Insurances for Technology Industry

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

What is Motor Insurance?

Motor insurance is a coverage bought for vehicles. The objective is to give complete protection against accidental physical damage and Thirdy Party personal injury / death / property damages. It gives coverage against accidental loss or damages to own vehicle or a third party. The premium would depend on the make & value of the vehicle, age and its claims history.

Types of Policies:

  • Liability Only Policy: As per Motor Vehicles Act, this insurance is compulsory. This covers owner's liability to Third Party for bodily injury and / or death and Property Damage.
  • Package Policy: This covers loss or damage to the vehicle insured in addition to coverage under Liability Only Policy.

Loss or Damage to the vehicle Insured:

The Insurer will indemnify the Insured against loss or damage to the vehicle insured hereunder and/or its accessories whilst thereon by:

  • fire explosion self ignition or lightning
  • burglary housebreaking or theft
  • riot and strike
  • earthquake (fire and shock damage)
  • flood typhoon hurricane storm tempest inundation
  • cyclone hailstorm frost
  • accidental external means
  • malicious act
  • terrorist activity
  • whilst in transit by road rail inland waterway lift elevator or air
  • landslide/rockslide

Provided ALWAYS that the Insurer shall not be liable to make any payment in respect of:

  • consequential loss, depreciation, wear and tear, mechanical or electrical breakdown, failures or breakage's nor for damage caused by overloading or strain nor for loss or damage to accessories by burglary, housebreaking or theft unless the vehicle insured is stolen at the same time.
  • damage to tyres and tubes unless the vehicle insured is damaged at the same time in which case the liability of the Company is limited to 50% of the cost of the replacement.
  • any accidental loss or damage suffered whilst the insured or any person driving the vehicle with the knowledge and consent of the insured is under the influence of intoxicating liquor or drugs.

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.

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

Errors & Omissions insurance or Professional Liability insurance is the service corresponding to product liability insurance. It safeguards the insured financially in the case of a claim against you for negligence, errors, omissions or wrongful acts in the performance of their duties. It also includes coverage for malpractice, errors and omissions which amount to negligence. Hence the E & O insurance is ideally suited for physicians, attorneys, architects, accountants, insurance agents, real estate agents and brokers, third party administrators and other business professionals.

It covers loss resulting from the insured's wrongful act or that of another for whom the insured is legally responsible, solely in the insured's performance of computer services for others for a fee and Defense Costs

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.

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.

Cyber liability insurance coverage is designed to protect IT businesses against liability and expenses arising from the theft or loss of data, as well as liability and expenses arising from a breach of data security or privacy, particularly when you are hosting client information. While your clients should carry their own cyber liability for the data and personally identifiable, confidential information stored on their servers, IT firms are wise to protect themselves with their own third-party coverage as well.

Cyber liability refers to an IT firm's liability when it is responsible for the security and privacy of a client's data stored on the IT firm's servers.

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.