Shriram General Professional Indemnity Insurance

Features of Shriram General Professional Indemnity Insurance

Shriram General offers a specialised indemnity plan for professionals engaged in advisory, legal, financial, design, and consultancy services. These features define the scope and limits of coverage:

• Who It Covers: Chartered accountants, financial accountants, architects, interior designers, engineers, advocates, solicitors, and management consultants.
• Claims-Made Policy: Covers claims first made and reported during the policy period.
• Retroactive Coverage: Claims can be covered even if the act occurred before the policy started, provided it falls within the retroactive date specified in the schedule.
• Global Scope, Indian Law: While claims must be settled under Indian jurisdiction, errors or omissions can occur anywhere, as long as they relate to professional services.
• Indemnity Limit: Coverage includes legal defence expenses within the total sum insured. The limit applies per claim or a series of related claims.
• Compulsory Excess: The insured must bear 0.5% of the indemnity limit per year, subject to a minimum of ₹5,000 and a maximum of ₹1,00,000.

These features are structured to address real-world issues professionals face in India, such as design flaws, incorrect financial advice, or legal missteps.

Shriram General Professional Indemnity Insurance Inclusions

Shriram’s policy covers a range of scenarios commonly encountered by professionals. Here's what the insurance includes:

• Negligent Professional Acts: Financial losses due to errors, omissions, or advice that results in damage to a client.
• Legal Defence Costs: All costs of investigation, defence, or representation, if pre-approved by the insurer, are covered.
• Acts By Employees And Partners: Covers errors made by the insured, past firm owners (if listed), and employed individuals.
• Extended Claim Reporting Period: 90 days post-policy expiry for reporting claims from the insured period, if no renewal exists.
• Notification Clause: If an incident is reported during the policy period, any future claim related to that incident will still be honoured.

This inclusion list is beneficial for firms offering design, legal, or financial advisory services, as even a small misstep could trigger significant liability.

Shriram General Professional Indemnity Insurance Exclusions

Despite its broad scope, the policy excludes certain risks. Understanding these exclusions will help you manage expectations:

• Personal Injury: Libel, slander, wrongful eviction or arrest, defamation, or emotional distress.
• Intellectual Property Breaches: Infringement of patents, trademarks, trade secrets, and copyrights.
• Fraudulent or Criminal Acts: Dishonest or illegal actions by the insured or employees.
• Contractual Liability: If the liability arises solely due to a contract and not through statutory obligations.
• Data or Document Loss: Time, effort, or cost spent on recreating or recovering damaged documents.
• Employment Injuries: Injuries sustained by employees that fall under employment contracts or are covered under Workmen Compensation Insurance.
• Property Damage: Claims from damage to property owned, leased, or managed by the insured.
• Statutory Non-Compliance: Any deliberate breach of legal or regulatory norms.
• War, Terrorism and Nuclear Risks: Damages due to war, nuclear materials, or natural disasters like earthquakes or floods.
• Poor Quality Delivery: Loss of performance, profits, or production output not tied to a professional error.

Note: It's critical to read the exclusions carefully while buying the Shriram General Professional Indemnity Insurance policy. These clarify what will not be reimbursed, even if a claim is legally brought against you.

Shriram General Professional Indemnity Insurance Claim Process

Knowing the process for filing a claim under this policy is just as important as knowing what it covers. Here’s how to initiate a claim:

1. Immediate Notification: Inform Shriram General Insurance in writing as soon as a claim is made or if an incident occurs that could potentially lead to a claim.
2. Submit Documentation: Include the policy number, incident summary, all legal notices, and related communication.
3. No Admission of Liability: Do not admit fault or offer compensation without the insurer’s consent.
4. Insurer’s Right To Defend: The insurer may choose to take over the legal defence on your behalf.
5. Settlement or Rejection: The insurer will evaluate the documentation and either settle the claim or reject it based on the policy terms.
6. Deductible Adjustment: Approved claims will be paid after adjusting for the compulsory and voluntary excess amounts.

Shriram has a well-defined process with a dedicated grievance redressal team and support for senior citizens. Contact information and ombudsman details are mentioned in the policy wording for escalation, if required.

Shriram General Professional Indemnity Insurance: FAQs