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Insurance cover to pro- Reliance General Insurance IPO gets SEBI nod
Reliance General Insurance Company, said it has received markets regulator
tect your teeth Sebi's go ahead to float an initial public offering. The
Soon, all dental expenses may be
IPO comprises fresh issue of little over 1.67 crore
covered under an
shares by Reliance General Insurance besides an of-
insurance policy
fer for sale of 5.03 crore shares by Reliance Capital.
for the first time
in India. Ocare The company plans to utilise the proceeds from the
founded by Neeraj fresh issue towards augmenting the solvency margin and consequently increas-
Sheth, a dentist ing the solvency ratio. Besides, the money will be used to meet future capital
from Mumbai, has requirements, which are expected to arise out of growth.
applied for a license to float a den- The Securities and Exchange Board of India has issued its final "observations" to
tal insurance company. There are the draft papers filed by Reliance General Insurance in October, the company
five standalone health insurance said in a statement. The regulator's "observations" are very important for any
companies in India but none provide company to launch any public offers. At the end of March this year, Reliance
complete dental cover. This com- General Insurance's book value stood at Rs 1,250 crore.
pany may offer cosmetic dental sur-
geries apart from teeth extraction NIC & ICICI Lombard face Rs. 300-crore payout on Fire
procedures and others.
at Haldiram`s
"We are looking to start as a dental
National Insurance Company Limited and ICICI Lombard may take a combined
insurance company and expand into
hit of Rs 300 crore from the fire that gutted the
other healthcare insurance," said
manufacturing unit of Haldiram's, the biggest sweets
Neeraj Sheth founder Ocare. "Today,
and snacks maker in the country. The fire, which had
only those procedures are covered,
raged for 15 hours from September 6 and had taken
which requires domiciliary medical
more than 100 fire tenders and more than 200 fire-
care." The dental service market is
fighters to douse, destroyed a new manufacturing
around Rs 12,000 crore. There is no
unit with modern machines in Noida's Sector 68.
insurance company offering dental
insurance to individuals. Today, root National Insurance Company has paid the first cheque of Rs 50 crore on account
canal costs Rs 1,500-8,000, teeth ex- of loss due to fire. "The claim has come due to fire in one of the units which had
traction up to Rs 800. Cosmetic den- modern equipment and were manufacturing automated potato chips and other
tal surgery costs upwards of Rs snacks," said National Insurance Company chairman K Sanath Kumar. "Our claim
25,000 and is not covered under any payout may be around Rs 300 crore including losses due to fire and business
group insurance policy. interruption," he said.
Health insurance is the fastest grow- Kumar said that Haldiram's is reconstructing the unit quickly so there may not
ing segment in the general insur- be huge claims due to business interruption. According to an executive aware
ance segment. It contributes 30% to of the matter, the property damage is estimated at Rs 250 crore and business
the sector. interruption loss, about Rs 430 crore.
IMPACT OF
HEALTHCARE
ACQUIRED
INFECTIONS ON
LENGTH OF STAY AND
TREATMENT COSTS
Abstract
Healthcare-associated infections (HCAI) are infections that patients acquire during the course of receiving treatment
for other conditions within a healthcare setting. HCAI are preventable complications occurring with varying but with
significant frequency. HCAI are preventable complications which adversely affect the Length of Stay (LOS), morbidity
and mortality of the patients.
A review of literature was undertaken to find the magnitude of the reported incidence rate, LOS, morbidity & mortality
rates reported in literature.
HCAI have been reported to have an average incidence rate of 10.8 % (3.9 % to 34 %.). In high income countries
approximately 30% of ICU patients are affected by at least one HCAI.
Additional length of stay in HCAI varies from 9.3 days to 23 days in different studies. Patients with HCAI accounted for
20.2% of the total bed days while 79.8 % bed days were accounted for patients without HCAI. Re-admission rates were
also found to be higher in patients with HCAI (26%) as compared to patients without HCAI (19.6%).
A 30 day mortality rate in Clostridium difficile infection is
About the author estimated to vary from 3%-30% in different countries. 90-
day mortality rate in hospitalized older adults rose from
Prof. Dr. Bharat S. Powdwal 33.2%-49.4% in cases with bloodstream infection. One
MS, MBA, Professor Symbiosis Institute of Health Sciences, year mortality was 15.2% in patients without HAI as
Dr. Tulna Jaiswal compared to 24.5% in patients with HAI. The extra
MBBS, MBA HHM Student Symbiosis Institute of Health mortality due to HCAI was 9.3%.
Sciences Common HCAI are Catheter Associated Urinary Tract
Dr. Sharvari Shukla Infections, Central Venous Catheter Associated Blood
Dr. Biranchi Jena Stream Infections, Ventilator Associated Pneumonia and
16 The Insurance Times, January 2018
Surgical Site Infection. Different infections have a different in a patient during the process of care in a hospital or other
prevalence rates in different wards related to source of health care facility which was neither present nor incubating
infection. Ventilator Associated Pneumonias are more at the time of admission. HCAI can affect patients in any
common in ICUs where patients are on assisted type of setting where they receive care and can also appear
ventilation. Surgical site infections are more frequent in after discharge. Furthermore, they include occupational
surgical wards. Catheter associated Urinary Tract infections among staff. HCAI represents the most frequent
Infections and Central Venous Catheter related Blood adverse and preventable event during care delivery and no
Stream Infections may have high prevalence in both institution or country has ever been able to claim to have
surgical and medical wards. Burns wards also have a high solved the problem as yet.
prevalence rate of HCAI. Gynecology & Obstetrics wards
have usually a low prevalence of HCAIs. Based on a significant amount of data made available from
various countries, it is estimated that each year, hundreds
As the infective organisms originate from the hospital
of millions of patients around the world are affected by
flora, they are resistant to many of the commonly used
HCAI. The burden of HCAI is several fold higher in low and
antibiotics, thereby necessitating use of higher drugs and
middle-income countries than in high-income countries.HCAI
higher cost of treatment.
results in prolonged hospital stays, long-term disability,
The financial impact of this is seen in terms of increased increased resistance of microorganisms to antimicrobials,
burden of treatment costs, from increased Length of Stay massive additional costs for health systems, high costs for
(LOS) loss of earning due to high and prolonged morbidity patients and their family, and unnecessary deaths.
due to absenteeism and loss of earning life span of bread
earner due to higher mortality. This increased cost of Although HCAI is the most frequent adverse event in health
treatment adds to the financial burden to the payers care, its true global burden remains unknown because of
namely, government, insurers as well as patients paying the difficulty in gathering reliable data, most countries lack
out of pocket. surveillance systems for HCAI, and those that do have them
Incidence of HCAI differs from country to country and from struggle with the complexity and the lack of uniformity of
hospital to hospital in different studies and hence the criteria for diagnosing it.[1]
financial burden varies accordingly. Cost of treatment can
be reduced by controlling HCAI. Findings:
Payers such as Government, Insurance companies and Health care associated infection (HCAI), also referred to as
Hospitals should get together to ensure mitigation of the "nosocomial" or "hospital" infection, is an infection occurring
risks of HCAI and bring down the cost of treatments in in a patient during the process of care in a hospital or other
hospitals. health care facility which was not present or incubating at
the time of admission. HCAI can affect patients in any type
Aim: of setting where they receive care and can also appear after
discharge. Furthermore, they include occupational
The aim of this study was to evaluate the impact of HCAI
infections among staff.[1, 2, 3, 4, 5].
on LOS, morbidity, mortality andhealth care costs.
Methodology:
In an attempt to find all relevant information related to the
topic an extensive search of literature in English language
was performed using online search engines: PubMed, Google
Scholar and other digital sources available online. Basis
PRISMA guidelines 19 articles providing information on LOS
and economic impact in the various types of HCAI were
included in this review article.
Introduction
Health care associated infection (HCAI), also referred to as
"nosocomial" or "hospital" infection, is an infection occurring
The Insurance Times, January 2018 17
HCAI can also present as postoperative infection within 30 treatment. 90,000 of these patients succumb to nosocomial
days from surgery or within 1 year if implantation surgery, infections every year. [11]
device related infections due to central venous catheters,
urinary tract catheters, ventilator treatment, or One year mortality was 15.2% in patients without HAI as
endotracheal tubes or indwelling cerebral ventricular compared to 24.5% in patients with HAI. The extra
drainage, drug-related infections defined as C difficile mortality due to HCAI was 9.3%. [10, 12, 13]. Klevens et al
enteritis, infections related to chemotherapy for cancer, or estimated a US case fatality rate of HAI in hospitalized
infections due to other immune modulating drugs or patients to 5.7% during 1999-2002, with the highest
corticosteroids; and other infections occurring after mortality rate in ventilator associated pneumonia (14.4%)
48?hours of admission. The HAI was categorized according and catheter associated bloodstream infections (12.3%).
to the suspected anatomic site of the infection origin.[6] [13]. In Europe the 30 day mortality rate for Clostridium
difficile infection (CDI) is estimated to be from 3%-30% in
different countries. [14]
Incidence
HAIs are known to comprise the largest part of adverse Kaye et al showed that the 90 day mortality rate in
events in health care and cause prolonged hospital length hospitalized older adults rises from 33.2%-49.4% in patients
of stay (LOS) and deaths. [2, 3, 4, 5] with a health care associated bloodstream infection. [15]
In US 20, 00,000 patients are hospitalized every year for Chopra et al found that it was about twice as common in
18 The Insurance Times, January 2018
patients with CDI who had a readmission within 30 days The causes of HCAI have been fairly well identified. Amongst
compared with all other patients (30.1% vs 14.4%). [19] the important ones are- improper hand hygiene, prolonged
and injudicious use of catheters, improper handling of
Cost of Treatment: urinary collection systems and airborne transmission of
infectious agents caused by less than adequate respiratory
A study by the Center for Disease Dynamics Economics &
precautions. [6]
Policy has shown the additional cost of treatment due to
HCAI in US amounts to 9.8 billion US dollars annually.
Healthcare associated infections (HCAI) and antimicrobial
resistance are two main threats to the morbidity & mortality
The healthcare payer system has to meet the additional
to patients being treated in intensive care units. HCAI
expenses due to, the additional length of stay, the cost of
become major determinants of patient treatment outcome.
additional higher drugs that need to be administered due
The associated increased morbidity, mortality, and excess
to drug resistance of the infecting organisms and the
LOS have a direct impact on the financial costs of treatment.
prolonged morbidity and higher mortality with its
accompanying loss of earning for the family.
Healthcare acquired infections rate has been rising in
developing countries. This has led to significant increase in
The 11.4 % additional cost was related only to the additional
LOS and medication costs. Emergence of drug resistant
LOS. There is also additional cost of treatment due to the
species of common infective agents such as MRSA, VRE, and
higher antibiotics administered due to drug resistance to
others add to the burden of medical treatment costs.
routine drugs.
Patients with HCAI spend higher number of bed days and
Discussion: cost higher than average patients without HCAI. Patients
Healthcare associated infections (HCAI) and antimicrobial with HAI have a larger proportion of readmissions compared
resistance are principal threats to the patients of intensive with patients with no HAI (29.0% vs 16.5%).
care units, surgical and burns wards. These remain the major
determining factors for determination of patient treatment Of the total bed days, 9.3% was considered to be excess days
outcome. They are associated with increased morbidity, attributed to the group of patients with an HAI. The excess
mortality, excess & prolonged hospitalization and higher LOS comprised 11.4% of the total costs [10]
financial costs of medical treatments. The incidence of HCAI
varies between 3.9% and 34% of all hospital admissions.[7]. Increasing healthcare costs affect the economical
Patients affected by HCAI have a longer hospital stay functioning of healthcare providers and payers. Apart from
sometimes in excess of 23 days which is about 4 to 5 times the direct financial burden on patients it also leads to
the average LOS of 5 days for their counterparts who have indirect costs in form of loss of income for the patients and
not been infected by HCAI. their families.
Also, patients with HCAI discharged from the hospital have It is imperative for healthcare organizations and payers to
a higher readmission rate of 29% (as against readmission make hospitals accountable for the occurrence of HCAI and
rate of 16.5 % for non HCAI patients)for any of the its related increase in direct and indirect cost of treatment.
complications of HCAI thereby adding to the cost of a
second hospitalization under bed days and medication HCAI also lead to significant morbidity & mortality adding
charges for higher medicines in infections by drug resistant to the sufferings of the patients and their families.It may
organisms. be argued that an increase in mortality would reduce the
LOS and cost of treatment but it may be equally true that
Patients with HCAI have a higher 30 day mortality of 17.4% the prolonged morbidity period and cost may then convert
as compared to patients without HCAI. This may falsely a morbidity into mortality.
reduce the cost and LOS findings due to early death
following HCAI. Follow up patients with HCAI have a lower Sheng et alfoundan additional LOS was around 20 days for
mortality of 15.8%. patients affected by an HCAI.
Health care associated infections are largely preventable, They also addressed a difficulty regarding estimating costs
but are associated with considerable health care burden. for HAIs among inpatients by pointing out a higher mortality
The Insurance Times, January 2018 19
rate among patients with an HAI than among uninfected Associated Infection -Clinical Infectious Diseases,
Volume 65, Issue suppl_1, 15 August 2017, Pages S50-
patients.
S54,https://doi.org/10.1093/cid/cix433 Published: 01
August 2017]
Death reduces the direct medical costs but represents for
7. S Lahsaeizadeh, H Jafari, M Askarian - Healthcare-
each patient a unique loss of potential life years. [10, 18] associated infection in Shiraz, Iran 2004-2005 ,Journal of
Hospital Infection, 2008 - Elsevier
Conclusions 8. WHO Infection Control. http://www. who.int/csr/
HCAI are easily preventable complications of treatments in bioriskreduction/infectioncontrol/en/index.htm/
any healthcare settings. They contribute significantly to 9. http://www.cdc.gov/nhsn/
increase in healthcare costs by increasing LOS and higher 10. Mikael Rahmqvist, Annika Samuelsson, SalumehBastami,
medication costs due to infections by drug resistant Hans Rutberg, - Direct healthcare costs and length of stay
related to healthcare acquired infections in adult patients
organisms. HCAI also increase the morbidity and mortality.
based on point prevalence measurements - American
Focusing on reduction of HCAI can reduce healthcare cost Journal of Infection Control.Volume 44, Issue 5, 1 May 2016,
burden on the payer systems. Healthcare providers need to Pages 500-506
focus on the prevention of HCAI and Healthcare payer 11. Joyce M. Black, Jane H. Hawks. Medical Surgical Nursing:
systems should hold healthcare providers accountable for Clinical Management for Positive Outcomes, 8th Edition,
the expenses related to HCAI. Vol I, Pg 328. Perspectives on Infectious Diseases and
Bioterrorism.
12. Dramowski A, Whitelaw A, Cotton MF], Burden,
Summary Spectrumand impact of healthcare infection at a South
HCAI are preventable complications of Healthcare African Childrens' Hospital - JHJ Hospital Infect 2016;
treatments. LOS in hospital is increased due to HCAI and so 94(4):364-372
are the treatment costs related to duration of hospital stay 13. R.M. Klevens, J.R. Edwards, C.L. Richards Jr, T.C. Horan, R.P.
as well as use of higher medications as infective agents are Gaynes, D.A. Pollock, et al. Estimating health care-
resistant to commonly used medicines. HCAI also increase associated infections and deaths in U.S. hospitals, 2002,
the morbidity and mortality of patients undergoing Public Health Rep, 122 (2007), pp. 160-166
treatment. This poses additional financial burden on 14. P.N. Wiegand, D. Nathwani, M.H. Wilcox, J. Stephens, A.
healthcare payer system which can be controlled by proper Shelbaya, S. Haider, Clinical and economic burden of
Clostridium difficile infection in Europe: a systematic
control and surveillance of HCAI. review of healthcare-facility-acquired infection, J Hosp
Infect, 81 (2012), pp. 114
Financial Support & Sponsorship: Nil
15. K.S. Kaye, D. Marchaim, T.Y. Chen, T. Baures, D.J. Anderson,
Conflict of Interest: There are no conflicts of interests. Y. Choi, et al., Effect of nosocomial bloodstream
infections on mortality, length of stay, and hospital costs
in older adults JAGS, 62 (2014), pp. 306-311
References:
16. R. Plowman, N. Graves, M.A. Griffin, J.A. Roberts, A.V. Swan,
1. http://www.who.int/gpsc/country_work/burden_hcai/en/
B. Cookson, et al. The rate and cost of hospital-acquired
2. B. Allegranzi Report on the burden of endemic health infections occurring in patients admitted to selected
care-associated infection worldwide, Geneva specialties of a district general hospital in England and
Switzerland: World Health Organization (2011) the national burden imposed. J Hosp Infect, 47 (2001),
3. J.P. Burke, Infection control, a problem for patient safety, pp. 198-209
N Engl J Med, 348 (2003), pp. 651, 656 17. S Lahsaeizadeh, H Jafari, M Askarian - Journal of Hospital
4. H. Rutberg, M. BorgstedtRisberg, R. Sjodahl, P. Nordqvist, Infection, 2008 - Elsevier
L. Valter, L. Nilsson- Characterisations of adverse events 18. W.H. Sheng, J.T. Wang, D.C. Lu, W.C. Chie, Y.C. Chen, S.C.
detected in a university hospital: a 4-year study using the Chang, Comparative impact of hospital-acquired
Global Trigger Tool method, BMJ Open, 4 (2014), p. e004879 infections on medical costs, length of hospital stay and
5. N. Graves, D. Weinhold, E. Tong, F. Birrell, S. Doidge, P. outcome between community hospitals and medical
Ramritu, et al. , Effect of healthcare-acquired infection centres. J Hosp Infect, 59 (2005), pp. 205-214
on length of hospital stay and cost , Infect Control 19. T. Chopra, A. Neelakanta, C. Dombecki, R.A. Awali, S.
HospEpidemiol, 28 (2007), pp. 280, 292 Sharma, K. Kaye, et al., Burden of Clostridium difficile
6. Philippe Brouqui Sophia Boudjema Alberto Soto Aladro infection on hospital readmissions and its potential
Eric Chabrière Olga FloreaHoa Nguyen Jean Charles impact under the Hospital Readmission Reduction
Dufour - New Approaches to Prevent Healthcare- Program. Am J Infect Control, 43 (2015), pp. 314-317
Exclusions:
(a)Riot and Strike (available as add-on), war perils, nuclear
and radiation perils, contractual liabilities, liability to own,
Rating:
Liability Insurance, Products Guarantee
(a) Gross Freight Receipts (GFR), (b) The number of containers
handled (in terms of 20 TEU). The rate shall depend on (i) Limit Insurance Policy:
of liability for cargo and TP Liability (ii) Extensions Opted (iii) The product guarantee policy is designed to protect the
Deductibles (iv) Past claims experience (v) Nature of cargo insured against legal liability arising out of failure of products
handled (vi) Destination of Cargo e.g., the % of cargo normally to fulfill their intended function. The policy will pay for (i)
dealt with towards USA/South America/Eastern Europe/Africa The cost of repairing or replacing a defective product, (ii)
etc. (vii) Quality of Management. The cost of recalling defective products (iii) The financial
losses caused by such products where there is no injury to
Liability Insurance, Nuclear Energy Liability or damage to property of third parties. Extension is available
to pay for insured's lost sales as a result of damage to the
Insurance: brand name of the product, advertising expenses already
Usually provided by various pools formed by insurers. Two
incurred, advertising expenses to re-launch the product etc.
types of overage available (i) The facility form for operators
for nuclear facilities and the suppliers. (ii) Transporters' forms
for those that provide services, material etc., for such
Liability Insurance, Products Liability:
facilities or transport property to and from a facility. The Product liability Insurance provides an indemnity to the
coverage is restricted to liability arising out of nuclear manufacturers or distributors and/or components is respect
accidents. Thus, these also need CGL policy. of their liability for accidental damage or injury resulting
from defects in their products Product liability Insurance also
Liability Insurance, Personal: provides an indemnity to manufacturers and others against
third party claims for personal injury or damage to property
The Policy for individuals in respect of legal liability arising
which arise from the purchase or use of product. Ordinary
out of their own negligence or the negligence of their family
public liability policies concern themselves, in the main with
members. These policies are known as "Personal Policies".
accidents occurring on specified premises. Product liability
Liability Insurance, Pollution Coverage: Insurance policies deal with the liability that may arise
The practice varies among insurers. Some incorporate a wherever the claims arising from the utilization of the
general exception in the Public Liability policy, others covered product manufactured, sold, handled, or distributed
consider each risk separately and decide to cover or exclude by the insured or other trading under his name if the
pollution liability. accident occurs after possession has been relinquished to
other and away from premises owned, rented, or controlled
Liability Insurance, Product Recall Insurance: by the insured.
The policy indemnifies the insured for recall expenditure
incurred by insured. The cover includes costs such as Liability Insurance, Professional Malpractice:
customer notification, shipping costs and disposal costs. The liability of a professional for errors or omissions in the
Coverage generally applies to the firm itself though pursuit or his profession.
additional coverage can be purchased to cover the costs of
third parties. This policy is usually purchased by Liability Insurance, Property Damage:
manufacturers such as food and beverages, toy, automobile Insurance against loss due to claims for damages because
parts manufacturer and electronics companies. of injury to others property.
26 The Insurance Times, January 2018
Liability Insurance, Public Liability Industrial liability to pay compensation including Claimant's costs, fees
and expenses anywhere in India in accordance with Indian
Risks:
Law. The Policy applies to non-industrial risks such as Hotels,
The Insurance Policy shall cover applies to Industrial and
Motels, Club Houses, Restaurant, Boarding and Lodging
storage risks such as Depots, Warehouses, Godowns, Tank
Houses, Flight Kitchens, Cinema Halls, Auditoriums,
farms etc with aggregate limits of Indemnity any one year
Theatres, Public Halls, Pandals, Open Air Theatres,
/during the policy period within the geographical limits of
Residential Premises, Offices/Administrative Premises,
India. Policies shall cover all sums which the Insured
Medical Establishments, Institutions, Airport Premises (other
becomes legally liable to pay as damages to third party in
than aviation liabilities), Schools /Educational Institutions,
respect of accidental death/bodily injury/disease and loss of
Libraries, Exhibitions, Fairs, and Fetes, Stadiums and Pandals,
or damage to property arising out of claims first made in
Permanent Amusement Parks, Film Studios - Indoor &
writing against the Insured during the Policy period,
Outdoor, Zoos, Depots, Warehouses, Godowns, Shops,
including legal costs and expenses incurred with prior
Tank Farms and similar other non-industrial risks with
consent of Insurers, subject always to the limits of indemnity
aggregate limits of indemnity any one year /during the
and other terms, conditions and exceptions of the policy. It
policy period.
shall not be permissible to issue a Public Liability Policy with
unlimited liability. The maximum ratio of limit of indemnity
Policies shall cover all sums which the Insured becomes legally
any one accident to any one year shall not exceed 1:4.
liable to pay as damages to third party in respect of accidental
Policy can be extended to cover Pollution Risks, death/bodily injury/disease and loss of or damage to property
Transportation risks outside Insured's Premises, Cover for arising out of claims first made in writing against the Insured
multiple units, Act of God perils, Technical Collaborators during the Policy period, including legal costs and expenses
Liability For the purpose of rating industries are classified incurred with prior consent of Insurers, subject always to the
under four groups. The Company will indemnify the insured limits of indemnity and other terms, conditions and
against their legal liability(other than liability under the exceptions of the policy. It shall not be permissible to issue a
Public Liability Insurance Act, 1991 or any other Statute that Public Liability Policy with unlimited liability. The maximum
may come into force after the issue of this policy) to pay ratio of limit of indemnity any one accident to any one year
compensation including Claimant's costs, fees and expenses shall not exceed 1:4. Policy can be extended to cover Pollution
anywhere in India in accordance with Indian Law. Risks, Cover for multiple units, Act of God perils.
Indemnity Limits: Company's total liability to pay Liability Insurance, Ship Repairers:
compensation, Claimant's costs, fees and expenses and This covers liabilities of ship repairers towards vessels
defence costs shall not exceed the Any One Indemnity limit repaired by them.
stated in the Schedule. Indemnity Limit applies to any one
claim or series of claims arising from one originating cause. Liability Insurance, Stockbrokers Liability:
Any One Year Indemnity Limit shall represent the total
Stockbrokers can be liable for wrong advice to clients and
amount of Company's Liability during the Policy period.
also failure to execute or wrong execution of clients'
instructions to trade. One of the condition of the coverage
Liability Insurance, Public Liability Non Industrial
is that they are registered members of a Stock Exchange.
Risks:
The Company will indemnify the insured against their legal Liability Legal, Losses:
Legal liability losses may be classified by any of several
characteristics. One possible classification is in terms of the
entities to which liability may indebted Customers, members
off the general public, employees, governmental bodies to
which an organization may own fines and possibly others.
Another way of classifying liability losses is by the source off
the legal duty whose breach has brought legal liability upon
the organization: liability for breach of a contract (through
intention non-performance or violation of a warranty, for
example), tort or criminal liability.
The Insurance Times, January 2018 27
Finally, liability losses may be classified according to whether Liability, Single Limit:
the amounts the firm must pay, or the revenue of which it Liability Insurance that imposes a single Policy limit on all
is deprived, arise from payment off damages or fines to an claims per occurrence, regardless of the mix off bodily injury
entity whose legal rights have been violated, payment of and property damage and the number of claims.
legal defence costs, or expenses incurred or revenues lost
because of the need to modify or cease a profitable activity.
Liability, Specific Exposures and Problems:
A business faces liability arising out of its property and
Liability Legal, Losses: activities. These sources of liability can be categorized as
That liability which courts recognize and enforce as between follows:
parties litigant. 1. Ownership, use, or possession of premises,
2. Activities that are considered to be a public or private
Liability Legal, Dram Shop Law: nuisance,
Liquor liability laws are called dram shop laws. They provide
3. Sale, manufacture and distribution of products or services.
that a person serving someone who is intoxicated or
contributing to the intoxication of another person may be 4. Property of others in the care, custody or control of the
liable for injury or damage caused by the intoxicated person. business.
Liability Legal, Employers: The common law or special 5. Fiduciary relationships such as the management of
statutory responsible of employers for job related injuries employee benefit plan assets or service on the firm's
and disease caused by their negligence but not covered Board of Directors.
under workmen's compensation. 6. Professional activities.
7. Vehicles - usually automobiles but may include aircraft,
Liability Legal, Joint and Several: watercraft and other vehicles.
Liability under which each off several joint wrong doers are 8. Employees who may suffer a job-related injury or
responsible either on a combined, undivided basis, or on an disease.
individual basis, for the full amount of damages for which
9. All property and activities not listed under any other
the several wrong doers are collectively responsible.
category.
Insurance Quiz
1. Yes bank has inked agreement with which company.
2. Which health plan offers a reserve benefit to customers.
3. Which platform has been launched to track health related information’s.
4. Which Insurance Company gets a compulsory cession from all insurers.
5. The study 360 Well Being Score has been released by __________.
6. Which is the 3rd largest line of business in general insurance.
7. The insurance regulator has set up a panel to look into innovations in insurance involving_____________,
The answers of the quiz are from this issue itself. Just go through our journal and you will find the answers. Send your
answers by Email to insurance.kolkata@gmail.com and you can get a chance to win an attractive gift. The gift will be
offered to the person giving all the correct answers. If we receive more than one entry with all correct answers the name
of winner will be drawn from lottery. The last date of receipt of entry is 28th January, 2018.
So Hurry and Submit your entry at the earliest !!!!
M
arine Insurance is the oldest form of insurance 3) Any liability to a third party may be incurred by the
and is said to be the foundation base of all owner of or other person interested in or responsible
the other types of insurance policies. Marine for insurance property by reason of maritime perils.
insurance policies have been used since ages
by traders/merchants/ship owners/other Marine insurance covers the losses or damages caused to
contingent interests for protecting their varied maritime ships, terminals and any transport or cargo by which goods
interests. Marine insurance protects the insurers against the are transferred, acquired, or held between different points
losses or damages against the marine risks during the of origin and final destination. The term also includes inland
marine adventure through multiple modes of transportation. marine but it is mostly used in the context of ocean marine
insurance. Marine insurance is a haven for transporters and
According to section 2(d) of Marine Insurance Act, 1963, shipping corporations because it helps to lower the aspect
Marine adventure includes any adventure where: of financial loss due to cargo loss.
1) Any ship, goods or other movable referred to as
insurable property is exposed to maritime perils, It is a comprehensive cover to protect the loss or damage
to goods while being transported from road, rail, air, or sea.
2) The earning or acquisition of any fright, passage money,
It includes separate cover for the loss or damage to the
commission, profit or other pecuniary benefit, or the
cargo, the ships, freight, and Inland transit. Sharing of losses
security for any advances, loans or disbursements is
of few among many is the essentiality of the Insurance i.e.
endangered by the exposure of insurable property to
sharing burden of few unfortunate in the commonality
maritime perils,
environment who is exposed to the same risk.
About the author In modern times Marine Insurance covers all the risks of the
maritime property at an agreed price meeting the
Harpreet Singh requirements of Sales contracts (INCOTERMS) between the
Head - General Insurance overseas traders for LC/banking purposes and become a
Sridhar Insurance Brokers (SIB) India
facilitator of conduction of the modern global trade. The
38 The Insurance Times, January 2018
Coverage is made as per International Institute Cargo 4. Marine Insurance is also available for Cargo
Clauses (ICC) - A clause for sea voyage which has the well Ships (Hull Insurance)
defined terms, conditions, exclusions, period of coverage, Marine Insurance is available for cargo ships also called
loading/unloading coverage, warehouse to warehouse as Marine Hull Insurance. The aim of Hull insurance is
coverage etc. with add ons like War & Strikes Riots and to protect the ships, its machinery and equipment from
Common Commotions (SRCC). unforeseen dangers and conditions. This insurance
covers all kinds of vessels navigating in any permissible
Marine insurance policies have a very fluid underwriting water body. The use of bigger vessels, such as the
process, and most policies are open policies which can be massive 18,000 TEU EEE offer economies of scale but
molded as per the needs of the insured. along with it also increases the risks of loss or damage.
So, with the bigger boats and vessel being used,
Here are some factors which show marine insurance for cargo ships is becoming more vital these
insurance cover is really important: days.
1. Transporting Goods across the nations is much
5. Insure the goods in Transit for Single or Multiple
safer than before (But accidents do occur)
Earlier transportation of goods used to be difficult as
Journeys
lesser modes of transports were available. But now, with Marine insurance policies are available in different
a constant increase in the transportation business and structures. Based on how frequently one needs to
new sea routes being ascertained, transferring of raw transfer the goods, a structure can be selected
materials and finished goods within and outside the accordingly. These range from Annual Turnover Policy
nation has become quite convenient and safe. But, the (ATOP), Specific Voyage, Open Policy and Annual Policy.
accidents and risks cannot be warded off completely. The
incidents of piracy of ships have increased in the recent 6. Marine Insurance covers cost of emergency
times. Also, nothing is guaranteed whatsoever that there storage
will be no accident of the carrier or theft of the goods. The needs for emergency storage might arise in case
there is emergency condition like extreme weather
2. Worldwide Coverage conditions, riots or some natural disaster such as floods
Certain insurance companies provide global marine that prevent the cargos to reach its final destination.
insurance for all types of marine risks. These policies aim The required expenses in such cases are also borne by
at protecting the single vessels for complex marine policies if special covers are taken for it.
multinational businesses. It is need of the hour for the
businesses which have subsidiaries in more than one 7. Coverage for goods discharged at a distress port
nation. Multinational businesses need a global policy to Goods discharge is often interrupted due to problems
ensure worldwide coverage for the to and fro of the like collapse of a part of a bridge to the port,
products. overturning of the truck that was carrying the goods
during night or any such accident. Marine insurance
3. A Marine Policy covers each and every type of offers covers the risk of such prevented goods discharge
goods transport:
Marine insurance policy is applicable to all kinds of goods
such as:
Y Packed or general Cargo: The packed cargo includes
break bulk (goods packed in boxes, crates, drums
and on pallets), neo bulk (lumber, paper, cars and
trucks) and unitized cargo (packed in big containers)
Y Unpacked or bulk cargo: Bulk cargo includes Liquid/
Wet Bulk (petroleum, gasoline, LNG [Liquefied
Natural Gas], liquid chemicals, Juice & Wine in
tankers) and Dry Bulk (coal, grain, iron ore, bauxite
& cement carried in bulk carrier.)
Cancer Protect
Plan
from Future Generali India Life
Insurance Co. Ltd.
G
etting diagnosed with Cancer is really heart breaking, and because of our lifestyle and surroundings, the
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Coverage Options
Benefits offered under various Plan Options.
Lump Sum Cover Lump Sum Cover with Income Benefit
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the Minor Stage +
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whichever is earlier.
If Cancer is diagnosed #Receive your entire cover amount #Receive your entire cover amount
in Major Stage (Sum Assured) (Sum Assured)
+
Income of 2% of the cover amount (Sum
Assured) per month for a period of 60
months on diagnosis of Major Stage
Cancer
If Cancer is diagnosed during Receive 25% of your cover amount (Sum Receive 25% of your cover amount (Sum
Minor Stage and later a Assured) on diagnosis of Minor Stage Assured) on diagnosis in Minor Stage
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three years or till the end of the policy three years or till the end of the policy
term, whichever is earlier. term, whichever is earlier.
+ +
#75% of your cover amount (Sum Assured) #75% of your cover amount (Sum Assured)
on diagnosis of Major Stage Cancer Assured) on diagnosis of Major Stage
+
Income benefit of 2% of the cover
amount (Sum Assured) per month for a
period of 60 months on diagnosis of
Major Stage cancer
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We invite articles on Life Insurance, General insurance, Risk Management or any other related topics on insurance
for publication in our journal The Insurance Times and Life Insurance Today. You may also send your feedback on the
current scenario of Insurance Industry in form of Letters to Editor Column.
If you come across any important caselaws that we might have missed or any other news item of importance, please
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- Editor
Comprehensive car
insurance policy
from Cholamandalam MS General
Insurance Company Ltd
C
omprehensive car insurance policy provides you What does it Cover
with all the above benefits along with a complete
Chola MS Motor Insurance protects your vehicle against:
peace of mind and sense of security. Not only does
Y Third Party Personal Liability with unlimited coverage.
it cover your vehicle from accidents and losses but
The amount awarded by the court as your liability to a
also from the damage done through natural calamities like
third party due to accidental death or injuries caused
earthquake, cyclones and floods. Our easy to buy online ve-
by your vehicle will be compensated for under the ve-
hicle insurance policy ensures that your vehicle is in safe hands
hicle insurance policy.
and your losses are covered in the most optimum manner.
Y Third Party Property Damage with a maximum cover
of INR 7,50,000, in case of private cars.
Benefits
Here's a look at the wide range of benefits you stand to Y Own Damage Cover protects against the loss due to:
gain when you choose Chola MS for your car insurance: Fire, lightning, self-ignition or explosion
Y Complete comprehensive cover that offers both Third Burglary, theft or housebreaking
Party Cover and Own Damage Cover Strike or riot
Y Third Party Liability Cover that includes TP Personal Earthquake (shock damage and fire)
Liability & Property Liability
Flood, inundation, storm, tempest, typhoon, hur-
Y Personal Accident Cover for the owner, driver and pas- ricane, Cyclone and Hailstorm
sengers
Accidental external means
Y Protection for your vehicle against damage or loss due
Malicious acts
to accidental external means, theft, burglary and vari-
ous other perils Terrorist activity
Y Discount on Own Damage (OD) premium for claim free During transit by rail, road, inland waterway, air
policy years - No Claim Bonus or lift
Y Optional cover for personal accident of up toINR 2 lakhs Landslide and rockslide
for passengers in your car Personal Accident Cover with compensation for
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Y Facility to buy online car insurance through simple and ing spouse, children, parents, etc
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Y Quick and easy online insurance renewal process accident involving the insured vehicle.
!! Hearty Congratulations !!
Thanks readers for excellent response for our Insurance Quiz published in our December 2017 issue. This month the
lucky winner of the Quiz is Sharad Sharda & M. L. Juliet.
Who will be the next?????
The Insurance Times, January 2018 47
LEGAL
Group Personal Accident
IRDAI Circular
Coinsurance
You may send your views to :
A clause contained in most property
Poll Contest, The Insurance Times Yes 100
insurance policies to encourage policy
holders to carry a reasonable amount 25/1, Baranashi Ghosh Street, Kolkata - 700 007 No 00
Phone : 2269 6035, 2218 4184, 4007 8428
of insurance. If the insured fails to Can’t say 00
Email: insurance.kolkata@gmail.com
maintain the amount specified in the
clause (Usually at least 80%), the in-
sured shares a higher proportion of the
Aadhaar, PAN to be linked to insurance policies by
loss. In medical insurance a percentage March 31
of each claim that the insured will bear.
India's insurance regulator on Monday extended the time to link Aadhaar
Collar number to insurance policies till March 31, 2018. In a circular issued to all
An agreement to receive payments as the life, non-life (including standalone health insurers) the Insurance Regula-
the buyer of an Option, Cap or Floor tory and Development Authority of India (IRDAI) said the date of submission
and to make payments as the seller of
of the Aadhaar Number and Permanent Account Number or Form 60 by cli-
a different Option, Cap or Floor.
ents to reporting entity is March 31, 2018.
Collateral Loans The Irdai cited the central government's gazette notification on December
Unconditional obligations for the pay-
13, relating to Prevention of Money-Laundering (Maintenance of Records)
ment of money secured by the pledge
(Seventh Amendment) Rules, 2017. On November 8, the Irdai had directed
of an investment.
the insurers to link Aadhaar and Pan Card numbers with insurance policies.
Combinations
"These rules have statutory force and, as such, life and general insurers (in-
A special form of package policy com-
cluding standalone health insurers) have to implement them without await-
posed of personal automobile and
homeowners insurance. ing further instructions," the Irdai had said in a statement.