Scope of Cover: The Clause ‘BG’ covers personal accompanied baggage of the insured and/or his family members travelling with him against the risks of their baggage being lost, destroyed or damaged by Accident, Fire or Theft.
Indemnity will be to the extent of the intrinsic value of the property so lost or destroyed with option at the discretion of the Company to reinstate or replace the property.
Company’s limit of liability is to the extent of the sum insured during the policy period.
Exclusions:
Unless specifically covered by the Company against extra premium, the insurance does not cover following items:
Camera Furs Mosaics Sewing Machines
China Ware Glass Items Musical instruments Trinkets
Clocks Gold articles Pictures Typewriters
Curios Gramophones Plate Glass Valuables
Cycles Jewellery Perishable goods Vacuum flasks
Field Glasses Laces Porcelain articles Watches
Fragile articles Marbles Silver articles
Following items are non-insurables, cash, coin, notes, bonds, securities, travel tickets, coupons, precious stones, deeds or negotiable instruments of any kind.
Loss of articles like sticks, umbrellas etc.
-Property in use on the voyage or journey
-Articles or clothes whilst being worn or carried loose.
Loss, damage or destruction from leakage, spilling or exuding of liquids, oils.
Loss, destruction or damage due to:
-Acts or omission of servants or agents
-Wear, tear, depreciation, deterioration
-Moth, Vermin
-Any process of cleaning, repairing, restoring
-War and allied perils, riots, strikes
-Nuclear exclusion
-Any consequential loss arising out of above
Additions:
-Baggage must be insured for its full value. In the event of under-insurance condition of average will apply.
-Concealment or misrepresentation of any material fact will affect the contract ab initio and premium paid will be forfeited.
-Subrogation clause and contribution clause.
-In the event of claim immediate notice should be given to the company as well as written notice holding the carrier responsible for the loss should be served on the carriers in writing with due acknowledgement. Proof of loss should be furnished to substantiate the claim.
-Arbitration clause (if difference shall arise as to the quantum of the claim).
-Time bar : 12 months from disclaimer, if no action is filed in court.
Declined Risks: Moneylenders, pawnbrokers, actors, actresses and other persons of doubtful occupations.
Underwriting Considerations: The policy is intended to cover accompanied baggage (not dealer’s stock or traveller’s samples) during a specified journey, which includes air, sea, rail or road travel undertaken by the insured.
Proposal form should be fully completed as regards description, contents and value of each package, Further, if jewellery, valuables and items listed in clause A of the exclusions are to be covered, then full description and individual values should be noted.
One of the most important point in Baggage insurance is to obtain cover for adequate value. Therefore, as far as is possible insist on a full inventory and individual valuation of each item. Whilst it is usual for average to apply to a Baggage policy, the scaling down of claims because of insufficient sum insured is unsatisfactory except in the most blatant cases, and causes more annoyance to the insured than benefit to the insurer. It is, therefore, better to ensure an adequate valuation at the time when the policy is effected. It is very important to insist on separate valuations for special items such as camera, watches, jewellery etc. in the overall valuation.
From cover given for baggage insurance it will be seen that practically any loss or damage can be the subject of claim even if arising from insured’s carelessness.
Further in the absence of documentary evidence supporting the loss, question of moral hazard is of prime importance as insurers have to rely on insured’s word & claim form submitted thereof.
Furthermore, claimant’s assessment is very much on higher side considering insured articles to be submitted thereof.
Taking into account above aspect this insurance should be given as accommodation risks to regular clients of integrity.
Any article in set must be subject to Pair & Set Clause.
On intimation of claim following aspects are of prime importance.
-Description of Pkg/contents coincides with proposal form/policy details.
-Necessary Police authorities duly informed.
-For Transit claim
-Whether relevant carriers/Hoteliers duly intimated in writing to enable insurer to follow up recovery.
-Steps of recovery followed up by respective branch.
-To ascertain whether loss is due to negligence of insured since this would be bad moral hazard.
Rate Guidelines: Per Rs.1000/- sum assured yearly premium would be Rs.3 Minimum premium is Rs.30/-.
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Short Period Rates
Period Premium in Rs. per
Rs.1000 Sum Assured
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1 week 4.00
3 weeks 6.00
1 month 8.00
2 months 10.00
3 months 12.50
4 months 15.00
5 months 17.50
6 months 20.00
7 months 22.50
8 months 25.00
9 months 27.50
Above 9 months 30.00