nlimited insurance is a general insurance contract where the maximum limit of the units sum assured covering the risk is not specified. For the first time in the history of general insurance in India, the Oriental General insurance Co and the insurance broking firm, jardine insurance, Consultants, designed a policy of unlimited liability for their , client ANZ -Grindlays Custodial Services . Under this plan , ANZ Custodial service . Under this plan, ANZ, Custodies during the currency of the policy could raise claims for any amount which should be limited to Rs. 2.5 crores per claim, that is ANZ in total could raise claims for an infinite amount. One of the conditions was that the ANZ Custodies are to absorb.
The loses for the
first Rs. 2 lakhs for each claim, which
is not covered by the contract. The contract covers the operations of the ANZ Custodial securities
, including the replacement of lost shares. CLAIM SETTLEMENT OPERATIONS:
In a contract of general insurance , there are three types of claims.
The Standard claims are those that are
typical and fit into the terms and
conditions of the contract, and the
insurers face no hassles in
settling such claims. The Non-standard claims are those that need a closer examination as the insured is believed
to have contravened certain
claims terms of the contractors or the warranty. The insurer subject to certain
conditions and political framed
by the company , may settle such claims. The
third party is the Ex-gratia
Payment made by the insurer as a matter
of gratis though the claims is prima facie not
admissible. As far as general insurance claims are concerned the claimant
has to serve a notice on the insurer intimating the loss and the amount of claim.
This notice
has to be issued at the earliest or
within the time stipulated by the insurance company . It may be mentioned that are the reach of
general insurance is very wide and there are special requirements
for the settlement of claims depending
upon the subject matter of
insurance. Immediately on receipt of the claim
intimation the insurance company
should be clearly intimate the insured
about the procedures to be
followed by the claimant . And wherever
a surveyor’s report is required
to assess the loss, such surveyor’s have
to be appointed with 72 hours from the date of the receipt
of the claim intimation from the
assured. As surveyors are independent
professionals, the insured may
also appoints his or her own surveyor to
surveyors to ensure that the losses are properly assessed without any bias. The surveyors
so appointed Is required to
submit the report assessing the loss the insurance company with a copy to the insured if she/he so
desires within 30 days
of his appointment .
Wherever the surveyor needs more time due to the special nature or complications of the claim,
the surveyor , under intimations to the
insured may seek for an extension of time.
The investigations by the surveyors consider
the following aspects. The examinations of the loss with reference to the terms and conditions of the contract.
By looking into the proximate
cause for the loss-causing event
to examine whether the loss is
covered by an insured peril or an excepted peril. Depending upon the nature of the peril that caused the event , the surveyors is to determine with whom lies the onus of
proof , with the insured . If they the loss is due to any excepted peril, the onus of proof lies
with the insurer. Examinations as
to whether the insured had abided by the terms and conditions of the contract and the compliance of warranties. The loss minimizations measures
initiated by the insured,.
Determinations of the claim amount with reference to the value
of the salvage, applicability of
the conditions of contributions and subrogation , pro data and the text extent of insurable
interest of the claimant on the
property affected.