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Bulk drugs makers hit by hefty fire insurance premium hikes.

Posted on: December 26th, 2019 by shiv No Comments

Bulk drug makers have seen a significant jump in insurance premiums for fire and allied perils this year. Premiums have jumped by at least three times from previous rates.

The increase follows a directive from domestic reinsurer GIC Re in February 2019, that mandate insurers to hike fire premiums for eight sectors. Bulk drug manufacturing is one of these sectors that also include rubber goods, plastics, textiles, thermal power plants, chemicals manufacturing steel plants and freight forwarders’ godowns.

Claims data collected from the Insurance Information Bureau showed a significant rise in loss ratios in fire insurance. For some insurers, loss ratios had crossed 150%, which meant that for every INR100 collected as premium, they paid INR150 in a claim. Natural calamities have led to a rise in fire and allied perils, like lightning and explosions, etc. Chennai floods were the trigger point. There was a huge number of claims from the floods that led to losses for insurers. In addition, in previous years, insurers had depressed premium rates as they engaged in price competition.

Diesel Generator Set Insurance

Posted on: December 26th, 2019 by shiv No Comments

Generators are a commonly used power backup source in India and are immensely helpful in case of power cuts or grid failures and in places that have no electric connection to ensure uninterrupted power supply.

DG Sets have also emerged as the best alternative for standby and emergency power generation. Therefore, almost all industries have and use D.G. Sets.

In the attached publication, we have discussed about following:

  • Composition & working of D.G. Set,
  • How to insure them,
  • How to select the proper sum insured and
  • Precautions to be taken before taking an insurance policy.

If you would like to know more about ‘how to insure a D.G. set’ or if you have a DG set claim that you would like to discuss, please get in touch with us on info@optima.co.in.


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Pollution Liability Insurance

Posted on: November 13th, 2019 by shiv No Comments

The Pollution Liability Policy offers industrial, commercial, and agricultural property owners, managers and developers a broad range of liability protection for gradual as well as sudden and accidental pollution.

The policy can cover:

  • Business interruption and soft costs
  • Liabilities encountered in mergers and acquisitions
  • Acquired and divested properties by endorsement
  • Natural resource damages claims
  • Illicit Abandonment
  • Claims arising from non-owned disposal sites
  • Transportation of wastes or products
  • Products Pollution
  • Catastrophe Management
  • Mold-related & legionella claims

The policy is particularly suitable for:

  • Brownfield redevelopers
  • Owners of contaminated properties
  • Prospective purchasers of contaminated properties
  • Real Estate developers and investors
  • Stakeholders in any commercial or industrial facilities
  • Stakeholders at any site with a history of similar use
  • Mining and reclamation operations
  • Medical Establishments and Laboratories/R&D
  • Light industrial units
  • Commercial retail
  • Environmental businesses
  • Disposal, recycling and waste treatment operations

Jeweller’s Block Policy

Posted on: November 13th, 2019 by shiv No Comments

This is a package policy specially designed for Jewelers & Diamontaires.

The policy comprises four sections which are optional except for section I which is compulsory.

Section I  – Covers loss or damage to jewelry, gold and silver ornaments or plates, pearls, precious stones, cash and currency notes whilst contained in the premises insured, by fire, explosion, lightning, burglary, house breaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism.

Section II – Covers loss or damage to jewelry, gold etc. as described in Section I whilst it is in the custody of the insured, his/her partners, employees, directors, sorters of diamonds or whilst such property (excluding cash and currency notes) is in the custody of brokers, agents, cutters and goldsmiths.

Section III – Covers loss or damage to property described in Section I whilst in transit by registered parcel post, air freight or through angadia.

Section IV  – Covers loss or damage to trade and office furniture and fixtures in insured premises due to fire, explosion, lightning, burglary, house breaking, theft, hold up, robbery, riot, strike and malicious damage and terrorism. This is section can also cover Computer, fax machine and their parts/ accessories & data carrying material, Neon/illuminated signs, Hoardings installed on insured premises and trade equipment.

Some insurers can also extend the policy to cover the following additional risks:

  • Personal Accident for insured, partners and employees
  • Public Liability – Claims due to accidental injury to or death of any person other than insured and its employees & accidental damage to property of such persons
  • WC – Death of or Injury to any employee whilst on duty
  • Money in Transit  or In Premises

The policy is available to jewelers both wholesalers and retailers. The policy cannot be given to establishments whose work is predominantly manufacturing like cutters and goldsmiths. The policy also cannot be given to angadias, brokers or pawnbrokers etc.

The sum insured under Section I and II should represent the cost price of the jewelry items. The sum insured under Section III should represent the maximum loss likely, arising out of any one incident. The sum insured under Section IV should represent the market value of the property.

Carrier’s Legal Liability

Posted on: November 13th, 2019 by shiv No Comments

The policy pays all sums for which the insured shall become legally liable as compensation for physical loss or destruction of or damage to goods or merchandisewhile in the insured’s custody, while in transit, including during loading or unloading and while temporarily housed on or off vehicles in the ordinary course of transit.

Policy Covers

  • Carrier’s liability for cargo in his custody
  • Cargo salvage, transshipment, emergency storage costs
  • Financial loss due to the lost freight in respect of the damaged part of the cargo
  • Legal and other costs, incurred in the litigation against the claimants
  • Costs of average adjusters
  • Breakage due to improper handling
  • Flood or water damage or damage by other cargo

The cover will commence with the loading of cargo on the vehicle and will be in force until unloading of the cargo at the discharging point or expiry of 7 days after the first arrival of the vehicle at the destination town whichever may first occur.

Exclusions

  • Liability under any other contract not under Carriers Act 1865
  • Liability in respect of damage to property belonging to insured or his employees or in his control
  • Inherent defect or vice, wear and tear, deterioration, spontaneous combustion or decay of perishable goods.
  • Consequential loss arising from loss or damage to goods
  • Any consequence of riots, strikes, war, ionizing radiations.
  • Goods  which may be illicit or illegal or smuggled.

India: Mumbai Marathon Organisers Bought US$3.25-mln Insurance

Posted on: November 11th, 2019 by shiv No Comments

The organisers of the Mumbai Marathon, which took place yesterday, bought comprehensive insurance cover INR200 million (US$3.25 million) against event cancellation, public liability and terrorism. Around 40,000 runners participated in the 42-km run, the 11th annual marathon in the city.

Security threats at marathon events have increased following bombings at last year’s Boston marathon.

Procam International, organisers of the Mumbai Marathon, sought a repeat of last year’s comprehensive cover with New India Assurance and Reliance General Insurance.

“This year we have covered all the participants through third party liability insurance in case of any injuries during the event,” Mr Bruno Goveas, public relations director of Procam International, told Hindu Business Line.

He said that since there had been no untoward incident in previous, the organisers did not see a need for a higher insurance cover. The sum insured was based on the organisers’ estimate of expenses as funding for the marathon was received through sponsorships.

The organisers increased security for the event and the Mumbai police took special security measures. Around 2,000 police personnel were on duty, patrolling, helping runners and taking care of the crowd control. Two dozen anti-terror teams and anti-sabotage squads were on standby too. Some personnel kept a lookout in watchtowers and others videographed the proceedings. There were also 1,000 private security personnel.

Mr Praveen Vashishta, chairman of Howden Asia Insurance Brokers, says that in events such as marathons, organisers do not perceive much liability risk since the event takes place in a public place. However, he adds, organisers generally take insurance cover against event cancellation or abandonment due to adverse weather conditions or political tensions.

The Mumbai marathon is a high-profile public event, attracting international runners, CEOs and celebrities. Yesterday’s race was completed uneventfully.

Dry Eyes

Posted on: November 11th, 2019 by shiv No Comments

Tears provide lubrication to the eyes, wash away foreign matter in the eyes, keep the surface of the eyes clear and reduce the risk of eye infection. If the tears produced are inadequate, eyes cannot eliminate dust and other irritants. This can lead to redness, itching, pain, blurred vision and infection in the eyes.

The condition in which the eyes do not produce enough tears or are unable to maintain normal layer of tears to coat the eyes is called Dry Eye Syndrome or Keratoconjunctivitis Sicca.

Treatment for dry eyes

  • Mild cases of dry eyes can often be managed using over-the-counter artificial tear solutions.
  • Your ophthalmologist can prescribe eye drops that increase tear production.
  • Omega-3 essential fatty acid supplements are sometimes recommended to enhance the oil content of the eye. 
  • Keeping natural tears in the eyes longer by blocking the tear ducts through which the tears normally drain. Ophthalmologist may suggest tiny silicone or gel plugs for your tear ducts.
  • In case of severe dry eye syndrome doctor may recommend surgery. 

Self care tips

  • Wear sunglasses outdoors to reduce exposure to drying winds and the sun.
  • Blink regularly when reading or staring at a computer screen for long periods of time.
  • Increase the humidity in the air at work and at home.
  • Avoiding becoming dehydrated by drinking 8- 10 glasses of water each day.


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Sleep- The Golden Chain That Ties Health And Our Bodies Together

Posted on: November 11th, 2019 by shiv No Comments

Managing Director of Indian operations of a large IT company died after a massive cardiac arrest in Mumbai recently at the age of 42. He was very active in sports, was a fitness enthusiast and a marathon runner. In an interview he said that he managed with 4-5 hours of sleep and admitted that he would love to get more sleep. He did everything right: eating proper food, exercising, maintaining proper weight. But he missed getting proper and adequate sleep of minimum 7 hours every day. And that killed him.

Importance of Sleep

Sleep helps your brain to work properly. While you’re sleeping, your brain is preparing for the next day. It’s forming new pathways to help you learn and remember information. Our bodies regulate sleep in much the same way that they regulate eating, drinking, and breathing. This suggests that sleep serves a similar critical role in our health and wellbeing.

Health Benefits of Sleeping

  • Sleep Keeps Your Heart Healthy
  • Sleep Reduces Stress.
  • Sleep Reduces Inflamations
  • Sleep Bolsters Your Memory
  • Sleep May Help You Lose Weight
  • Naps Make You Smarter
  • Sleep May Reduce Your Risk for Depression
  • Sleep Helps the Body Make Repairs

Side Effects of Lack of Sleep

Cutting sleep from seven to five hours a night nearly doubles the risk of death from all causes and in particular cardiovascular disease.

  • Causes Forgetfulness
  • Gaining Weight is More likely whenYou Lack Sleep
  • Skin is Damaged by Lack of Sleep
  • Sleep Hurts the Learning Process
  • A Lack of Sleep Causes Depression
  • Sleep Deprivation can induce oraggravate diabetes, strokes andblood pressure.

Ways to Get a Proper Sleep

  • Stick to a sleep schedule
  • Exercise daily
  • Sleep on a comfortable bed and pillow
  • Avoid alcohol, cigarettes and heavy meals in the evening


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Commercial General Liability Insurance

Posted on: November 8th, 2019 by shiv No Comments

What is a CGL policy?

CGL covers Third party Liabilities arising from various business exposures such as those arising from Premises, Products, Advertising and Personal injury. E.g. injury sustained by a potential customer whilst at the premises of the insured. The injury would be due to a fall on a freshly mopped floor, slipping down the stairs or due to a fire incident in the premises.

Why is Commercial General Liability (CGL) policy required?

Consumers and customers in the upper income strata are increasing getting aware of their legal rights and are exercising them without qualms.

In this scenario it becomes important for large corporations and big brands to protect themselves from alleged and real claims with can cause financial outgo.

What does the policy cover?

The policy is split up into 3 coverages as follows:

  • Coverage A – This covers the damages because of bodily injury and property damage claims that may be made on the insured.
  • Coverage B – Under this section, the insurance company pays those sums that the Insured becomes legally obligated to pay because of Personal and Advertising injury liability.
  • Coverage C – extends to Medical Payments wherein the insurance company agrees to pay medical expenses upto a particular limit for bodily injury caused by an accident on the premises owned or rented by the insured or because of his operations.  These payments are made regardless of fault.

The policy covers businesses against:

  • Legal liability of the insured towards damages to the third party in respect of accidental death, bodily injury or loss of or damage to property.
  • Legal costs and expenses incurred by the Insured with prior consent of the Company.

Limit of Liability:

The total liability of the insurer has two limits: Per Claim Limit called AOA limit (Any One Accident) and Per Annum Limit called AOY Limit (Any One Year)

Major Exclusions are:

  • Pure financial losses and insolvency
  • Product Guarantees
  • Damage to own property
  • Contractual Liability
  • Punitive & Exemplary damages
  • Political risks
  • War, civil war, terrorism & sabotage
  • Prior acts and pending litigation

Directors’ and Officers’ (D&O) Liability Insurance

Posted on: November 8th, 2019 by shiv No Comments

Directors & Officers Liability is the liability of corporate board members and officers arising out of their actions pertaining to their management duties of the company.

Directors’ & Officers’ Liability Insurance insures the personal assets of directors and officers from lawsuits arising out of their capacity as directors or officers of the company.

Some of the heads of officer liability – allegations and offences that can invite legal action are:

Hostile Work Environment
A female employee at a family-owned company claimed that a male supervisor offered to improve her performance evaluation in exchange for sexual favors. According to the employee, after she refused, her evaluations worsened and she ultimately was fired. She sued both the company and its CEO. She claimed that the CEO was personally liable for damages because he knew or should have known about past incidents of sexual harassment by the male employee, and failed to terminate or otherwise discipline him. Rather than face the expense and risk of trial, the company and the CEO settled all claims against them for Rs. 90 lakhs. In addition, defense costs incurred were Rs. 50 lakhs.
  • Breach of fiduciary duties
  • Inaccurate financial statements
  • Mismanaging corporate assets
  • Fraud and dishonesty
  • Misuse of insider information
  • Environmental and pollution claims
  • Product liability
  • Conflicts of interest
  • Wrongful dismissal of employees
  • Breach of health and safety standards
  • Anti-trust violations
  • Sexual discrimination and harassment; disability discrimination
  • Corporate Manslaughter – management failures that result in death
  • Irregularities in Securities issues
  • Tax evasion, tax liabilities and penalties
  • Unauthorized or imprudent loans and investments
  • mismanaging mergers and takeovers
  • Insolvency actions
  • Breach of minority shareholder rights

Litigation can come from:

  • Shareholders and other investors
  • Creditors
  • Lenders
  • Customers
  • Statutory Authorities
  • Employees
  • Competitors

The policy pays for the legal expenses and the court awards against the directors and officers.



Optima’s core group has more than 100 man-years of experience in insurance. Our experience has trained us in reading the fine print of insurance policies, understanding it and applying it for the benefit of our clients.

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