The following table gives you an idea about these two companies and their differences.

Before exploring the benefits of corporate insurance, let’s understand why IRDAI (Insurance Regulatory and Development Authority of India) mandates medical insurance for all employees.

The COVID-19 pandemic has been a global wake-up call that showed how much a health crisis can affect everyone. It has also made us realize how important it is to focus on staying healthy. Because of this, organizations like the IRDAI have taken important steps to improve health protection.

According to a circular from 2020 by the IRDAI, having medical insurance for employees has become mandatory for companies/businesses/workplaces. After the lockdown, businesses were directed to follow a ‘Standard Operating Procedure’ to resume operations, and part of this protocol specifically involved offering insurance to employees.

There are 3 primary reasons behind these mandatory protocols.

1. It ensures that employees have enough financial coverage for healthcare, including hospitalization and treatments.

2. To promote preventive care with check-ups, vaccinations, and wellness programs, and fostering proactive well-being.

3. Making health insurance mandatory for employees is also a strategic move by IRDAI to increase insurance penetration in the country.

This decision is to help employees financially and encourage them to stay healthy. This decision shows that IRDAI is looking at the big picture and learning from what happened during the COVID-19 pandemic.

The basic principles of marine insurance in India follow global standards, highlighting the essential concepts to protect individuals involved in maritime trade. Although the details can differ among policies, the six major principles that one should never forget are as follows:

1. Principle Of Indemnity:

In marine insurance, the indemnity principle ensures that the insured person is compensated for actual financial losses due to damage or loss. The aim is to restore them to their pre-loss financial state without allowing extra profit from the insurance. That’s why the compensation is limited to the actual value or the policy amount, preventing excessive payouts and discouraging fraudulent claims.

Damage claims are settled by calculating the depreciation value, which is obtained by comparing damaged goods’ value with their original value on the sale date, by using the same date to avoid market price fluctuations. This method simplifies the payment process without directly replacing or restoring the cargo.

2. Principle Of Insurable Interest:

This is another important basic principle of marine insurance, under which individuals can only get insurance if the policyholders have a real stake in the goods or property being shipped (if they get damaged or lost). This can be the ownership of the goods, a financial investment, or a legal obligation tied to the safe arrival of the cargo.

For example, an XYZ company bringing in goods by sea can get insurance because their money depends on the goods arriving safely. Thus, the person getting insured should have a legal connection to the objects being shipped.

In business, when goods might be bought or sold during transit, having an insurable interest is crucial. Without insurable interest, the insurance might be void because the person buying it wouldn’t genuinely care about the well-being of what’s insured. Also note that the ‘Marine Insurance Act’ allows owners to claim losses for goods insured as “lost or not lost”, even if they didn’t own the goods when getting insurance but became owners later. But if they knew about the loss when getting insurance, they can’t claim.

3. Principle Of Good Faith:

The principle of good faith, also known as ‘uberrimae fidei’, means being totally honest and open between the person getting insurance and the insurance company. Both sides must act in good faith by giving complete, accurate, and truthful information about what’s being insured and what are the risks. This principle ensures transparency and trust in the marine insurance system, especially when today the maritime environment is so unpredictable.

Breaches of the ‘good faith’ principle in marine insurance come in four types: non-disclosure, concealment, innocent misrepresentation, and fraudulent misrepresentation. Non-disclosure and concealment are passive breaches, while innocent and fraudulent misrepresentation are active breaches. If the insured fails to disclose material facts, the insurer may have grounds to void the policy, denying coverage for the claim. Similarly, if the insurer acts in bad faith, it may face legal consequences, including potential liability for damages.

4. Principle Of Proximate Cause:

Another significant basic principle of marine insurance is the principle of proximate cause which identifies the main or direct reason for a loss or damage. It pinpoints the specific peril or event that initiated a series of events, resulting in the ultimate loss.

Suppose a ship faces rough seas due to a heavy storm, causing it to take on water and damage the cargo. In this case, the storm is likely deemed the proximate cause, even if there was a mechanical issue contributing to the damage. The storm initiated the chain of events leading to the loss.

Recognizing the proximate cause is crucial for both the insured and the insurer when figuring out coverage and liability. It’s important to note that the proximate cause isn’t always the one closest in time; rather, it’s the dominant, effective, and operative reason behind the loss.

5. Principle Of Subrogation:

The subrogation in the principles of marine insurance refers to the right of the insurer, after settling a claim, to pursue legal actions against third parties responsible for the loss. The principle is like a fairness rule in insurance, which means that if the insurance company pays the policyholders for a loss, they can’t make extra money from that loss. Instead, the rights and remedies for that loss shift to the insurer, who compensates the policyholders.

When the insurer pays for a total loss, they get ownership rights through abandonment. If the property is recovered, they keep all the proceeds, assuming full coverage and no risk to the insured. Additionally, if the loss results from the negligence of a third party, against whom the insured has a legal claim, then the insurer has the right to inherit any compensation that the insured may receive from such cases. This principle applies to both total and partial losses and is separate from abandonment. It ensures fairness by avoiding double benefits for the insured and allows the insurer to receive funds paid to the insured, thus, maintaining a balanced financial responsibility.

6. Principle Of Contribution:

Sometimes, a single risk can be insured by multiple insurance providers. In such situations, the principle of contribution states that each insurer is responsible for contributing a portion of the claim. Put simply, each insurer shares the responsibility of paying the claim according to the proportion of the coverage they offer.

This principle of marine insurance serves to prevent the insured from receiving excessive compensation. Without this principle, the insured could potentially recover more than the actual loss by making claims under each policy. By ensuring a fair and balanced distribution of the financial burden among insurers, the ‘contribution principle’ aligns with the core principle of indemnity.

Let’s consider an example!

Suppose you have started a small catering business. It runs with a small team and limited financial resources. If a guest slips and gets injured at an event, liability insurance for your small business will come to rescue you.

Here’s how!

• It will cover legal costs and settlements for potential lawsuits, preventing significant financial strain.

• It will provide access to legal help, guiding you through legal complexities.

• It will act as a protective shield, letting your business focus on services without worrying about legal challenges.

• Many venues or clients require liability insurance, and not having it can lead to lost opportunities and contracts.

This example highlights how liability insurance is more than financial protection. It offers a safety net, legal assistance, and credibility, all of which are crucial for small businesses, ensuring they can navigate challenges with confidence and continue to grow.

Here are some of the most important reasons why you need appropriate car insurance for your electric car:

Mandated By Law:

As per the Motor Vehicle Act of 1988, it is a legal requirement in India to purchase car insurance, irrespective of its type. Therefore, having an electric car insurance policy ensures compliance with the law and keeps you on the right side of it.

If caught without valid insurance, you may face legal consequences such as fines, penalties, or even the suspension of your driving license. Additionally, authorities have the right to seize and impound your car in such cases. This can result in additional expenses for car release and further legal complications.

Protection Against Third-Party Liabilities:

If your insured e-car causes damage or injury to others or their property in an accident, the e-car insurance policy will cover the associated costs, such as medical expenses, rehabilitation costs, property repair or replacement costs, and more.

Apart from financial protection, the insurance also offers legal protection to the car owner. It reduces the burden of potential lawsuits by covering legal expenses and court fees, ensuring that you can defend your case adequately.

Specialized/Tailored Coverage:

Electric cars, with complex parts like high-voltage batteries and advanced electronics, need special insurance. Regular insurance might not cover the repair and replacement costs of these specialized components. Thus, electric car insurance offers tailored coverage to meet the specific needs of EVs, providing financial protection for these high-tech parts.

Specifically speaking, the battery is a crucial and expensive component of an electric car that may degrade over time or encounter issues, requiring repairs or replacements. E-car insurance often includes coverage for battery-related expenses, helping owners manage the significant costs associated with maintaining or replacing this essential component.

Addressing Range Anxiety:

‘Range anxiety’ is the worry that electric vehicle owners have about not having enough battery range to reach their destination or the next charging station. India’s vast geography and lack of EV charging stations make the problem even worse because the significant distances between the charging points can worry the e-car owners. 

Electric car insurance can play a role in addressing such anxieties. It may offer roadside assistance services that specifically cater to range-related issues. Some plans may also include coverage for alternative transportation in case of charging delays or unexpected breakdowns. All such supports ensure peace of mind and timely action in case of emergencies.

Discounts By Government:

The Ministry of Road Transport and Highways drafted a note in 2022 regarding the third-party premium rates of various classes of vehicles. As per the note, a 15% discount will be given on the third-party insurance premium for electric vehicles, including private cars and two-wheelers. 

The premium rates for private cars are mentioned in the table below and they are effective from 1st April 2022!

Here is the list of the circumstances under which you can apply for a duplicate DL in India. 

• Loss of a driving License 

If you are one of those individuals who have misplaced or lost their original driver’s license can apply for a duplicate license.

• Replacement Due to Destruction or Photograph Replacement 

Secondly, if the driver’s license is damaged or destroyed or your DL’s photo has completely vanished, then you can apply for a duplicate DL in such cases. 

• Expired DL

If you are an individual whose driving license has expired, then you can apply for a duplicate to enjoy your driving. 

• Update of Personal Details 

If you are one of the individuals who need to update personal details on their driver’s license such as a change of address or name, then you can apply for a duplicate one with the updated information. 

• Issuance of RTO/RTA in Absence of the Original License 

Lastly, if you are among individuals who do not possess their original driving license and require the RTO to issue a duplicate one.