Create Insurance Policy – A summary of the activity
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This activity allows you to select and create an insurance policy for an asset. You can also define the premium payment pattern. This activity also allows you to define insurance companies that issue the insurance policy. You can record your comments regarding the need for the policy.
Fixed assets that are prone to risks caused by natural calamities, accidents or any unforeseen events are insured to reduce the high monetary risks involved. An insurance policy is raised based on the value of the asset and the percentage of risk that it is exposed to. The estimation of the risk is based on the business requirements of an organization. The assets are covered by different policies.
The value, for which an asset is to be insured, is derived based on the “Net Book Value” of the asset, the “Insurable Value” of the asset or the “Original Cost” of the asset. An insurance premium is calculated based on the value for which the asset is insured. A payment pattern for the premium is also defined. On authorization of the policy the system generates a sundry payment voucher for the payment of the insurance.
This activity also facilitates you to retrieve the asset information from an external source, which could be an MS-Excel work sheet or an external database.
Getting familiar with the pages inside
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Create Insurance Policy |
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Payment Information |
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Create Insurance Company |
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Attach Notes |
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Edit Insurance Policy |
What you can do in this activity
Upload asset details from an external source
Maintain a temporary asset list before a policy
Retrieve assets from the temporary list
Covering an asset under different policy types
Facility to apportion blanket payments
Creation of insurance companies
A number of assets can be attached to a policy. Assets, that are in “Active” status and that have been capitalized can be retrieved from the “Asset Capitalization” business component for creating insurance policies. An asset can be covered under multiple policies of different policy types. The system maintains a count of the number of policies that cover an asset. As and when a policy is raised, the policy count of the asset is increased accordingly.
Go to “Create Insurance Policy” page.
Select the status of the asset tag that you want to retrieve.
Upload asset details from an external source
Assets with insurance details can be retrieved and attached to a policy from an external source. This external source could be an MS-Excel sheet or an external database also.
Go to “Create Insurance Policy” page.
Select the method in which you want to retrieve the asset details.
Maintain a temporary asset list before a policy
Multiple searches can be carried out to add assets to a policy. The search results are stored temporarily before creating the policy. The additional assets selected after every search are appended to a list, which can be retrieved to create policy.
Go to “Create Insurance Policy” page.
Search and select the assets that you want to add to the temporary list.
Retrieve assets from the temporary list
Assets that have been added to a temporary list can be retrieved while creating the policy.
Go to “Create Insurance Policy” page.
Retrieve the assets that have been already added to the temporary list.
Covering an asset under different policy types
An asset can be covered under different policies at the same time if the type of the policy is different in each case. For example, an asset can be covered under policy number “P12567” for damages against fire and covered again under policy number “P97687” for damages during transit from one place to another.
Go to “Create Insurance Policy” page.
Select the type of policy under which the asset must be covered.
Facility to apportion blanket payments
Premium payments made against a policy is apportioned for the assets attached to the policy. You can also enter the premium amounts for one or two of the assets and allow the system to apportion the balance amount among the other selected assets.
Go to “Create Insurance Policy” page.
Creation of insurance companies
You can define new insurance companies. Insurance companies will be available for selection immediately after creation.
Go to “Create Insurance Company” page.
Enter the necessary information
Any terms and conditions governing the policy and the special clauses covered by the policy can be tracked. Along with this any other comments pertaining to the policy can also be entered.
Go to “Attach Notes” page.
Enter the necessary information.
The payment schedule for the payment of the premium can be defined if a blanket payment has not been made towards the premium due for the policy. The system calculates dates on which the premium is due and the amount due as premium. The system generates a sundry payment voucher in the “Fresh” status for the premium payment.
Go to “Payment Information” page.
Enter the necessary information.