World Print Hub webinar demystifies insurance

On 12 January, Mumbai Mudrak Sangh and World Print Hub conducted a webinar on Fire Insurance in India: Types, Coverage, Claim and Exclusions where Dhananjay Date made a hour-long presentation.

Date helped the attendees grasp the basic concepts. He said, "insurance is a public fund which spreads risk." He added, "If more people contribute to the public fund, then lower is the cost of contribution." Therefore the spreading of risk can be between a group of people or over geographical locations.

Date shared with the delegates that the aim is to put anybody who has suffered a setback back into the position as the person was before the calamity. He said, "Insurance is based on utmost good faith and is parking of funds for a promise." He told the audience that "We need insurance when there is a claim - not otherwise."

He spoke about the types of insurance policy. He stressed that it should be based on "reinstatement value and not market value". Also he cautioned the audience that "the policy should not be under insured, otherwise there will be a problem while settling the claim."

Date explained the terms "excess" and "franchise" in insurance. He shared the definition of the terms: Excess means insurance will pay the claim amount less the excess amount limit set; and franchise is a provision whereby the insurer will not pay unless the damage exceeds the franchise amount set.

Also, he spoke about how to approach the IRDA regulatory body with a case with respect to the insurance issuance which is not complied with. Date mentioned that the value of claim is settled by IRDA or there is an Insurance Ombudsman.

Another important intervention was about loss of profits as well as consequential loss and business interruption policy. date cautioned the online gathering that "it cannot be taken on its own. It has to be taken as an endorsement to the main policy."

He implored the gathering to ensure that "the period of indemnity has to be defined." Also everyone should maintain formal documentation of eMails and a written form of communication with the insurer.

His presentation was followed by a Q&A session during which delegates shared their problems; and Date provided "easy-to-grasp solutions".

Dhananjay Date has worked with New India Assurance corporation and has headed the Swiss Reinsurance corporation. Apart from that, he was on the merit list of the Indian Air Force Officers’ Selection Course and appointed pilot officer. At present, he sits on the board of Kotak Insurance.