GENERAL INSURANCE BLOG

Fire and related events can cause very big losses, and they have become one of the biggest causes of losses in recent times. The damage due to fire can include non-movable assets like homes and buildings as well as movable assets like goods. To ensure you are protected against any unforeseen damage of your property by fire or any fire-related event, you can buy fire insurance for your property from any of the fire insurance companies in India. Fire insurance involves many things and some things must be taken care of while buying fire insurance or renewing your insurance so that you need to pay a lesser premium as well as while filing claims so that you get the best deals.

Things covered under fire insurance: -

Fire, explosion and implosion Lightning Damage due to aircraft Strikes and riots Rockslides and landslides Impact damage Malicious damage Bush fire Smoke damage Storm, typhoon Sprinkler damage Earthquake

Things which fire insurance companies in India do not cover: -

Perils like war, civil war, invasion and similar events Rebellion or Martial law and similar events Underground fires and losses due to that Spontaneous Combustion Losses due to pollution or contamination Theft related losses occurring during or after the fire Consequential losses

What should be the policy amount of your fire insurance?

In most cases, the total sum for which you are buying the fire insurance should be equal to the total cost needed to rebuild or reinstate the property and the professional fees involved along with the charges for the removal of debris.

What is the difference between Replacement Value Policy and Reinstatement Value Policy for Fixed Assets?

In Replacement Value Policy, the insurance company pays the cost of replacing the complete asset that has been damaged or lost due to fire and related events whereas in case of a Reinstatement Value Policy; the insurance company pays the cost to replace the damaged property to its original condition it was in before the loss due to fire. While Replacement Value Policy can apply to other assets, the Reinstatement Value Policy is only applicable to buildings and no other assets.

When buying a fire insurance policy from fire insurance companies in India, you must consider the following things:

The type of risk that the policy covers and if the risk covered by the policy matches the risk you face for your property. The nature of the asset you want to insure because there are different types of policies available for fixed assets and many other different types of policies available for non-fixed assets. Understand the coverage duration of your policy and when to renew the policy.

What information you should get from the fire insurance company while buying the policy?

Premium Payable The insurance cancellation and refund policy Period of coverage Scope of policy coverage Non-standard exclusions Claims reporting procedures

What things are considered to calculate the premium?

The insurer uses many different kinds of data to come up with a final number which you need to pay as premium annually:

The type of policy The type of risk or risks covered The total sum insured The total value of the asset being insured How the asset being insured is used by the owner of the asset The expected risks that can damage the property being insured Whether the person has taken a policy extension or not

How to claim if your asset is damaged?

You need to immediately contact your insurer as soon as your insured property is damaged. The insurer may appoint an independent loss adjuster to take care of your claim, and you will be required to fill a form to start the claim process. The insurer will undertake proper investigation and will then accept the claim if everything is fine.

Your car gets you safely everywhere you want to go, but it requires that you take good care of it in order for it to keep running. Some of these simple maintenance issues can actually result in an accident or injuries. Take the time to make sure these 10 things are checked regularly and maintained as needed and avoid a potential accident or claim.

Tip 1: Change the oil. Neglecting oil level checks and fresh oil changes will not do your car any favours.

Tip 2: Change the oil filter. Check the oil level once a month and replace the oil filter regularly.

Tip 3: Check your brake fluid. Check when transmission fluid and power steering fluid need to be replaced as well.

Tip 4: Check the tyre pressure each month. You should check your tyres regularly by ensuring that they are properly inflated and that the wheels are aligned. Not only will you get better mileage, but your tyres will last longer too.

Tip 5: Check the windscreen wipers. Make sure they are not damaged and are in a good working condition, as driving without proper visibility is dangerous.

Tip 6: Change the air filter. Keep your engine clean by regularly replacing the air filter.

Tip 7: Check the windscreen. Inspect the windscreen for small chips and scratches. These are reasonably cheap to repair, while replacing an entire windscreen is expensive.

Tip 8: Check your lights. This means indicator lights, hazard lights and headlights. Replace burnt out bulbs immediately.

Tip 9: Check the dashboard. Don't ignore the dashboard if there are flashing lights or the temperature gauge is suddenly extra hot. Stop as soon as it is safe and read the manual to make sure it is safe to drive further.

Tip 10: Protect the exterior of the car. A coat of good quality wax will ensure that your vehicle paint is protected. Apply the wax every six months.

Keep your car in good running condition and it will keep you safe and in control on the road. It takes a short amount of time to check these important functions, but can save money, fuel, and even lives in the long run. Make sure the functions of your car aren’t the only thing you’re checking. Get Car Insurance at the best price and protect your prized possession!

We all know that setting up a business and buying an asset takes a lot of time and toiling, it may be a car, your dream house or simply a household item.

For many, work and business is a doppelganger of their personal identity. Your office could have cash, valuables, goods and raw material, critical documents or intellectual property that in an event of a theft or burglary can leave you financially crippled. 

Here’s what we have figured out through our truth lens!

Even though the crime rate in India is on the decline, it is still quite high at 379 crimes per lakh of the population as per data from NCRB (2016). Most urban business complexes now have better security systems and more personnel on board; however, most perpetrators in cases of thefts are known to be familiar faces. This makes it imperative for businesses to add a layer of security with a comprehensive burglary and theft insurance plan.

For the sake of insurance, theft and burglary are two separate categories, where burglary, unlike a theft, also accounts for forcible/ violent entry and/or armed robbery that puts the people, place and other valuables at risk. 

Why is securing yourself against theft and burglary important?

A comprehensive protection plan can be purchased for your home, office, factory, warehouse, etc. The compensation from the insurer covers for any item that is stolen from the insured premises and also makes good any loss or damage caused to the premises on account of the said theft or burglary.

Any stock of goods, furniture, computers and electronics and other assets within the business premises are covered too. In fact Magma HDI’s Burglary Insurance Policy goes a step further and provides for reasonable coverage to clean up the premises and move any debris from the premises to the closest disposal site. It also reimburses for making good critical documents such as agreements and confidential business documents, on which sometimes the registration and stamp duty itself can run in to lakhs of rupees.

If you fear a repeated attempt at the theft or burglary, Magma HDI burglary policy also covers for the cost of temporary protection incurred for the safety of your employees and assets.

The first thing you need to do is to ensure that there are reasonable safety and security systems in place so as to minimize the risk. This will also have a direct impact on the insurance premium you will incur. The better your preparation, the lower the premium. The insurance will not cover for any loss arising out of an ‘inside job’ unless through forceful means.

Review your insurance requirements periodically, especially if you have different value of cash, goods/ raw material moving in and out of your office, new equipment/ machinery, critical R&D technology, etc. The value of your stocks and assets have a direct correlation to your premium.

The cost of insurance is a small price to pay for ensured business continuity, protecting your family and employees and securing your peace of mind.

It is hard to name a single businessman who hasn’t taken risks, but you will know many brave ones who trusted luck and risked everything. Truth be told, as a responsible business owner and citizen, one needs to be prepared with and Magma HDI Genaral Insurance Company offers a wide range of liability insurance policies that give you

1. Compensation for damage/loss of property or human injury

2. Covers your legal liabilities towards damage to any third party, along with the legal costs and expenses incurred by the insured.

3. It applies to both industrial and non-industrial establishments.

4. Compensation for damage/loss of property or a human injury caused due to defects in product manufacturing

5. Even after ensuring the highest quality standards and assessment parameters, a manufacturing defect in products is still possible and can cause mishaps.In such instances, Magma HDI Liability Insurance covers the liability to a third party.

6. Compensation for damage caused due to human negligence

Be it any professional– doctor, engineer or lawyer – involuntary errors and omissions could seriously impact their customers’ health, well-being, or financial stature. Liability insurance will take care of any liabilities that may arise due to negligence while executing your responsibilities.

Smart and trusted businesses quickly compensates loss or damage that might occur during the regular course of business as they are backed by their Liability Insurance policies and so can you CLICK HERE for buying Magma HDI’s liability insurance Policy.

Accidents happen. Sometimes due to negligence and sometimes due to sheer bad luck.

What if a customer slips and falls at your premise and breaks a bone? Or purchases an electrical device from you which causes a short circuit at their home resulting in a fire? In either of these incidents, as a business owner, you can be liable to compensate for the loss/damage to life, property and the legal fees a third party incurs.

An Example

A famous incident that highlights the need for public liability insurance is the 'hot coffee lawsuit' of 1992. The plaintiff, 79-year-old Ms Liebeck accidentally spilt hot coffee on her lap, (while in her car) purchased from a renowned fast-food retailers outlet. She spent eight days in the hospital because of third-degree burns, had to undergo a skin graft and two years of follow up treatment. Her attorney argued that the coffee served at 82-88 degrees was significantly hotter than what other outlets served (60 degrees) and was a burn hazard even if consumed immediately.

The jury initially awarded Ms Liebeck US$160,000 as compensation and coverage for medical expenses in addition to US$2.7 million in punitive damages. After a prolonged court battle and multiple appeals, the parties settled out-of-court in 1994 for an undisclosed amount, said to be under US$600,000.

Most businesses do not have the time, resources and deep pockets to weather such lawsuits.

Thus, every business needs to protect its interests and that's what a Public Liability Insurance can help them do. Here are six things you should know about Public Liability Insurance (PLI) in India:

1) Who needs it

Enterprises that regularly entertain the public such as restaurants, shops, educational institutes, sporting areas, etc. should get public liability insurance. It also applies to businesses that work in public spaces or private homes such as building contractors, electricians, etc.

2) Scope of coverage

The insurance covers the cost of damage/medical treatment and legal fees if any third party sues your business. This includes customers, vendors, and general members of the public excluding your staff (that comes under workers compensation).

3) Domicile of coverage

The coverage is not geographically restricted. It covers incidents at your premises or those at a customer/ clients location.

4) Cost

The cost of your PLI depends on the nature, size and scale of your business. Enterprises that deal with hazardous substances or have multiple outlets/ franchisees, etc. will have to pay more due to greater probability of a mishap.

5) Customizations

You can customize the coverage after assessing your needs. For example, a small café would probably need a considerably lower cover than a 5-star hotel complex. You may also choose add-ons for extra protection. For instance, the act of gods covers situations such as floods, lightning etc. which end up being frequent causes of dispute.

6) Legal Requirement

Even though businesses are not legally bound to opt for a PLI, certain lease agreements or trade associations make it binding on the lessee/partner to obtain the insurance. Many private parties too may not contract services to a business or tradesman without a PLI.

7) Exclusions

Like any other insurance policy, Public Liability Insurance In India is also subject to exclusions. Some common exclusions of insurance providers in India are- disputes related to pollution, slander, fines and penalties. Please refer to your plan's policy wordings for a better understanding of the same.

Many-a-times businesses fail to realize the damage to goodwill due to an incident is greater than the cost of financially alleviating the situation. To know how you can secure your business and do right by all stakeholders, have a look at what Magma HDI has to offer.

Connectivity has become the fourth pillar of our rations today. Each one of us, at least, own three gadgets, in which we store and share critical data. Whether it is business-related information or personal details, our gadgets hold a lot of information that, if leaked, could cause serious damage. Besides the implications of a security breach, these gadgets come at a high cost, and replacing a lost or stolen one may seriously burn a hole in the pocket.

Therefore, it’s prudent to secure your gadgets by taking Electronic Equipment Insurance (EEI). EEI extensively covers loss of electronic good, and subsequently, helps to meet unavoidable costs. Depending on the coverage that will be best suited for you, there are different types of EEI to choose from. Before we get into the different types, let’s take a true look at the scope of the cover.

What’s Covered?

• Damaged equipment coverage, including replacement expenses, such as freight, installation cost, customs duty, etc.
• Damaged data media coverage, including expenses incurred in restoring lost information, external data media, damaged/lost data media, etc.
• Increased cost of working, caused due to employing more manpower to substitute for the work that would have otherwise been done by the equipment.
• Any damage caused to the equipment’s software as a result of the damage to the hardware is also factored in.

Types of Electronic Equipment Insurance

All risks included

Give your gadgets complete protection from perils, including those caused by natural and man-made causes. For instance, damage due to natural calamities includes the ones caused by fire, landslide, or storm, whereas manual perils include terrorism, strikes, and riots.

External data media

This option covers the losses partly and includes expenses arising due to data loss on external media devices, such as hard discs, etc.

Increased cost of working

This type of EEI is usually taken by organizations that rely heavily on data processing units. In the event of any loss or damage to the unit, the expenses incurred to employ any additional/alternative tool or manpower, are covered by the insurance policy.

What are the types of electronic equipment that can be secured with EEI by Magma HDI?

Electronic Equipment Insurance is suitable for a range of equipment, including, but not limited to:

• Computer and allied peripherals
• Audio visual equipment
• Auxiliary equipment, such as voltage stabilizer, UPS, etc.
• Electronic control panels
• Navigation equipment
• Telecommunications equipment
• Electronic equipment used for research and testing materials
• Medical equipment, such as MRI scan machines, X-Ray machine, ultrasound devices, etc.

Who should take an EEI by Magma HDI?

Practically, anyone who owns and operates electronic equipment should secure their gadgets with an EEI.

• Owners and businesses owning electronic equipment
• Organizations that are involved in leasing electronic equipment
• Third-parties, such as financiers or bankers who ultimately bear the purchase cost of the equipment

While an Electronic Equipment Insurance secures your gadgets from multiple threats, note that there are certain cases, such as normal wear and tear that do not fall under the purview of the policy.

Car insurance is a critical aspect of car ownership, providing financial protection in accidents, theft, or damage to your vehicle. However, the cost of car insurance can vary depending on several factors, including your driving history, car make and model, and age. Apart from this, location is also one of the most significant factors affecting car insurance premiums. Where you live plays a crucial role in determining the cost of your car insurance premium. The influence of location on car insurance is a complex issue that involves several factors. Insurance companies analyse these factors when determining your car insurance premium.

This blog post will explore how your location affects your premium so that you are aware of the correct policy before buying car insurance. Without any further delay, let's get started.

1. Crime rate
One of the most significant factors that can affect your car insurance premium is the crime rate in your area. Insurance companies consider areas with high crime rates a severe risk, as they have a higher incidence of car theft and vandalism. This increased risk means you may have to pay a higher premium if you live in an area with a high crime rate.

2. Population density
Another factor that can affect your car insurance premium is the population density of your area. Areas with high population densities have more traffic, which increases the likelihood of accidents. Therefore, if you live in an area with a high population density, you may have to pay higher car insurance premiums.

3. Weather conditions
The weather in your area can also affect your car insurance premium. Regions with harsh weather conditions, such as snow, ice, or heavy rainfall, have a higher risk of accidents. Therefore, if you live in an area with extreme weather conditions, you may have to pay higher car insurance premiums.

4. Road conditions
Poor road conditions, such as potholes or inadequate lighting, can also increase the risk of accidents. Insurance companies consider the road conditions in your area when setting your car insurance premium. If you live in a location with poor road conditions, you may have to pay higher car insurance premiums.

5. Laws and regulations
The laws and regulations in your area can also affect your car insurance premium. Some states have minimum coverage requirements, while others do not. If you live in a state with high minimum coverage requirements, you may have to pay higher car insurance premiums.

6. Local insurance market
Finally, the local insurance market can also affect your car insurance premium. Insurance companies may charge different rates in different areas based on the level of competition in the local insurance market.

Therefore, if you live in an area with a less competitive insurance market, you may have to pay higher car insurance premiums.

When setting your insurance rate, companies consider factors such as crime rates, population density, weather conditions, road conditions, laws and regulations, and the local insurance market. Therefore, it is essential to understand how your location can affect your car insurance premium to make informed decisions when choosing a car insurance policy. Explore and compare car insurance policies to find the right one that fits your needs optimally.

Click HERE to learn more about the benefits of purchasing car insurance

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.

Do you travel a lot by road? Are you tired of waiting for your turn at toll plazas on the interstate highways or expressways? Do you wish to get done with it as quickly as possible? If yes, then you must get a FASTag! As the name suggests, a FASTag is a tag which is a mean to ensure faster transit across toll plazas. The tag is placed on the windshield of the car and uses Radio Frequency Identification Technology. The tag is scanned by the tag readers placed at toll booths who then deduct the toll amount from the FASTag account. All toll plazas placed along the national highways are now using FASTag for payment of toll as per the guidelines of the government of India.

As the balance in FASTag reduces, the user needs to reload the balance in the linked wallet account or the linked bank account. By eliminating the need for cash payments at toll plazas, FASTag ensures a quicker and smoother flow of traffic.

The following reasons highlight how using a FASTag can help you save time on your journey: -

● Quick payment - As there is a FASTag affixed to your car, you wouldn't have to search your wallet for cash which ultimately reduces the duration of the transaction and your time is saved.

● Less fuel wastag - As you do not need to stop and restart your vehicle, less petrol or diesel is burned, which saves your fuel tank from draining quickly.

● Hassle-free recharge- You can easily recharge your FASTag using various methods like Internet banking, mobile wallet apps, NEFT, RTGS or even your credit and debit cards.

● Message alerts - Every time your FASTag is used, you get an alert SMS on the mobile number registered with the card which ensures the prevention of its misuse.

● Long validity- A FASTag is valid for five years, which means you need not worry about changing it frequently.

● No requirement of cash - The work of cash is taken over by the FASTag. Therefore, it eliminates the necessity of carrying cash for toll payments.

● Online portals- You can check the transactions made using your FASTag whenever you wish using specific web portals meant for the same.

Now, onto some Frequently Asked Questions: -

How to get a FASTag?

To buy a FASTag, you can ask the toll plaza employee for their sales department, or contact authorized agencies or banks that sell them. Many platforms offer car insurance quotes online and sell FASTag as well.

How much does a FASTag cost?

Generally, a FASTag can cost you around two hundred rupees for the purchase, which excludes recharge expenses.

Where is it placed?

FASTags are affixed on the windshield of the car in a very specific manner that allows the scanners placed at the toll plaza to scan it.

How to know if your card has been used?

As stated in the above benefits, a text message is delivered to the registered mobile phone when the FASTag is used. This is a sort of confirmation to the owner that payment has been made.

Do you need to maintain a certain balance?

You don't need to maintain a balance for sure, but yes there is a minimum value for a top-up of the tag which amounts to a hundred rupees.

Where is a FASTag valid?

Throughout the country, a FASTag can be used to make payments at toll plazas regardless of the city or state.

While getting FASTag will help you zoom seamlessly on the highways, do remember to check car insurance quotes online to get protection against possible accidents and incidents while on the road.