Textile Industry
India is one of the largest producers of textiles and apparel in the world. Consumers across the globe import textiles from India due to the high-quality fabric used and the affordable cost. The textile industry is the second-largest employment provider in India after the agriculture industry.
Why Insurance For Textile Industries
Insuring risks inherent in textile manufacturing is a specialization in its own right. It is structured differently and requires a specific treatment of risk underwriting and management and, often, a different approach to settlement of large and complex claims.
In addition to conventional natural hazards insurance and liability insurance, a well-designed insurance programme treats risks from their potential source (prevention, elimination) to recovery. Configuring the insurance and its special terms ahead of time helps the party affected by a production downtime spring back to full operation in no time
The insurance for textile industries must be taken to overcome the losses which can be occur anytime for example
- Risk of damage to property and assets due to fire or any other peril
- Risk of life of employee working in industry
- Credit risk
- Risk of transportation of material
- Risk of surrounding liability
- Risk of pollution
- Risk of loss of profit
- Risk of employer liability
- Risk of product default which can cause harm to consumer
- Risk of injuries to workers and labours working in industiries
Insurance for Textile industries
There are many insurance which can be taken by textile industries to prevent, eliminate and overcome the losses following some insurance are mentioned below
- Fire insurance for property and assets-To overcome the financial loss suffered by industry due to fire and other perils
- Loss of profit insurance-This policy covers the diminished profits and continuing fixed expenditures if your company stops or slows down its operations due damages caused by fire or additional coverages
- Insurance for boiler and pressure plant- It is a policy which covers: Damage (other than by fire) to the boiler or pressure vessel described in the schedule hereto and to other property of the insured.
- EEI and MBD insurance for breakdown in plant and machineries-EEI Policy protects the Owner, Lessor or Hirer (where responsible either legally or through a leasing agreement) of electronic equipments. EEI Policy is Suitable for all electronic equipments (some examples): • Computer and allied peripherals. • Auxilliary equipments like UPS, Voltage Stabilizer etc
- Credit insurance-Credit Insurance is a type of insurance policy that is used to pay off existing debts in cases such as death, disability and in some cases, unemployment. Credit insurance protects the policyholder from the lender from the borrower’s inability to repay the loan or debt due to various reasons.
- Fidelity guarantee insurance-A fidelity insurance is a form of business insurance that offers an employer protection against losses that are caused by its employees’ fraudulent or dishonest actions. Also known as an honesty bond, this form of insurance can protect against monetary or physical losses.
- Burglary insurance-Burglary insurance is an important insurance policy for textile property in order to build a resilient business. It covers unlawful damages caused to the assets like furniture, fixtures, machinery, equipment etc., inside the business premises
- Marine insurance -Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination.
- Money insurance-Money Insurance Policy is essential to protect you and your business in case of theft, loss, or accidental damage of your money either when it’s in a safe or in transit
- Public liability (industrial)-Public Liability (Industrial) Insurance offers cover for third party liabilities (Bodily Injury / Property Damage) arising out of the premises and operations of the Insured and legal costs incurred in connection therewith.
- Commercial general liability-Commercial General Liability (CGL) insurance protects business owners against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising)
Empolyee benefit insurance for textile ind employee’s
- Workman compensation policy-The Workmen’s Compensation policy enables the employer to pay the compensation to the employees or for their family in case of death or bodily injury (permanent partial disablement / permanent total disablement / temporary disablement) caused due to injury and accident at workplace
- Group Mediclaim policy-Group mediclaim insurance is a type of health insurance plan that can be used to cover a group of individuals usually employees of an organisation. These plans can also be used to cover other kinds of groups as well, such as associations, corporate bodies, institutions, and so on
- Group Personal accident policy-Group Personal Accident Insurance protects its members against accident leading to disability or death. It is commonly available as corporate group insurance for employees/ owner/ board members of a company.
- Group Term life policy-A group term life insurance plan refers to a life insurance plan that covers a group of people for a specified term or period in exchange for a fixed rate of premium payment. It provides life coverage to a group of people and pays compensation to the group member’s family if he/she dies during the policy term.
- Group Annuity policy-A group annuity is an insurance policy that pays out benefits to a group of people, typically retirees. The employer pays the premiums for a group annuity; the benefits are typically paid over the retiree’s lifetime
Addon for Textile Industries
- EXPENSES FOR LOSSMINIMIZATION / LOSS PREVENTION – to cover the costs and expenses reasonably incurred by the insured with Company’s prior written consent in reducing, mitigating or otherwise alleviating physical loss, destruction or damage to Property insured during and after the occurrence of an insured event
- Temporary repair-To cover the cost actually incurred by the Insured following Damage, in making temporary repairs to any of the property and erecting temporary buildings in place of any of the said property
- Fire fighting expenses=To cover the actual cost of material used and/or damaged in extinguishing or controlling or attempting to extinguish or control any such fire; ii. the cost of all clothing and/ or personal effects damaged and / or lost as a result of such fire and / or fight, extinguish or controlling or attempting to fight extinguish or control such fire unless more specifically insured elsewhere; iii. all other actual expense(including wages and the like paid for fire fighting, extinguishing or controlling or attempting to fight extinguish or control such fire and / or localizing such fire.
- Expediting Expense-This Policy covers the reasonable and necessary costs incurred to pay for the temporary repair of insured damage to insured property and to expedite the permanent repair or replacement of such damaged property.
- Escalation cover-this cover in fire insurance allows for increase in sum insured to cover any unexpected cost which may arise from fluctuations it simply means that the increased price is covered in the policy
- Brand and trademark clause-In the event of loss or damage by a peril insured against to property bearing a brand or trademark or which in any way carries or implies the guarantee or responsibility of the manufacturer or Insured, the salvage value of such damaged property shall be determined after removal in the customary manner of all such brands or trademarks or other identifying characteristics
- Spontanious combustion-Destruction or damage caused to the insured property due to natural heating, fermentation, or spontaneous combustion
- Contamination and co-mingling of stocks-Policy extends to cover loss or damage to stocks as a result of contamination and/or co-mingling whilst in the Insured’s care, custody or control, subject to a limit as specified in the Schedule.
- 72 hour’s clause-It is hereby declared and agreed that any loss of or damage to the Insured Property arising during any one period of seventy two (72) consecutive hours, caused by storm, tempest, flood or earthquake shall be deemed as a single event and therefore to constitute one occurrence with regard to the Excesses provided for herein
- Spoilage of material-The Spoilage Material Damage Cover will pay for the loss or damage to Stocks in Process, machinery, equipment containers etc. The add on cover will also pay for debris removal expenses and expenses for cleaning of machinery
- Impact damage-Impact damage insurance provides cover for when something impacts or collides with your property. This means your existing buildings and contents insurance policy should cover the cost of repairs or the cost of replacement items