General Insurance: Gaurav Garg

A couple of days back, my shop was gutted in a fire. All the books of accounts and computer records were destroyed. My shop has been insured for the last 10 years, but there has been no claim. How will insurers compensate without furnishing any records?
The loss, caused by an insured risk, is to be substantiated by the insured to make a successful claim under the policy.

The process of loss-assessment takes into account the policy coverage, approximate cause of loss and the type of shop (whether grocery, garment, stationery etc.). The damages can be claimed accordingly.

In case all records have been destroyed, the surveyor can normally determine the extent of loss on the basis of a physical inspection of the damaged items and correlate it with the balance sheet, trading accounts, submissions to tax authorities and bank statements, since these records will also be available with your chartered accountant or auditors. Historical bank statements can also be easily obtained from your banker. To arrive at a realistic assessment, the surveyor should also be given access to the records of your major suppliers, vendors and customers.

 

What is a comprehensive motor insurance policy? Please explain the features in detail.
A comprehensive motor insurance policy has two sections. One section covers damage to the vehicle from various risks listed in the policy. These include fire, lightning, self-ignition, earthquake, flood, storm, burglary, theft, accidental external damage, riot and strike, malicious damage, terrorism and damage while in transit via road, rail, air or any other medium. This is called own damage cover.

The other section covers third party liability risk. When you drive your vehicle in a public place, and if it meets with an accident, there is a likelihood of a person such as the driver and/or the owner of the other vehicle or any pedestrian getting physically injured or someone's property getting damaged. This could lead to you being legally liable to compensate such persons for the loss or damage suffered by them. This section covers such risks according to the provisions of the Motor Vehicles Act. Apart from this, the section also covers your legal liability towards the driver employed by you, according to the provisions of the Workmen Compensation Act. It also has a personal accident cover of up to Rs 2 lakh per person in respect of the named or unnamed occupants of the car, and a personal accident cover of Rs 2 lakh for you.

The writer is the managing director and chief executive officer of Tata AIG General Insurance. The views expressed are his own. Send your queries to yourmoney@bsmail.in