Introduction to Business Continuity Management

We live in an unpredictable world. No matter how effectively a business protects itself through insurance, there are always some risks that cannot be anticipated. With appropriate insurance, an organisation whose business has been interrupted by fire, flood, environmental damage, denial of access or terrorist action can always expect to recover part of the costs – typically the shortfall in gross profits for a specified period following the incident.

Insurance industry to be worth $400 bn by 2020

Insurance industry will outpace economicgrowth and is likely to reach $350-400 billion in terms of premium income by 2020, making it among the top three life insurance markets, an industry report revealed. India will also be among the top 15 non-life insurance markets by 2020, according to an industry study conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the US-based Boston Consulting Group.

FIXING OF SUM INSURED UNDER FIRE POLICIES

The sum insured is an extremely important aspect of a contract of insurance and it has been seen from experience that more often than not the sum insured is not fixed on a proper basis. In most of the claims, where proper indemnity could have been given had the sum insured been adequate, the losses stand proportionately reduced because of under insurance.