Page 227 - IC38 GENERAL INSURANCE

during the same period. If the cover is for weekly compensation for TTD, the
sum insured usually does not exceed twice his/her annual income.

While giving cover to persons who are not gainfully employed e.g. housewives,
students etc. the insurers make sure that they provide for capital benefits only
and that no weekly compensation is provided for.

Family Package Cover

For children and non-earning spouse the cover is limited to death and
permanent disablement (total or partial). However, based on individual
company‟s norms the Table of Benefits may be considered. Some Companies
allow TTD cover to non-earning spouse also up to a particular limit.

A discount of 5 percent is usually granted on the gross premium.

Group Policies

A group discount is allowed off the premium, if the number of insured person
exceeds a certain number say 100. Group policy however may be issued when
number is smaller, say 25 but without any discount.

Normally, policies on unnamed basis are issued only to very valued clients,
where the identity of the member is clearly ascertainable beyond doubt.

Group discount criteria

Group policies should be issued only in respect of the named groups. For the
purpose of availing of group discount and other benefits, the proposed “Group”
should fall clearly under any one of the following categories:

 Employer – employee relationship including dependents of the
employee

 Pre identified segments / groups where the premium is to be paid by
the State / Central Governments

 Members of a registered co-operative society
 Members of registered service clubs
 Holders of credit card of banks / Diners / Master / Visa
 Holders of deposit certificates issued by banks / NBFC‟s
 Shareholders of banks / public limited companies

In case of proposals relating to any further category different from the above
categories, they may be deliberated and decided upon by the technical
department of the respective insurers.

No group discount can be offered on the „anticipated‟ group size. Group
discount is to be considered and worked out only on the actual number of
members registered in the „Group‟ at the time of taking out the policy. It can
be reviewed at renewals.

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