Manufacturing Sector Insurance Plans in India 2023

What is Manufacturing Sector Insurance?

Manufacturing sector insurance plan is designed to protect the interests of manufacturing company owners. Various perils would cause damage or loss to the manufacturing sector and are covered under the manufacturing insurance plans. Manufacturing insurance plans cover property damage, liability towards third parties for bodily injury and property damage, employees’ hospitalization expenses, and liability towards employees for death and disabilities. The new addition to the manufacturing sector insurance is the Cyber insurance policy which covers the business’s liability in case of a data breach involving the customers’ sensitive and secret information or the company’s sensitive information needed for day-to-day operations.

Types of Manufacturing Business Insurance Policies in India:

There are many perils which would cause the cessation of operations in the manufacturing industry, such as artificial perils, natural calamities, cyber attacks etc., and there are specific perils which would result in bodily injury of employees as well as third parties in addition to the property damage which are covered under the manufacturing insurance plans.

Product Liability Insurance (PI)

The product liability insurance is intended to provide indemnity to the insured against claims arising from bodily injury or property damage caused to the clients from the product’s usage. The insured’s product can cause damage to the user in the form of bodily injury or property damage, which would then be compensated by the insurance company on behalf of the insured.

Coverage & Highlights:

• The policy covers all expenses, including the defense costs incurred by the insured for fighting the court cases.
• The legal liability of the insured arising out of the accidental death or bodily injury of the third party due to the usage of the product
• Legal liability arises from accidental damage to a third party’s property due to the insured’s product.
• The insured is liable for damages arising from any defects in the product manufactured by the insured and removed from the premises of the insurance company.
• Insurance coverage is offered according to a basis of claims, i.e., the policy will pay coverage for loss or injury when the claim is initially submitted or reported during the period of coverage. 
• Coverage for claims made on a retroactive date in which the incidents happened before the current policy term would be covered under the policy.
• Global Liability extension in which the liability arising out of court rulings or settlements can be covered in any part of the World. 
• The term “limited vendor’s liability” refers to the responsibility arising from the distribution and sale of insured named products from vendors who comply with the original conditions for product usage that the manufacturer sets forth.
• Export coverage, even if domestic production is protected
• Technical collaborator’s liability extensions

Exclusions:

• Charges and expenses resulting from product recall because of any defect or defect that the product may have will not be covered under the policy. TATA AIG has a product recall liability insurance policy to cover this liability. 
• Willful, deliberate or purposeful non-compliance with the lawful provisions.
• Pure financial losses such as loss of goodwill and loss or market share. 
• Costs associated with repairing or modifying parts that are defective in the item.

Steps to Buy:

Step 1: The first step is to visit the webpage of Ethika insurance broking and click on the get quote option. This will redirect you to enter the basic details, after which you will receive a call from the Product liability insurance experts of Ethika insurance. 

Step 2: The next step is to give the details of the home you are willing to insure. Details of the insured, such as contact details, name, occupation etc., Details of the business, such as the Address of the property, Sum insured, period of insurance required etc. should be given to generate the best quote. 

Step 3: The next step is to pay and get the Product Liability insurance policy. Get the best Product Liability insurance quote now. 

FAQs:

What is the difference between product liability and product recall liability insurance policy?

Product liability covers the losses or damages, such as bodily injury or property damage arising out of product usage after the product has left the premises of the manufacturing company. In contrast, the product recall insurance policy covers the financial losses arising from recalling the product due to defects in the product.

Who should take product liability insurance?

Any manufacturing company manufacturing or providing any product can purchase product liability insurance to cover the losses or damages resulting from using their product. Hotels, food product manufacturing, toy manufacturing, automobile, and electronic companies can take product liability insurance.

Is it advisable to take retroactive product liability insurance policy?

The Retroactive product liability insurance policy covers the claims that arise before the current policy commencement date. It is very important to have retroactive date coverage as the claims may not be reported as and when they arise and if the insured is not having a product liability coverage during the period when the event has occurred.

Workmen’s Compensation Insurance

The Workmen’s insurance policy for compensation is a liability insurance policy that will cover employers’ legal obligations in accordance with the Workmen’s Compensation Act of 1923 and the Fatal Accidents Act of 1855.

Coverage & Highlights:

• In case of death and disability of an employee, the policy would pay compensation to the deceased’s family on the employer’s behalf. 
• In case of permanent partial, total or temporary disability, the policy will compensate the employee on the employer’s behalf. 
• A serious injury or accident resulting in the worker’s death or disablement would be protected in the Workmen’s insurance policy. 
• Ailment or illness resulting from work from employment or on the job would be covered by the Workers’ insurance policy.
• The policy also covers the medical expenditure incurred by the employee due to occupational diseases, compressed air disease or injury suffered at the workplace. 
• Subcontractor cover, medical extension cover, terrorism cover, personal accident cover and communicable diseases cover can be taken as an add-on.

Exclusions:

• All injuries or death for employees outside of the scope of their employment is not covered according to the Workers’ Compensation policy.
• The employer isn’t required to provide compensation if an injury results from non-observance of the rules in the workplace.
• Injuries suffered during employment under the influence of drugs or liquor are not admissible under the workmen’s compensation policy.
• The policy does not cover the injuries caused due to self-attempted suicide or injury by the employee. 
• The policy only covers the full-time employees of the company. If any third-party workers are injured at the workplace, that would not be covered under the policy. 
• The workers’ compensation policy will not cover employees who suffer injuries due to conflict or invasion.

Steps to Buy:

Step 1: The first step is to visit the webpage of Ethika insurance broking and click on the get quote option. This will redirect you to enter the basic details, after which you will receive a call from the EAR insurance experts of Ethika Insurance. 

Step 2: The next step is to give the details of the home you are willing to insure. Details of the insured such as contact details, name, occupation etc, Details of the property such as Address of the property, Market value /Sum insured, period of insurance required etc. should be given to generate the best quote. 

Step 3: The next step is to make the payment and get the EAR insurance policy. Get the best home insurance quote now.

FAQs

What does Medical Extension add on cover?

This add-on insurance policy covers the workers in the event they need to be hospitalized due to sickness, illness, or accident.

Is it mandatory to take Workmen’s compensation policy?

Yes. It is mandatory to take Workmen’s compensation policy as per the Workmen’s Act which makes the employer legally liable to pay compensation for any bodily injuries suffered by the employees at the workplace or during the scope of employment.

How is Sum Insured calculated in a Workmen compensation policy?

The sum insured represents the limit to responsibility under the workers’ insurance policy. The amount insured is determined based on the wage of workers over the duration of the insurance and the total number of workers covered under the workmen’s insurance policy.

Machinery Breakdown Insurance (MBD)

Machinery or equipment breakdown insurance is a policy designed to cover the costs incurred to repair or replace the machinery or equipment due to an insured peril. Machinery breakdown insurance is very much required in a manufacturing company as the manufacturing process requires machines to operate without any issues.

Coverage & Highlights:

• Losses arise from all types of accidental, electrical and mechanical breakdowns resulting from internal or external causes. 
• The insurance coverage applies when the machine is operating, being removed, rebuilt or dismantled during its subsequent reconstruction at the same location.
• Covers any unforeseen physical damage to machinery and or equipment
• Losses or damages due to faulty design are covered
• Faults at the workshop
• Losses arising out of defects in casting faulty operations or lack of skill
• Losses arising out of negligence 
• Air freight to replace the damaged product
• Express freight (including air freight) to replace the damaged product, overtime and holiday wages. 
• Cover can be extended to cover the insured’s surrounding property.
• Third-party liability
• We are tearing apart the machinery because centrifugal forces acted during the accident. 
• Short circuit and other electrical issues.

Exclusions:

• Fire, lightning, chemical explosion
• Burglary and theft
• Earthquake, Subsidence, Landslide
• The impact of land borne or waterborne craft
• General wear and tear
• War and allied war-like perils
• Deliberate attempts or willful acts resulting in loss
• Faults or defects for which the supplier is responsible 
• Nuclear reaction and other allied perils

Steps to Buy:

Step 1: The first step is to visit the webpage of Ethika insurance broking and click on the get quote option. This will redirect you to enter the basic details, after which you will receive a call from the Machinery Breakdown experts of Ethika Insurance. 

Step 2: The next step is to give the details of your home you are willing to insure. Details of the insured such as contact details, name, occupation etc, Details of the property such as Address of the property, Market value /Sum insured, period of insurance required etc. should be given to generate the best quote. 

Step 3: The next step is to make the payment and get the Machinery Breakdown insurance policy. Get the best Machinery Breakdown insurance quote now.

FAQs:

What types of machines can be covered under MBD policy?

Any machine successfully tested and commissioned for normal use can be covered under the MBD policy. Machines include turbines, compressors, air conditioners, pumps, lathe machines etc.

Can certain parts of a machine be insured under MDB policy?

No. The entire machine should be insured under the MBD policy. Insured can decide to insure only a few machines, but the machine should be insured as a whole.

Who can take machinery breakdown insurance policy?

Any manufacturing unit having machinery can take the machinery breakdown insurance policy for the preferred machines in the company.

Top Manufacturing Business Insurance Plans in India 2023