ACCIDENT INSURANCE- A LIFE SECURITY ACCIDENT INSURANCE- A LIFE SECURITY

A PROJECT SUBMITTED TO UNIVERSITY OF MUMBAI

BY ANITA SESMA

UNDER THE GUIDANCE OF

PROFESSOR SYED MUBASHAR HASAN

SEMESTER VI B.COM (BANKING AND INSURANCE)

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS 2011-2012

Sydenham College Of Commerce and Economics

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INDEX
Contents
1.1 The need for personal accident insurance ............................................................................................ 15 Just look at these latest statistics from the forum for protecting road accidents (FPRA) .......... 15 If a serious accident befalls you, then you may be unable to work for the rest of your life. You may need money for income or adapting your home..................................................................... 16 1.2 Personal accident plans : Types of policy .................................................................................... 17 In the case of an insured event, the insurer pays out the following agreed insurance amounts specified by the policy:...................................................................................................................... 18 When should plan benefits start? .................................................................................................. 19 When should plan benefits end?.................................................................................................... 19 1.5Typical exclusions and limitations ......................................................................................................... 19 1.6 How much does it cost? ........................................................................................................................ 20 1.7 Life or Personal Accident?.................................................................................................................... 21 2 .Individual Personal Accident Insurance ............................................................................................ 21 This type of insurance covers the following risks: ........................................................................... 21 PERSONAL ACCIDENT INSURANCE DETAILS & COMPARISON ............................................... 22 Is your life cover (with an accident rider) as comprehensive as a standalone personal accident insurance policy? ..................................................................................................................................................... 22 What is the difference between permanent total disablement & partial disablement? ........................... 23 3. Employee Collective Accident Insurance ............................................................................................... 23 This type of insurance policy covers all accidents: ............................................................................. 23 This type of insurance may cover the following risks: ........................................................................... 23 Under the MOTOR CAR insurance policy of TATA AIG, it takes care of the following:- ..................... 26 Private car insurance................................................................................................................... 26 Two wheeler ............................................................................................................................... 26 Commercial vehicle ..................................................................................................................... 26 Second hand car .......................................................................................................................... 26

2.1 Private Car Insurance: ........................................................................................................................... 26 What does the Auto Secure Insurance cover? ................................................................................ 26

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Loss or Damage to your Vehicle: Any partial or total loss to your vehicle arising out of accident or on account of fire and allied perils is covered. ................................................................. 26 Get Added Protection from our 8 unique Add On covers ............................................................. 27 1. Depreciation Reimbursement .................................................................................................. 27

This cover offers full claim without any deduction for depreciation on the value of parts replaced. The cover is available for vehicles up to 3 years old and operates for maximum 2 claims during the policy period. ...................................................................................................................................... 27 2. Return to Invoice....................................................................................................................... 27

2.2 Two Wheeler Insurance ........................................................................................................................ 28 Key Features ........................................................................................................................................... 28 What are the unique benefits offered by Tata AIG? ..................................................................... 29 3.3 Commercial Vehicle Insurance ........................................................................................................ 29 Key Features ........................................................................................................................................... 29 IV) OTHER TYPES OF ACCIDENT INSURANCE ................................................................................ 32 1. Business Travel Accident Insurance ................................................................................................... 32 2. Household Members Personal Accident Insurance............................................................................. 32 3. Personal Accident Insurance for Members of Sports Organizations .................................................. 32 4. Personal Accident Insurance for Members of Hunting and Fishing Organizations ............................ 32 5. Personal Accident Insurance for Members of Volunteer Firefighters Organizations and Other Lifesaving Teams .................................................................................................................................... 33 6. Personal Accident Insurance for Pilots, Cabin Crew Members and Passengers in Airplanes and Other Aircraft .................................................................................................................................................... 33 7. Personal Accident Insurance for Members of Cultural Associations ................................................. 33 8. Personal Accident Insurance for Children, Pupils and Students .............................................. 33 9. Personal Accident Insurance for Students Staying Abroad ................................................................ 34 10. Personal Accident Insurance for Visitors and Audiences, Including Policyholder Liability ............ 34 11. Personal Accident Insurance for Tourists and Holidaymakers, Including Policyholder Liability .... 34 Is Accident Insurance Different Than Health Insurance?.......................................................................................... 37 How They Pay ......................................................................................................................................... 37 What They Cover..................................................................................................................................... 37 Exclusions ............................................................................................................................................... 37 Cost ......................................................................................................................................................... 38 Forum for Prevention of Road Accidents ............................................................................................... 39 Sydenham College Of Commerce and Economics Page 3

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PREFACE
It gives me immense pleasure to work on the project topic ACCIDENTAL INSURANCE-a life security. The project has been prepared to fulfill the requirement of the university and in the process gain valuable knowledge. It has enabled me to understand and gain knowledge about different accidental policies under general insurance and the insurance sector. I decided to take this topic as I was keen to learn more about accidental insurance, different accidental policies and the claims under it, and also what steps does FPRA takes to reduce the number of accidents.

Mumbai

ANITA SESMA

April 2012

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ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the possibility to complete this project. I would like to thank Sydenham College of commerce and economics and Mumbai University for giving me an opportunity to work on this project. I am indebted to my project guide Dr S.M. HASAN whose help, suggestions and encouragement helped me during the making of this project. You have been magnificently supportive; its been sheer joy working on the topic ACCIDENTAL INSURANCE- a life security, without your systematic approach this research would not have been possible. I would like to thank my family and friends for supporting me to give my best effort to the project. I sincerely solicit the esteemed readers to offer their criticism and suggestion for further improvement of the project.

ANITA SESMA

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DECLARATION

I, Miss anita sesma, student of T.Y.B.Com, Banking and Insurance, Semester VI, Roll No. 44 hereby declare that this Project Report entitled ACCIDENTAL INSURANCE- A life security is being submitted as a partial fulfillment of the course, which is necessary requirement to pass the Semester VI examination.

I further declare that the Report is the output of my personal research and all the information contained here in is correct to the best of my knowledge.

SIGNATURE OF THE STUDENT

Mumbai

ANITA SESMA

APRIL, 2012

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INTRODUCTION TO INSURANCE SECTOR IN INDIA
The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform.

Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run

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HISTORY
Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalization b) Nationalization and c) Post Nationalization. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001.

Table 1: milestones in the life insurance business in India

Year 1912 1928 Milestones in the life insurance business in India The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

1938 1956

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Table 2: milestones in the general insurance business in India
Year 1907 1957 Milestones in the general insurance business in India The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

1968 1972

ACTS RELATING TO INSURANCE

The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. It is governed by a number of acts. The Insurance Act of 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business. Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India. The General Insurance Business Act of 1972 was enacted to nationalize the about 100 general insurance companies then and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance and United India Insurance, which were headquartered in each of the four metropolitan cities. Until 1999, there were no private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies. In 2006, the Actuaries Act was passed by parliament to give the profession statutory status on par with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architects and Company Secretaries.
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A minimum capital of US$80 million (Rs.400 Crore) is required by legislation to set up an insurance business.

PRESENT SCENARIO
India with about 200 million middle class household shows a huge untapped potential for players in the insurance industry. Saturation of markets in many developed economies has made the Indian market even more attractive for global insurance majors. The insurance sector in India has come to a position of very high potential and competitiveness in the market. Indians, have always seen life insurance as a tax saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice. Consumers remain the most important centre of the insurance sector. After the entry of the foreign players the industry is seeing a lot of competition and thus improvement of the customer service in the industry. Computerization of operations and updating of technology has become imperative in the current scenario. The insurance agents still remain the main source through which insurance products are sold. The concept is very well established in the country like India but still the increasing use of other sources is imperative. At present the distribution channels that are available in the market are listed below. Direct selling Corporate agents Group selling Brokers and cooperative societies Bancassurance Customers are offered unbundled products with a variety of benefits as riders from which they can choose. More customers are buying products and services based on their true needs and not just traditional money back policies, which is not considered very appropriate for long-term protection and savings. There is lots of saving and investment plans in the market. However, there are still some key new products yet to be introduced - e.g. health products. The rural consumer is now exhibiting an increasing propensity for insurance products. A research conducted exhibited that the rural consumers are willing to dole out anything between Rs 3,500 and Rs 2,900 as premium each year. In the insurance the awareness level for life insurance is the highest in rural India, but the consumers are also aware about motor, accidents and cattle insurance.
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Types of Insurance Life Insurance General Insurance Fire Insurance Marine Insurance Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay stipulated amount at regular intervals or in lump sums. Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, and personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. The non-life companies also offer policies covering machinery against breakdown, there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. fire insurance policy involves an insurance company agreeing to pay a certain amount equivalent to the estimated loss caused by fire to the insured, within the time specified in the contract. The indemnity is subject to change depending upon the policy. One should confirm with the insurer about the types of risks covered, since one cannot insure the property against all types of risks of fire. Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination. Cargo insurance discussed here is a sub-branch of marine insurance, though Marine also includes Onshore and Offshore exposed property (container terminals, ports, oil platforms, pipelines); Hull; Marine Casualty; and Marine Liability.

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INTRODUCTION TO ACCIDENTAL INSURANCE
Accident insurance is a form of insurance policy which offers a payout when people experience injury or death due to an accident. This type of insurance does not usually cover negligence, acts of God, or natural disasters, and the policy may include restrictions such as caps on total payouts or restrictions on payouts for activities deemed risky. Many insurance companies sell accident insurance, which can be purchased as a standalone policy or bundled in to an existing insurance policy. Like other forms of insurance, buying accident insurance is, in a sense, a bet. The consumer pays the insurance company a premium hoping that an accident will not occur, and the insurance company writes a policy hoping that it will not have to pay out. Accident insurance can be a good idea for people who lack health care coverage, ensuring that they will be able to access medical treatment after an accident, or for people with families who suspect that their family members could suffer financially if they died. By purchasing accident insurance, people can provide themselves with more financial security.

WHAT TO ENQUIRE FOR?? When shopping for accident insurance, people should ask about premiums and what types of accidents and events are covered. Some insurance companies cover more than others, and some are notorious for viewing all claims with deep suspicion, delaying payments until they are satisfied that a customer really does meet the terms for a payout. For people who need money to deal with immediate expenses, this can be a problem. Accident insurance policies have payouts which vary, depending on the severity of the injuries. Some include very specific language about amounts which will be paid out in the event of losing particular extremities, for example. The payout is designed to cover medical care along with pain and suffering, and if an accident causes permanent disability, the payment may be structured to provide funds for the accident victim to live on. In the event of a death, the benefits are paid out to the listed beneficiary on the policy.

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Accidental Policies: Some
policies cover only accidents and not illness. As you might suspect, policies like this are very specific about what is considered an accident. It is extremely important to understand what the insurance company defines as an accident. Generally, an accident to the health insurance industry is considered as unforeseen and unintended. Remember that when discussing accidents in any policy that includes an accidental provision, it is important to define what an accident is a not just accident specific policy.

Procedure for accidental policy:

1) Proposal: The person who wants to get the accidental insurance gives a proposal form to insurance company after filling it. The information regarding the insured (His name, address and age etc.) is written in the proposal form. If a person wants to get insurance for his motorcar, the particulars of car, model and engine etc are recorded or mentioned in the proposal form. 2) Scrutinizing: The insurance company scrutinizes the information provided in proposal form (e.g.) age of customer, his medical report and birth certificate etc. if the insurance is of a car the insurance company can demand the necessary documents like registration book etc to confirm the insurable interest. 3) Acceptance: If the insurance company is satisfied with the information and documents provided by the customer, it accepts the proposal of insurance. The customer pays the first installment of insurance premium to make the contractor insurance valid. 4) issuance of policy After receiving the insurance premium form the insured, the insurance company issues the insurance policy to the customers.

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KINDS OF ACCIDENTAL INSURANCE (i)Accidental insurance for person. (ii)Accidental insurance for vehicles. (iii)Accidental insurance for a property

(I)

ACCIDENTAL INSURANCE FOR PERSON.

If you are a breadwinner, an accident can create serious financial problems for your family. It can ruin the comfort and security you work so hard to provide them. Just think of it, which will help them settle the financial commitments in your absence or in case of your disability to earn any more, temporarily or permanently? You need to be prepared. Arm yourself with personal accidentinsurance.Accident insurance provides a cash cover to a policyholder when s/he suffers injuries as a result of an accident. While insurance helps a policyholder pay off hospital and medical bills in case of accident injuries, it provides cash benefits to family members if the policyholder dies in the accident. This insurance, applicable 24 hours a day, 365 days a year, is also commonly referred to as personal accident insurance. Accident benefits are most commonly paid for people are:* Accidental loss of life (also called accidental death) * Accidental loss of limb or sight (dismemberment) * Loss of time and/or income * Hospital expenses * Surgical expenses * Medical expenses like visits to the doctor. The person who received the death benefit is called the beneficiary. The policy owner (or holder) has the right and responsibility of naming beneficiaries. Usually there is primary beneficiary however the policyholder can assign second and even a third beneficiary. The primary beneficiary is the first person in line to receive the benefit in the event of the death of the policyholder. They can also name a second beneficiary who would receive the benefit in the event the primary beneficiary dies before the insured. Some policies can include a third beneficiary who would be in line after the first two. Although, some policies allow you to divide (by percentage) between the beneficiaries.
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There is much more to be learned about accidental death policies, but I would like to mention one important component before we move on. An accidental death may not be instant. A person can die as a result of accidental injury months after the accident occurrence. Read your policy carefully because most stipulate that the accidental death benefit will only be paid if death occurs within 90 days of the accident.

1.1 The need for personal accident insurance

Accidents can happen to anyone at any time. You are a very lucky person if you manage to go through life without having an accident. Road crash, house fire, assault, workplace accident or a simple trip. These are common. The headline stories of fires, murder and terrorism are not common. It is the everyday workplace, home and road accidents that claim most victims. The main thing with accidents is that they are random and can happen to anyone anytime anywhere. Most accidents are minor, but others can be more serious. In the blink of an eye, your life could be changed forever. Accidents happen every day, everywhere. Just look at these latest statistics from the forum for protecting road accidents (FPRA) Accidents on the roads

During 2004 there were 280,840 casualties on Indian Roads . That includes 3221 killed and 31,330 seriously injured. Accidents at home Surprisingly, your home is one of the most dangerous places you can be. Home injuries send an incredible 2.8 million people to hospital Accident and Emergency units, with an unknown number going to GPs for less serious accidents. Every day, ten people die and 8000 people seek medical treatment as a result of home and garden accidents in the INDIA. Most common accidents are falls from height, choking, poisoning, burns and scalds. Accidents at work

You are also at risk at work.

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In 2005 around 2 million people were hurt at work and required treatment at a hospital casualty department. In 2005 over 200 people died, and over 350,000 were seriously injured. Many had to take weeks off work Accidents involving children

The saddest figure is the annual toll of child deaths from accident, including 260 road casualties Every year, 3 million children suffered injuries which require attendance at the A&E department of a hospital. A million are injured in and around schools, recreational areas, and sports facilities and so on -and 2 million in and around the home. If a serious accident befalls you, then you may be unable to work for the rest of your life. You may need money for income or adapting your home.

You have a one in seven chance of being off work for 6 months due to illness or accident, during your working life. Thankfully, medical advances and better remedial care mean that more people can return to work and normal life. You may expect the state to support you. You may get a small amount of benefit, but may have to go through unpleasant interviews, medical tests and a review of your finances. Sadly, with many fraudulent claimants, the state treats everyone claiming benefit with great suspicion, guilty until proven innocent. If you are a specialist tradesperson, or professional, a serious injury may mean that you can work, but not in the profession or type of occupation you were used to. Politicians may dislike the blunt truth, but in the modern world, the state expects you to take any form of work on offer. They may even force you to go on training programmes, before they decide whether or not to give you a handout. By law, an employer must pay most employees statutory sick pay for up to 28 weeks. This will almost certainly be a lot less than your full earnings. Few pay for longer. If it is obvious you can never return to work, they may stop paying and terminate your employment. Not all employers pay willingly.

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1.2 Personal accident plans : Types of policy
The insurance industry can confuse customers and itself with the titles it gives to types of policy within the wider definition of personal accident Insurance. There is a thin dividing line between personal accident and income protection policies. Simple personal accident policies only pay a cash sum following an accident where you are injured Simple income protection policies pay when you are off work following an accident Where they merge is when an income protection policy also includes illness, and a personal accident policy includes sickness and/ or pays monthly benefits rather than a cash sum.

1.3 Types of Personal Accident Insurance Policies

* Individual: This policy can be taken by any individual. The benefits usually enclose partners and children. Since several activities are excluded from this policy, it is not as useful for people who love adventurous sports, like mountaineering and rock climbing. * Children: The purpose of this policy is to provide financial help to parents if they are unable to work or if they incur expenses as a result of an accident. * Group: Companies to cover employees for expenses related to accidents use this policy. * Self-employed: Since self-employed individuals are not eligible for employee benefits, they are worse off when injured in an accident. * Team: Through a team accident insurance policy, organizers can seek cover for all the members of a sports team. * Professional: This policy is specifically for self employed professionals, such as a sports person, actor, lawyer or doctor, who have special requirements. * Over 50: This policy targets people over 50 years of age, as accidents can cause more grievous injuries to them.
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* Travel accidents: This policy offers benefits in case the policyholder meets with an accident while traveling. There are varied accident insurance policies to suit different needs. One should understand and choose the policy with utmost care.

This type of insurance is available for persons from 14 to 75 years of age. In the case of an insured event, the insurer pays out the following agreed insurance amounts specified by the policy:

the insured amount in the case of death if the accident resulted in the death of the policyholder, or the insured amount in the case of disability if the accident resulted in total disability of the policyholder a percentage of the insured amount in the case of disability corresponding to the percentage of partial disability, if the accident resulted in partial disability of the policyholder if the total disability percentage is over 50%, each portion of the percentage over 50% is recognized as a double amount daily compensation if the accident resulted in the policyholder's temporary incapacity for work or performing their regular professional activities compensation of healthcare costs if the accident resulted in the policyholder requiring medical attention and thus incurred healthcare expenses other contractual obligations pursuant to the Special Conditions and Insurance Terms and Conditions 1.4 BENEFITS OF PERSONAL ACCIDENT POLICY

A simple personal accident policy pays a set cash sum on death. On other benefits, there may be a cash sum, a monthly income or a mixture of the two. Monthly income is limited to a set number of months. Most also include a cash sum for Total Permanent Disablement. This is where you are not going to get better. Then there are frequently specific items where you get payment for injuries which result in
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Total loss of speech, hearing or sight Total loss of or use of a hand or foot Less frequent are specific higher benefits for catastrophes which result in quadriplegia or paraplegia. Some policies go into great detail about the different benefits for each type of accident such as fracture or dislocation. Also common is Temporary Total Disablement. This is where you are seriously hurt but will get better. Other benefits may include Hospital Cash for every night you are in hospital. It is quite common for benefits to be double, treble or quadrupled for serious problems such as travel accident, accidental death, disappearance or exposure.
When should plan benefits start? Some policies pay as soon as you have an accident. But this tends to be for minor injuries only. They usually make you wait and wait. Some will only pay after a set number of weeks. This is most common when the benefit is shown as income rather than a cash sum. Insurers often wait for weeks or months before paying out for serious accidents, as they do not know for a while if an injury is permanent or temporary When should plan benefits end? Personal accident policies are short-term contracts. They are designed to give immediate help, not to provide an income for life. Cash benefits are sometimes paid very quickly, but where disability is permanent, you may have to wait months or even years, until insurers know whether or not the problem is temporary or permanent. For monthly or weekly income benefits they may pay out for 3/6/ 9 or 12 months. A 24-month period is rare, and longer terms rarer still. Policies often have age limits beyond which cover is reduced or removed.

1.5Typical exclusions and limitations This first main exclusion is not usually listed in insurance policies as insurers think it obvious. If you have an accident, you can only claim if you have a physical injury. The policy will not pay for a car, property, and animals, damaged or lost. A policy will not pay for inconvenience, lost work, injured pride or anything else like that.

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There are common exclusions on most personal accident plans, including

Disability due to, or caused by HIV/AIDS Normal pregnancy and childbirth War Self-inflicted injury- including actual or attempted suicide Criminal acts Misuse of alcohol or drugs Failure to follow medical advice Taking part in any dangerous or hazardous work, activity, sport or hobby Driving with more alcohol than is allowed by law Motorcycling Engaging in military duty.

1.6 How much does it cost? The cost of a personal accident insurance plan depends on:-

Width of cover How much you want to receive. If any benefits are income rather than cash, for how long the benefit is paid Extra options bought Then there are factors personal to you, which affect the price of personal accident insurance Age- premiums can rise with age Sex - women tend to pay more Occupation; a manual job will be more of a risk than an office or shop worker Activity what activities you do Health history ;of you, and sometimes of your family too How many people are covered Not all insurers have the same views on the above factors.

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1.7 Life or Personal Accident? Some Personal Accident plans only cover accidental death. Life policies tend to pay on any type of death. Personal accident plans are much cheaper than Life ones, but far more restrictive. When looking at a Death only Personal Accident plan, look beyond the insurer sales pitch. They may not tell you that in an accident you have a many more times chance of being injured than killed.

2 .Individual Personal Accident Insurance

The policyholder (a natural entity) takes out an individual i.e. personal accident insurance policy in their name. This type of insurance is always purchased for a specifically named individual. If the same policyholder would like to insure more people, each individual person will be issued their own insurance policy.
This type of insurance covers the following risks:

death caused by accident permanent disability healthcare costs An individual may agree an extra premium for additional cover of specific risks [taking part in car and motorcycle races, operation of airplanes and other types of aircraft, etc.] and various sports risks.

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PERSONAL ACCIDENT INSURANCE DETAILS & COMPARISON

Is your life cover (with an accident rider) as comprehensive as a standalone personal accident insurance policy? A life insurance provides you and your family cover in case of the policy holder's death (due to accident/ illness or other reasons) or total permanent disablement. A health insurance policy covers your medical expenses due to an illness, accident, etc. A personal accident policy on the other hand, protects individuals and their families not only in the event of accidental death (which life insurance already does), but also covers total permanent disablement, partial permanent disablement & temporary total disablement due to an accident.
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What is the difference between permanent total disablement & partial disablement? Permanent total disablement implies a loss so severe that it permanently impares your earning capabilities. Permanent total disablement includes loss of sight of both eyes, severance of two limbs, or loss of sight of one eye and loss of one limb. Partial permanent disablement includes permanent loss of one or more of the following : An arm at the shoulder joint, An arm above the elbow joint, An arm beneath the elbow joint, A hand at the wrist, A thumb, An index finger, Any other finger, A leg above the mid-thigh, A leg up to mid-thigh, A leg up to beneath the knee, A leg up to mid-calf, A foot at the ankle, A large toe, Any other toe, An eye, Hearing loss in one ear, Hearing loss on both ears, Sense of smell, Sense of taste. Total temporary disablement implies loss of ability to earn while you have met with an accident and are recovering from it.

3. Employee Collective Accident Insurance

This type of insurance policy covers all accidents: occurring in the course of performing regular professional activities Occurring in the course of performing regular professional activities and outside regular professional activities [0-24h]. This type of insurance may cover the following risks:

death caused by accident death caused by illness permanent disability healthcare costs

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Individuals may be insured regardless of their health condition, age and general work ability, except for those totally incapable of work, who is excluded from the insurance. This insurance policy does not cover employees who, at the time of entering the contract, submit a written statement that they do not wish to be insured. If a collective insurance policy is concluded without the individual names of employees, the insurance policy covers all of policyholder's permanent and temporary employees. Various insurance amounts may be negotiated, depending on the risk category for each individual employee [policyholder]. A collective insurance contract for employees may include the policyholders' family members, provided that the agreed policy also covers risks occurring outside regular professional activities [0-24h]

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II. ACCIDENTAL INSURANCE FOR VEHICLES
Vehicles insuring are the act of the insuring your Vehicles from damages, accidents, and hijacks, in the result of influence of different risks. In order to insure your car, you have to receive Vehicles accident insurance. According to your Vehicles accident insurance, you insure your Vehicles from the following cases: road traffic accident, fire, spontaneous combustion, disaster, illegal action of third person (at this point car jack is also included). The whole list of cases, which your Vehicles accident insurance covers, you can find in your Vehicles accident insurance treaty. The majority of drivers do not consider vehicles accident insurance to be a necessary thing to take care of, however, in a case of vehicles accident or if some other accident occasion happens, they do not know what to do and where to get money in order to repair their favorite vehicles without which they cannot imagine their life. And what happens if you are not only going to damage your own vehicles, but also considered guilty in the car accident? You know if you are that one to be guilty in the vehicles accident, you are that one to repair the car, which you have damaged. And what about your own car? Is your financial position good enough to afford the repairing of several carsat one and the same time? However, of course, if you havean accident insurance, you are not going to be worried by all the above-mentioned expenses, as accident insurance company in which you have got your car accident insurances that one to cope with all the expenses by giving you car accident insurance cover.

That is why if you do not want to find yourself in such an unpleasant situation concerning car accident or some other occasion, which may damage your car, obtain car accident insurance and be sure that if something happens you will be able to handle all the expenses.

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CASE STUDY:

Under the MOTOR CAR insurance policy of TATA AIG, it takes care of the following: Private car insurance Two wheeler Commercial vehicle Second hand car

2.1 Private Car Insurance: Your car is not only a high value asset but also a highly valued possession. Therefore, it becomes crucial to insure your valuable possession. In todays times you need a comprehensive policy that not only covers you against the mandatory third party liability but also against the losses caused due to fire, theft, explosion, burglary, riots, strikes, earthquakes, flood, cyclones, accidents, malicious acts and terrorist activities. Auto Secure, value added car insurance from Tata AIG, has been designed to give you the extra assurance and peace of mind. Thats not all, through our 8 unique add on covers, you can enhance your standard car insurance policy. Key features Free pick-up of car!* Direct settlement facility at special garages!* Upto 6-month accident-repair warranty Quality spares and materials, guaranteed! Claim settlement in 7 days! Enhanced protection though 8 unique add on covers.

What does the Auto Secure Insurance cover? Loss or Damage to your Vehicle: Any partial or total loss to your vehicle arising out of accident or on account of fire and allied perils is covered. Third Party Legal Liability: Covers Third party property damage and Third party Bodily injury. No deduction on count of Salvage value
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Green Channel Settlement: Green Channel Settlement is another first in the motor insurance industry. This innovation promises to make accident claims and repairs easier than never before! You get value added propositions through our accredited garages Green Channel Settlement: Green Channel Settlement is another first in the motor insurance industry. This innovation promises to make accident claims and repairs easier than never before! You get value added propositions through our accredited garages Enhanced protection though 8 unique add on covers. Get Added Protection from our 8 unique Add On covers 1. Depreciation Reimbursement This cover offers full claim without any deduction for depreciation on the value of parts replaced. The cover is available for vehicles up to 3 years old and operates for maximum 2 claims during the policy period. 2. Return to Invoice This cover pays the difference between the claim amount receivable under the policy and the purchase price of vehicle as per invoice in case the vehicle is declared a Total Loss or a Constructive Total Loss. In case the same vehicle make and model is available at a lower price than the purchase price, then the lower price will be considered for arriving at the differential amount. The cover also pays first time registration charges and road tax on the insured vehicle. Cover is available for vehicles up to 3 years old. 3. Daily Allowance This cover pays a fixed sum towards hiring a transport while the vehicle is under repair for a valid claim and the repair time is more than 3 days. a. The cover will be valid for maximum 10 days and in case of Total Loss / Theft claims, validity will be up to 15 days. b. Period of Daily Allowance may extend beyond the policy period depending upon the date of loss.

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4. No Claim Bonus Protection Normally in case of a claim, the No Claim Bonus (NCB) component of your car insurance policy gets impacted. However under this cover, the existing NCB can be retained. Such retention of NCB will be applicable in case of certain claims if the bonus accumulated is 25% or more and there is no claim in the preceding 2 years. NCB Protection is available only if vehicle is renewed with Tata AIG. 5. Repair of Glass, Fiber, Plastic and Rubber Parts Under this cover the No Claim Bonus will not be impacted if repair rather than replacement is opted for damage to only Glass, Fibre, Plastic and Rubber parts provided no other claim for damage to the vehicle is preferred during the policy period. This cover is free. Key Replacement This cover pays the cost to replace vehicle keys if lost or stolen, plus the cost of locks if the vehicle is broken into.

6.

7. Emergency Transport and Hotel Expenses 8. Loss of Personal Belongings. 2.2 Two Wheeler Insurance Your two-wheeler (motorcycle or scooter) is perfect for your needs for quick mobility and convenience. But steering it around in todays times is also risky. Tata AIG offers you a comprehensive insurance cover, which not only covers you for the liability arising out of the Third party but covers you against the loss or damage to your own two-wheeler. Key Features
1. 2. 3. 4.

Loss or Damage to your Vehicle: Any partial or total loss to your vehicle arising out of accident or on account of fire and allied perils in covered. Third Party Legal Liability: Covers Third party property damage and Third party Bodily injury. Discount (NCB) for claim free experience Predefined depreciation for the parts needing replacement on account of accident.

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What are the unique benefits offered by Tata AIG? Additional benefits unique to Tata AIG are:

No deduction on count of Salvage value Direct Payment facility at garages (in limited locations) Faster Claim Settlement 24 X 7 Contact centre for lodging claims and all queries 3.3 Commercial Vehicle Insurance Your vehicle is most critical to your business. Any damage to it can be a huge loss to you. In todays times of uncertainties, you need a comprehensive insurance cover which not only covers you for the liability arising out of the Third party but covers you against the loss or damage to your vehicle. That is the offer from Tata AIGs Commercial Vehicle Insurance. Key Features

1. 2. 3. 4.

Coverage for Partial Loss & total loss arising out of accident, Fire & allied perils, burglary & theft, riots and strikes, damage in transit by air, rail, road and sea. Discount (NCB) for claim free experience. Predefined depreciation for the parts needing replacement on account of accident. Third Party Legal Liability: Covers Third party property damage and Third party Bodily injury.

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III) ACCIDENTAL INSURANCE OF PROPERTY :
Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.

SOME TYPES OF PROPERTY INSURANCE

1) Builders risk insurance: it insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis covering damage due to any cause (including the negligence of the insured) not otherwise expressly excluded. Builder's risk insurance is coverage that protects a person's or organizations insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of building or structure should those items sustain physical loss or damage from a covered cause. 2) Crop insurance: Farmers use crop insurance to reduce or manage various risks associated with growing crops. Such risks include crop loss or damage caused by weather, hail, drought, frost damage, insects, or disease, for instance Earthquake insurance: Is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage. Most earthquake insurance policies feature a high deductible. Rates depend on location and the probability of an earthquake, as well as the construction of the home. Flood insurance: It protects against property loss due to flooding.. In response to this, the federal government created the National Flood Insurance Program which serves as the insurer of last resort.

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Home insurance: It also commonly called hazard insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes. Landlord insurance: It covers residential and commercial properties, which are rented to others. Most homeowner's insurance covers only owner-occupied homes. Natural disaster insurance: It covers specified expenses after a natural disaster renders the policyholder's home uninhabitable. Periodic payments are made directly to the insured until the home is rebuilt or specified time period has elapsed Terrorism insurance: It provides protection against any loss or damage caused by terrorist activities. Volcano insurance: It is an insurance that covers volcano damage.

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IV) OTHER TYPES OF ACCIDENT INSURANCE
1. Business Travel Accident Insurance
This type of insurance covers employees during business travel based on the travel expense records. The insurance covers the employee from the moment of departure from his home or workplace and is valid until the moment of his return to his home or workplace.

2. Household Members Personal Accident Insurance

This type of insurance covers all members of the household: spouses, children and other members of the household, as individually named in the policy or in an enclosed list. Insurance is available for all members of the household, from birth to 70 years of age.

3. Personal Accident Insurance for Members of Sports Organizations

The insurance may include:

insurance for members of sports organizations - amateur or professional sports competitors insurance for participants in sports races and competitions compensation of medical expenses for foreign participants in sports competitions

4. Personal Accident Insurance for Members of Hunting and Fishing Organizations

Insurance for hunting or fishing activities may be purchased for individuals or groups.

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5. Personal Accident Insurance for Members of Volunteer Firefighters Organizations and Other Lifesaving Teams
The insurance is available as group insurance for all members of volunteer firefighters organizations and other lifesaving teams.

6. Personal Accident Insurance for Pilots, Cabin Crew Members and Passengers in Airplanes and Other Aircraft
Insurance is available for:

professional and sport pilots military pilots passengers

7. Personal Accident Insurance for Members of Cultural Associations

This insurance is available for:

professional members of cultural associations amateur members of cultural associations

8. Personal Accident Insurance for Children, Pupils and Students This insurance is available for:

children pupils and students

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9. Personal Accident Insurance for Students Staying Abroad
This type of insurance is available for individuals and groups, for university and other higher education students, who travel abroad for work experience through authorized legal entities. Before a policy is issued, students must submit a certificate stating that they are travelling abroad exclusively for the purposes of work experience.

10. Personal Accident Insurance for Visitors and Audiences, Including Policyholder Liability
This type of insurance covers accidents which may occur to audience members in performance halls, in the premises designated for ticket holders, regardless whether the injured person is a ticket holder or not, or on the premises around sports grounds or another place where a performance or sport event is being held, if such a place is designated for spectators. The insurance also covers those types of accidents which may occur to the visitor while queuing to purchase a ticket at a designated place.

The visitor insurance policy may also include a policyholder liability cover for physical damage or loss of property incurred by the insured visitor up to the amount specified in the policy.

11. Personal Accident Insurance for Tourists and Holidaymakers, Including Policyholder Liability
This insurance policy covers holidaymakers and tourists who go on group excursions to particular places organized by the policyholder specified in the policy. The insurance covers all accidents which may occur to the holidaymaker while waiting for the excursion at a designated place, and immediately upon return from the excursion, until the moment of departure from the place designated for the dissolution of the tourist group. The tourists and holidaymakers insurance may also include a policyholder liability cover for physical damage or loss of property incurred by an insured tourist or holidaymaker up to the amount specified in the policy.
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WHY PREFER ACCIDENT INSURANCE THAN A TERM PLAN?? Example: Ajay was one of the best employees of his company based in Bangalore. He bought a term plan as soon as he realized the important of securing his life. He also bought health coverage to secure his wealth (not health). He had recently bought a home through loan and he was also investing for his 2 kids future. Ajay was the only one earning in his family which also had his mother as dependent on him.

It was the last working day of the week just before Diwali holidays and he had to rush home early that day. He was as attentive while driving as he was always, but he forgot that accident happens not because you are careless , but because other can be damn careless While Ajay was taking a u-turn another car slammed into his car which was coming with a lot of speed.

It was a serious accident and what Ajay never imagined happened. Both of his hands were non functional after the accident. Being a senior programmer in his company, he knew that his future is lost now. This one incident changed him life . While his income stopped, his expenses at house , EMI etc had to still continue. His term plan could not pay him because he was not dead. His health insurance plan covered the expenses for hospitalization, but only covered for a basic amount in case there was a temporary disablement. But Ajay case was not covered in any of his existing insurance policies. At this point of time, if Ajay had a Accident Insurance Policy, it might have helped him a lot

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Is Accident Insurance Different Than Health Insurance?
How They Pay A primary difference between health insurance and accident insurance is the method by which they pay out when a claim is filed. With accident insurance, you pay premiums each month and if you have an accident, you call your agent and file a claim. The insurance company quickly evaluates the claim and if it is found to be valid, you are issued a check for a predetermined amount of money. Health insurance, on the other hand, typically provides ongoing payments paid directly to various health providers in the event you have a covered accident or illness.

What They Cover Health insurance is generally more broad-based than accident insurance. It covers most situations in which you would see a health care provider. Examples of situations covered by health insurance include illness, injury due to accidents, prenatal care, and in some cases, mental health coverage. Accident insurance only goes into effect in the event of an accident. Examples of what accident insurance covers include falling down the stairs, cutting oneself while cooking, losing a limb in a farm machine and accidentally falling through a plate glass window. Illnesses are not covered under accident insurance; however, accident injury care is typically covered under health insurance.

Exclusions
The two types of insurance differ in many of their exclusionary policies, in that health insurance generally has more exclusion. An accident policy usually includes a rider excluding coverage if you are injured while you are committing a crime, take part in extremely high risk behavior in which a reasonable person would not take part in or commit suicide. Suicide exclusions are sometimes limited to the first two years of the policy.

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Health insurance policies usually exclude all of the same things accident policies exclude but if state law allows, also exclude pre-existing health conditions. Preexisting conditions mean you had the disorder or issue before signing on to the policy. Heart disease, diabetes, cancer, pregnancy and other physical problems are examples of pre-existing conditions.

Cost
Health insurance is almost always more expensive than accident coverage because health insurance covers so much more. With accident insurance you get a onetime, pre-determined payout following a qualifying event. Health insurance, though it may have a lifetime cap, usually pays out over time and covers illness as well as accidents. Lifetime caps on many policies are between $1 million and $5 million. The risk is much higher to the insurance company; therefore, they charge more for your coverage.

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Forum for Prevention of Road Accidents
Forum for Prevention of Road Accidents (FPRA) is committed to encourage and motivate experiential learning from home to educational curricula in a partnership mode to diffuse the importance of early intervention in developing positive attitudes and behaviors for life; enabling all road users while particularly the children and youth to become successful learners, confident individuals, effective contributors and responsible citizens on road safety. Vision The vision is to serve the society by ensuring a fast, safe, efficient, accessible, convenient and affordable inter-modal transportation system that meets the vital national interests and enhances the quality of life of people today and into the future. To ensure safest roads and learned users, we intend to explore most plausible and adaptable road safety tactics through quality data collection, the dedicated application of problem solving, partnership building, enforcement and education of strategies, and evaluation of our programs. Our objectives are:

To identify and develop road safety programs to increase knowledge, awareness and skill amongst the Indian road users. To promote changing attitudes and behaviors of drivers contributing to making Indian roads safer and reducing road trauma.

To prevent death and injury on the roads through education of all road users and campaigning for Governance improvements to road safety. To promote a positive attitude of law enforcement officials and infuse a sense of courtesy and safety awareness among road users. To monitor relevant road statistics both locally and internationally on an ongoing basis in order to effect improvements.

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To promote advocacy on specific road safety issues in influencing, informing and assisting decision and or policy formulation. To rise awareness about road traffic injuries, their grave consequences and enormous costs to the society.

Forum for Prevention of Road Accidents (FPRA) is now developing road safety programmes to increase knowledge, awareness and skills amongst all types of road users. Besides education, it also promote advocacy on some particular issues in influencing, informing and assisting decision and policy makers. Presently we are promoting Make Helmets Mandatory campaign for young two-wheeler riders in India. PROJECTS BY FPRA 1) National road safety week 2) Make helmet mandatory campaign 3) World day of remembrance for road traffic victims 4) Pappu zebra road sense campaign kicks off in Orissa 5) Decade of action for road safety launched in Cuttack

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Eight districts of the State, representing one-fourth of the total number of districts, account for 45 per cent of road accidents and fatalities, statistics show. Going by the data of road accidents and persons killed in the State during 2010 and 2011 (up to October), those eight districts Chennai, Coimbatore, Kancheepuram, Madurai, Salem, Tirupur, Vellore and Villupuram witnessed 29,855 accidents in 2010 and 25,710 accidents in 2011 against the State's total number of accidents of
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64,996 and 55,592. The persons killed in the accidents in those districts were 7088 and 5949 against the total figures of 15,409 and 13,119. Sadly, five of those districts Chennai, Vellore, Villupuram, Salem and Coimbatore had retained their slots as those with the high rate of accidents since 2006, the year regarded in the Road Safety Policy as the base year. According to a document prepared by the Transport Department for the State Road Safety Council meeting that took place a few days ago, Chennai, between 2006 and 2010, registered nearly a 62 per cent increase in the number of accidents; Salem 29 per cent; Vellore 25 per cent and Villupuram 11.7 per cent. Kancheepuram, despite being one of the districts with a high degree of accidents, had shown a decline in the rate between 2006 and 2010, the document stated. Road safety is not a priority subject for the police authorities, who tend to give more importance to crime. The traffic expert also emphasizes that while analyzing road accident data and taking remedial measures, the authorities should work out an accident risk index for each district in the State. The index would have two components the ratio between accidents and human population and another between accidents and the motor vehicle population. Both should be combined to arrive at the index. A similar index can be worked out for fatal accidents alone.

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FUTURE OF INSURANCE INDUSTRY
According to a study done by FICCI and the Boston Consulting Group, Indias insurance industry is expected to touch USD 400 billion mark by 2020. India's insurance industry is expected to touch the USD 400 billion mark by 2020, with scope for further penetration, but the sector players need to adopt a customer centric operating model, a study has said. At present, the insurance industry comprising 23 life and 24 non-life companies is valued at over USD 66 billion. Besides, there has been a massive increase in the number of people covered. In life insurance, the number of policies in force has increased from about 20 million in 2001 to about 230 million in 2010, a nearly 12-fold increase, the study said. The other big increase in coverage is in the health insurance space. The number of lives covered through health insurance has increased from just 2 million in 2001 to nearly 55 million in 2010, a nearly 25-fold increase, it added. "This progress has been aided by the dramatic shift in the availability of products including better term, ULIPs, whole life, maximum NAV (net asset value) guarantee, auto assistance and disease management," the study said. BCG India Partner and Director Alpesh Shah, however, said the industry has come a long way over the past decade, but the big challenge with the industry is profitability. "Private life insurers have accumulated losses of over Rs 16,000 crore till March 2010. Similarly, the non-life industry has cumulative underwriting losses of nearly Rs 30,000 crore," he said.

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