Insurance is a contract between two parties in which one party, the insurer, in return for a specific and agreed amount of money called the premium, assures the other party, the insured, to make good any financial loss the insured may suffer as a result of the occurrence of the specified, insured and unforeseen events (perils), that take place within the period described in the contract.
There are two types of insurance in the market, namely Life Insurance and Non-Life or General Insurance. Life Insurance provides cover for human and human related things. Shikhar Insurance Company Issues Non-Life Insurance only.
Non-Life or General Insurance provides insurance cover for things that are not covered by Life Insurance, for example, cover for house, warehouse, industry, vehicle etc. However, Personal Accident, Personal Medical, Third Party Liability, Production Liability, Travel/Trip are also covered in Non-Life Insurance. The nature of Non-Life insurance cover is normally short term, such as one year.
To take insurance, a person or organization should decide, what is the product they want the cover for, what are the perils they want to cover against, what is the current monetary value of the product and for how long they want it covered. After that, they have to get a proposal form from Shikhar Insurance Company or its website, fill the appropriate fields and submit at any of the Shikhar Insurance offices. (Our marketing staffs are available to assist on filling proposal form in any of the branch or head office)
The purpose of proposal form is to get information from the insured to issue insurance policy. The information is as followed: · Name & Address of proposer; · Details about the proposed properties, persons, liabilities etc; · Location, Transit route etc. of proposed; · Property, profession age etc. of proposed persons, nature of business for liabilities etc; · Proposed Value, Limit of liabilities, Sum Insured etc. for the insurance; · Risks required; · Period of insurance; · Past insurance and claim record etc.
For Motor Vehicle Insurance, photocopy of the vehicle registration book (Blue Book) and Renewal Notice from the previous Insurance Co. for “No Claim Discount”; for Marine Transit Insurance, Invoice / Performa Invoice, Packing list, Letter of Credit (L/C) etc.; for Contractors\' All Risk Insurance, Contract Document, Bill of Quantity (BOQ); for Travel Medical Insurance, Copy of Passport and for other insurance, as required by the Insurance Company.
The insurance policy holder should check the “Policy Schedule” for the confirmation of insured name, policy period, property/person/liability insured, risks covered, premium, special exclusions etc and “Policy” for terms, conditions, exclusions, warranties, limitations etc. The insurance policy holder should also check the premium calculation.
Vehicle insurance can be divided into comprehensive insurance, third-party liability, and third-party liability with theft or robbery coverage.
Third-party liability coverage provides compensation for damages or losses to the third party (individual or property) caused by the vehicle. When an accident occurs involving a vehicle, the third party (pedestrian, driver of another vehicle, and passengers, among others) may suffer physical injuries or even death. Additional premium can be paid to include accident insurance for drivers, employees, passengers, etc. This insurance is mandatory, so driving a vehicle without insurance is not allowed.
Comprehensive vehicle insurance provides coverage and compensation for various incidents and damages that may occur to the insured vehicle. It covers damages caused by accidents, fire, explosion, earthquake, flood, storm, vandalism, theft, and other similar events. It also includes coverage for expenses related to towing the damaged vehicle, as well as compensation for third-party liability. Additionally, by paying an additional premium, coverage can be extended to include riots, terrorism, personal accidents of drivers, employees, passengers, and insured individuals.
Comprehensive insurance does not provide compensation in the following situations: when the driver operates the vehicle under the influence of intoxicating substances, when the driver does not possess a valid driver's license, when there is damage to the tires (if the vehicle itself is undamaged), in cases of general mechanical damage such as wear and tear, breakage, minor scratches, intentional self-harm or self-harm attempts, and similar incidents.
Comprehensive vehicle insurance premium is influenced by the following factors:
For private vehicles:
In addition, the inclusion of additional accessories (such as radio, A/C, etc.) in the vehicle affects the insurance premium based on whether they are electrical or non-electrical.
For commercial vehicles:
For vehicles with two axles:
In vehicles with two axles, the engine capacity (C/C) and the current value of the vehicle have an impact on the insurance premium. Additional accessories also attract extra insurance charges. In the case of theft of only the additional accessories, the insurance does not provide compensation for that alone, but if the vehicle itself is stolen, the insurance will cover both the vehicle and the additional accessories.
"No-Claim Bonus" refers to a discount given on the insurance premium if no claims have been made in the previous year. If there have been no claims in the previous year, the discount is provided on the insurance premium in the following year. However, if a claim has been made during a specific period, the discount is not provided for that period.