I have just opened a small shop and want adequate insurance for it. What kind of schemes are available for shopkeepers and what type of cover should I get?
Pack up: You must insure all your valuables under section 3 for All Risks.
Basically, the risks you need to cover will depend on the nature of your business. For example, if you deal in cash, you may need cover such as cash in safe or cash in transit. The nature of stock is another important consideration while opting for a cover.
The best approach would be to look at the shopkeeper’s package policy, and pick and choose the risks applicable to your business. Like a householder’s package policy, a shopkeeper’s policy offers to cover a host of perils to which a shop is exposed. Apart from covering the risks of fire and other calamities (such as loss due to flood, storms, lightning, earthquake, impact damage by a vehicle or an animal), burglary and housebreaking, the policy also covers cash (in the counter, in safe or in transit), liability towards employees, breakdown of equipment, plate glass fixed in the shop, loss caused by the employees, etc.
You would also have the option of choosing the limits of liability under each section, according to your specific requirements.
My cousin, who was working with a private company, died in an accident. His company had taken a personal accident policy for him for Rs4 lakh. In addition, he was holding a personal accident (PA) policy for Rs5 lakh. Under which policy should his family lodge the claim?
The legal heirs to your cousin can make a claim under all the valid PA policies as on the date of accident leading to the death of the insured. The reason for this is that unlike most other general insurance products, PA insurance is not a contract of indemnity—human life is invaluable and no amount of money can compensate for the death or disablement of a human being.
Therefore, the family of your cousin is entitled to receive the sum insured under both policies.
I was going out of the station when two bags containing valuables were stolen from my car, which was parked there. All the contents were covered under my householder’s policy. Will my claim be entertained by the insurers even though the contents were stolen from outside the house?
It depends on the coverage provided under the householder’s policy. If the contents are covered under section 2 of the policy against the risk of burglary and housebreaking, the coverage is limited to the premises. In that case, the underwriters will not entertain the claim. However, if the valuables are covered under section 3 for All Risks, the cover is valid anywhere within the geographical territory of India. Therefore, the claim will be payable provided, of course, there is no violation of the conditions stated in the policy document.
I gifted my flat to my sister and it was transferred in her name through a family transfer. The flat is insured in my name. Can I also transfer the fire policy in her name, or will she have to purchase a new one?
Your sister will have to get the house insured again, under a fresh insurance policy in her own name. This is because there is no provision available in the fire tariff to transfer an insurance policy on an immovable property.
Since the property now belongs to your sister, in terms of insurance you no longer have an insurable interest in it. Therefore, the existing policy does not have any meaning. It is, therefore, best to get the policy cancelled, claim the refund, if any, and get a new policy issued in your sister’s name.
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