Your business is likely to be affected by risks which are beyond your control. These entail commercial and political risks. Trade credit insurance has been especially formulated to protect the policyholder’s business against risks which are beyond their control. A comprehensive trade credit insurance policy ensures improvement of bottom line quality, increase profits and reduce risks of unforeseen customer insolvency. You can also offer credit to new customers. This improves funding access at competitive rates. This is an insurance for short term account, due within 12 months.
Benefits of Trade Credit Insurance Policy:
Trade Credit Insurance has many benefits, they have been listed below –
•It protects your business against risks which are out of your control.
•It improves bottom line quality of the business.
•It increases profits and reduces risks of unforeseen customer insolvency.
•It lets you offer credit to new customers.
•It improves funding access at competitive rates.
•It protects from anticipated earnings restatement.
•It optimises bank financing. This is done by insuring trade receivables.
•It supplements credit risk management.
Trade Credit Insurance Covers:
Trade Credit Insurance provides coverage against commercial and political risks for your business. This insurance helps companies attain goals by turning over their sales into cash conversation.
•Covers the complete turnover with stipulated limits. This is done for top purchasers. For small purchases the limit is discretionary.
•This insurance provides coverage to large purchasers of clients.
•Open accounts sales-export and domestic are protected by trade insurance against non-payment from the purchaser. This can be caused due to buyer insolvency i.e. if the buyer declares bankruptcy of business, buyer doesn’t declare bankruptcy but is unable to pay (protracted default), political risk like inconvertibility of currency.
Who is Trade Insurance ideal for?
As mentioned, Trade Credit insurance assists companies who sell their goods on open account basis. They seek protection by manufacturers and wholesalers, who dispatch goods on credit. This targets both domestic and off-shore customers.
Example of credit insurance
Say your company has profit margin of 5%. But one of your buyers piles up a debt of Rs. 100,000 on you. In this scenario, you need to create enhanced sales worth Rs. 2,000,000. This is required to compensate for lost profits. If your company faces non-payment, it makes your company weaker by reducing your company’s investment power. If you have a comprehensive credit insurance policy, you can handle the account receivables and lessen the losses of the company in case there is a non-payment. This type of insurance is tailor-made according to the size of your company, the type of business, business needs and the sector your business belongs to. This insurance is extended from small-medium entreprises (SMEs) to large multinationals.
Trade Credit Insurance Claims settlement process:
It is a quick and hassle free process to settle your trade insurance claim. Just ensure that you furnish all the essential documents (valid and duly filled/stamped) with your claims from. For further details on this, seek assistance from your insurance provider.
The aforementioned reasons clearly show how buying trade credit insurance is a smart and wise choice. But before you settle down with buying a certain policy, make sure that you do a thorough groundwork and identify your requirements, i.e. exactly what do you need the trade credit insurance cover for.
Life insurance companies rule the roost in the last few months of the tax saving season. The flavours of the season are traditional life insurance policies — endowments and money-back, for instance — with guarantees thrown in. In a falling interest rate scenario, such guarantee works as a bait to entice those looking at life insurance for tax benefits.
Guaranteed life insurance plans are the mainstay of almost all insurance companies. In such plans, instead of declaring bonus, which can vary depending on the profits that the insurers make, insurers declare a ‘guaranteed addition’ (GA) or ‘guaranteed return’ in lieu of bonus. On the face of it, such plans appear attractive with lots of guarantees thrown in at different stages of the policy. After all, the maturity amount is guaranteed and so are the monthly payouts.
What are the guarantees?
Do not be surprised if such plans boast of guaranteed addition of 7-9 per cent of premium per annum or guaranteed payouts of 126-138 per cent of the annual premium each year. Looking at these figures, who would not fall for such guarantees?
What are the actual returns?
The guaranteed addition is not equivalent to the actual annualised return. These guaranteed benefits accrue only on maturity and hence the actual return will not be what is perceived or told to the customer. Guarantee always comes at a cost, therefore, the returns, after adjusting for the costs because of the guarantee, are low in such plans.
Although actual returns would depend on one’s age, term and premium amount, the average IRR (internal rate of return) in most traditional plans, including money-back, endowments, lie between 4 and 6 per cent per annum. The plans with guarantees would carry even lower returns.
An example
Let’s see how a typical guaranteed plan works. Assuming there’s a guaranteed plan for a 10-year term, but with a premium paying eight-year term. The plan offers guaranteed payout of 150 per cent of premium every year after maturity of 8 years.
It means that the premium is to be paid for 8 years, but life cover will run for 10 years. After maturity, payouts will happen for the next 8 years. Illustratively, if the premium is Rs 20,000, it has to be paid for the initial 8 years. Thereafter, from 10th till the 17th year, there will be annual payout of Rs 30,000. The IRR in the above plan comes to 2.9 per cent per annum!
Types of guarantees
The structure of the guaranteed plans is not the same across insurers. Some may offer a guaranteed return based on the premium, while others on the sum assured. The guarantee may also differ based on the term of the policy or even the premium paying term. Also, in some plans, the guaranteed returns get added to the policy from the second year onwards, while in some, it may start at a later date.
Some of these plans are similar to money-back plans wherein there is regular flow of income at regular intervals, while in some, there could be a lump sum payment on maturity. Further, in a few of them, payouts happen after maturity for a certain number of years.
Guaranteed traditional plans gets complex
The sales pitch could be anything, but hidden beneath the complex wordings of insurance plans is the payout structure. The traditional life insurance, representing the endowments and the money-back kind of policies, has undergone a sea change. The terms and conditions of the payout are so convoluted that comprehending it may not be an easy task for many.
Sample this: The premium, for a specific age and sum assured (SA), is paid for a limited period (say, 5 years) while the term of the plan is 15 years. Based on the above parameters, the insurer will calculate a guaranteed maturity value and depending on that, will start paying a certain percentage of it as guaranteed cash amount starting the non-premium payment period (from the 6th year) till the end of the term.
Similarly, there could be a guaranteed plan in which every 5th year, 125 per cent of premium is paid out, while the GA is added to policy each year, to be had on maturity along with SA (less amount paid every fifth year). In few other guarantee plans, the payout could be entirely on maturity, including GA and SA.
Unlike in the past when they were simple and straightforward to understand, the newer versions have lots of twists and turns in them. With guarantees thrown in, such plans may appear attractive, but the actual return in them is around 5 per cent per annum, or even lower.
Conclusion
Buying life insurance merely to save tax could be financially damaging. Traditional plans are inflexible and lock in funds for 15-30 years with a return of 5 per cent. Stay away from traditional insurance plans, with or without the inbuilt guarantees. Rather, meet your protection need through a pure term insurance plan and park your savings in Public Provident Fund (PPF) or Equity Linked Savings Scheme (ELSS) for meeting long-term goals, while keeping the tax liability at bay.
Got a term plan for your family? Or may be you’re planning to take the term plan in a few days. If you are, good for you!. One of the biggest questions, every person considering term insurance has, is – “Should I take the cover for the maximum period?”. This is exactly what Chetan also asked on a forum.
Just like him, hundreds of investors have the same question over and over again, and we tell them, “Just take it only until you reach 60 years of age.”
And they happily ignore our suggestion; as if we are crazy, suggesting this to them. The “Insurance only till 60 years” looks kooky to them – kind of a “wrong deal” and they want to get “maximum benefit” out of the term plan. “The chances of my family receiving the claim amount is higher when I am covered for long” is the common thought process of every person who is in the mad rush of buying the highest possible tenure.
Trust us, that’s flawed thinking and we will explain why. More than a sermon, think of this article as a discussion, where we put some points in front of you and you reflect and ask yourself – “Does it really make sense? or not?” and then make your own decision. So here are those 5 reasons on – why you should not take Insurance till the age of 75 years or more
1. You don’t need it beyond your working life
You really need to ask yourself the question – “Why am I taking Life Insurance?” and the answer is – “Because right now, I don’t have enough net worth, which will help my family if I am gone” or in other words – “Because my family is financially dependent on me.”
For a person who is not earning and does not bring money home, his death will cause family only emotional loss; not financial loss. Hence, logically you need to cover yourself through a life insurance product, only for the time you are working and others are financially dependent on you.
2. You will have “probably” have enough wealth by the time you retire anyway
Stretching the 1st point, if you are taking life insurance cover until you are 70-75 years, will you really need it at that time? Do you really feel that you will have any reason to have a cover of 1 crore that time (after 30-40 years?) . I am sure (more confident than you), that you would have completed all your financial goals by that time, you will have your own home by that time and you will have done everything in your life by that time. You focus area at that old age will be very different than what you focus on right now.
To understand this point, you have to stop for a moment and go into 2040-50; when you are retired and close to the heaven’s door. Are your children really financially dependent on your income – which does not exist? Is your spouse dependent on your income? You must have already accumulated enough wealth by that time and you must be getting some income out of that. Your death has nothing to do with family cash flows at the time.
3. The premium factors in your tenure already
Most of the people who feel that they are smart enough to take term plan till 75 years, forget that on the other side is a professional business running for decades now. They have hired people who are 10 times smarter, who design products (they are called Actuaries) that generate large profits for companies and not investors. Life Insurance is a “for-profit” business. They design things, so that they earn profit. If a company allows you to take a plan that lasts until you turn 75, why have they done that? Why did they allow that to happen? The premiums they charge already factor in everything. You pay premiums to get that term plan, it does not come free!
4. You will live longer – and they already know that.
Like I said in my last point, companies are “for-profit” businesses. They will not issue you a policy if your chances of living beyond 75 is not high. If you are a healthy person, already earning well, have access to good health care, what are the chances you will live beyond 75 years of age? Extremely high, that’s what!
Look around you – Are people dying early on average? No, you see people living beyond 80-85 already and here we are talking about your future which is 30-40 years away, when the average life expectancy of an average person in India would be closer to 73-76 years anyway (as per projections by govt studies.)
Now just imagine this … Compared to the 1.25 billion people in our country, are you in top 25% or lower?
Which means that you have much much better prospects to live beyond 80-85 years. Which brings me to another point, that you should seriously worry about about your retirement planning a lot more than the less important question of insurance beyond 70-75 years.
Even when we do financial planning for our clients, we make sure that we plan for their retirement beyond 85 years and have them covered only till 60 yrs or even lower if they feel they will retire earlier. The important point to understand here is that, a life insurance coverage is just a support for your family in your early life when you are making money, your financial replacement, if you will. So when a life insurance company issues you a term plan until 75 years, it’s not you who are smart, but the company! They know, with a really high degree of probability, you will keep paying the premiums till 75 years.
It’s all chance. Yes, there will be people who will die before they reach 75 years of age and yes, their family will get a lot of money, but it really is just the game of chances … Companies make profits because of those who will live beyond 75 years and not by those who die before that.
5. The value of your sum assured is peanuts later
I hear it most of the time – “I am taking the term plan till 75 years, so that even if I die, my family will get the money. So, the higher the tenure, higher the chances of making money.” But they forget that by doing so, they are actually helping the insurance guys make profit, but lets say you die at 70 years. Celebrations! Your family will get that 1 crore, which at this moment sounds good, but will not be worth a lot that time.
Let me show you the mirror that lets you look into the future 🙂
Let’s say you are a 30 year old guy, and your monthly expenses are 40k per month. You say to yourself, “Let me take that term plan worth 1 crore so that in case, I die my family can get 1 crore which will provide them some good monthly income.”
It would be very good number if you die early in your life! . With each passing year that 1 crore will be worth less. If you die the next year of taking the term plan, the worth of that 1 crore is pretty much same, 1 crore. But if you die after 10 yrs, that 1 crore will be worth 50 lacs in today’s world. So getting 1 crore after 10 yrs is same as getting 50 lacs right now. Are you getting my point? The money you get in term plan is a constant number, not linked to inflation!
So imagine you have taken the term plan till 75 years and you die at 70 (after 40 yrs of taking the term plan), what is the worth of that same 1 crore at that time? Hold your breath! It’ll not more than 6-7 lacs assuming a inflation of 7% and even if inflation for next 40 yrs is a small 5%, it would not be worth 15 lacs today! . So when your family gets that 1 crore after 40 yrs, it’s kind of worthless. No one would be depending on that money anyway; it’s just a bonus on your children’s inheritance money!
Act like a real informed and smart investor
I have been seeing this madness for many months now and was constantly wondering why people are focusing so much on this small thing called “long tenure” in the term plan. I see investors abandoning one insurance company for another just because the other company is offering a term plan till 75 years.
You are allowing yourself to fall into a trap if you do this. If you have already taken the term plan till 75 years, do not worry … do not cancel it, just let it run it’s course. Stop paying premiums when you feel that your family can be taken care of, by the wealth you have generated. If you are planning to take a term plan right now, take it for as long as it takes you to retire, probably till 55 to 60 years, but not beyond that.
Everyone has a bad habit or two. Biting your nails? Pulling all-nighters? Procrastinating? Guilty. Little habits become bigger patterns and can end up messing with your finance and your ability to achieve your goals.
But not all “bad” habits are actually, you know, bad. And if you believe popular health myths, you might go all in on trying to stop doing something that was never even bad for you in the first place. Good news is, with these “bad” habits that are actually good for you, you shouldn’t bother.
Not on Time –This is one of the most common bad habits. But this bad habit can do wonders to your equity portfolio.
One thing that even Warren Buffett doesn’t do is to try to time the stock market. A majority of investors, however, do just the opposite, something that financial planners have always been warning them to avoid, and thus lose their hard-earned money in the process.
So, you should never try to time the market. In fact, nobody has ever done this successfully and consistently over multiple business or stock market cycles. Catching the tops and bottoms is a myth.
No News –Staying updated with the latest NEWS is a very good habit but this could help you lose money in the stock market. Breaking news tends you take wrong financial decisions.
There is a lot of information/news flowing around in newspapers, Social Media, TV, Internet. This information/news is so well decorated for you to take instant action. News tends you to forget fundamentals and emphasis recent events.
Staying away from such breaking news can help you stick to the fundamentals and grow money with the stock market.
Lazy Action – When it comes to investing, people often say that the more active you are, the wealthier you can become. However, it acts in reverse when it comes to investment in the Stock Market!
So, if you are too active with your portfolio, you are likely to get fewer returns! Shockingly, laziness will help you to get more returns! Yes, you read that right! Notably, investors should choose this for long term investment.
And what is more, market variations will not hurt your investment gains. Invest in good Stock/Fund and forget is the best strategy.
Being Unfaithful is really a bad habit but this bad habit can lead you to make more money while investing.
People usually hold a Stock/Fund/Lic because that is very old or is gifted by their Parents or Grand Parents.
Investors lose money and opportunity when are emotionally attached to some stock/financial product that is inherited and doesn’t sell them even it is not making money.
A good return paying Stock/Product/Strategy will not always give a return. Being unfaithful with your investment & exiting will open new opportunities.
Do Your Own – Following your friends/family/acquaintances is a good habit that can often lead to wrong financial decisions.
The typical buyer’s decision is usually heavily influenced by the actions of friends/family/acquaintances.
Thus, if everybody around is investing in a particular stock/fund/asset-class/product the tendency for potential investors is to do the same.
But this strategy is bound to backfire in the long run. Stop following the herd and use your brains to do your own.
Like it or not, bad habits are bad for you — mentally, physically, emotionally, and even financially.
While some bad habits listed above are extremely good for your financial portfolio and you need not get rid of them.
Rather than parking your surplus money in a bank account or fixed deposit, Park them in a Debt fund for benefits like higher returns, regular income, high liquidity, low risks, reasonably predictable returns, and the benefit of Indexation.
Debt funds are definitely great investment vehicles if you select them smartly based on your investment objective and risk appetite.
1) Liquidity: Look for the exit option of the fund and avoid close-ended funds. No liquidity when in need of funds can be a pain for your investment portfolio.
2) Investment Horizon: Don’t choose a fund simply because it is offering great returns. It is really important to figure out your investment horizon and then choose a fund with a matching profile. Parking for Long-Term in Liquid fund is not a good idea.
3)Taxation: Debt Mutual Fund comes with indexation benefit when redeemed after 3 years and taxed as per your slab if redeemed before 3 years.
4) Credit Rating: Some schemes may bet on lower-rated papers to generate better returns, but it comes with the risk of losing money. So, if you are a conservative investor, you should opt for high rated papers and invest in lower-rated papers to generate extra income.
5) Interest Rate Movement: Change in interest rates has a big impact on debt schemes. Rising interest rate is bad news for most debt funds whereas A falling rate scenario is a treat. This is because of the inverse relationship between yields and prices of bonds.
6) Brand: Invest with reputed Indian brands such as ICICI, Kotak, IDFC, HDFC, SBI Etc. Avoid new & small fund houses. Why put your hard-earned money in lower brands for mild gain.
7) Fund Size: Large funds can distribute fixed expenses over a number of investors bringing down the expense ratio. Large funds can also negotiate better rates with issuers of debt.
Indemnity insurance or professional indemnity insurance is a type of insurance policy which is designed to shield professionals and business owners if they are found to be guilty of some event such as misjudgement or some other professional risks. Indemnity insurance is also called as professional liability insurance. It provides cover for the claim of providing inadequate services, advice, design, etc. against the insured. Liability insurance also covers the compensation that is payable to the client for correcting the mistake.
Need of Professional Indemnity Insurance
While working as a professional, it is always a possibility that you or your colleague could make a mistake, regardless of the experience. So, it is a good option to have a liability insurance if you regularly work with clients or businesses and Handle their work, data, intellectual property or even provide them with professional services or advice. The indemnity insurance covers you and your firm from facing financial losses if a claim is made against you or your company. Thus, having a professional liability insurance which adequately covers your organisation is a safe option while doing a day to day business.
Professional Liability Policy Covers
An indemnity policy covers the following Range of scenarios –
• Professional negligence
• Loss of data or other documents
• Loss of goods and/or money
• Unintentional breach of confidentiality or copyright
• Claim investigations expenses
• Defamation
Who Can be Insured Under the Professional Indemnity Insurance?
This policy can be taken by –
• Doctors and medical practitioners like surgeons, pathologists, etc.
A commercial crime insurance is a policy which offers comprehensive cover and provides protection against employees’ theft and any losses from forgery, computer fraud, etc. In the event of any commercial crime, it becomes the duty of the insurance company to safeguard the policyholder against various losses or damages.
Undeniably, you can’t ignore white collar crime which is rising at an alarming rate. Many times, companies don’t think of purchasing the cover against fraud. However, the reality is that it’s more the senior staff and trusted employees that commit fraudulent activities. And when they strike, they do it not for once but again and again over a period of time.
As a company, it becomes necessary for you to have a viable financial coverage instead of wishful thinking, to get protection against such fraudulent activities. Here, commercial crime insurance policy can play an important role.
Here are the coverages which are available with a commercial crime insurance policy=
Employee theft Cover= It includes loss of securities, money or other property by theft or forgery by the employee of the company.
Premise Cover= It includes losses from destruction, wrongful abstraction, theft of securities or money from the policyholder’s premises by third-parties.
Transit Cover= It comprises of losses from disappearance, destruction of money or security outside the policyholder’s premise by a third-party.
Depositors Forgery Coverage: It includes losses or damages which arise due to losses from instruments like cheques which are fraudulently drawn by a third-party on account of the policyholder
Computer Fraud Coverage: It comprises of losses which a policyholder has to endure due to computer fraud made by third-party along with the expenses which the policyholder has to incur due to a violation of computer.
In most of the cases, commercial crime insurance policy comes with a deductible clause which states that at the time of loss, a part of the claim would require being paid by the policyholder. The insurance company would pay the remaining amount. Further, most of the insurance companies allow customizing commercial crime insurance policy to cover various fraud-related losses as per the company’s specific requirements.
The insurance policy also helps by covering the additional costs which a policyholder incurs at the time of loss or damage. For instance, after the commercial crime, the policyholder may require a temporary replacement of equipments or temporary workforce or office space. Similarly, additional expenses may be spent by the company in transporting of documents or equipments. Here, the insurance company may pay the additional cost along with the additional cost incurred in bringing the external workforce on board.
Case
KS Automobile Spare Parts was situated in Pune. Backed with over 100 employees, the company had a huge clientele base both in India and abroad. Last year, the company got a big contract of exporting spare parts worth Rs 2 crore to a buyer situated in Dubai. Considering the quanturn of the order, employees were working in double shifts.
One day, a worker named Kishore was working in night shift. During the break when a few employees were outside the site, he took an undue advantage of the situation and stole ten packets of spare parts which were to be included in the part of the exporting order.
However, Kishore’s crime was captured on CCTV which was installed there. Though the company recovered the packets of spare parts were found; they were in bad condition.
The act of Kishore caused heavy losses to KS Automobile, who had to employ extra employees to manufacture spare parts which got damaged during the theft. It was an additional cost that the company had incurred. The entire incident made the management of K.S Automobile to think what could have been done to avoid the situation.
Solution
The situation would have been different if KS Automobile had a commercial crime insurance. The insurer would have come forward to cover the losses which the company had to incur due to theft committed by its employee. Further, as K.S Automobile had to pay extra to get additional workforce, the cost associated with it would have been covered by the insurance company as well.
A Commercial General Liability (CGL) insurance policy is designed to protect businesses against any legal liability that involves paying compensation for damage or injuries incurred by a third party from your routine business operations. This unique policy offers financial protection to the companies against Public Liability and Product Liability claims. It is required for all the companies that involve manufacturing and developing of software and physical products for its clients and customers.
CGL also protects the policyholder against any monetary loss resulting from legal matters in case of death, bodily injuries, property damage, and personal injuries caused due to your business operations within your premises. For instance, it includes a Fell, Trip, or Slip claim filed by a client who sustained injuries on your business premises and by falling/ tripping/slipping.
It is important to keep your premises in good shape and manufacture good quality products that are safe to use and consume. The major concerns are the security and safety of premises and product reliability. The laws are nowadays stringent to maintain third-party interest and amendments are also being made in this regard that companies need to adhere to.
A general liability insurance policy offers compensation for claims arising due to bodily injuries, and property damages or for which your business is accountable.
This coverage is provided to the Owners of a company, or managing directors, operations heads, etc. who are involved in the business operations. It also covers sellers, manufacturers, and distributors.
CGL policy is extendible to both industrial activities like construction, manufacturing, and non-industrial activities like offices, multiplexes, and hotels.
Understanding Comprehensive Commercial General Liability Insurance
Comprehensive General Liability Insurance (CGL) is a combination of Product Liability and Public Liability. It provides full protection against third-party liabilities. Public liability covers third parties’ legal procedures for loss or damage incurred within the insured premises. Product liability offers protection against damages caused by the products that your company manufactures.
Basically, it is designed to recompense all the liabilities on behalf of the insured member. The insurance company shall pay off for third-party liabilities/ accidental death/ bodily injuries resulting due to:
• You can get compensation for an accident that took place in the insured premises or any other premises where you run your business operations
• It will also cover the operations, product, and premises hazards
• Medical expenses of the injured third-party as part of the public liability insurance cover
• You can opt for additional covers by paying an additional amount of premium
Why Should You Buy Comprehensive General Liability Insurance?
It is imperative to have to buy commercial general liability insurance for anyone whose:
• Business involves interaction with third-party sites
• Business involves person-to-person interaction with the vendors, clients, and customers
• Businesses that are based on contracts between two parties
• Businesses that represent their client’s business in any form
Some of the Hazards That May Lead to Financial Liability on a Company are as follows:
1. Third-party Property Damage/Bodily Injuries
If any injury is caused to a third person due to falling, slipping, or getting electrocuted then you might be held responsible for the same. A Commercial General Liability (CGL) insurance policy will bear the cost of medical expenses on our behalf. And if the injuries lead to the death of a third person then compensation will be provided as per the court of law.
It also compensates for third-party property expenses such as replacement, repair, and renovation costs if any damage is caused to a third-party laptop, phone, or any other belongings ( apart from your employees). It would also involve paying for the renovation of other building that is damaged due to an accidental fire on your premises.
2. Advertising Infringement
A CGL policy will be of great help in case you indulge in intentional or unintentional copyright infringement of some other brand or product’s tagline or logo. This may include slander and libel for indirectly causing harm to a third party’s reputation. In such cases, the insurer shall compensate the settlement expenses, and legal expenses and will protect your business from closing down.
3. Product Quality Issues
It is always a priority for most manufacturers. And any claim is filed by a customer or client for the harm that is caused by using your product can land you in deep trouble. A CGL policy will protect your business from any such minor ignorance as well.
4. Invasion of Privacy
This involves intentional and unintentional invasion of a third party’s privacy. For instance, if a celebrity is using your product and you commit the mistake of endorsing it without permission then also you would need commercial general liability insurance coverage. For claims arising due to the invasion of privacy, the insurer shall help you out with the out-of-the-court and legal settlement costs.
Additional Coverage is also provided on Payment of Additional Premium:
Depending on your requirements you can opt for:
• Extension for the Act of God Perils
• Extension for Accidental and Sudden Pollution
• Lift, Escalator, and Elevator Liability Extension
• Transportation Liability cover
• Food and Beverages Liability Extension
• Fire Damage Cover
• Extension for Medical Expenses Cover
• Advertising and Personal Injury extension
• Limited Vendors Liability Cover
Why is it recommended to Have a Commercial General Liability Insurance Cover?
With CGL insurance, you can ensure seamless business operations and enjoy your peace of mind. And even a small disruption would mean a huge financial loss. So, here’s why you should have commercial general liability insurance coverage if you own a business:
• You don’t need to worry about third-party claims involving agitation, segregation, and discrimination
• The insurer pays off medical expenses for claims arising due to mental injuries, physical injuries, humiliation, and shock
• It would also reimburse advertising infringements such as trademark breaches etc.
You can easily buy commercial general liability insurance online. There are top insurance companies in India that offer CGL cover to a variety of business groups.
It is Quite Easy to Lodge Claim for Comprehensive General Liability Insurance Plans
So, the process is quick and hassle-free. All you need to do is furnish the required details, proofs, and documents along with a duly signed and filled claim form. The process may vary from one insurance provider to another and to check the details you can refer to your insurance company or refer to the policy documents.
Listed above are the features, benefits, and coverage under a commercial general liability insurance policy. But here’s a quick rundown of the limitations that follow:
Your claim would not be accepted under the following situations. However, this may also vary from one insurer to another:
• Any kind of deliberate attempt or intentional Injuries caused to a third party including clients, vendors, and customers are not covered
• Usually, compensation is not provided for damages resulting due to the pollution
• Contractual liabilities are not covered ( you can buy this as an add-on)
• Work and employee-related perils would not draw any compensation
• Claims lodged for war-related damages and injuries are not covered by any policy
• Criminal acts and dishonest claims would also not draw any compensation in a commercial general liability insurance policy
You must have understood by now that purchasing a general liability insurance policy is a smart and wise decision for all business owners. And before you zero down on a policy, it is suggested that you compare the plans first, do your preliminary research and get a policy that covers all the major concerns.
If you enjoy travelling or have a job that requires you to make frequent trips to different countries, you probably are well-versed with various cultures, cuisines and may even know a couple of foreign languages. And there is very little that can actually hold back someone who loves travelling. Take the pandemic, for example; no sooner were the vaccines introduced than the foreign borders started welcoming foreign visitors – with stringent safety COVID-19 protocols in place, of course!
But despite all of the precautions and planning, a trip cannot always go the way intended. This is why you will always need a health insurance plan that will offer you adequate coverage when you are travelling to another country. You may already be familiar enough with medical insurance that takes care of your medical emergencies or hospitalisation bills within India; however, have you thought about how it can be possible to tackle the expenses of getting medical treatment abroad?
What is the Global/Worldwide Cover?
A global/worldwide cover in your health insurance plan offers coverage for medical treatment that you choose to get abroad. Hence, if you are diagnosed with a disease, ailment or condition in India but opt for medical treatment and healthcare services in another country, these costs will be covered by the global cover. The global health insurance coverage ensures that you can avail of quality healthcare facilities in another country and do not have to foot expensive bills that you may incur as a result of this.
Features of a Global Health Insurance Cover
Choosing the best international health insurance in India can be a tough choice, considering that the cost of getting medical treatment abroad needs adequate health insurance coverage. There can be several problems arising from the lack of sufficient global health insurance coverage, which can either lead you to spend a lot of money from your own pocket or settle for mediocre healthcare services. Since both the situations are equally unappealing, here’s a look at what a typical health insurance plan with a worldwide cover should offer:
• Adequate coverage– The purpose of having a global health insurance cover is to ensure that you do not have to compromise on getting access to good or even private healthcare facilities or hospitalisation when abroad. Hence, consider an affordable health insurance plan that offers sufficient coverage.
• Pre-existing diseases cover – If you have previously suffered from chronic illnesses, diabetes or a heart condition, ensure that your global health insurance coverage can secure you against the high costs of emergency treatment in a foreign country if the need arises.
• Medical evacuation coverage – The cost of transportation by ambulance or a rescue helicopter, in case of a severe accident, can be quite expensive when you are in another country due to the currency exchange rates. Therefore, your health plan with a global cover should be able to take care of these costs.
• Repatriation or Evacuation – Travelling to and from a foreign country to India for a series of medical procedures can be as expensive as the medical treatment itself. However, if your global health cover secures these costs, then the necessary travel between the two countries can be covered under the plan
• Emergency room charges – A global health cover should be comprehensive enough to cover a range of medical situations, subject to certain exclusions. However, if there is a sudden emergency while you’re travelling abroad, the cost of medical emergency care should be covered in your policy.
• OPD charges – When abroad on a short holiday or trip, you may suffer an accidental but minor injury at some point. In this case, hospitalisation may not be necessary. But even the smallest procedure or the visiting charges in foreign hospitals can be costly. Therefore, your policy should be able to cover that.
• Diagnostics – Running diagnostic tests for a second medical opinion or other medical purposes can get very expensive. If you are being treated in a country that offers advanced and hi-tech medical equipment, you should be aware that the costs of these tests can be unexpectedly high. Therefore, check if your global health insurance coverage can cover the costs of these tests.
• Other medical requirements – The global cover you choose for your health insurance plan should have some provisions for maternity benefit or dental benefitcoverage needs or even access to mental healthcare services. When choosing a worldwide cover with your health insurance plan, be sure to look into these details and explore the coverage in depth.
How to Choose Global Health Insurance in India?
When choosing the best medical insurance policy for yourself, always ensure that your health insurance plan has a provision for covering overseas treatment. Or you can also avail of the Tata AIG Worldwide Cover on your health insurance plan if you want to be able to cover the cost of medical treatment in a foreign country. Since an international health insurance plan can get quite expensive, the addition of this simple cover can ensure that you can avail yourself of medical treatments both inside and outside of India.
With this cover, you need not worry about the rising expenses of medical care and hospitalisation if you are diagnosed with an ailment or condition in India but choose to receive medical care abroad.
However, these few points you will need to keep in mind when choosing an affordable health insurance plan that offers a global cover.
• Ensure that your global health insurance cover offers cashless benefits where your insurance company can settle the bills with the hospital. The Tata AIG Global Cover offers reimbursement for medical facilities availed; however, the cashless benefit may be considered in some cases.
• You can also get health insurance tax benefits with your global health insurance plan. Under Section 80D, you can claim a deduction of up to ₹25,000 if you are below the age of 60 years.
• Most of the major expenses in global healthcare come from inpatient and daycare hospitalisation. Our Global Cover ensures that you are covered for these huge expenses if you have to be hospitalised during your treatment.
• You can avail of the cumulative bonus on your health insurance global cover if you do not file any claims. Hence, when there is a need for you to utilise the worldwide cover, the basic sum insured of the global cover, along with the cumulative bonus of up to a maximum of 100% of the coverage, can be used.
• Look out for a hassle-free claim settlement process from your insurance provider. Even though you will have received treatment abroad, back home, we will ensure that our quick and convenient online claim settlement process will help you out.
With this basic but essential checklist, you should be able to find a suitable health insurance plan that enables you to add a global cover.
Conclusion
International medical insurance can be very expensive, but if you compare health insurance plans, you will be able to find the right amount of health coverage at affordable rates. Moreover, the Worldwide Cover add-on in your health insurance policy ensures that while you can avail of healthcare facilities inside India, you can also opt for medical care in another country if needed
It’s no secret that online shopping has started to eclipse brick-and-mortar retail. After all, nothing beats the ease and convenience of visiting all your favorite stores from the comfort of your couch and having your orders delivered right to your doorstep.
In addition, ecommerce has also opened a world of new opportunities for fledgling business owners. All it takes to get started is a product, a website and plenty of dedication. Unfortunately, many e-commerce vendors see their dreams of success fizzle out after suffering a cyberattack.
If you want to protect your ecommerce site from financial ruin, you ought to invest in a cyber insurance policy from Deeva Ventures today. Otherwise, you’ll be burdened with the recovery costs all on your own. Be honest, could your digital small business handle that kind of strain? Below are a few of the most common threats faced by ecommerce businesses and how to avoid them.
Fraudulent Payments: Since you are operating an online storefront, you won’t have to worry about bogus sawbucks. But you will have to keep an eye out for fraudulent payments nonetheless.
Hackers routinely buy large batches of stolen credit card numbers from the dark web, which are then used to order big ticket items from your site. Be on the lookout for dozens of separate orders being sent to the same address, as this is a dead giveaway for cybercrime.
Breach of Customer Data: For better or worse, most e-stores save information on their customers to expedite the ordering process. However, this also makes your business a hot target for cyber crooks. Don’t believe it? Just take a look at Alibaba who suffered an attack on 20 million user accounts in 2016! And how likely is it that customers will want to return to your site after you let their personal information fall into the wrong hands? Exactly.
The solution? Follow PCI regulation at all times and avoid storing sensitive financial information (such as credit card expiration dates) on your site; or at the very least encrypt consumers’ personal data.
Business Downtime: E-stores have the benefit of being open 24/7, at least until a hacker has his way. Ransomware and distributed denial-of-service (DDoS) attacks can take an ecommerce site down for hours or even days!
How long could your online SMB survive without customers or income? Combine this with the fact that the vast majority of customers will jump to your competitors if your site load times take over three seconds and you’ve got a real problem on your hands.
Thankfully you can avoid malware attacks by eschewing suspicious messages, downloads and apps. DDoS attacks can be stymied by employing mitigation software on your network to analyze and redirect malicious traffic.
SQL Injection: Especially crafty hackers can actually inject malignant segments of code into your ecommerce site via entry fields (such as an account creation box). This code could be anything, including commands to ‘download all customer information and send to remote server.’ Yikes!
To block an SQL injection attack, you’ll need to invest in a safe API that can detect noxious commands and prevent them from being picked up by the application layer. It is also helpful to keep your applications and services up to date with all the latest security patches.
