The jewellers's block insurance policy does not cover cases of logistics company officials running away with the gold cargo while in transit or goods disappearing while the vehicle is left unattended by a logistics provider. The insurance policy covers transit related risk like theft, robbery, burglary, etc. Recently a logistics company official last week ran away with 11 kg of gold jewellery worth Rs 3.5 crore. The owner of the jewellery firm was not attended to either by the insurance company or the logistics provider. The jeweller must ensure a third-part fidelity policy to avoid such losses.
The insurance regulator IRDAI has directed insurance companies to provide live updates to policyholders on their claim settlement. At present, while insurers do send basic details of the claims, live updates are not provided. Upon claim intimation, policyholders/ claimants will be notified a unique claim reference number on their registered mobile number and e-mail id. The reference number can track live updates such as calling for further requirements, or arranging for a survey and finally admission or rejection of claims.
Unregistered auto dealers who sell motor insurance policies to people without a valid Motor Insurance Service Provider (MISP) licence could now be penalized by Insurance Regulatory and Development Authority of India (IRDAI). The penalty could be up to Rs five lakh. This will be applicable to all dealers selling motor insurance at the time of purchase of a vehicle. Motor third-party insurance is mandatory for all vehicles. Third party insurance provides coverage against liabilities of vehicle owners involved in accidents. There are a total of 25,000 dealerships in India.
At times, people may feel the need to discontinue their insurance policy for some reason. In case of term insurance plan, one can simply stop paying premiums and let the policy lapse. However, in case of endowment plans, which combine insurance and savings benefits, once can either convert the policy into a paid-up policy by not paying the premium after the mandatory period; or, surrender the policy (after paying a penalty) and get the surrender value from the insurer. In both cases, one must pay the premium until the end of the mandatory period or else lose all value.