to provide life insurance protection to groups of people. Death due to any reason is covered (Suicide is covered from 2nd year onwards). Administration of the scheme is on group basis and cost is low. Under Group (Term) Insurance Scheme, life insurance cover is allowed to all the members of a group subject to insurability conditions without insisting upon any medicals. Scheme offers coverage to death only and there is no maturity value at the end of the term.

Group Travel - Helps to protect your employees’ world over from any accident, sickness, loss and even medical attention in an emergency (Maximum of 180 days). Offers a ‘Corporate Declaration’ policy wherein the policy is based on an annual declaration (man-days traveled) while the billing can be done on a monthly basis.

Customer has the convenience to print the policy in house instead of calling insurance company each and every time he wants to travel (web based policy generation). There is no restriction on the number of trips that an employee makes during the policy period. The maximum number of travel days for single trip under this policy can be opted at 180 days.

The policy is negotiated on the group and hence eligible group discounts will be passed on to customers.

It is a death cover offered by PF dept. in case of death of an employee during service. The death amount is linked to the balance in PF account of the deceased employee. The employer has to contribute/pay @ 0.5% of the salary of the employees to PF Dept. towards coverage under EDLI.

Life insurance companies offer uniform cover under EDLI scheme irrespective of whether the employee has balance in his/her PF account or not. The employer would get exemption for payment of EDLI amount to PF Dept. if the employer opts for an insurance policy for EDLI scheme. Under EDLI, death due to any cause is covered with uniform cover of Rs.6,02,000/-.

Gratuity is a statutory liability of an employer. All the employers have to evaluate the Gratuity liability for all their employees every year by an actuary and should make provision of the Gratuity liability in the books of accounts. Mere making provision in books of accounts, will not get any income tax benefit.

All life insurance companies offer Group Gratuity schemes, which have the following benefits:

  • All contributions made to the Gratuity fund maintained by life insurer is allowed as business expenditure and will get income tax benefit.
  • The interest earned on the Gratuity fund is exempt form income tax.
  • It helps the employer in case of cash flow problems.

In India the Public Liability Insurance Act, 1991 is the statute under which all Units handling Hazardous Substance is required to take a compulsory insurance which provides for payment of compensation to victims of accidents involving hazardous substances. Existence of this policy is verified by Pollution Control Board.

This Policy provides for payment of compensation to victims of accidents (who are not your workmen) involving hazardous substances.

Any One Accident (AOA) limit is equal to paid up capital and Any One Year (AOY) limit is equal to three times paid up capital. Maximum AOA limit is Rs.5.00 Crores and Maximum AOY limit is Rs.15.00 Crores.

  • For Death and Permanent Total Disablement an amount of Rs.25,000 is payable.
  • For Permanent Partial Disablement a percentage of Rs.25,000 is payable equal to the percentage of disability certified by an authorized physician.
  • Loss of wages due to temporary partial disability not exceeding Rs.1,000 per month are payable for a maximum period of 3 months subject to the victim being above 16 years of age and is hospitalized for a period exceeding 3 days.
  • Medical expenses up to Rs.12,500 are payable in all the above mentioned cases.

For damage to private property Rs.6,000 is payable. It provides very much limited coverage while Actual court awards will be higher if the victims approach courts of law. Chemical units are often held responsible for leakage of poisonous gases, explosion due to chemicals/boilers, pollution etc with huge compensation awards by courts.

This is a complete policy to provide seamless protection to the Insured, and covers Third Party Liabilities arising from various business exposures such as those arising from Premises, Products, and completed operations, Advertising and Personal injury and also provides supplemental payments, thus ensuring complete protection to the insured against Liability issues.

Companies who can obtain cover under CGL:

  • Indian Companies that have global operations.
  • Foreign companies who have opted for the CGL policy in other jurisdictions and would prefer the same for their Indian operations.
  • Companies who are contractually bound to carry Occurrence based liability covers.
  • Export companies who would prefer Claims handling abilities in all major jurisdictions.

Coverage extended under the policy to:

  • Bodily Injury & Property Damage Liability
  • Personal & Advertising Injury
  • Medical Expenses
  • Other add on covers suitable to the insured’s trade & business

This policy covers all sums (inclusive of defense costs) which the insured becomes legally liable to pay as damages as a consequence of:

  • accidental death/ bodily injury or disease to any third party
  • accidental damage to property belonging to a third party
arising out of any defect in the product manufactured by the insured and specifically mentioned in the policy after such product has left the insured's premises.

The policy offers the benefit of retroactive period on continuous renewal of policy whereby claims reported in subsequent renewal but pertaining to earlier period after first inception of policy, also become payable. The policy can be extended to cover liability arising out of judgments or settlements made in countries which operate under the laws of U.S.A or Canada (which is an exclusion under the policy) by opting for the North American Jurisdiction.

Clause: The policy can also be extended to cover Limited Vendors Liability for named or unnamed vendors. Limited vendors’ liability means liability arising out of the sale and distribution of named insured products by vendors with original warranties and instructions of use of the product specified by the manufacturers.

The Directors & Officers Liability insurance policy operates under two sections.

  • Section A (Non-indemnifiable loss): This section shall pay the loss of each insured for a wrongful act in the insured’s capacity as a director, officer or employee of the company to the extent that the company has not indemnified the insured.
  • Section B (Indemnifiable loss): This section shall pay the loss of the company for a wrongful act in the insured’s capacity as a director, officer or employee of the company but only when and to the extent that the company has indemnified the insured for the loss.

The cover applies to former, present and future members of the Board of Directors and the Management comprising officers and employees in a managerial or supervisory capacity. The policy normally covers the Parent company and all subsidiaries of the Parent Company as mentioned in the Last Annual Audited accounts submitted with the Proposal form. Should it be required to cover the Directors of newly acquired companies (through mergers, acquisitions, take-over) or shadow Directors the same could be noted on the policy. The policy is designed to operate on an unnamed basis covering all directors / officers and employees of the Policyholder.

Key Man Insurance is a pure term life insurance plan taken by a Company on the life of a KEY Employee whose services have significant effect on the profitability of the company and whose premature death will adversely affect its profitability, stability and progress of the Company. There can be even more than one Key man in a company.

Credit Insurance is a financial Risk Management Tool which provides protection to Seller against failure of Buyer to honor trade debt.

Domestic Policy

  • Insolvency of the Buyer
    • Buyer is declared bankrupt by relevant authority
    • Receiver has been appointed by relevant authority to manage affairs of the buyer
    • An order is passed by relevant authority for compulsory winding up of the buyer
    • Buyer has passed a resolution for voluntary winding up
    • An arrangement binding on all creditors has been sanctioned by relevant authority
  • Protracted Default of the Buyer
    • Non-payment by the due date of an undisputed invoice submitted by the seller to the buyer is not insolvent
Exports Policy
  • Insolvency of the Buyer
    • Buyer is declared bankrupt by relevant authority
    • Receiver has been appointed by relevant authority to manage affairs of the buyer
    • An order is passed by relevant authority for compulsory winding up of the buyer
    • Buyer has passed a resolution for voluntary winding up
    • An arrangement binding on all creditors has been sanctioned by relevant authority
  • Protracted Default of the Buyer
    • Non-payment by the due date of an undisputed invoice submitted by the seller to the buyer is not insolvent
  • Political Risk
    • Applicable only to exports
    • Military or civil war, revolution, riot or insurrection
    • General moratorium on payment by the government of buyer’s country
    • Cancellation of import license
    • Government decision preventing performance
    • Political events, economic difficulties, legislative or administrative measures preventing payment
    • Non-payment by government buyer
    • Government owned company
    • Government department (only for exports)

Covers legal liability of "Employer" towards death or disability to employees/workers caused due to accidents arising out of and in the course of employment. Workmen is replaced by Employee – Wider Liability under WC Act is no-fault liability which means that negligence of the workmen has no effect on the liability of the employer. All types of employees including CLERICAL employees have been brought under purview of the Act.

It pays compensation to employees payable under W.C. Act (re-christened as Employees Compensation Act) for bodily injury resulting in Death/Disability sustained / contracted, arising out of and in the course of employment is covered by this policy and also covers liability to employees under Indian Fatal Accident Act 1855 and at Common Law.