Keyman Insurance is a Term Life Insurance cover affected by the company to compensate for the financial loss suffered following the death of a Key Member or Staff of the Organization. Keyman Assurance does not provide for indemnification of loss incurred but only for the benefits as per the plan of assurance selected. Purpose of Keyman Cover It provides a financial cushion to the company for:
The loss of customers or sales affected by the keyman’s ability and personality.
The loss of day-to-day specialized skills.
The cost of recruiting and training a suitable replacement.
Delay or cancellation of any business project that the keyman is working in.
The loss of opportunity to expand in the future.
The loss of stable management and good labor relations.
Reduction of credit worthiness - recall of loans guaranteed by the keyman.
Who can be a Keyman? Anybody with specialized skills, whose loss can cause a financial strain to the company are eligible for Keyman Insurance. For example, they could be:
Directors of a Company
Key Sales People
Key Project Managers
People with Specific Skills
Insulate the risk of financial loss against loss of a Keyman. Premiums paid under keyman insurance are fully allowed as Business Expenses under Section 37(1) of the Income Tax Act, 1961, subject to satisfaction of the assessing authority. Interest on loans taken against a keyman insurance policy may also be allowed as business expenses. Premiums paid by the company on the life of a keyman would not be treated as perquisites in the hands of such a keyman when the company’s request is accepted by the assessing authority. Keyman Insurance policy is a positive measure to improve the retention of the keyman in the company.
The insurance worth of a keyman is the lower of:
5 times the average net profit of the company for the past 3 years
Upto 3 times the average gross profit of the company for the past 3 years
Upto 10 times of the keyman's annual compensation package.
If there are more than 1 Keyman, the total cover shall be governed by the same principles and shall not exceed the overall limit arrived from the method mentioned below:
5 times the average net profit of the Company for the past 3 years
Upto 3 times the average gross profit of the Company for the past 3 years.
Note: For new companies where 3 years Profit and Loss Account is not available, the maximum cover will be equal to net profit if accounts are available for one year, and two times average net profit if accounts are available for two years.
In the event Keyman leaving the organization can either:
Surrender the policy.
Assign the policy absolutely to the Keyman.
Documents to be submitted by the Company or Partnership firm as the case may be:
Submission of the proposal forms & Keyman Questionnaire Form duly filled in.
Board Resolution from the authorized official of the Company/ Employer identifying a person as Keyman and the Employer would pay the premiums.
Fulfillment of medical requirements.
Audited Directors report/Profit & Loss/Balance Sheet with schedules for the last 3 years.
Proof of Shareholding Pattern of the company on company letterhead.
Consent by the authorized signatory of Company for endorsement on Keyman Insurance policy.
Copies of Memorandum and Articles of Association.
Copies of Partnership Deed.
Certificate of Incorporation.
Certificate for Commencement of Business.
This policy is issued to Insure Land Based immoveable and movable properties
Fire
Lightning
Explosion/Implosion
Riot Strike Malicious Demages
Impact by Rail/Road Vehicles /animals
Fall of Aircraft and Areal Devices
Storm Tempest Flood and Innundation.
Subsidence and Landslide
Bursting and overflowing of water tanks
Missile testing operations
Leakage from Automatic Sprinkler Installation
Bush Fire
EQ (Fire and Shock)
Temporary Removal of Stocks – Stock temporarily removed to any other premises for purposes of fabrication or processing or finishing or other similar purposes up to 10%
Architects, Surveyors and Consulting Engineers Fees ( in excess of 3% claim amount)
Removal of Debris (in excess of 1% claim amount)
Deterioration of Stocks in Cold Storage premises due to accidental power failure consequent to damage at the premises of Power Station due to an insured peril
Deterioration of stocks in cold storage premises due to change in temperature arising out of loss or damage to the cold storage machinery(ies) in the Insured’s premises due to operation of insured peril.
Forest Fire
Impact Damage due to Insured’s own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the like and articles dropped therefrom
Spontaneous Combustion
Omission to Insure additions, alteration or extensions
Spoilage Material Damage Cover
Leakage And Contamination Cover
Loss Of Rent clause
Insurance Of Additional Expenses of Rent For An Alternative Accommodation
Start up Expenses
War perils
Nuclear perils
Pollution or contamination
Bullions, unset precious stones work of arts etc,
Change in temperature in cold storage premises
Electrical risks payable under MBD
Architects’, surveyors’ fee in excess of limits stated
Consequential and indirect losses
Retardation, interruption or cessation of any process/operation
Theft following occurrence of any insured peril
EQ, Volcanic eruption etc.
Property removed to other locations
Sum Inured up to INR 10 cr per location– 5% of claim amount subject to a minimum of Rs 10,000/-
Sum Insured above INR 10 cr per location up to INR 100 cr per location - 5% of claim amount subject to a minimum of INR 25,000
Sum Insured above INR 100 cr and up to INR 1500 cr per location- 5% of claim amount subject to a minimum of INR 5 lakhs
Gross Profit Lost during interruption period following material damage for which the claim is admissible in the standard Fire and Special Perils Policy.
Important Exclusions are as per the fire policy stated above.
Excess: 7days Gross profit.
Machinery Breakdown Policy
Coverage: Sudden, unforeseen, and accidental damages to the machinery
Existing defects
Design defects
damage to belts, ropes, chains, rubber tyres, dies, moulds, blades, cutters, knives or exchangeable tools
Wear and tear, gradual deterioration
Maintenance Expenses / Parts exchanged during maintenance operation
Damage for which the manufacturers are responsible
Aesthetic defects like scratches
War /Nuclear perils
Consequential loss of any kind.
Excess: 1% of sum insured for each machine subject to a minimum of Rs 2,500/-
Coverage:
Gross Profit Lost during interruption period following material damage for which the claim is admissible under Machinery Breakdown Policy.
Excess: 14 days Gross profit.
1. Loss or damage by burglary or attempted burglary
2. damage caused to the premises by burglars are also covered
Theft without forcible Entry /Exit
War perils & nuclear perils
By using authorized Keys unless obtained by threat or assault
Caused or aggravated or assisted by the Insured, his family, his employees
Consequential loss
Goods held in trust unless specifically declared
Recoverable under other policies
Loss after material alterations
Coverage:
All Risks Policy – Damage to equipments by sudden and unforeseen cause,
Existing Defects
Wear and tear, gradual deterioration
Maintenance Expenses / Parts exchanged during maintenance operation
Damage for which the manufacturers are responsible
Aesthetic defects like scratches
War /Nuclear perils
Consequential loss of any kind.
Coverage
The Policy covers loss or damage to subject matter insured by whatever cause except those specifically excluded.
It covers any locations within the Geographical limit specified in the policy (normally within India and it can be worldwide also in exceptional cases)
The policy is subject to the usual condition of average
Unless specified indemnity for individual item is limited to 5% of sum insured
Pair and set clause is applicable.
War and nuclear perils
Cracking, scratching or breakage of glasses unless caused by accident to the carrying Vehicles
Depreciation, Wear and tear, moth, vermin etc:
Loss occasioned while cleaning, dying, repairing or restoration process
Electrical short circuit to electrical machines
Derangement or over winding of watches
Loss of money, securities, manuscripts or books of accounts and articles of consumable nature
Theft from unattended vehicles
Articles carried under contract of afrieghtment
Consequential losses and legal liabilities
Coverage
Pecuniary loss caused by infidelity of the employees.
The infidelity or fraud and dishonesty should have been in course of discharging specified duties and also in respect of money or goods entrusted to them.
Arising anywhere outside India
Arising after change of employment conditions without consent of insurers
Repeat losses involving same person
Deviations from accepted internal check system
Repeat losses involving same employees
Coverage:
Accident of misfortune whilst in transit and disbursements
Burglary and House Breaking after business hours
Shortage due to error or omission.
Loss of money entrusted to any other person other than the insured or his authorized employees
Infidelity of employees carrying cash
Overnight keeping unless in a locked safe or strong room
Loss occasioned by RSMTD
Money carried under contract of afrieghtment
All exclusions applicable to burglary policy
Package Policy - Section I Section I (Own Damage - OD) of Package Policy : Section I of package policy covers loss or damage to the vehicle and / or accessories due to
Accidental external means Fire Self ignition lightning Burglary house breaking or theft Terrorist activity Riot Strike and Malicious Damage Earthquake Flood cyclone and Inundation etc While in transit by rail road air elevator lift or inland waterways Landslide or workslide
None of the above perils can be excluded from the scope of a policy.
Loss or damage to accessories by burglary/house breaking/theft:
For private car it is covered In case of Motorized Two Wheelers this can be covered on payment of an additional premium at 3% of the IDV of such accessories. Loss or damage to Lamp Tyres mudguard and / or bonner side parts bumpers etc. can be covered on payment of additional premium. This is applicable only to Commercial Vehicles.
If the vehicle is disabled in an accident cover is provided for the reasonable cost of the following :
Its removal to nearest reapirers The cost of reasonable repairs immediately necessary subject to the limit provided for.
Package Policy - Section II
Section II ((Liability) of Package Policy :
Liability to third parties bodily injury and or death and property damage Personal accident cover for the owner driver for a specified sum insured The following are payable under Section II of the Package Policy subject to the limit of liability laid down in the Motor Vehicles Act :
The insured's legal liability for death / disability of third party Loss or damage to third party property Claimant's cost as decided by the court All costs and expenses incurred with company's written consent In case of death of an Insured person entitled to indemnity for a liability incurred under this policy his legal representative will be indemnified in place of insured if he observed all conditions as the insured himself.
What is not payable under the policy?
Contractual liability. War perils nuclear perils and drunken driving Consequential loss Depreciation Wear and tear mechanical or electrical break down Damage suffered due to driving the vehicle under the influence of intoxicating liquor or drugs Claims arising outside the geographical area specified in the policy Claims arising whilst the vehicle is used in contravention of the limitations as to use Claims arising when the vehicle is driven by a person without valid driving license
Under health insurance policy insurers will pay through TPA to the Hospital/ Nursing Home or the insured person the amount of such expenses as would fall under different heads mentioned below, and as are reasonably and necessarily incurred thereof by or on behalf of such Insured Person, but not exceeding the Sum Insured in aggregate mentioned in the schedule herein.
Room, Boarding Expenses as provided by the Hospital / nursing home Nursing Expenses Surgeon, Anaesthetist, Medical Practitioner, Consultants, Specialists Fees Anaesthesia, Blood, Oxygen, Operation Theatre Charges, surgical appliances, Medicines & Drugs, Diagnostic Materials and X-ray. Dialysis, Chemotherapy, Radiotherapy, Cost of Peacemaker, Artificial Limbs & Cost of organs and similar expenses.
(N.B: Company's Liability in respect of all claims admitted during the period of insurance shall not exceed the Sum Insured per person as mentioned in the schedule)
Expenses on Hospitalisation for minimum period of 24 hours are admissible. However, this time limit is not applied to specific treatments, such as Hysterectomy Varicose Vein Ligation Fracture/dislocation eye surgery
Or any other surgeries/procedures agreed by the TPA/Company which require less than 24 hours hospitalisation and for which prior approval from TPA/Company is mandatory. This condition will also not apply in case of stay in hospital of less than 24 hours provided -
The treatment is such that it necessitates hospitalisation and the procedure involves specialised infrastructural facilities available in hospitals. Due to technological advances hospitalisation is required for less than 24 hours only. They are carried out in Day Care Centre networked by TPAs where requirement of minimum number of beds is overlooked but having (i) fully equipped Operation Theatre, (ii) fully qualified Day Care Staff (c) fully qualified Surgeons/Post-Operative attending Doctors.
Note 1 : Procedures/treatments usually done in out patient department are not payable under the policy even if converted as an in-patient in the hospital for more than 24 hours or carried out in Day Care Centres.
Note 2: When treatment such as dialysis, Chemotherapy, Radiotherapy., etc is taken in the hospital / nursing home/Day-care centre and the insured is discharged on the same day the treatment will be considered to be taken under hospitalisation benefit section.
DOMICILIARY HOSPITALISATION BENEFIT means:- Medical treatment for a period exceeding three days for such illness / disease / injury which in the normal course would require care and treatment at a hospital / nursing home but actually taken whilst confined at home in India under any of the following circumstances namely:
The condition of the patient is such that he / she cannot be removed to the hospital / nursing home or The patient cannot be removed to Hospital / Nursing home for lack of accommodation therein
Subject however that domiciliary hospitalisation benefits shall not cover.
For AYUSH Treatment, hospitalisation expenses are admissible only when the treatment has been undergone in a Government Hospital or in any Institute recognised by the Government and/or accredited by Quality Council of India/National Accreditation Board on Health .
Coverage:
Legal liability towards third parties, arising out of accident, at the specified premises due to negligence of the Insured.
Liability assumed by agreements
AoG Perils, transportations and pollution
Deliberate non-compliance of statutory obligations
Pure Financial Losses ( loss of good will, market etc.
Personal Injuries like libel, slander etc.
Infringement of plans, copy rights
Fines and penalties
Motor Third party
Damage to Property under custody of insured
Liability prior to Retroactive date
A Type of Floating policy
To take care of frequent transit with considerable turnover
Sum insured normally representing annual turnover – can be enhanced from time to time to suit the requirement
Certificate can be issued for each dispatch/declaration Sum insured stands reduced gradually to the extent of dispatches declared
Policy ceases on expiry date or on exhaustion of the total sum insured whichever shall first occur
Limit per bottom and limit per location clearly specified
Basis of valuation specified
Rate of premium and terms of cover agreed in advance and remained unchanged throughout the policy period
Subject to cancellation with 30 days notice
On All Risks Basis as per the clauses specified below
Institute Cargo Clauses A
Institute Cargo Clauses (Air) Excluding Sending by Post)
Inland Transit Rail / Road Clauses A
Institute War clauses
Institute War clauses (Air Cargo)
Institute Strike Clauses
Institute Strike Clauses (Air Cargo)
SRCC Clause
Institute Classification Clause
Cargo ISM Endorsement
Cutting Clause
Important Notice
Willful misconduct of the Assured
Ordinary leakage, ordinary loss in weight/volume, or ordinary wear and tear of the subject matter insured.
Insufficient and unsuitability of packing
Inherent vise or nature of the subject matter
Delay even though caused by insured perils
Insolvency or financial default of the ship owners
Nuclear perils
Unseaworthiness and unfitness of the vessel/conveyance
© Copyrights, WellTech Insurance Brokers Pvt. Ltd.
CIN : U66000TN2015PTC100099 IRDAI REG No. 552 VALID UPTO: 10/03/2025
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