Principle of Utmost Good Faith Principle of Uberrimae Fidei, a Latin Phrase meaning Principle of Utmost Good Faith is one of the fundamental principles of Insurance which states that both parties to an Insurance Contract, that is, the Insured and Insurance Company, should act in Good Faith towards one another. Duty of Utmost Good Faith for the Insured Under the Principle of Utmost Good Faith, it is necessary for the Insured to disclose all Material Facts to the Insurance Company. A Material Fact is one which affects the decision of the underwriter to accept the risk or not, decide Insurance Pr ..read more

What is Insurable Interest in Insurance? Insurable Interest is when a Person stands to gain or benefit from the continued existence or well-being of a Person or an Insured Property and the Person would suffer a financial loss from the absence of the Person or the Property. Insurable Interest is the legal right of the person to insure the subject-matter with which they have a legal relationship recognized by law. Principle of Insurable Interest Principle of Insurable Interest is one of the fundamental principles of Insurance. It forms the legal basis on whether Insurance can be taken or not. Th ..read more

What is a Burglary and Theft Insurance Policy? A Burglary and Theft Insurance Policy provides coverage for loss of insured assets due to theft and burglary at the insured premises. The Policy can be purchased for factories, warehouses, homes and offices. Theft and Burglary of valuable assets is a big risk facing people today and it is important to secure oneself with the various Theft Insurance and Burglary Insurance Policies available today. What are the coverages in a Burglary and Theft Insurance Policy? A Burglary and Theft Insurance Policy provides reimbursement for loss or damage to the I ..read more

What is Principle of Subrogation in Insurance? Principle of Subrogation in Insurance means transfer of legal rights of the Insured to pursue recovery against a Third Party who is responsible for causing loss to the Insurance Company. The Principle of Subrogation is one of the fundamental principles of Insurance. In simple language, when an Insurance Company compensate the Insured for his loss, the Insured, in return, transfers his legal rights to pursue recovery against the third party who is responsible for the loss. This means that the Insurance Company can sue the Third Party on behalf ..read more

What is an Extended Reporting Period? An Extended Reporting Period in Insurance, also known as ERP, a provision in a Claims Made Liability Insurance Policy which allows the Insured to make claims even after the Policy Expiry. A Claims Made Insurance Policy is a type of Policy which requires the triggering claim event to occur and reported within the Policy Period. If Claims are reported after the Policy Expiry, then a Claims Made Policy will not provide Insurance Coverage for the Claim Event. However, an Extended Reporting Period Endorsement allows the Insured to report his Insurance Claim eve ..read more

What is a Deductible in Insurance? – Definition A Deductible in Insurance is defined as the amount of loss that the Insured must bear from his own pocket before the Insurance Company starts paying out the claim. How does an Insurance Deductible work? Consider an example of a Policyholder with a Car Insurance Policy with a Deductible of Rs3000. If the vehicle gets damaged in an accident, the Policyholder will file an Insurance Claim with the Insurance Company. The Insurance Policy will pay the loss to the Policyholder after deducting the amount of Rs3000. The Policyholder will have to bear the ..read more

What is an Occurrence Based Policy? An Occurrence Based Insurance Policy is a form of liability insurance policy which provides coverage as long as the claim incident happened when the policy was active. Even if the Occurrence Based Policy expires, the Insurance Policy will continue to provide coverage for claims which occur during the Policy Period. The only necessity is that claim event happened when the Occurrence Based Policy was active. This means that the Policy will cover claims which arise even many years after the Policy has expired. Since Occurrence Based Liability Insurance Policy o ..read more

What is a Claims Made Policy? A Claims Made Policy is a type of Liability Insurance Policy which provides Insurance Coverage only when the liability insurance policy is active. For a Claims Made Policy to pay out a claim, the claim event should take place within the Policy Period. If the Claims Made Policy lapses, the policy does not provide insurance coverage for claims which occurred even during the Policy Period. So, in order to continue coverage, claims made policies have a Retroactive Date Provision which continues coverage as long as the liability insurance policy is active. Retroactive ..read more

What is Bharat Laghu Udyam Suraksha Policy (BLUS Policy)? Bharat Laghu Udyam Suraksha Policy (BLUS Policy) is a Fire Insurance Policy designed to protect enterprises whose total value at risk across all insurable asset classes at one location exceeds Rs5 Crores but does not exceed Rs50 Crores at the Policy Commencement Date. All types of assets like plant and machinery, warehouse stocks, buildings etc can be covered under a Bharat Laghu Udyam Suraksha Policy. The only difference between Bharat Sookshma Udyam Suraksha Policy (BSUS Policy) and Bharat Laghu Udyam Suraksha Policy (BLUS Policy) is ..read more

What is Bharat Sookshma Udyam Suraksha Policy? Bharat Sookshma Udyam Suraksha Insurance Policy (BSUS Policy) is a Fire Insurance Policy which provides protection to insured assets with a Sum Insured of less than Rs5 Crores. All types of assets like plant and machinery, warehouse stocks, buildings etc can be covered under a Bharat Sookshma Udyam Suraksha Policy. This Insurance Policy is useful for Small and Medium Sized businesses with a Sum Insured of less than Rs5 Crores.  What are the perils covered under Bharat Sookshma Udyam Suraksha Policy? A Bharat Sookshma Udyam Suraksha Policy pro ..read more