Case Studies

Fire and Allied Perils Insurance

SCPD Chemicals unit located at Vapi, Gujarat was destroyed due to a massive fire in December 2016. The company estimated the loss on account of damage to their building, plant & machinery and stocks etc to be around Rs.3.50 crores. Most clients routinely do take adequate insurance policies to protect themselves from fire and related perils. However, SCPD had, based on our advice, taken an additional policy called “Business Interruption Insurance” which protects them from the loss of Gross Profit following such incidents. The factory which shut down in December has still not resumed normalcy in operations since their suppliers for critical imported machinery have projected a lead time of 4 – 5 months. The impact, in terms of reduction in Gross Profits, is estimated to be around Rs.8 crores, much higher than the physical loss/damage. SCPD is adequately protected because they heeded our advice.

Credit Insurance

RK Rubbers & Synthetics is a small trading company engaged in import and redistribution of specialty chemicals pertaining to the rubber industry. Their annual sales for 2016 – 2017 is approximately Rs.40 crores. Almost 90% of the sales is on credit terms (90 days). Recently, one of their buyers in Vijayawada defaulted and was unable to honour their commitments on 3 invoices totaling Rs.36 lakhs. RK Rubbers has, however, been buying a Credit Insurance policy since 2011 and they were able to lodge this as a claim under their Credit Insurance policy. The insurer, upon notification, began the process and was able to recover the entire amount from the defaulting buyer.

Public Liability Insurance

Western Engineers, a partnership firm, approached us seeking a Product Liability insurance cover. Product Liability is a very useful cover that protects the policy holder from legal liability arising from death/bodily injury due to a defective product. (A good example is the case of exploding Samsung Galaxy Note 7 which attracted worldwide attention). We asked Western Engineers to tell us in detail what their product was. It turned out that they were importers & distributors for electrical machinery manufactured in Germany. We advised them to ask the German manufacturer to get the name of Western Engineers included as the Vendor under the Product Liability policy that the German company would already have. Doing so, W.E saved a lot of money – at Amicus, we believe that we are gatekeepers of our clients’ money and always look out to eliminating wasteful expenditure.