•  Health Insurance

One of the most important types of insurance to have is health insurance. Your good health is what allows you to work and earn money and otherwise enjoy life. If you were to come down with a sickness or have an accident without health insurance you may find yourself unable to receive treatment or even in debt to the hospital.

Thankfully, many employers provide health insurance benefits to full-time and even some part-time employees. If you do not currently have health insuranceHELPING YOU PLAN FOR TOMORROW Page 9 of 18

coverage this is the first place to check as it will generally be the most affordable. If you are married, you may both be able to receive coverage under just one of the employer plans.

If your employer does not offer health insurance or you are self-employed you still need it. While it may not be cheap the fact remains; what do you have if you don’t have your health? Even a basic hospital bill without insurance can run into the thousands of dollars. It isn’t worth risking financial ruin to save a few bucks on a health insurance premium.

  •  Life Insurance

Your life is valuable because it is what allows you to work and earn an income to provide for your family. When you are gone you create an income gap which could put your spouse or children in financial trouble.

Death is hard enough; don’t make it even harder by putting your loved ones in a financial jam if the unfortunate does happen. Funerals alone can be expensive and it creates even more stress on the family. At the very least you should have enough to cover basic funeral expenses and provide a cushion for your family, and at most it should provide a stream of income for your family that can replace what is now gone.

If you do not currently have life insurance your best bet is to check with your employer first. Many employers offer a basic life insurance as a benefit and some even allow you to purchase additional coverage at a very affordable rate. Outside of employer plans there are hundreds of insurance companies that can provide the right coverage for you.

Property Insurance

One type of policy that for most people that is actually mandatory to have is homeowners insurance when you have a mortgage. If you borrow money from the bank to purchase a home they will require the asset to be insured. For many people this insurance premium is built into the mortgage payment. For many people their home is their greatest asset so it is vital to adequately protect it.

If you rent instead of own, a renter’s insurance policy is just as important. Your belongings inside the dwelling can add up to a significant amount of money. In theHELPING YOU PLAN FOR TOMORROW Page 10 of 18

event of a burglary, fire or disaster you should be able to at least have a policy that can cover most of the replacement costs.

  •  Motor Insurance

Another type of policy that is often required is Motor insurance (Commercial and Private). Most states require by law that you have basic Motor insurance. While it may be a law, too many people still drive around without it.

The most common reason to have motor insurance is to cover the replacement of an expensive and if it gets damaged you want to be able to repair or replace it. But there is more to motor insurance than just covering the car itself.

Most automotive insurance policies cover bodily injury or death of another person in an incident that you are legally responsible. While it generally pays for medical expenses related to the incident it can also cover legal defense costs. You will also generally find medical payment coverage that pays for medical treatment for you and your passengers during an accident regardless of who was at fault.

  •  Liability Insurance

A part of the general insurance system of risk financing to protect the purchaser (the “insured”) from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.

Originally, individuals or companies that faced a common peril formed a group and created a self-help fund out of which to pay compensation should any member incur loss (in other words, a mutual insurance arrangement). The modern system relies on dedicated carriers, usually for-profit; to offer protection against specified perils in consideration of a premium.

Liability insurance is designed to offer specific protection against third party insurance claims, i.e., payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract. In general, damage caused intentionally as well as contractual liability are not covered under liability insurance policies. When a claim is made, the insurance carrier has the duty (and right) to defend the insured. The legal costs of a defense normally do notHELPING YOU PLAN FOR TOMORROW Page 11 of 18

affect policy limits unless the policy expressly states otherwise; this default rule is useful because defense costs tend to soar when cases go to trial.

Types of liability insurance are Public liability, Employers liability, Product liability, Professional liability and Third party liability.

  • Marine Insurance

Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.

Cargo insurance discussed here is a sub-branch of marine insurance, though Marine also includes Onshore and Offshore exposed property, (container terminals, ports, oil platforms, pipelines), Hull, Marine Casualty, and Marine Liability. When goods are transported by mail or courier, shipping insurance is used instead.

  •  Engineering Insurance

Engineering insurance refers to the insurance that provides economic safeguard to the risks faced by the ongoing construction project, installation project, and machines and equipment in project operation. Product categories: Depending on the project, it can be divided into construction project all risks insurance and installation project all risks insuranc; depending on the attribute of the object, it can be divided into project all risks insuranc, and machinery breakdown insurance.

Under Engineering insurance there is;

Election all risk insurance(EAR): EAR insurance provides a very wide and comprehensive insurance cover to the client in respect of any sort of contingency from the moment the material is unloaded at the site of the project and continues during storage, physical erection commissioning, testing and maintenance (if covered). Since the duration of the cover can be as long as 36 months or even more,HELPING YOU PLAN FOR TOMORROW Page 12 of 18

care must be taken while negotiating the proposal as well as assessing the moral hazard of the client.

Machinery breakdown insurance (MB) Machinery Breakdown insurance was developed to grant industry effective insurance cover for expensive plant, machinery and mechanical equipment. This insurance is important for everyone who operates the machines. This policy should support our property insurance and hence this insurance must not be granted on a stand – alone basis

Constructors all risk insurance(CAR): Although a CAR policy may be taken by the principal or by the contractor, but usually, under the terms of the agreement between the contractor and the principal, it is obligatory on part of the contractor to effect a CAR insurance in their joint names before the commencement of the project.

The sum insured under the policy must not be less than the full value of the contract works at the completion of contract inclusive of all materials, wages, freight, custom duties, construction cost and material or items supplied by the principal.

Boiler And Pressure Plant (BPP) This policy covers explosion of boilers and pressure plants but does not cover rupture of tubes inside the boilers. Both these perils can be covered under MB policy and hence we should wherever possible include this in our MB portfolio since it would practically mean granting extra cov er within the scope of tariff provisions.

It can be broadly classified under two categories for the purpose of insurance cover.

Chemical Explosions

It is a matter of common knowledge that gun powder, similar explosive compound could cause explosion under the influence of mechanical or thermal shocks. Highly inflammable fluids and dusts can cause explosions if theirHELPING YOU PLAN FOR TOMORROW Page 13 of 18

concentration in the atmosphere exceeds the explosive limits. From the insurance concept, these explosions are considered as very rapid form of combustion.

Physical Explosions

In respect of pressure vessels handling inert fluids such as steam, explosion can occur due to variation in fluid pressure. The variation being only in physical form and there no chemical reaction or changes responsible for such explosions as such these are classified as Physical Explosions.

Contractor’s Plant & Machinery (CPM) Whilst it is possible to have the Contractor’s plant and machinery covered under an EAR or CAR policy at specific project sites, CPM policy has been designed to provide a cover on an annual basis to a contractor who may be using his plant and machinery at different projects during the course of the year. The cover under a CPM policy is not limited to a specific project site and is operative at all sites wherever the plant and machinery is in use and even while the same is lying at the contractor’s own premises. We therefore have to ensure that all the sites where the insured items are being used are mentioned on the face of the policy.

Computer and Electronic Equipment, The Electronic Equipments such as computers, Micro – processors, Word – processors, Tele – communication equipments. Machine meant for medical use and other misc. Equipments like films, television studio equipments can be covered under this policy. This scope of this policy is ALL RISK.

  •  Bond Insurance

Bond insurance (also known as “financial guarantee insurance”) is a type of insurance whereby an insurance company guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or security. As compensation for its insurance, the insurer is paid a premium (as a lump sum or in installments) by the issuer or owner of theHELPING YOU PLAN FOR TOMORROW Page 14 of 18

security to be insured. Bond insurance is a form of “credit enhancement” that generally results in the rating of the insured security being the higher of (i) the claims-paying rating of the insurer and (ii) the rating the bond would have without insurance (also known as the “underlying” or “shadow” rating).

  •  Travel Insurance(Business and leisure)

Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally or within one’s own country.

Travel insurance can usually be arranged at the time of the booking of a trip to cover exactly the duration of that trip, or a “multi-trip” policy can cover an unlimited number of trips within a set time frame. Some policies offer lower and higher medical-expense options; the higher ones are chiefly for countries that have extremely high medical costs, such as the USA