Page 228 - IC38 GENERAL INSURANCE

Sum insured

The sum insured may be fixed for specific amounts separately for each insured
person or it may be linked to emoluments payable to the insured persons.

The principle of „All or None‟ applies in a group insurance. Additions and
deletions are made thereto with pro rata additional premium or refund.

Premium

Varying rates of premium are applicable to named employees as per the
classification of risks and the benefits selected. Thus rates will vary according
to the occupation of persons covered.

Example

The same rate will apply to well defined groups of employee all of whom,
broadly speaking follow the same type of occupation.

In respect of unnamed employees the employer is required to declare the
number of employees in each classification based on authentic records
maintained by him.

Premium rates for named member of an association, clubs etc. apply according
to the classification of risk.

When the membership is of a general nature and not restricted to any particular
occupation, underwriters use their discretion in applying the rates.

On-duty covers

The cover provided during the on-duty hours is as follows:

 If P.A cover is required only for the restricted hours of duty (and not for
24 hours a day), a reduced premium say 75 percent of the appropriate
premium is charged.

 The cover applies to accident to the employees arising out of and in the
course of employment only.

Off-duty covers

If cover is required only for the restricted hours, when the employee is not at
work and/or not on official duty, the reduced premium of say 50 percent of the
appropriate premium may be charged.

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